P&COhiomedium
Under R.C. Chapter 3935, an Ohio reciprocal insurer is best described as:
AA stock company owned by outside shareholders
BA mutual fund created to invest insurance premiums in publicly traded securities for the financial benefit of its participating policyholders
CA state-run insurer of last resort
An unincorporated aggregation of subscribers exchanging insurance contracts through an attorney-in-fact
Why this is the answer
Reciprocal (interinsurance) exchanges under R.C. Chapter 3935 are not corporations. Subscribers contribute premiums and exchange indemnity contracts with one another, managed by an attorney-in-fact who handles underwriting, claims, and administration under a power of attorney.
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