Work Comp Associates, Inc. 

An insurance company with no capital stock, and owned by policyholders. The equity and earnings of the company - over and above the payments of the losses, operating expenses and reserves - are the property of the policyholders. There are two types of mutual insurance companies:

• A non-assessable mutual charges a fixed premium and the policyholders cannot be assessed further. Legal reserves and surplus are maintained to provide payment of all claims.

• An assessable mutual is a company that charges an initial fixed premium and, if that isn't sufficient, might assess policyholders to meet losses in excess of the premiums that have been charged.

A self-insured fund is an association of employers formed for the specific purpose of providing statutory workers’ compensation coverage.  This insurance vehicle is for employers that do not have the size or financial capacity to self-insure on their own.  It allows small to medium sized companies to assume some control over their workers compensation costs and benefit from the cost savings that self-insurance provides.   Normally, employers who join to form a SIF must be homogeneous, meaning they are similar in industry or class codes (i.e. contractors, manufacturers, wholesalers, etc.).

An incorporated insurance company with capital contributed by stockholders, to whom earnings are distributed as dividends on their shares.  The equity and earnings of the company - over and above the payments of the losses, operating expenses and reserves - are the property of the stockholders.