What is a primary characteristic of nonparticipating policies?

Nonparticipating policies are characterized primarily by the fact that policyholders do not share in the profits or losses of the insurance company. This means that the premiums paid by the policyholders are fixed, and they will not receive dividends based on the company's financial performance. This structure typically appeals to those who prefer certainty in their insurance costs without the potential for receiving dividends, which can vary year to year.

The other aspects mentioned in the question help to clarify this distinction. For instance, while participatory policies often provide dividends or profit sharing, nonparticipating policies are structured to provide a stable and predictable cost for the policyholder without offering any additional benefits that come from the insurer's profitability. This is a key differentiator between these types of insurance policies.

Moreover, nonparticipating policies are not exclusive to mutual companies; they can also be offered by stock companies. Therefore, the assertion that they are exclusively available through mutual companies is incorrect. Lastly, while nonparticipating policies might offer coverage options that are different from participating ones, the key takeaway remains their lack of profit-sharing features for policyholders.