Florida Health Insurance Definitions

Florida Health Insurance Terms:
"Mutual Insurance Company"

Explain: "Mutual Insurance Company":

An insurance company which is owned by its policy owners. Net earnings and savings of the company are distributed to the policy owners in the form of dividends.

More Examples of Mutual Insurance Company:

An insurance company which is owned by its policyholders who formed an association for the purposes of insuring one another against the possibility of fortuitous loss. Each policyholder pays a premium for his or her own policy. If at the end of the fiscal year the mutual insurance company declares a profit, the profit is shared amongst all the policyholders. If the company declares a loss there is also provision for the policyholders to be assessed a levy to make up for this shortfall

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