Which Statement Is Correct Regarding Mutual Insurance Companies

question 54

Multiple Choice

Which statement is correct regarding mutual insurance companies?

• A) Mutual insurance companies have stockholders.
• B) Nearly all mutual companies issue only nonparticipating policies.
• C) Premiums are lower than those offered by stock companies.
• D) Mutual companies do not declare policy dividends.
• E) A mutual company refunds part of the premium to the policyholders.

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Definitions:

Cultural Backgrounds

The cultural experiences, practices, languages, values, and worldviews that shape an individual's identity and perceptions, influenced by the society and community they are raised in.

Poverty

Poverty is a state or condition in which a person or community lacks the financial resources and essentials for a minimum standard of living.

Races

Socially constructed categories that classify humans based on physical characteristics, ancestry, historical affiliations, or cultural aspects.

Ethical Guidelines

Standards of conduct that guide individuals' behavior within a profession, ensuring integrity, fairness, and respect towards others.