Life insurance policyholders typically receive dividends from

Question

Quizplus · Accepted Answer

Dividends are typically paid out by mutual insurance companies. This is because policyholders of mutual insurance companies are also owners and, as the company earns profits, these profits can be distributed to policyholders as dividends. Stock insurance companies are owned by shareholders, so profits are typically distributed to shareholders in the form of dividends, rather than policyholders.

Life Insurance Policyholders Typically Receive Dividends from