Which of the following statements is true about reciprocal insurers?

Reciprocal insurers operate as a pool of individuals who agree to insure one another. This unique structure means that members (or subscribers) share the risks and benefits associated with the insurance coverage. When a loss occurs, the members are assessed amounts to pay for these losses, which is a fundamental characteristic of reciprocal insurance. This means that rather than paying premiums in the traditional sense used by most insurance companies, members contribute additional funds as needed to cover losses incurred by the group, thus making this option accurate.

In contrast, reciprocal insurers are not typically incorporated entities, which excludes the first statement. Furthermore, they do not have a board of directors to manage operations, as management is usually handled by an attorney-in-fact who represents the interests of the members. Lastly, reciprocal insurers provide a broader range of coverage that goes beyond just property damage; they can also cover other types of risks, so the statement regarding their limitations to property damage is also not true.