The term "demutualization" refers to:
A) the process of a stock insurer converting its organizational structure to mutual
B) the board of directors' action in declaring dividends for the policy owners
C) the process of a mutual insurer converting its organizational structure to the stock form
D) the process of liquidating an insolvent mutual insurance company

Question

Quizplus · Accepted Answer

Demutualization refers to the process of a mutual insurance company converting its organizational structure to the stock form, typically through an initial public offering (IPO) of stock. This allows the mutual insurer to become a publicly traded company and raise capital by selling shares to investors.

The Term "Demutualization" Refers To