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Arizona- Property and Casualty Exam Questions & Answers A "reciprocal" is an unincorporated aggregation of individuals, called subscribers, who exchange insurance risks. If the premiums charged for coverage are not sufficient to pay the losses of the group, subscribers may be assessed an additional premium. A reciprocal is administered by an attorney in fact who is empowered to bind each subscriber to assume a share of the losses of the group. A state-issued document empowering an ...

Describe the relationship between insurance and financial responsibility in the context of risk. Insurance transfers the financial responsibility of potential losses from individuals to an insurance company. Insurance eliminates all financial responsibility for losses. Insurance increases the financial burden on individuals. Insurance only covers physical assets, not financial responsibility. 2. A risk-retention group is a liability insurance company owned by ______ _. The stockholders. State...

Insurance is a contract by which one seeks to protect another from correct answersLoss Insurance will protect a person, business, or entity from loss. Insurance is the transfer of correct answersRisk Insurance is the transfer of financial responsibility associated with a potential of a loss (risk) to an insurance company. Events or conditions that increase the chances of an insured loss occurring are referred to as correct answersHazards Conditions such as lifestyle and existing health,...