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Question
Which of the following is an advantage of converting from a mutual insurance company to a stockholder-controlled company?
A. Publicly held companies have access to equity markets for additional capital for future business expansion.
B. Mutual organizations are subject to higher regulatory standards than public companies.
C. Ability to offer more insurance products than those allowed under mutual ownership.
D. Publicly held insurance companies can convert to federal charters but mutual organizations cannot.
E. Mutual organizations can only underwrite policies in the state in which they are chartered while publicly held organizations can expand nationwide.
Answer
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Related questions
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E. product liability and farm owner multiple peril.
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The McCarran-Ferguson Act of 1945
A. separated commercial banking from insurance activities.
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C. stipulated that insurance companies are to be regulated at the state level.
D. initiated a national insurance guaranty fund.
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A. the expected payment commitment on existing policy contracts.
B. a fund established and held separately from the company's other assets.
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A. has publicly-traded common stock.
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