Which statement correctly describes a stock insurer?

A stock insurer is defined as a type of insurance company that is owned by its stockholders, who have invested capital in the company and are entitled to share in its profits through dividends. Stock insurers operate with the goal of generating profit for their shareholders, and the governance of these companies typically involves a board of directors elected by the stockholders to oversee business operations. This structure allows the insurer to raise capital more easily as it can sell shares of stock to the public.

In contrast, an insurer owned by its policyholders would be a mutual insurer, which has a different ownership model that focuses on benefiting the policyholders rather than stockholders. Government-operated insurers are typically categorized separately and function more as a public service rather than a profit-driven entity. Non-profit organizations do not share profits with stockholders as their primary focus is on providing services without profit motives, further distinguishing them from stock insurers. Therefore, the correct characterization of a stock insurer's ownership structure is that it is owned by its stockholders.