Which of the following statements is false?
A) Assessment mutuals provide primarily fire and windstorm insurance.
B) A stock insurance company is a profit-making venture in both life and property insurance.
C) Dividends are paid to stockholders of stock companies.
D) In stock companies, non-insured stockholders bear none of the risk of loss.

Question

Quizplus · Accepted Answer

Non-insured stockholders of stock companies do not bear any risk of loss by definition, so the statement is true. Therefore, the false statement is (D) which implies that they would bear some risk of loss.

Which of the Following Statements Is False