What Is a Mutual Company?

A joint stock company is an insurance company between a common insurance company and a joint-stock insurance company. Appeared in 1996. Approved only in a few US states. In 1998, the major financial groups changed from a common insurance company system to a joint-stock company system, and then a joint-stock company. The structure of a joint holding company: The upstream holding company is a mutual assistance company (ie no shareholders), it is also a holding company (the mutual holding company is not an insurance company). Mutual aid companies form a joint-stock subsidiary and place part or all of its business in the subsidiary. Policyholders reserve the rights of members in joint-stock companies and contractual rights in operating subsidiaries. Up to 49.9% of the voting rights of subsidiaries can be sold to the public to raise capital. Jointly-held companies hold major ownership of downstream insurance companies. Since the board of directors of a joint stock company has the primary ownership of a life insurance company, it can operate legally to create the greatest benefit for policyholders. ^[1]