In order to easily actualize their needs and goals people become allies and form associations. The purpose of forming an association is not exclusively based on economic character, as there is plenty of such associations, but to promote cultural, sporting, advertising or some other interests and goals. This paper, besides presenting people and capital associations, insurance associations activities and the new Insurance Law, the mutual insurance association, as one of capital associations, will be presented in detail. Although such association does not exist in the Republic of Croatia there are indeed chances that such association may be established quite soon, especially after the entrance of Croatia into European Union, and after the regulations of the new Insurance Law according to which foreign citizens may be the members of the mutual insurance association. The principle of mutuality and the sinergy of the members of mutual insurance association enable their members the risk insurance in the field of life and non-life insurances which other insurance associations are not able or do not desire to cover in wanted quality. In what way the new Insurance Law forms the status, the structure and the activity of the mutual insurance association, whar are the differences compared to previous regulstions, and the possible understatements of the new regulations will be presented in this paper.