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Dafna1 [17]
2 years ago
9

Compare a stock insurer to a mutual insurer with respect to each of the following: a. Parties who legally own the company b. Rig

ht to assess policyholders additional premiums c. Right of policyholders to elect the board of directors
Business
1 answer:
jasenka [17]2 years ago
4 0

Answer:

Explanation:

a. Parties who legally own the company

The kind of corporation that is owned by the shareholders is a stock insurer. While when policy holders elect board of directors then that is call a mutual insurer. This board of director enjoys control over the management control of the corporation.

b. Right to assess policyholders additional premiums

An asses sable policy can not be issued by the stock insurers, however policy of such kind can be issued by the mutual insurer. For mutual insurer, this policy depends on what kind of insurer is in place.

c. Right of policyholders to elect the board of directors

For stock insurer, its is the stockholders who elect the board of directors. While for mutual insurer, its the owners who elect the board of directors who have an effective control over the management.

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3 years ago
Read 2 more answers
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