insurance exchange

An association of insurance companies or insurance agents for the purpose of promoting the business, welfare, and convenience of the members, and to secure uniformity in the insurance business. 29 Am J Rev ed Ins § 109. In another and distinct sense, the operation of the system known as reciprocal insurance, interinsurance, or interindemnity, whereby individuals, partnerships, or corporations, engaged in a similar line of business, undertake to indemnify each other against a certain kind or kinds of losses by means of a mutual exchange of insurance contracts, usually through the medium of a common attorney in fact appointed for that purpose by each of the underwriters, under agreements whereby, as between themselves, each member separately becomes both an insured and an insurer with several liability only. 29 Am J Rev ed Ins § 102.