Why isn’t Galen organized as a mutual assessment company under Section 383 of Missouri Law?

Galen’s founders felt that organizing Galen as a stock, for-profit company was the best way to ensure stability over the long-term. The risk of assessments was felt to undercut the value of the insurance being offered. Furthermore, the statutory requirement that Section 383 companies be not-for-profit has meant in practice that such companies often pay their organizers inflated service fees and are eventually converted to stock for-profit companies.

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