Multiple choice general knowledge

United State Automobile Association (USAA) is a type of:

  1. Stock insurance company

  2. Mutual insurance company

  3. Reciprocal insurance exchange

  4. Lloyds association

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

USAA operates as a reciprocal insurance exchange, where subscribers (policyholders) exchange contracts to insure each other. Unlike stock companies (A) owned by shareholders or mutual companies (B) owned by policyholders, reciprocals have an inter-insurance structure. Lloyds associations (D) are different organizational structures entirely.