[N056]

nonassessable mutual

With respect to mutual insurers, nonassessable mutuals are those insurers that do not assess their insureds for losses experienced by the insurer that are higher than anticipated. Normally, the decision to become a nonassessable mutual is a written part of the insurer's charter or bylaws. In order to be a nonassessable mutual, the insurer must have sizable surplus to cover losses.

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