What is a stock insurance company?
A stock insurance company is a corporation owned by its stockholders or shareholders, and its objective is to make a profit for them. Policyholders do not directly share in the profits or losses of the company.
Who owns a stock insurance company quizlet?
A stock insurance company is owned by its shareholders and distributes profits to shareholders in the form of dividends. A mutual insurance company is owned by its policyholders.
What is the main difference between a stock insurance company and a mutual insurance company?
The major difference between mutuals and stock insurance companies is their ownership structure. A mutual insurance company is owned by its policyholders, while a stock insurance company is owned by its shareholders and can be either privately held or publicly traded.
What is an insurance company quizlet?
Insurance Companies (IC's) the primary function of insurance companies is to compensate policyholders if a pre specified event occurs, in exchange for premiums paid. -sell a variety of investment products similar to other FI's. insurance underwriters. assess and price risk.