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    Reciprocal AKA Inter Insurance Exchange

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    vjkapoor1609
    The document discusses different types of insurance organizations and how to obtain initial capital. It describes a reciprocal insurance exchange as a non-profit unincorporated association where members exchange insurance. The attorney is responsible for all services, sales, underwriting and has legal liability. Initial capital can be obtained through heavy member premium prepayments, subordinate loans, or retained earnings. The appropriate form of organization depends on local laws, with arguments that stock insurers are more efficient and profitable while mutual companies provide cheaper insurance without dividends.

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    Reciprocal AKA Inter Insurance Exchange

    Uploaded by

    vjkapoor1609
    11 views5 pages
    The document discusses different types of insurance organizations and how to obtain initial capital. It describes a reciprocal insurance exchange as a non-profit unincorporated association where members exchange insurance. The attorney is responsible for all services, sales, underwriting and has legal liability. Initial capital can be obtained through heavy member premium prepayments, subordinate loans, or retained earnings. The appropriate form of organization depends on local laws, with arguments that stock insurers are more efficient and profitable while mutual companies provide cheaper insurance without dividends.

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    Reciprocal AKA Inter Insurance Exchange for insurance

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    The document discusses different types of insurance organizations and how to obtain initial capital. It describes a reciprocal insurance exchange as a non-profit unincorporated association where members exchange insurance. The attorney is responsible for all services, sales, underwriting and has legal liability. Initial capital can be obtained through heavy member premium prepayments, subordinate loans, or retained earnings. The appropriate form of organization depends on local laws, with arguments that stock insurers are more efficient and profitable while mutual companies provide cheaper insurance without dividends.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as ppt, pdf, or txt
    11 views5 pages

    Reciprocal AKA Inter Insurance Exchange

    Uploaded by

    vjkapoor1609
    The document discusses different types of insurance organizations and how to obtain initial capital. It describes a reciprocal insurance exchange as a non-profit unincorporated association where members exchange insurance. The attorney is responsible for all services, sales, underwriting and has legal liability. Initial capital can be obtained through heavy member premium prepayments, subordinate loans, or retained earnings. The appropriate form of organization depends on local laws, with arguments that stock insurers are more efficient and profitable while mutual companies provide cheaper insurance without dividends.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as ppt, pdf, or txt
    of 5

    Reciprocal AKA Inter Insurance Exchange

    An association in which members exchange insurance.. Non Profit, Unincorporated, Association of Individuals.. Need to obtain initial capital for this firm..

    ATTORNEY
    Person in reciprocal firm responsible for all the services.. Do all sales and underwriting.. Granted legal liability for business transactions..

    How To Obtain Initial Capital..??


    Members need to prepay heavy premium.. Through sub ordinate loans.. Use retained earnings..

    How To Select Form Of Organization..??


    Company needs to register itself in Company Act 1956.. Obtain IRDA License.. Laws of Region Govern Selection.. There are various arguments for Stock and Mutual Companies..

    Arguments Favoring Stock Insurers..


    Efficient because Profit Oriented.. Operate through independent agents.. Represents clients better than Captive Agents.. Stock Insures have lower Premium..

    Arguments Favoring Mutual Companies..


    Non Profit and Economical.. Provide cheap insurance because no dividend is paid out..

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