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:

Capital Account

A financial statement account that represents the ownership interests or equity in a company.

Closed

In accounting, this term refers to accounts that have been concluded for a period, typically at the end of an accounting cycle, by transferring their balances to permanent accounts.

Service Revenue

Income earned by a company from the services it provides to customers, as opposed to selling goods.

Equipment

Tangible assets used in operations, such as machinery and computers, that have a useful life beyond one year.