Which of the following is NOT a characteristic of mutual insurance companies?

The distinguishing characteristic of mutual insurance companies is that they are owned by their policyholders. This ownership model means that the policyholders have a say in the management and operations of the company, which is fundamentally different from stock companies that issue shares of stock owned by shareholders.

Mutual insurance companies typically prioritize the benefits of their members instead of making profits for stockholders. Their focus on members' benefits aligns with their non-profit structure, where any surplus is often returned to policyholders in the form of dividends or lower premiums, rather than being distributed as profits to shareholders.

The characteristic that is not associated with mutual insurance companies is the issuance of stock shares. Since mutual insurance companies do not have shareholders, they do not issue stock; this is a primary differentiating factor from stock insurance companies, which raise capital by selling shares. Thus, the option regarding the issuance of stock shares clearly stands out as not aligning with the fundamental characteristics of mutual insurance companies.