Interinsurance Law and Legal Definition

Interinsurance is an insurance system whereby several individuals, partnerships, or corporations through common attorney in fact, underwrite another’s risk against loss under agreement that underwriters act separately and severally. Inter-insurance, or reciprocal insurance is described as "that system of insurance whereby several individuals, partnerships and corporations underwrite each other's risks against loss by fire or other hazard, through an attorney in fact, common to all, under an agreement that each underwriter acts separately and severally, and not jointly with any other. [Hoopeston Canning Co. v. Cullen, 318 U.S. 313 (U.S. 1943)]