Legal Definitions - stock insurance company

A stock insurance company is a type of corporation or association that issues insurance policies. It is owned by stockholders who share in the company's profits and losses. The company operates as a private corporation and is not owned by its policyholders.

• Mixed insurance company: This type of insurance company has characteristics of both stock and mutual companies. It distributes part of the profits to stockholders and also makes distributions to the insureds.
• Mutual insurance company: This type of insurance company has policyholders who are both insurers and insureds. They pay premiums into a common fund, from which claims are paid. The policyholders are the owners of the company, as opposed to a stock insurance company owned by outside shareholders.
• Stock life-insurance company: This is a type of stock insurance company that does life-insurance business.

These examples illustrate the different types of insurance companies and how they operate. A mixed insurance company combines the features of both stock and mutual companies, while a mutual insurance company has policyholders who are also owners of the company. A stock life-insurance company is a type of stock insurance company that specializes in life insurance.