2. Compare a stock insurer to a mutual insurer with respect to each of the following: a. Parties who legally own the company b. Right to assess policyholders additional premiums c. Right of policyholders to elect the board of directors

2.a. The policyholders who make up a mutual insurer elect a board of directors, who subsequently have effective managerial control over the business. A corporation owned by stockholders is a stock insurer. b. Right to charge policyholders higher premiums: Mutual insurers, as opposed to stock insurers, are allowed to issue assessable policies, though it depends on the type of insurer that is currently in force. Stock insurers are not allowed to do so. c. Mutual policyholders have the right to choose the board of directors, who then have real managerial authority. Owners of mutual policies elect the board of directors, as opposed to stockholders.