All of the Following Are Reasons Why Mutual Insurance Companies

question 42

Multiple Choice

All of the following are reasons why mutual insurance companies convert to stock insurance companies EXCEPT

• A)Stock companies can offer stock options to attract and retain key personnel.
• B)Stock companies can raise new capital more easily.
• C)Stock companies are exempt from state insurance regulation.
• D)Stock companies offer greater flexibility to expand through acquisitions.

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Definitions:

Fringe Benefits

Additional benefits supplementing an employee's salary, such as health insurance, pensions, and paid vacations.

Wagner Act

Also known as the National Labor Relations Act of 1935, it is a foundational statute of US labor law which guarantees basic rights of private sector employees to organize into trade unions, engage in collective bargaining, and take collective action such as strikes.

Taft-Hartley Act

A 1947 federal law that restricted the activities and power of labor unions in the United States.

Landrum-Griffin Act

A 1959 U.S. federal law formally known as the Labor-Management Reporting and Disclosure Act, which aims to protect union members' rights and promote democracy within labor organizations.