Insurers can be classified by who owns the company. Most insurers fall into three main types:
- Corporations owned by stockholders who, like any other publicly traded company, do not necessarily participate in the business by owning a policy
- Policies are nonparticipating because policyholders do not own a share of the company or receive dividends; dividends paid to shareholders are taxable
- Companies owned by policyholders and not investors
- Policies are participating, since policyholders own the company and receive dividends; dividends paid to policyholders are not taxable
Fraternal Benefit Societies
- Any incorporated society order or supreme lodge, without capital stock, conducted solely for the benefit of its members and their beneficiaries and not for profit.