In a Reciprocal Insurer, who operates the organization?

In a Reciprocal Insurer, the organization is operated by an Attorney in Fact. This structure involves a group of individuals or entities that come together to provide insurance to each other, sharing the risk among themselves. The Attorney in Fact plays a crucial role in managing the reciprocal's operations, handling administrative tasks, and representing the interests of the group.

The members of the reciprocal insurer are not involved in the day-to-day operations; instead, they rely on the Attorney in Fact to act on their behalf. This arrangement allows for a more efficient management of resources and claims processing, as the Attorney in Fact has the necessary expertise and authority to make operational decisions.

Understanding the role of the Attorney in Fact is fundamental to grasping how reciprocal insurers function, which differentiates them from other insurance structures, such as stock or mutual companies, where stockholders or policyholders play different roles in management.