A stock insurance company issues shares of stock, which are owned by shareholders who may or may not be customers of the company. Stock companies are governed by a board of directors that is elected by the shareholders.

A mutual insurance company is an insurance company organized for the mutual protection and benefit of its members and others who have beneficial interests in insurance policies and annuity contracts issued by the company. Its members are the policyowners who hold insurance policies or annuity contracts issued by the company.

Every policyowner has certain rights as a member of the company. Those membership rights include the right to vote on certain matters, such as the election of directors to the board.

In addition, policyowners who own participating policies are eligible to share in the company's financial success by receiving policy dividends.