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:
“Every nation ... have their refinements and grossiertes.... There is a balance ... of good and bad every where; and nothing but the knowing it is so can emancipate one half of the world from the prepossessions which it holds against the other—that [was] the advantage of travel ... it taught us mutual toleration; and mutual toleration ... taught us mutual love.”
—Laurence Sterne (1713–1768)
“To me heaven would be a big bull ring with me holding two barrera seats and a trout stream outside that no one else was allowed to fish in and two lovely houses in the town; one where I would have my wife and children and be monogamous and love them truly and well and the other where I would have my nine beautiful mistresses on nine different floors.”
—Ernest Hemingway (1899–1961)
“In the U.S. for instance, the value of a homemaker’s productive work has been imputed mostly when she was maimed or killed and insurance companies and/or the courts had to calculate the amount to pay her family in damages. Even at that, the rates were mostly pink collar and the big number was attributed to the husband’s pain and suffering.”
—Gloria Steinem (20th century)