Municipalities in Poland can acquire shares in mutual insurance societies, though the mayor’s actions must comply with council-established rules.
Eligibility for Municipal Participation
Yes, a municipality can acquire shares in an insurance company operating as a mutual insurance society (TUW). The mayor may make decisions in this area but must adhere to principles set by the municipal council in a resolution regarding the subscription, withdrawal, and disposal of shares and stocks by the mayor.
Operational Framework of Mutual Insurance Societies
Mutual insurance societies operate on a collective basis where members are both insurers and the insured. This structure allows participants to share risks collectively, often leading to potentially lower premiums and tailored coverage for specific member needs.
