What is an unincorporated association of members in which each member insures the other members?

The correct choice is a reciprocal insurance exchange, which is a unique form of insurance organization where members, known as subscribers, agree to insure one another. Each member contributes to a pool of funds used to pay claims for members who suffer losses. This mutual system relies on the stability and trust among members, as each one shares the risk and benefits within the group.

In a reciprocal, the management is typically handled by an attorney-in-fact, who acts on behalf of the subscribers. This collaborative approach fosters a sense of community and shared responsibility for claims. The reciprocal insurance exchange thrives on member engagement and collective risk-sharing, making it fundamentally different from other types of insurance organizations.

In contrast, mutual insurance companies also involve members insuring one another, but they are structured as legal entities with a more formalized management scheme. Cooperative insurance functions similarly but tends to be more focused on offering specific types of coverage to its members. A joint stock company, on the other hand, operates based on capital investment from shareholders, with profits distributed as dividends, lacking the collective member-to-member insurance feature.