A cooperative insurance company organized and owned by its insureds.
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US: An insurance company in which the ownership and control is vested in the policyholders and a portion of surplus earnings may return to policyholders in the form of dividends. No capital stock exists.
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UK: An insurance company owned by its policyholders, i.e. having no shareholders, formed by deed of settlement or registered as a company limited by guarantee. Funds are raised by premiums. The profits in life companies being shared among the policyholders usually as higher life insurance bonuses. An additional levy or call is imposed to meet losses if premium contributions are insufficient. Mutuals may be established for any class of business or they may be limited to members of a particular trade. Some former mutuals are now registered companies. Mutuals are often best known through Protection and Indemnity Clubs but are also found as the providers of professional indemnity cover for their members. See DEMUTUALISATION.