What is an Insurance Reciprocal?
A reciprocal is one of the oldest forms of insurance, pre-dating stock and mutual insurance companies. It is defined as “an unincorporated association of individuals, who, through a common Attorney-in-Fact, exchange contracts of insurance.” Reciprocals have basic fundamental benefits including governance by policyholders and sharing of profits with policyholders. In short, the reciprocal is managed by an Attorney-in-Fact (an insurance professional) and owned by its physician policyholders.
