Stock Insurance Company Law and Legal Definition

Stock insurance company is an incorporated insurance company in which the initial capital investment is made by subscribers to the stock, and the business is thereafter conducted by a board of directors elected by the stockholders, and, subject to state statutes, the distribution of earnings and profits as between stockholders and policy holders is determined by the board.

In a stock insurance company, the shareholders contribute all the capital, share all the losses, and divide all the profits. [State v. Willett, 171 Ind. 296, 301 (Ind. 1908)]