P&CPennsylvaniamedium
Under 40 P.S. § 961 et seq., a reciprocal or inter-insurance exchange operating in Pennsylvania is best characterized as:
AA stock corporation owned by shareholders
BA nonprofit fraternal benefit society
An unincorporated association of subscribers exchanging contracts through an attorney-in-fact
DA public-benefit corporation chartered directly by the Commonwealth to provide government-backed insurance coverage
Why this is the answer
40 P.S. § 961 authorizes subscribers (individuals, partnerships, and corporations) to exchange reciprocal or inter-insurance contracts with one another, and § 963 lets those contracts be executed by a common attorney-in-fact. The reciprocal is not a stock company, mutual, fraternal society, or public corporation; it is an unincorporated association in which each subscriber is both insurer and insured to a defined extent. Familiar examples include exchanges operated by attorneys-in-fact under brand names well known in PA personal lines.
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