The Term "Demutualization" Refers To

question 16

Multiple Choice

The term "demutualization" refers to:

• A) the process of a stock insurer converting its organizational structure to mutual
• B) the board of directors' action in declaring dividends for the policy owners
• C) the process of a mutual insurer converting its organizational structure to the stock form
• D) the process of liquidating an insolvent mutual insurance company

---

Definitions:

Volleyball

A team sport where two teams, typically of six players each, compete to ground a ball on the other team's court under organized rules.

Labor-Leisure Tradeoff

The balance individuals must find between time spent working, which earns income, and time spent enjoying leisure activities.

Substitution Effect

The change in consumption resulting from a change in the relative prices of goods, prompting consumers to replace more expensive items with less costly alternatives.

Income Effect

The shift in income for an individual or the economy, and its influence on the demand for a specific good or service.