Which type of insurance company allows policyowners to select a governing body?

The correct choice is mutual insurance companies. In a mutual insurance company, policyholders are also the owners of the company. This structure allows them to elect a governing body, typically a board of directors, which represents their interests. The fundamental principle behind mutual insurance is that it operates for the benefit of its members, and any profits or surplus generated can be returned to them in the form of dividends or reduced premiums, rather than being distributed to shareholders, as would occur in a stock insurance company.

This governance structure empowers policyholders to have a say in the decisions that affect the operation of the company, including the selection of the governing body. It fosters a sense of community and shared interest among members, aligning the company's goals with that of its policyholders.