P&CNJmedium
Under N.J.S.A. 17:17-1, the principal distinction between a New Jersey stock insurer and a NJ mutual insurer is that:
AOnly mutual insurers may transact property insurance in NJ, and stock insurers are barred from offering property coverage lines
BStock insurers are exempt from DOBI examination
A stock insurer is owned by its shareholders, while a mutual insurer is owned by its policyholders
DMutual insurers may operate without a certificate of authority
Why this is the answer
Under N.J.S.A. 17:17-1 a stock insurer is a for-profit corporation whose equity holders are shareholders, while a mutual insurer is owned by its policyholders who share in operating results through policyholder dividends. Both must hold a NJ certificate of authority and remain subject to DOBI oversight.
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