Constitutional Corporation is a mutual insurance company.The company has had a good year,with the amount of premiums exceeding the amount of claims by a significant amount.This is likely to result in an):

Question

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When a mutual insurance company has a surplus of premiums over claims, they may reduce premiums for policyholders or distribute a dividend payment to policyholders. This is because mutual insurers are owned by their policyholders, not stockholders, meaning any excess income can be returned to policyholders in the form of reduced premiums or dividend payments.

Constitutional Corporation Is a Mutual Insurance Company