In this insurers' corporate structure, company officers are appointed by a board of directors that is elected by policyowners.The stated purpose of the organization is to provide low-cost insurance rather than to make a profit for stockholders.Identify the corporate structure in discussion.

Question

Quizplus · Accepted Answer

Mutual insurers are owned by their policyholders, not by stockholders, and their primary purpose is to provide insurance at a lower cost rather than to generate profits for shareholders. The policyowners have voting rights to elect the board of directors.

In This Insurers' Corporate Structure, Company Officers Are Appointed by a Board