True or False: The certificate of authority of a reciprocal insurer is issued to its attorney in the name of the insurer?

The correct assertion is that a certificate of authority for a reciprocal insurer is indeed issued to its attorney in the name of the insurer. In the context of reciprocal insurance, which involves a group of individuals or organizations (subscribers) exchanging insurance contracts among themselves, the attorney acts as the representative of the insurer. This structure is essential because reciprocal insurers do not operate under a traditional corporate framework; instead, they operate on a mutual basis with members who share in the coverage and risks.

The certificate of authority signifies that the reciprocal insurer is legally recognized to conduct insurance business within the state and is thus a crucial document for the operation and regulation of such entities. In this case, having the certificate issued in the name of the attorney reinforces the role of the attorney as the managing agent of the reciprocal, ensuring compliance with state regulations and practices.