What is Insurance Company?

Legal Definition
A corporation or association whose business is to make contracts of insurance. They are either mutual companies or stock companies. A "mutual" insurance company is one whose fund for the payment of losses consists not of capital subscribed or furnished by outside parties, but of premiums mutually contributed by the parties insured, or in other words, one in which all persons insured become members of the association and contribute either cash or assessable premium antes, or both, to a common fund, out of which each is entitled to indemnity in case of loss. My-gatt v. Insurance Co., 21 N. Y. 65; Insurance Ca. v. Hoge, 21 How. 35, 16 L. Ed. 61; Given v. Rettew, 162 Pa. 638, 29 Atl. 708. A "stock" company la one organized according to the usual form of business corporations, having a capital stock divided into shares, which, with current income and accumulated surplus, constitutes the fund for the payment of losses, policy-holders paying fixed premiums and not being members of the association uni ess they also happen to be stockholders.
-- Black's Law Dictionary