Which type of insurance company allows their policyowners to elect a governing body?

Mutual companies are structured to allow policyowners to participate in the governance of the company. This means that the policyowners have the right to elect a board of directors, making decisions that can directly impact the management and policies of the company. One of the defining characteristics of a mutual company is that it is owned by its policyholders, who are also its customers. As a result, any profits made by the mutual company may be returned to the policyholders in the form of dividends or reduced premiums.

In contrast, stock companies are owned by shareholders. These shareholders do not necessarily have to be policyholders, and they typically elect their own board of directors to oversee the company. Fraternal organizations often operate similarly to mutual companies but are specifically designed for members of a particular group or society. Nonprofit organizations don't typically sell insurance directly but may provide insurance as a secondary service, and they do not usually involve policyowners in governance in the same way that mutual companies do.

The governance structure of mutual companies is designed to ensure that the interests of the policyholders are prioritized, distinguishing them from other types of insurance organizations.