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:

Degrees Celsius

A unit of temperature measurement in the metric system where water freezes at 0 degrees and boils at 100 degrees under standard atmospheric conditions.

CFCs

Chlorofluorocarbons, a group of odorless manufactured chemicals that damage the Earth's ozone layer and have been phased out in many applications due to environmental concerns.

Mean Surface Temperature

The average temperature of a planet's surface, calculated from a wide range of locations and times, indicative of its climate health.

Ozone

A molecule composed of three oxygen atoms, known for its role in absorbing ultraviolet solar radiation in the stratosphere, thus protecting the earth from harmful UV rays.