General Insurance
How do stock and mutual insurance companies differ in ownership and distributions?
Answer and explanation
Answer: C. Shareholders own a stock company and receive taxable dividends, while policyowners own a mutual and may receive policy dividends treated as a return of premium. Mutual policies are participating and stock policies are usually nonparticipating.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, stock and mutual companies
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