mutual insurance

American  

noun

1. insurance in which those insured become members of a company who reciprocally engage, by payment of certain amounts into a common fund, to indemnify one another against loss.

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mutual insurance British  

noun

1. a system of insurance by which all policyholders become company members under contract to pay premiums into a common fund out of which claims are paid See also mutual

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Example Sentences

Jumping ship to a mutual insurance company doesn’t necessarily guarantee a better deal, but it’s a calculation many are weighing as high insurance costs strain budgets that are already feeling the inflation squeeze.

From MarketWatch • Apr. 16, 2026

Since the 1800s, shipping insurers have pooled together in mutual insurance clubs that sell separate coverage for losses to ships and cargo caused by war, terrorism, and piracy.

From Barron's • Mar. 2, 2026

More recently, the nonprofits have converted into mutual insurance holding companies.

From Los Angeles Times • Jun. 30, 2025

Yet tank vessels and barges comply with this requirement through mutual insurance associations.

From Seattle Times • Mar. 3, 2024

A mutual insurance company of this nature is probably entered into on account of the serious difficulty which most Chinese families experience in getting together ready money.

From Village Life in China A Study in Sociology by Smith, Arthur H.