Which of the Following Is an Advantage of Converting from a Mutual

question 83

Multiple Choice

Which of the following is an advantage of converting from a mutual insurance company to a stockholder-controlled company?

• A)Publicly held companies have access to equity markets for additional capital for future business expansion.
• B)Mutual organizations are subject to higher regulatory standards than public companies.
• C)Ability to offer more insurance products than those allowed under mutual ownership.
• D)Publicly held insurance companies can convert to federal charters but mutual organizations cannot.
• E)Mutual organizations can only underwrite policies in the state in which they are chartered while publicly held organizations can expand nationwide.

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Definitions:

Operant Conditioning

An educational method where behavior intensity is adjusted by using rewards or penalties.

Longitudinal Studies

Research methods that involve observing the same subjects over a period of time, often years or decades.

Biased Sample

A subset of a population selected in a manner where some members of the intended population are less likely to be included than others, potentially leading to skewed outcomes.

Longitudinal Design

A research method in which data is gathered for the same subjects repeatedly over a period of time to observe changes and development.