Conversion Laws Have Been Useful In

question 21

Multiple Choice

Conversion laws have been useful in:

• A) allowing workers to transfer from one insurance plan to another.
• B) allowing workers to keep their insurance when changing jobs.
• C) adding names of new dependents on health insurance plans.
• D) allowing women to remain on their spouse's policy 3 years after divorce or widowhood.

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Definitions:

Warrant Value

Represents the value of a warrant, which is a financial instrument giving the holder the right, but not the obligation, to buy shares of stock at a specified price before a certain date.

Market Price

The present cost at which a service or asset is available for purchase or sale.

Underlying Shares

Underlying Shares refer to the shares of stock that an option, future, or other derivative contract gives the holder the right, but not the obligation, to buy or sell.

Loan Securitizations

The process by which a financial institution groups various types of contractual debt such as mortgages or loans and sells them as consolidated financial instruments to investors.