Author Question: All of the following are reasons why mutual insurance companies convert to stock insurance companies ... (Read 83 times)

appyboo · **on:** Jul 11, 2018

All of the following are reasons why mutual insurance companies convert to stock insurance companies EXCEPT

A) Stock companies can offer stock options to attract and retain key personnel.
B) Stock companies can raise new capital more easily.
C) Stock companies are exempt from state insurance regulation.
D) Stock companies offer greater flexibility to expand through acquisitions.

Question 2

RST Insurance Company does not have any agents. Instead, the company sells insurance through radio ads, telemarketers, and newspaper and magazine inserts. This distribution method is called

A) reciprocal exchange.
B) direct response system.
C) mass merchandising.
D) multiple distribution system.