What is the difference between stock insurance companies and mutual in

QUESTION

What is the difference between stock insurance companies and mutual insurance companies?

What will be an ideal response?

ANSWER

Answer: Stock insurance companies are private insurers providing insurance to policyholders and earning profits for shareholders. Mutual insurance companies are nonprofit private insurers owned by their insurance policyholders, to whom they pay dividends or for whom they reduce premiums.
Explanation: Examples of stock insurance companies are Aetna, Allstate, American Family Insurance, Farmers, Hartford, MetLife, Pacific Life, Prudential, State Farm, and Travelers. Examples of mutual insurance companies are Liberty Mutual, Massachusetts Mutual, Mutual of Omaha, Nationwide Mutual, and Northwestern Mutual.