Which of the following describes a reciprocal insurer?

A reciprocal insurer is defined as an organization where members insure one another, typically through a mutual agreement. In a reciprocal insurance arrangement, the policyholders, or members, exchange contracts of indemnity and pool their resources to cover each other's losses. Each member of the reciprocal participates in the risk-sharing process, which creates a cooperative environment focused on mutual benefit, rather than profit-making as in traditional insurance companies.

This structure promotes collaborative risk management, where the premiums paid by members contribute to a fund that pays out claims among the group. The principle of reciprocity emphasizes the idea that members will help each other in times of need, fostering a sense of community and shared responsibility.

The other options do not accurately capture the essence of a reciprocal insurer. Corporations that sell insurance for profit operate on a different model, focusing on financial gain rather than mutual support. Government-backed programs typically involve state or federal funding and oversight, rather than the member-driven model of a reciprocal. Non-profit insurance organizations may exist, but they do not inherently follow the structure that defines a reciprocal insurer, which is characterized by a mutual exchange among its members.