A mutual insurance company is simply one whose interests are aligned with its policyholders rather than stockholders – membership is mutually shared among those who purchase the company’s products. In most cases, management of a mutual company is directed by a board of directors (often some of whom are policyholders of the company), who select a president and chief executive officer to oversee day-to-day operations of the company. Decisions regarding costs, investments, growth, and policy terms are always made in such a way as to strengthen the company’s ability to meet its financial obligations to its members – any financial surplus can be invested in the company (more staff, newer technology, expansion to new markets, etc.), rather than having it paid out to the company’s stockholders in the form of dividends. In short, the company is looking to take care of the policy holders first, not trying to appease stock holders of the company, which is why we choose to work with mutual companies.