what is a reciprocal insurance corporations
Reciprocal Exchange. Reciprocal insurance is used by unincorporated entities, also know as reciprocal inter-insurance exchanges, that have subscribers and or members that have agreed to act in an insurance capacity to share or spread the risk by certain transactions.
In 2015 those same non-profit corporations formed Arizona Health Reciprocal Insurance Company (AHRIC) to address the tax advantages and cost implications created by the Affordable Care Act. AHRIC is a Self-Funded Reciprocal Captive arrangement domiciled in Arizona and regulated by the Arizona Department of Insurance.