Reciprocal Insurance Exchange
/rɪˈsɪprəkəl ɪnˈʃʊərəns ɪksˈtʃeɪndʒ/
Definitions
- (n.) An unincorporated association of individuals who exchange insurance contracts among themselves, each assuming a reciprocal obligation to insure the others through an attorney-in-fact.
The reciprocal insurance exchange provided coverage by pooling the risks of its subscribers.
Forms
- reciprocal insurance exchange
- reciprocal insurance exchanges
Related terms
See also
Commentary
Common in property and casualty insurance, reciprocal exchanges are distinct from mutual insurance companies by their unincorporated structure and use of an attorney-in-fact to manage operations.
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