Mutual Insurance Company Law and Legal Definition
Mutual insurance company is a cooperative enterprise wherein:
1) the members constitute both insurer and insured,
2) the members all contribute, by a system of premiums or assessments, to the creation of a fund from which all losses and liabilities are paid, and
3) the profits are divided among them in proportion to their interests. [State v. Willett, 171 Ind. 296, 301 (Ind. 1908)]
In a strictly mutual company there are no stockholders. The ownership of the company is in its policyholders who are its members. [Pink v. Town Taxi Co., 138 Me. 44 (Me. 1941)]
Legal Definition list
Related Legal Terms
- Accelerated Life Insurance Benefits
- Accident Insurance
- Accidental Death and Dismemberment [Insurance]
- Accommodation Line [Insurance]
- Accompanying Relative [Immigration]
- Accompanying Spouse and Dependents
- Accompanying the Armed Forces outside the United States
- Accompanying the Federal Government Outside the United States
- Accompanying Visa
- Accountants Professional Liability Insurance
