Mutual Company

Also found in: Financial.

Mutual Company

A corporation in which members are the exclusive shareholders and the recipients of profits distributed as dividends in proportion to the business that such members did with the company.

The most common kind of mutual company is a mutual insurance company. In this type of organization, which is a cooperative association, the members are both the insurers and the insured. Such companies exist for the purpose of satisfying the insurance needs of their members at a minimal cost. The members contribute through a system of premiums or assessments, forming a fund from which all losses and liabilities are paid. Any profits are divided among the members of the company in amounts proportionate to their individual interests.

The members of a mutual company choose the management. Professional associations that offer their members insurance coverage often form mutual insurance companies.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.
References in periodicals archive ?
He has worked in the New York mutual company space since 2013 and has developed relationships with retail agents, aggregators and wholesalers throughout the Associated Mutual operating footprint.
Ironshore, a Liberty Mutual Company, provides broker-sourced specialty property and casualty insurance coverages for varying risks located throughout the world.
As a mutual company, our interests are aligned with those of our policy owners, not Wall Street or shareholders, meaning the value we create is carefully managed with their long-term interests in mind."
(TAP) -- The mutual company of agricultural services in Majel Bel Abbes (governorate of Kasserine) has announced a production of 150 tonnes of organic olives for the season 2018-19, of which 40 tons processed and packaged will be exported to the French market in the context of fair trade, through the French fair-trade company "Ethiquable".
EMC Insurance announced they have entered into an agreement with Safeco Insurance, a Liberty Mutual Company, to provide EMC-licensed agents an opportunity to transition their EMC personal lines policies to Safeco beginning in the first quarter of 2019.
Bellevue, WA, July 28, 2018 --( Icertis, the leading provider of enterprise contract management in the cloud, today announced that Australian Unity, a leading national health, wealth and living mutual company, has selected the Icertis Contract Management (ICM) platform to serve as the foundation for the digital transformation of Australian Unity's contract management processes.
Larger companies tend to be a little more sophisticated than the smaller companies regardless if they're a stock or a mutual company.
According to CEO and Chairman Ted Mathas, 'New York Life's ability to deliver a historic payout to our policy owners in 2017 despite years of record low interest rates proves the value of our mutual company model.
BrickStreet Insurance, a mutual company owned by its policyholders, began its role as a West Virginia private workers' compensation carrier in 2006.
She heard about the growth of the joint mutual company which three years ago employed just over 100 staff partners at its Liverpool base - a number which has now grown to more than 400.
Companies Mentioned in this Report: Pohjola Insurance Ltd, If P&C Insurance Company Ltd, LocalTapiola General Mutual Insurance Company, Eurooppalainen Insurance Company Ltd, Fennia Mutual Insurance Company, Pohjantahti Mutual Insurance Company, Turva Mutual Insurance Company, Folksam Non-Life Insurance Company Ltd, Forsakringsaktiebolaget Alandia, Local Insurance Mutual Company"

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