Life & Health · Chapter 1 · Company Types
Mutual Company
Definition
Owned by policyholders (not publicly traded). Issues participating ("par") policies. Policy dividends are treated as a return of premium — not taxable until cumulative dividends exceed the premiums paid — and are never guaranteed.
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
Related terms