Georgia Laws and Rules Practice Exam 2025 - Free Georgia Laws Practice Questions and Study Guide

Question: 1 / 400

Who owns a stock insurance company?

Policyholders

The state government

Its stockholders

A stock insurance company is owned by its stockholders, who hold shares of the company’s stock. This structure allows the company to raise capital by issuing stock and typically aims to earn a profit for its investors. The ownership by stockholders means that the company operates for the benefit of its shareholders, who may or may not be policyholders themselves.

In contrast, mutual insurance companies are owned by their policyholders, who have a direct interest in the administration and profits of the insurance provider. This distinction underscores the primary difference between stock and mutual insurance companies.

The state government and the insurance commissioner do not hold ownership interests in stock insurance companies. Their roles are regulatory, overseeing the operations and compliance of these entities to ensure they are fair and financially sound.

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The insurance commissioner

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