P&CNJeasy
Under N.J.S.A. 17:50, a reciprocal (interinsurance) exchange operating in New Jersey is best described as:
An unincorporated aggregation of subscribers who exchange contracts of indemnity through an attorney-in-fact
BA stock corporation owned by outside shareholders that issues policies to customers and distributes profits as dividends to those investors
CA captive insurer wholly owned by a single parent
DA residual market mechanism administered by DOBI
Why this is the answer
Reciprocal exchanges under N.J.S.A. 17:50 are unincorporated associations whose subscribers exchange indemnity contracts. An attorney-in-fact manages underwriting, claims, and administration under a written power of attorney granted by each subscriber.
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