Florida Life and Health Insurance License Practice Test

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Prepare for the Florida Life and Health Insurance License Test. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

Who is a mutual insurance company owned by?

Its policyholders
Its shareholders
The government
A private owner

The correct answer is: Its policyholders

A mutual insurance company is owned solely by its policyholders, who are also its customers. This structure allows the company to focus on providing the best insurance coverage and rates for its policyholders, rather than maximizing profits for shareholders or private owners. Option B is incorrect because shareholders only profit from the success of the company, while option C is incorrect as the company is not government-owned. Option D is incorrect because a private owner would have full control and ownership of the company, rather than it being owned by its policyholders.