What Explains the Recent Increase in Many Large Insurance Companies

question 121

Multiple Choice

What explains the recent increase in many large insurance companies conversion to stockholder controlled companies?

• A)Pressure from policyholders.
• B)Additional premiums.
• C)Access to equity markets.
• D)Tax concerns.
• E)Regulatory requirement.

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Definitions:

Court Order

A formal directive issued by a court of law requiring a person or entity to do or refrain from doing something.

Debtor

An individual or entity that owes a debt to another; the opposite party being a creditor.

Secured Creditor

A creditor that has a legal claim, called a lien, on the debtor's assets, ensuring priority payment if the debtor defaults on the obligation.

Unsecured Creditor

A creditor who extends credit without requiring specific collateral to secure the debt owed by the borrower.