GK
INSURANCE AWARENESS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Mutual Insurance Company
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Composite Insurer
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Service Provider
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None of the Above
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Detailed explanation-1: -An insurance company owned by its policyholders is a mutual insurance company. A mutual insurance company provides insurance coverage to its members and policyholders at or near cost. Any profits from premiums and investments are distributed to its members via dividends or a reduction in premiums.
Detailed explanation-2: -In the simplest terms, it means the policyholders mutually own the company. When you purchase a policy from a mutual medical professional liability insurance company, you receive an ownership stake in that company, just as you do when you buy stock or invest in a mutual fund.
Detailed explanation-3: -Large mutual insurers in the U.S. include Northwestern Mutual, Guardian Life, Penn Mutual, and Mutual of Omaha.