Advance Premium Mutual

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DEFINITION of 'Advance Premium Mutual'

A mutual insurance company that operates as an advance premium insurer rather than an assessment insurer. Advance premium mutual insurers assess premiums in advance and they do not change for some period of time. An assessment insurer assesses policyholders their premiums based on actual experience of the company.

BREAKING DOWN 'Advance Premium Mutual'

Advance premium insurers and assessment insurers are specifically identified in various state laws and have different statutory requirements in the operation of their businesses. Mutual companies are also sometimes referred to as cooperatives.

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RELATED FAQS
  1. What happens if my insurance claim falls below the deductible level?

    Though the ins and outs of health insurance are often confusing, the concept of the insurance deductible is relatively straightforward. ... Read Full Answer >>
  2. How is the deductible I paid for my insurance claim treated for tax purposes?

    The deductible you pay on your health insurance policy may be tax-deductible if you meet certain conditions. However, whether ... Read Full Answer >>
  3. What level of reserve ratios is typical for an insurance company to protect against ...

    In the United States, and most developed nations, regulators impose required statutory capital reserve ratios on insurance ... Read Full Answer >>
  4. What risks do I face when investing in the insurance sector?

    Like all equity investments, insurance companies present investors with market risk. Insurance companies, like banks, also ... Read Full Answer >>
  5. What are the main factors that impact share prices in the insurance sector?

    The main factors that impact share prices in the insurance sector are interest rates, earnings and actuarial risk. In the ... Read Full Answer >>
  6. Why do insurance policies have deductibles?

    Insurance policies have deductibles for behavioral and financial reasons. Moral Hazards Deductibles mitigate the behavioral ... Read Full Answer >>

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