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

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

It found that the car insurers providing the best value to consumers were mutual insurance companies owned by their policyholders and paying them dividends.

From New York Times • Nov. 18, 2016

Grange agents bought everything from farm machinery to women’s dresses; hundreds of grain elevators and cotton and tobacco warehouses were bought, and even steamboat lines; mutual insurance companies were formed and joint-stock stores.

From Encyclopaedia Britannica, 11th Edition, Volume 10, Slice 2 "Fairbanks, Erastus" to "Fens" by Various