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.

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.