Stock insurance companies are owned by:

Stock insurance companies are owned by:

• A. Policyholders.
• B. The government.
• C. Stockholders who purchase shares.
• D. Fraternal organizations.

Answer: (C)

Stock insurance companies are owned by stockholders who purchase shares in the company. Those owners elect the board of directors and receive profits as dividends or through appreciation in share value, while policyholders do not own the company and generally do not participate in profits. This distinguishes them from mutual insurers, which are owned by the policyowners and may share profits with them via participating policies. Fraternal organizations operate under a member-owned, non-stock model, and government ownership applies to government-run programs rather than private stock insurers.

Stock insurance companies are owned by stockholders who purchase shares in the company. Those owners elect the board of directors and receive profits as dividends or through appreciation in share value, while policyholders do not own the company and generally do not participate in profits. This distinguishes them from mutual insurers, which are owned by the policyowners and may share profits with them via participating policies. Fraternal organizations operate under a member-owned, non-stock model, and government ownership applies to government-run programs rather than private stock insurers.