Reciprocal Insurance Law and Legal Definition

Reciprocal insurance is insurance in which members of a reciprocal exchange, acting through an attorney-in-fact, insure themselves and each other.

Following is an example of a state law that deals with reciprocal exchange.

According to Cal Ins Code § 721, wherever reference is made to an officer, director, or management or the applicant, such reference is deemed to include the officers, directors, and management of the attorney-in-fact of a reciprocal or interinsurance exchange, and the members of the board of governors or other governing committee of the reciprocal itself.