Reciprocal Insurance Exchange Law and Legal Definition
An unincorporated group of individuals, firms or corporations or entities who are commonly termed as subscribers or members, mutually agree to exchange contracts of insurance or insurance policies and share their insurance risks among themselves within their select group. Each insured subscriber or member of a reciprocal exchange individually appoints and authorizes a common attorney-in-fact, the chief administrator to manage the affairs of the exchange. The attorney-in-fact manages the reciprocals finances and deals with underwriting, claims administration, investments and administer the day to day operations. The attorney-in-fact gains a percentage of total profits for their service.
Legal Definition list
Related Legal Terms
- 1031 Exchange
- Accelerated Life Insurance Benefits
- Acceptance of Bill of Exchange
- Accident Insurance
- Accidental Death and Dismemberment [Insurance]
- Accommodation Line [Insurance]
- Accountants Professional Liability Insurance
- Accounts Receivable Insurance
- Actual Cash Value Insurance
- Actual Delivery of Insurance Policy
