Which of the following is true about mutual insurers?

Mutual insurers operate as companies that are owned by their policyholders rather than shareholders. This structure allows policyholders to have a say in the company's management and to receive dividends or benefits from the company's profits, as these funds are typically distributed among members. Being a participating company means that members can share in the profits made by the insurer, which distinguishes mutual insurers from stock insurers, where profits go to shareholders.

In this context, the notion of mutual insurers being "participating companies" aligns well with their purpose: to provide coverage to members while also allowing them to benefit financially from the insurer's success. This structural characteristic is a defining feature of mutual insurers, making the statement about them being participating companies accurate.