Mutual Insurance Companies

Companies owned by policyholders with no capital stock. Earnings of the company that exceed the payments of the losses, operating expenses and reserves are the property of the policyholders.
A nonassessable mutual charges a fixed premium and the policyholders can’t be assessed further. Reserves and surplus provide payment of all claims. Assessable mutuals are companies that charge initial fixed premiums but might assess policyholders to meet losses in excess of the premiums that have been charged.