Which statement is true about mutual insurance companies?

Mutual insurance companies are unique in that they are owned by their policyholders rather than external investors. This ownership structure allows them to operate differently than stock insurance companies, as the focus is primarily on serving the interests of their members. One of the key benefits for policyholders in a mutual insurance company is that any surplus that is generated can be returned to them in the form of dividends. This means that when the company earns more money than it needs to cover claims and expenses, those excess funds are not distributed to shareholders (as would occur in a stock company) but are instead returned to the policyholders who are also the owners of the company. This characteristic emphasizes the mutual insurance company's commitment to its members, further justifying the fact that option B is the correct answer.

The other options do not accurately represent the nature of mutual insurance companies or their operations. For example, profits in mutual insurance companies are not taxable to members in the same manner as corporate profits since the members are also the owners. Additionally, these companies are specifically structured to be owned by policyholders rather than external investors, and they cover various types of insurance, not limited to just property insurance.