Questions: Multiple Choice A group of subscribers establishes insurance through indemnity agreements. What type of insurer is involved here? A. A self-insurer B. A reciprocal insurer C. A surplus lines insurer D. A domestic insurer Submit

The answer is B: a reciprocal insurer.

Explanation for each option: A. A self-insurer: This refers to an entity that sets aside its own funds to cover potential losses rather than purchasing insurance from an external provider. This does not involve indemnity agreements among a group of subscribers. B. A reciprocal insurer: This is a type of insurance provider where subscribers (members) exchange insurance contracts and indemnify each other. It involves indemnity agreements among a group of subscribers, making this the correct answer. C. A surplus lines insurer: This type of insurer provides coverage for risks that are not available through licensed insurers in the standard market. It does not specifically involve indemnity agreements among a group of subscribers. D. A domestic insurer: This refers to an insurance company that is incorporated and operates within a specific state. It does not necessarily involve indemnity agreements among a group of subscribers.

Summary: The correct answer is B: a reciprocal insurer, as it involves a group of subscribers establishing insurance through indemnity agreements.