Which type of insurance company may issue non-participating policies?

Stock insurance companies may issue non-participating policies because they are owned by shareholders who expect to earn profits from their investments. In non-participating policies, policyholders do not receive dividends based on the company’s performance. Instead, these policies provide a fixed benefit and the company retains any surplus earnings to distribute to shareholders.

In contrast, mutual insurance companies are owned by policyholders who may receive dividends, as these policies are typically participating policies. Fraternal benefit societies and reciprocal insurance exchanges also have different structures and do not primarily offer non-participating policies. Therefore, stock insurance companies are uniquely positioned to issue non-participating policies due to their profit-driven model.