Which of the following statements about mutual insurers is true? Group of answer choices They are legally organized as partnerships They are owned by their stockholders They have a board of directors which is selected by state insurance departments They may pay dividends to their policyholders.

It is True that mutual insurers may pay dividends to their policy owners.

Explanation:

A mutual insurance agency is an insurance agency claimed altogether by its policyholders. Any benefits earned by a common insurance agency are either held inside the organization or discounted to policyholders as profit appropriations or diminished future premiums.

Its policyholders possess a standard insurance agency. Surplus might be appropriated to policyholders as profits or held by the backup plan in return for decreases in future premiums.