What type of plan is a stock life insurance company using if it issues both participating and nonparticipating policies?

A stock life insurance company that issues both participating and nonparticipating policies is utilizing a mixed plan. This approach allows the company to offer a range of options to its policyholders.

Participating policies are those that allow policyholders to receive dividends based on the company's performance, thus giving them a stake in the company's profits. Nonparticipating policies, on the other hand, do not offer dividends, and the policyholders do not share in the financial results of the company. By having both types available, the stock life insurance company can cater to different needs and preferences among consumers, appealing to those who want the potential for dividends as well as those who prefer a more straightforward coverage without dividends.

This strategy is advantageous for the company as it diversifies its product offerings and can adapt to various market segments. The other options do not accurately represent the combination of both policy types, as they either refer to specific types of plans or insurance structures that do not encompass the characteristics of both participating and nonparticipating policies.