What is not a feature of assessment mutual companies?

Assessment mutual companies are distinct entities in the insurance industry, particularly in how they manage premiums and losses. One of their key features is that they charge premiums based on the risks associated with the insured individuals and the overall pool of members. This allows for a tailored approach to risk assessment.

Another important characteristic is that assessment mutual companies may utilize their surplus to cover excessive losses, ensuring that the financial stability of the company and the protection of policyholders are maintained. This method reflects a commitment to supporting their members, particularly in times of unexpected claims.

They are owned by policyowners, which means that the policyholders have a say in how the company is run and may also benefit from any profits that are distributed back to them.

The aspect stated in the correct choice revolves around the idea that assessment mutual companies can indeed adjust premiums based on losses incurred. This flexibility allows these companies to remain viable and provide coverage effectively, which highlights that they are not restricted from increasing premiums due to losses, making them adaptable to changing financial conditions.