• About Us
• Contact Us
• Mission Statement
• Insurance
• Our History
• Organizational Structure
• Territory and Licensing
• Job Opportunities

Organizational Structure

All U.S. insurance companies are chartered in an individual state and licensed to operate in one or more states. Midstate Mutual Insurance Company is organized under Section 6600 of the New York Insurance Law as an "Assessment Co-operative Insurer". Other company forms permitted by law are, Advanced Premium Cooperative, Mutual Insurer, and Stock. In cooperatives, no stockholders exist to receive dividends.

A mutual company saves surplus or distributes them to its policyholders. Thus mutuals need not drain off surplus to pay dividends to stockholders. However, unlike stock companies mutuals cannot sell shares to raise new surplus if necessary to meet its “promise to pay” under statutory accounting principles. It is obviously essential to maintain enough surplus to cover policyholder losses. Surplus adequacy is measured by the premium-to-surplus ratio, also called "leverage".