Which of the following is NOT a characteristic of mutual insurance companies?

Mutual insurance companies are distinct in that they are owned by their policyholders rather than stockholders. This ownership structure allows policyholders to have a direct say in the company's operations, including the election of the governing body. Furthermore, mutual insurance companies are designed to operate for the benefit of their policyholders, which is a fundamental characteristic that reinforces their commitment to serving those who hold policies with them. Additionally, these companies may provide dividends to policyholders when they experience financial gains, sharing the rewards of their successful management directly with the individuals who are part of the company.

The recognition that mutual insurance companies do not have stockholders is key to understanding their structure. Instead, their profits are meant to enhance the benefits provided to the policyholders, thereby further emphasizing the alignment of interests between the company and its members.