Author Question: Big Mutual Insurance Company would like to take advantage of financial services deregulation by ... (Read 46 times)

mikaylakyoung · **on:** Jul 11, 2018

Big Mutual Insurance Company would like to take advantage of financial services deregulation by acquiring a bank and a stock brokerage firm.

Big Mutual, however, would have trouble raising the funds needed to make these acquisitions under the mutual form of organization. Big Mutual is planning to switch from the mutual form of organization to the stock form, and to issue shares of common stock to raise capital. This change in organizational structure is called
A) mutualization.
B) retrocession.
C) reinsurance.
D) demutualization.

Question 2

ABC Term Life Insurance Company uses an interesting marketing systemit has no agents. Instead, the company markets its coverages through television and radio ads, newspaper inserts, and the Internet.

The type of marketing system that ABC Term Life Insurance Company uses is called the
A) mass merchandising system.
B) mixed marketing system.
C) direct response system.
D) worksite marketing system.