P&CGeorgiamedium
Under O.C.G.A. § 33-17, a Georgia 'reciprocal insurer' is best described as:
AA nonprofit corporation owned by its policyholders that distributes dividends in proportion to premium
BA for-profit corporation that issues capital stock to shareholders who bear the insurer's profits and losses
An unincorporated aggregation of subscribers who exchange contracts of indemnity with one another through a common attorney-in-fact
DA state-chartered guaranty pool that assumes the obligations of insolvent admitted insurers
Why this is the answer
O.C.G.A. § 33-17-1 defines a reciprocal insurer as an unincorporated aggregation of subscribers who exchange reciprocal contracts of indemnity with each other through a common attorney-in-fact. Each subscriber is both an insurer and an insured. Stock insurers (Chapter 14) issue stock to shareholders; mutual insurers are corporations owned by their policyholders; and the Georgia Insurers Insolvency Pool (Chapter 36) handles insolvent insurer obligations.
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