If Cindy can participate in the election of the board and receives dividends, which type of insurance company does she have a policy with?

When Cindy can participate in the election of the board and receives dividends, it indicates that she is likely dealing with a mutual insurance company. In a mutual insurance company, policyholders are also the owners of the company, which allows them to participate in decisions such as electing the board of directors.

The distribution of dividends further reinforces this classification, as mutual insurance companies often return profits to their members in the form of dividends, reflecting their ownership stake in the company. This structure contrasts with other types of insurance companies, where policyholders do not have ownership rights or the potential to receive dividends in the same way.

Fraternal benefits societies typically focus on providing benefits to members who share a common bond, often lacking formal voting rights similar to those of mutual insurance companies. Stock insurance companies operate on a for-profit basis, where stockholders—rather than policyholders—hold voting power and receive dividends. Risk retention groups are designed primarily for liability insurance issues among members of a specific industry or profession and do not typically operate under the same mutual ownership structure.

Thus, Cindy's ability to participate in board elections combined with her receipt of dividends signals that she has a policy with a mutual insurance company.