An incorporated insurer that does not have incorporated capital belonging to the policyholders. These companies do still provide the policyholders with dividends.
***
Insurer with no capital stock, owned by Policyholders. Earnings over and above payment of losses and operating expenses and reserves are the property of the Policyholders. There are two types of Mutual Insurance companies. A non-assessable mutual charges a fixed premium and the policyholders cannot be assessed further. Legal reserves and surplus are maintained to provide payment of all claims. Assessable mutual are companies that charge an initial fixed premium and, if that isn’t sufficient, might assess policyholders to meet losses in excess of the premiums that have been charged.