What type of policyholders may receive dividends from a mutual company?

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Dividends from a mutual insurance company are typically distributed to policyholders based on the company's underwriting gains, investment income, and overall financial performance. Because mutual companies are owned by their policyholders, this means that any profits generated can be returned to them in the form of dividends.

In a mutual insurance company, policyholders who hold life insurance, health insurance, or any other type of insurance policy are all considered members of the company. Consequently, they are eligible to receive dividends, which reflects a share in the overall success of the company. This feature is one of the key distinctions between mutual insurance companies and stock insurance companies, where only stockholders may receive dividends based on their equity in the company rather than policy performance.

Therefore, all policyholders of a mutual insurance company, regardless of the type of insurance they hold, may receive dividends, making it the correct choice.

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