Why are some mutual insurers referred to as assessment mutuals?
A) They charge low premiums because the loss exposures of their insureds are thoroughly assessed before a policy is written.
B) They are noted for being very thorough in their assessment of investment opportunities.
C) They are assessed for state premium taxes only if they make a profit.
D) They can assess policyholders if premiums are insufficient to pay losses and expenses.
Question 2
The corporate structure of mutual insurers has changed in recent years. All of the following are examples of significant changes EXCEPT
A) demutualization of some insurers.
B) sharp increase in the number of mutual insurance companies.
C) increase in company mergers.
D) formation of mutual holding companies.
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