3-85 Which of the Following Is an Advantage of Converting

question 23

Multiple Choice

3-85 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.

Comprehend the legal protections offered through various consumer protection acts, including the Trade Practices Act and related legislation.

Understanding the concept and implications of an unpaid seller's lien.

Identify the contributions of the federal Competition Act to consumer protection.

Identify the significance of negotiable instruments in financial transactions.