Advance Premium Mutual


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.

  1. Earned Premium

    The amount of total premiums collected by an insurance company ...
  2. Advance Premium Fund

    Insurance companies who receive advance premiums must account ...
  3. Advance Premium

    The initial premium paid to bind an insurance policy for a given ...
  4. Premium

    1. The total cost of an option. 2. The difference between the ...
  5. Insurance

    A contract (policy) in which an individual or entity receives ...
  6. Mutual Company

    A private company whose ownership base is made of its clients ...
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