Which of the following is a key characteristic of mutual insurers?

Mutual insurers are indeed owned by their policyholders, which is a defining characteristic of this type of insurance organization. In a mutual insurance company, the policyholders are effectively the owners and benefit from the profits of the insurer in a way that aligns with their interests. This ownership structure often means that policyholders can potentially receive dividends or lower premiums based on the insurer's performance, as the company’s profit is not redistributed to shareholders as with stock insurers.

This democratic ownership model contrasts with for-profit entities, which are primarily focused on generating profits for their shareholders. Additionally, mutual insurers may face different regulatory oversight than merely being regulated solely by government agencies; they may also follow industry guidelines and internal policies. Lastly, while underwriting guidelines are important, mutual insurers are not inherently bound by stricter underwriting processes than other types of insurers; their underwriting practices can vary widely depending on their specific business model and market strategies.