Mutual Health Insurance
State Mutual Health Insurance
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A Mutual insurance company is an specific type of company which has no shareholders. It is owned entirely by the policy holders themselves. This ownership usually extends to all policyholders, but can be restricted to certain types of policyholders. With a mutual insurance company, all surplus funds are paid entirely to policyholders themselves, whereas a proprietary company with shareholders pays a percentage of surplus to shareholders with the vast sum of the balance being held in reserve by the insurer.
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