Liability Insurance How did co-operative and mutual insurance society operate?

[Mataracy]

The co- operative insurance Society and the mutual insurance company can only exist and operate for the benefit of their members. In other words they have no capacity to enter in to insurance contract with the public other than their members.
The capacity if these insurers to do insurance business does not automatically enable them to undertake all kinds of insurance.
A limited liability insurance company and a statutory corporation must embody in their Memorandum of Association the types of policies they intend to undertake.

The Memorandum of Association states the extent of the company's powers. It cannot go beyond the powers given to it by the company's powers. It cannot go beyond the powers given to it by the Memorandum. For example a Memorandum can say - this insurance company is to transact life policies only.
Therefore, if the company transactions fire policies or other policies outside the power conferred on it by the
Memorandum, it is ultra vires.

The same is equally true of a mutual insurance company .For example a cooperative insurance society, its constitution Jr any other instrument must contain provisions showing the extent of its capacity to issue different kinds of policies.

 

[Mandy96]

If I am going to be honest, I really do not know anything about this because it is kind of deep and what I mean by that is the fact that it is going to sound so complicated to anyone with little or no experience about insurance generally. So it has to be learned about thoroughly before Opting for it