Who might receive dividends from a mutual insurer quizlet?

Insurance is also issued by fraternal benefit societies, which have existed in the United States for more than a
century.

Fraternal societies, noted primarily for their social, charitable, and benevolent activities, have memberships
based on religious, national, or ethnic lines.

Fraternals first began offering insurance to meet the needs of their poorer members, funding the benefits on a pure assessment basis.

Today, few fraternals rely on an assessment system, most having adopted the same advanced funding approach other insurers use.

To be characterized as a
fraternal benefit society, the organization must be nonprofit, have a lodge system that includes ritualistic work, and maintain a representative form of government with elected officers.

Fraternals must be formed for reasons other than obtaining insurance.

Most fraternals today issue group and annuities with many of the same provisions found in policies issued by commercial insurers.

Stock insurers are managed by a board of directors, who are chosen by the company stockholders.

Stock insurers have a capital fund, surplus and reserves which are financially supported by the company's stockholders. Stock insurers do pay dividends to their stockholders. Unlike mutual insurers, stock insurers do not pay dividends to policyholders. Stock insurers are managed by a board of directors, who are chosen by the stockholders. Finally, the process of mutualiztion occurs when a stock insurer is transformed into a mutual insurer.

Who might receive dividends from a mutual insurer?

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