Florida Life and Health Insurance License Practice Test

A stock life insurance company issuing both participating and nonparticipating policies operates on what plan?

1. A mixed plan

2. A stock plan

3. A mutual plan

4. A dual-choice plan

The correct answer is: A mixed plan

A stock life insurance company issuing both participating and nonparticipating policies does not operate on a stock plan, as that would only involve issuing nonparticipating policies. It also does not operate on a mutual plan, as that would only involve issuing participating policies. It is not a dual-choice plan, as that refers to a plan that allows policyholders to switch between participating and nonparticipating policies. A mixed plan is the most appropriate answer, as it encompasses both participating and nonparticipating policies.