What is a characteristic of a stock insurer?

A stock insurer is defined as an insurance company that is owned by its stockholders who invest capital in the business to earn a profit. The primary objective of a stock insurer is to provide financial returns to its shareholders, which influences its operations and investment strategies. Stock insurers are typically structured to maximize profits and may issue dividends to stockholders when financial performance allows.

In contrast, a mutual insurer, which is owned by policyholders, focuses on serving the needs of its members rather than generating profit for stockholders. Nonprofit organizations that might provide insurance do not operate under the traditional profit-motivated model. Additionally, if an insurance provider offers coverage exclusively to members of a lodge system, it would not reflect the typical characteristics of stock insurers, which aim to serve a broader public market.

Thus, the defining characteristic of a stock insurer is indeed its ownership structure focused on profits for stockholders.