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    Reciprocity and Exchange in Insurance Industry

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    Using State Farm, what would be three potential issues regarding Reciprocity and Exchange?
    How does the reciprocity and exchange process affect the insurance industry environment and the on-going internal/external business relationships?

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    Step 1
    State Farm is a group of insurance and financial services companies in America and Canada. The main business of State Farm is auto insurance. Three potential issues relating to Reciprocity and Exchange relating to State Farm are the determination of discounts and premiums and quoting them when a customer solicits information from more than one insurance company. There is reciprocity between insurance companies. The second issue relating to reciprocity and exchange at State Farm is exchange of information with other insurance companies relating to risks and paying off claims. The third issue relating to reciprocity and exchange is the exchange of ...

    Solution Summary

    This posting gives you a step-by-step explanation of the use of reciprocity and exchange in insurance industry. The response also contains the sources used.