Question

The conversion of insurance companies from mutual companies owned by their policyholders into publicly traded stock companies is termed as?

A Affinity sales Correct Answer Incorrect Answer
B Demutualization Correct Answer Incorrect Answer
C Annuitization Correct Answer Incorrect Answer
D Fiduciary Correct Answer Incorrect Answer
E None of these Correct Answer Incorrect Answer

Solution

Demutualization is when a mutual company owned by its members converts into a company owned by shareholders.

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