Are there different types of insurance companies?
A. Yes. “Stock” insurance companies are owned by stockholders and are operated for the financial benefit of those stockholders. “Mutual” insurance companies are owned by the policyholders and operated for the benefit of those policyholders. “Reciprocal” insurance companies operate in order to insure each other, thereby transferring a portion of risk from one company to another. “Lloyd’s” associations insure risks by backing their guarantees with private wealth. “Blue Cross/Blue Shield” health insurance companies are operated as non-profit organizations. HMO’s or Health Maintenance Organizations provide prepaid health care coverage. After paying the premium, the insured person can get services at little or no additional cost. Contact Us. . .
