FREE 2008
Annual Report

What's a Reciprocal Exchange?

A reciprocal exchange is a group of risks that insure each other. When you purchase insurance from an exchange, you become more than a policyholder; you become a subscriber.

An exchange's subscribers appoint an attorney-in-fact to manage the exchange. Our subscribers also elect a committee to advise the attorney-in-fact of subscriber needs and preferences. Our Advisory Committee also decides what to do with the Exchange's profit, how the Exchange's assets should be invested, what actuarial firm should analyze the Exchange's loss reserves, and what CPA firm should audit the Exchange's financial statements.

When our Exchange generates a profit, up to 100 percent of that profit can be returned to policyholders.

If our Exchange generates a loss, policyholders can NOT be required to pay additional premium. That's because our Exchange issues only non-assessable policies.

From our scrapbook

NIE has a wonderful collection of industry ads and memorabilia throughout the years.

Please visit our scrapbook to view more glimpses of our history.