Policyholders' Dividend refers to the distribution of profits to policyholders in a mutual insurance company, primarily as a return of excess premium paid.
An Insurance Company, also known as an Insurer, is an organization that evaluates, underwrites, and issues insurance policies to policyholders. There are two principal types of insurance companies: Mutual and Stock companies. This entry elaborates on their distinctions, operations, and profit distribution.
A Mutual Company is a corporation whose ownership and profits are distributed among its members in proportion to the business they conduct with the company. They include mutual insurance companies, mutual savings banks, and federal savings and loan associations.
Detailed explanation of mutual companies, their operational mechanisms, and advantages. Explore the unique aspects of mutual companies compared to other business forms.
