Question 10008 of 287 · Texas Life, Accident and Health Agent Exam

A stock insurer differs from a mutual insurer in that a stock insurer

Exactly one answer is correct.

Ais owned by shareholders and is operated to make a profit
Bis owned by policyowners and returns surplus as dividends, unless the applicant requests otherwise in writing
Cis owned by the state
Dis a fraternal benefit society

Show solution

Correct answer to question 10008

A: is owned by shareholders and is operated to make a profit

Explanation

A mutual is owned by its policyowners. A stock company's profits go to stockholders.