New Jersey Life Insurance Exam Practice Question
A domestic stock insurance company is owned by its
Correct Answer: A
Rationale: A domestic stock insurance company is owned by its stockholders, who invest capital in the company and expect returns through dividends and stock appreciation.
Option B, policyholders, refers to mutual insurance companies, which are owned by those who hold policies, not stockholders.
Option C, parent company, is incorrect as stock insurance companies operate independently and are not owned by a parent entity.
Option D, employees, misrepresents ownership, as employees may have roles in management but do not hold ownership stakes in the company.
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