Anytown Pediatrics is struggling with high medical malpractice insurance premiums. To gain more control over costs and allow any profits to return to their organization, the directors decide to establish their own insurance company that will exclusively provide coverage for Anytown Pediatrics. What kind of insurance company have they created?

A stock insurance company is owned by shareholders and operates for profit, providing insurance coverage to the general public. This structure does not align with Anytown Pediatrics' goal of creating a company solely for its own organizational needs and cost management.

A reciprocal insurer involves a group of individuals or entities that agree to insure one another, sharing the risks and rewards of their collective insurance arrangements. While this model promotes mutual benefit, it is not exclusive to one organization like the captive insurer model being implemented by Anytown Pediatrics.

A fraternal benefit society is a type of organization that provides insurance and other benefits to its members, typically based on a common bond or affiliation, such as religion or culture. In contrast, Anytown Pediatrics is not creating a society for a broader community but rather a specific insurance operation for its own benefit.