Mutual Holding Companies
The major disadvantage of the mutual insurance companies is the difficulty of raising capital. In response to this issue, the "mutual holding company" structure was first introduced in Iowa in 1995, and has spread since then. There have been some concerns that the mutual holding company conversion is disadvantageous for the actual owners of the company, the policyholders, and observers such as the Center for Insurance Research have advocated that companies should fully demutualize rather than taking this partial step.
In the 111th Congress, Carolyn Maloney sponsored a bill that she claimed would have protected mutual holding company owners. The measure, H.R. 3291, died in committee.
Mutual holding companies are one way to undergo demutualization.
Read more about this topic: Mutual Insurance
Famous quotes containing the words mutual, holding and/or companies:
“If the study of all these sciences, which we have enumerated, should ever bring us to their mutual association and relationship, and teach us the nature of the ties which bind them together, I believe that the diligent treatment of them will forward the objects which we have in view, and that the labor, which otherwise would be fruitless, will be well bestowed.”
—Plato (c. 427–347 B.C.)
“By 1879, seven churches of various denominations were holding services, which led the local Chronicle to comment, “All have but one religion and one God in common; it is the Crucified Carbonate.””
—Administration in the State of Colo, U.S. public relief program (1935-1943)
“Socialite women meet socialite men and mate and breed socialite children so that we can fund small opera companies and ballet troupes because there is no government subsidy.”
—Sugar Rautbord, U.S. socialite fund-raiser and self-described “trash” novelist. As quoted in The Great Divide, book 2, section 7, by Studs Terkel (1988)