DEMUTUALIZATION
demutualization,n. The process of converting a mutual insurance company (which is owned
by its policyholders) to a stock insurance company (which is owned by outside shareholders), usu.
as a means of increasing the insurer’s capital by allowing the insurer to issue shares. • About half
the states have demutualization statutes authorizing such a conversion. [Cases: Insurance 1160.
C.J.S. Insurance § 111.] — demutualize,vb. [Blacks Law 8th]