Any funds not paid out after paying claims and operating costs by a mutual insurer are typically returned to whom?

A mutual insurer is owned by its policyholders, meaning that any surplus funds remaining after paying claims and operating costs are typically returned to them. This process is essential to the mutual insurance model, as it ensures that policyholders benefit from the financial performance of the insurer. When claims are lower than expected or operating costs are controlled effectively, the mutual insurer can distribute these excess funds, often in the form of dividends or reduced future premiums, back to the policyholders. This aligns with the principle that mutual insurance companies exist primarily to serve their members rather than to generate profit for shareholders, which is contrasting with stock insurance companies.