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Simple English definitions for legal terms
mutual-benefit insurance
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A quick definition of mutual-benefit insurance:
Term: MUTUAL-BENEFIT INSURANCE
Definition: Mutual-benefit insurance is a type of insurance where a group of people come together to help each other out when something bad happens. If someone in the group has a loss, like their house burns down or they get sick, the group will give them money to help them out. It's like having a big family that helps each other out when they need it.
A more thorough explanation:
Definition: Mutual-benefit insurance refers to benefits provided by a mutual-benefit association when a loss occurs.
Example: Let's say you are a member of a mutual-benefit association that provides insurance for your car. If you get into an accident and your car is damaged, the association will provide you with the necessary funds to repair or replace your car.
Explanation: Mutual-benefit insurance is a type of insurance that is provided by a mutual-benefit association. This type of insurance is different from other types of insurance because the members of the association are also the owners. When a loss occurs, the association uses the funds collected from its members to provide benefits to the affected member. In the example given, the mutual-benefit association provides insurance for the car of its members. If a member gets into an accident and their car is damaged, the association will provide them with the necessary funds to repair or replace their car.