Report No. 21
General.-This deals with mutual insurance.
Modifications allowed.-The section allows the following modifications in the case of mutual insurance:-
(a) The provisions of the Act relating to premium do not apply to mutual insurance, but a guarantee or other suitable agreed arrangement may be substituted for the premium.
(b) Any provision of the Act which can be modified by the agreement of the parties can, in the case of mutual insurance, be modified by the policies of the association or rules of the association.
Utility of mutual insurance.-It has been stated1 that the utility of mutual insurance lies in-
(a) reserving to the members any underwriting profits;
(b) extending protection to members not obtainable in the ordinary insurance market-for example, claims against third parties.
1. Dover, p. 458.