What type of insurers are owned by their stockholders?

Capital Stock Insurers are companies that are owned by stockholders. This structure means that individuals or entities who invest in the insurer purchase shares of the company and thus have a financial interest in its profitability and governance. The primary goal of capital stock insurers is to generate profit for their shareholders, which can be distributed in the form of dividends or reinvested into the company.

In contrast to this, mutual insurers are owned by policyholders rather than stockholders, meaning the policies themselves benefit the members of the mutual organization. Fraternal benefit societies and Health Maintenance Organizations (HMOs) have different structural models that focus on providing specific benefits to members, rather than focusing on profit for stockholders. Understanding these distinctions is crucial for recognizing how different types of insurers operate within the health insurance landscape.