A reciprocal insurer:

a. is managed by an entity known as an attorney in fact which is in essence a management company.

b. is an incorporated firm that is owned by its stockholders.

c. is a contract between a ceding insurance firm and reinsurer in which the reinsurer evaluates each policy that the primary insurer would like to cede and decides whether to accept it on a case-by-case basis.

d. is a way for the insurance firms to share the risk and losses with institutional investors against having losses from natural disasters.

e. none of the answers is correct.