Reciprocal of America Auto Insurance Review (2020)

Reciprocal of America was a medical liability insurance company that is no longer in business. Need auto insurance quotes? Use our comparison tool below and save today.

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Aug 14, 2020

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Company Details
Address: 4200 Innslake Drive
City: Glen Allen
State: VA
ZIP Code: 23060
Phone Number: 804-747-8600
Year Founded: 1977
AM Best Rating: In Receivership
Company Rating 0 (0 reviews)

A brief overview...

  • Reciprocal of America was a medical liability insurance company that is no longer in business. 

Reciprocal of America, a medical liability insurance company based in Glen Allen, Virginia, was part of a group of insurance and financial services companies known as the Reciprocal Group. It was originally established in 1977 to provide insurance products to businesses in the medical field. This is not an auto insurance company.

However, the company fell on hard times and was placed in receivership in January of 2003. After a thorough review by the courts, it was determined the group was beyond saving and was to be liquidated.

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Interestingly, Reciprocal of America’s website is still up and running in the domain name does not expire until March 2014. A visit to the website gives a thorough explanation of the company’s problems including updates through 2005.

Because it’s been so long since the website has been updated it is assumed for the purposes of this review that the liquidation has been successfully completed. If that’s the case, Reciprocal Group and Reciprocal of America no longer exist.

Reciprocal of America Insurance Products and Services

Although the scope of the Reciprocal Group was somewhat broader, Reciprocal of America concentrated solely on medical malpractice insurance for doctors and other health care institutions.

They were not in the business of insuring automobiles, homes, boats, and other everyday needs.

Their function was to protect doctors from financial loss in the event they were ever successfully sued by patients for malpractice.

For the better part of a decade, the company did fairly well financially.

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Reciprocal of America Insurance Demise

According to the New York Times, Reciprocal of America’s problems began when they got involved with some shady investors who were dealing in offshore enterprises.

These investors recommended deals to Reciprocal of America that would eventually turn around and bite them.

Once the company realized they were in trouble, officials began using accounting gimmicks and other tools to mask the company’s financial troubles as they searched for ways to return it to good financial health.

Unfortunately, as these situations often turn out, the damage had already been none and there was no way out. The situation finally came to public light when a prominent Richmond surgeon lost a medical malpractice suit and his patient was awarded $750,000.

When the claim was filed with Reciprocal of America, they had no cash available to pay it, and the rest is history. The surgeon ended up closing his practice in order to avoid being personally liable for the award.

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Reciprocal of America Insurance Lessons

As noted by the New York Times, one of the most important lessons investors have learned from the Reciprocal Group failure is the importance of above-board transactions and financial transparency.

The company’s first mistake was to trust the initial investors who offered them offshore investments.

These types of investments should always be thoroughly investigated with second, third, and fourth opinions before transactions are undertaken.

The other important lesson gleaned from this sordid affair is that any insurance company that finds itself in trouble should disclose their difficulties as soon as possible rather than trying to cover them up.

If Reciprocal of America had come forth with their troubles early on, it’s quite possible there would have been other investors willing to come in and help them get back on their feet. In not coming forward, they destroyed not only their own business but the livelihoods of many doctors as well.

Reciprocal of America Insurance Locations

Although the company website has not been updated since 2005, official records indicate the possibility that liquidation continues to be ongoing. Depending on the complexity of the issues involved it is entirely possible for the process to continue on for years.

That said, it’s unlikely that the Glenn Allen offices of Reciprocal of America are still occupied. Their website offers a P.O. Box address where it’s assumed all the official correspondence could be sent.

Furthermore, their website lists contact information for the various officials who were given charge of the liquidation process.

For your general information, the P.O. Box address is as follows:

Reciprocal Group
P.O. Box 85058
Richmond, Virginia 23285-5058

If you have an outstanding claim that still needs to be addressed by Reciprocal of America, you can direct your correspondence to the following address:

Claims Department
Reciprocal of America/The Reciprocal Group
P.O. Box 85058
Richmond, Virginia 23285-5058
Phone: (800) 284-8847
Fax: (804) 565-1536

While this group cannot provide you with car insurance coverage, there are many that can. Use your zip code and the online rates tool to compare auto insurance quotes now!

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