stipulated premium life insurance

  • Life insurance issued by a stipulated premium company, which is a "hybrid organization possessing some of the characteristics of a legal reserve company and some of an assessment association." Minimum premiums are usually "stipulated" by law. Stipulated premium companies in many Midwestern states are stock companies, and they issue regular old line policies but, presumably, still may have the right to assess their policyholders.

    Internal Revenue Service 1

1Internal Revenue Service, Internal Revenue Manual 4.42.6 Glossary, http://­www.irs.gov/­irm/­part4/­irm_04-042-006.html (last accessed Dec. 22, 2009).