True v. Robles

BENAVIDES, Circuit Judge:

This putative class-action suit raises a novel question concerning the fundamental legal structure of a peculiar entity known as a reciprocal insurance exchange, which is essentially an insurance company cooperatively owned by those it insures, known as “members” or “subscribers.” Specifically, we must inquire into the nature of the legal relationship between the board of directors of the United Services Automobile Association (“USAA”), a large reciprocal insurance exchange, and its subscribers, and determine what legal duties are created by that relationship. James…