Which term describes fire insurance companies that are formed as non-profit entities by groups?

The term that describes fire insurance companies formed as non-profit entities by groups is "mutual fire insurance." These companies are owned by their policyholders rather than shareholders, meaning that any profits made can be reinvested back into the company or returned to the policyholders in the form of dividends or reduced premiums. This structure allows members of the mutual insurance company to collectively share the risk and benefits associated with fire insurance, promoting a sense of community and support among the policyholders.

The other terms mentioned relate to different types of insurance entities. Stock insurance companies are for-profit entities owned by shareholders, while public insurance firms and government cooperatives are typically associated with government programs rather than mutual associations formed by policyholders. Understanding the unique characteristics of mutual fire insurance helps clarify its role in providing insurance services through a cooperative model.