Question

What type of insurance consists of an unincorporated group of persons that provides insurance among themselves through an exchange of indemnity agreements?

A. Mutual Insurance.
B. Reciprocal Insurance.
C. Captive Insurance.
D. Stock Insurance.

Answer 1

Reciprocal Insurance is the type of insurance that consists of an unincorporated group of persons that provides insurance among themselves through an exchange of indemnity agreements.

Step-by-step explanation:

The type of insurance that consists of an unincorporated group of persons that provides insurance among themselves through an exchange of indemnity agreements is Reciprocal Insurance. In reciprocal insurance, members pay premiums into a common fund, and when a member suffers a loss, the fund covers the cost of the loss.