What defines a mutual insurance company?

A mutual insurance company is defined as one that is owned by its policyholders. This ownership structure means that the individuals who purchase insurance from the mutual company also have a stake in the organization's success and decision-making processes. Policyholders can vote on important company matters and may receive dividends based on the company's performance, which is not typically the case in stock companies owned by shareholders for profit.

The other options describe different types of insurance organizations. For instance, a company owned by shareholders is commonly known as a stock insurance company, where the primary goal is to provide returns to investors rather than benefits to policyholders. The mention of government-funded health programs refers to public insurance or government programs like Medicare or Medicaid, which do not fit the definition of a mutual insurance company. Lastly, the option that suggests an exclusive focus on providing insurance to corporations pertains to commercial insurance firms or certain types of specialized insurers, which does not align with the mutual ownership model centered on individual policyholders.