Stock insurers are corporations owned by shareholders of 

the firm. The shareholders hire managers to run the company and the insurance product 

is sold to customers who may or may not be shareholders in the firm. Mutual insurers 

are companies owned by their customers. Any policyowner of the company also owns a 

portion of the company. Reciprocal insurers or reciprocal exchanges are insurance 

companies in which policyowners agree to insure one another. They are very similar to 

mutual companies. Lloyd's associations are insurance companies where the manager also 

has his/her own personal wealth at stake in the firm. Blue Cross/Blue Shield insurers 

are typically non-profit (some may now be for-profit), community-oriented health 

insurance providers. Blue Cross/Blue Shield companies typically offer traditional 

indemnity health insurance. Health Maintenance Organizations (HMOs) are companies that 

provide comprehensive health care coverage to customers. HMOs essentially provide 

prepaid health care coverage. Once you pay your premium you can use the services of the 

HMO at little or no further cost to you.