In the context of insurance, what are "policyholders" typically entitled to in a mutual company?

In a mutual insurance company, policyholders are essentially owners of the company because they have contributed to its capital through their premium payments. This ownership status entitles them to share in the company's profits, which can be distributed as dividends or refunds, depending on the financial performance of the company. If the mutual company is profitable, it may decide to return a portion of that profit to the policyholders in the form of potential refunds or dividends, which aligns with the principle of mutual ownership.

This system contrasts with stock companies, where profit and dividends are allocated mainly to shareholders rather than policyholders. Therefore, the entitlement for policyholders in a mutual company centers on their ability to share in the profits and potentially receive refunds, making this the correct answer.