P&CMImedium
Under MCL 500.7200 et seq., a Michigan reciprocal insurer is best described as:
AA stock company owned by outside shareholders seeking to maximize quarterly dividend payments to investors
BA mutual fund created to invest insurance premiums in publicly traded securities for profit
CA state-run insurer of last resort established by the Michigan legislature
An unincorporated aggregation of subscribers exchanging insurance contracts through an attorney-in-fact
Why this is the answer
Reciprocal (interinsurance) exchanges under Michigan law are not corporations. Subscribers contribute premiums and exchange indemnity contracts with each other, managed by an attorney-in-fact who handles underwriting, claims, and administration under a power of attorney.
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