Why Are Some Mutual Insurers Referred to as "Assessment Mutuals

question 22

Multiple Choice

Why are some mutual insurers referred to as "assessment mutuals"?

• A)They charge low premiums because the loss exposures of their insureds are thoroughly assessed before a policy is written.
• B)They are noted for being very thorough in their assessment of investment opportunities.
• C)They are assessed for state premium taxes only if they make a profit.
• D)They can assess policyowners if premiums are insufficient to pay losses and expenses.

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Definitions:

Illegal Trade

The exchange of goods or services that is forbidden by law, regulations, or treaty.

Representative Government

A system of governance where citizens elect officials to represent their interests in a legislative or decision-making body.

Colonial Americans

Individuals living in the American colonies before the United States declared independence from Britain, including both European settlers and Indigenous peoples.

Colonial Assembly

A legislative body in a colony, primarily in the British colonies, which represented the colonists and had some powers over local matters and legislation.