Arizona Health Insurance Practice Exam

Who manages the premiums collected from a group's members for a reciprocal insurer?

1. Insurance agent

2. Underwriter

3. Attorney in fact

4. Claims adjuster

The correct answer is: Attorney in fact

In a reciprocal insurance setup, the management of premiums collected from a group of members is handled by an "attorney in fact." This is a critical role within a reciprocal insurer, as it represents the group in managing their insurance operations. The attorney in fact is responsible for collecting premiums, paying claims, and managing the overall administrative functions of the reciprocal exchange. This structure allows members to pool their resources and share in the risks and benefits associated with their insurance coverage, facilitated by the attorney in fact's oversight. Other roles mentioned in the options, such as an insurance agent, underwriter, or claims adjuster, do not fulfill this specific function. Agents typically sell insurance products and help clients understand their policies, while underwriters assess the risks involved in insuring applicants to decide on coverage terms. Claims adjusters investigate and resolve claims made by policyholders after an incident, focusing on ensuring proper compensation. None of these roles are specifically tasked with managing the overall premiums collected from group members within a reciprocal insurance arrangement.