Traditionally, insurance companies have been stock, but they are increasingly remutualizing due to the perceived benefits of having a publicly traded stock.

Question

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This statement is incorrect. Traditionally, insurance companies have been mutual, meaning that they are owned by their policyholders instead of shareholders. Some insurance companies have converted to stock companies in the past, but there has been a recent trend towards demutualization, where a stock company converts back to a mutual company.

Traditionally, Insurance Companies Have Been Stock, but They Are Increasingly