- Study guides, Class notes & Summaries

An insured purchased an insurance policy 5 years ago. Last year, she received a dividend check from the insurance company that was not taxable. This year, she did not receive a check from the insurer. From what type of insurer did the insured purchase the policy? A. Mutual B. Reciprocal C. Nonprofit service organization D. Stock The answer is: A. Mutual Funds not paid out after paying claims and other operating costs are returned to the policy owners in the form of a dividend. If all fu...

An insured purchased an insurance policy 5 years ago. Last year, she received a dividend check from the insurance company that was not taxable. This year, she did not receive a check from the insurer. From what type of insurer did the insured purchase the policy? A. Mutual B. Reciprocal C. Nonprofit service organization D. Stock The answer is: A. Mutual Funds not paid out after paying claims and other operating costs are returned to the policy owners in the form of a dividend. If all fu...