Combined Stock and Mutual Life Insurer Law and Legal Definition

Combined stock and mutual life insurer refers to an insurer whose capital is owned by shareholders because their capital is divided into shares. The articles of incorporation of a combined stock and mutual life insurance company may also be amended so as to increase or decrease its capital stock, or so as to change the number and par value of the shares of its capital stock.

The following is an example of the state statute (Kentucky) defining combined stock and mutual life insurer:

KRS § 304.3-025 states that combined stock and mutual life insurer is an incorporated insurer with capital divided into shares owned by its shareholders, but which is controlled by the votes both of its stockholders and of its participating policyholder members to the extent any such rights of membership are granted and specified in the insurer's policies or its articles of incorporation.