| Popis: |
The reciprocal insurance exchange is a comparative newcomer to the insurance industry and represents a marked departure from the structure and operating methods of older insurance organizations. During the eighty-one years that reciprocals have been in existence their structure and operating methods have changed considerably. Economic factors have altered the basic reciprocal form as originally conceived, changing it in individual organizations from a simple insurance exchange, applicable only to firms with a common basis of business operations, to a complex insurance medium with wide applications. The reciprocal, nevertheless, still maintains its unique quality. Along with the many organizational changes, the definition of a "reciprocal" has undergone equivalent changes. The definitions formulated over the years for legal and business purposes are important for they have formed the framework of the reciprocal organization. This article proposes the simplest possible definition of a reciprocal. Because the proffered definition is so radically different from those published in the past, however, it is necessary to lay considerable groundwork so that the reader can understand the reason for and the effect of the definition on present day reciprocals. Before doing |
