Simple English definitions for legal terms
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A mutual insurance company is a type of insurance company where the policyholders are also the owners. They pay premiums into a common fund, which is used to pay for any claims made by the policyholders. This means that the company is owned by its policyholders, not by outside shareholders. It is different from a stock insurance company, which is owned by shareholders who do not necessarily have insurance policies with the company.
A mutual insurance company is a type of insurance company where the policyholders are also the owners. They pay premiums into a common fund, which is used to pay out claims. This is different from a stock insurance company, which is owned by outside shareholders.
These examples illustrate the different types of insurance companies that exist. A mutual insurance company is unique because the policyholders are also the owners, which means they have a say in how the company is run. This democratic ownership and control is a fundamental characteristic of a mutual insurance company.