P&CNew Yorkmedium

Under NY Insurance Law, a reciprocal insurer is organized so that the subscribers (insureds) exchange contracts of indemnity through which entity?

Q: Under NY Insurance Law, a reciprocal insurer is organized so that the subscribers (insureds) exchange contracts of indemnity through which entity?

An attorney-in-fact — Under NY Insurance Law Article 61 (§§ 6101 et seq.), a reciprocal (or inter-insurance exchange) is a group of subscribers who exchange contracts of indemnity with one another, with the exchange administered by an attorney-in-fact (AIF) under a Power of Attorney. Stock insurers are owned by shareholders (§ 1206); mutuals are owned by member-policyholders (§ 1212). Each form has distinct capital, governance, and surplus requirements.

An attorney-in-fact

BA board of directors elected by shareholders

CA salaried salaried general agent appointed by DFS

DA holding company under Article 15

Why this is the answer

Under NY Insurance Law Article 61 (§§ 6101 et seq.), a reciprocal (or inter-insurance exchange) is a group of subscribers who exchange contracts of indemnity with one another, with the exchange administered by an attorney-in-fact (AIF) under a Power of Attorney. Stock insurers are owned by shareholders (§ 1206); mutuals are owned by member-policyholders (§ 1212). Each form has distinct capital, governance, and surplus requirements.

Studying for the New York Property & Casualty exam?

This question comes from our P&C bank. Take a free practice test — no signup.

Free P&C practice test Property & Casualty exam guide