Which of the following statements pertaining to life insurance companies is CORRECT?

Which of the following statements pertaining to life insurance companies is CORRECT?




A) Mutual insurance companies sell insurance to insurers.

B) The primary purpose of a life insurance company that is organized as a stock company is to earn a profit for its stockholders.

C) If a life insurance company is owned by its policyowners, it is a stock company.

D) A stock company that issues both participating and nonparticipating life insurance policies is classified as a full lines company.



Answer: B) The primary purpose of a life insurance company that is organized as a stock company is to earn a profit for its stockholders.

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