A Mutual Insurance company is

Question

Question: A Mutual Insurance company is

Options:

1.  An insurer that may pay dividends to policyholders
2.  Owned by shareholders who purchase stock in the business
3.  A non-profit business organization
4.  Not required to file a statutory accounting statement with the insurance commissioner
5.  Required to abide by a file and use provision in order to set new premium rates

Answer 1

1. An insurer that may pay dividends to policyholders

A mutual insurance company is an insurer that may pay dividends to policyholders.

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More information:

A mutual insurance company is an insurance company owned by policyholders. The sole purpose is to provide insurance for its members and policyholders.

The company may pay dividends to policyholders.