Reciprocals

A Reciprocal Insurance Exchange is typically defined as a group of individuals, corporations or entities who, as members, agree to exchange contracts of insurance (policies) and share their insurance risks among themselves within their select group. Each member (policyholder) of a reciprocal exchange individually appoints and authorizes a common attorney-in-fact to manage the affairs of the exchange.

Two of the six largest personal automobile insurers in the United States (USAA and Farmers Insurance Group) are reciprocals.

Read The Risk Retention Reporter article "Twenty Things You'd Always Wanted to Know About Reciprocals (But May Not Have Thought to Ask)" by Kevin Moriarty, to assist you in understanding the benefits of a reciprocal exchange (reprinted with permission).

Download: "Twenty Things You'd Always Wanted to Know About Reciprocals (But May Not Have Thought to Ask)" (PDF, 62.60 K)