Question

Which statement is correct regarding stock life insurance companies?

A) A stock company sells participating policies.

B) A stock company always charges higher premiums than mutual companies.

C) A stock company generally sells nonparticipating (non par) policies.

D) A policyholder participates in the profit or loss of the company.

Answer 1

C) a stock company generally sells nonparticipating(non par) policies

Answer 2

The correct option is C.
Stock life insurance company is a type of company that provides life and disability insurance to their customers. Stock life insurance is usually of short  term duration and stock life insurance company sell non participating insurance policies. Non participating insurance policy refers to the type of insurance policy in which the holders are not entitled to enjoy payment of dividend from the insurance company.