A stock insurance company is owned by its:

The correct answer is that a stock insurance company is owned by its shareholders. This structure means that the company is a for-profit entity, and its ownership is represented through shares of stock. Shareholders invest in the company and typically have the right to vote on important corporate decisions, such as the election of the board of directors.

In the context of a stock insurance company, the policyownership rests primarily with these shareholders rather than the policyholders. This distinguishes stock insurance companies from mutual insurance companies, which are owned by their policyholders. Since policyholders in a stock insurance company do not have ownership rights or voting privileges, they are not considered the owners, even though their premiums contribute to the company’s profits. The primary objective for a stock insurance company is to generate returns for its shareholders, aligning the interests of ownership and investment; thus, it is the shareholders who ultimately own the company.