Mutual Insurer

An incorporated insurer without incorporated capital owned by its policyholders. Although mutual insurers do distribute their earnings to their policyholders in the form of dividends, the term should not be used in a sense that makes it synonymous with participating. In most jurisdictions, a mutual insurer is free to issue nonparticipating insurance if it chooses and a stock insurer is free to issue participating insurance. Contrast with Stock Insurer

See Also: Material Misrepresentation; Managed care; Major Medical Insurance; Mercury insurance; Moral Hazard; Mixed Insurer (or Company);

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