What distinguishes a mutual insurance company from a stock insurance company?

A mutual insurance company is distinct from a stock insurance company primarily based on ownership structure. In a mutual insurance company, the entity is owned by its policyholders. This means that the policyowners have a direct stake in the company; they can vote on certain company decisions and may receive dividends based on the company's performance.

In contrast, a stock insurance company is owned by stockholders who have invested capital in the company. These stockholders may or may not be policyholders and are primarily interested in returns on their investments rather than the interests of the policyholders.

The other options do not accurately describe the key distinction between these two types of insurance companies. Not all mutual insurance companies exclusively insure commercial properties, and they do not solely offer life insurance policies; they can provide a range of insurance products, including property and casualty insurance. The ownership structure remains the fundamental difference, making the understanding of mutual ownership essential in insurance and risk management concepts.