ABC company pays its stockholders dividends. ABC undergoes a change in company ownership and begins to pays its policyholders dividends, instead of its stockholders. What is the term that describes the transformation that ABC company has undergone?

ABC company pays its stockholders dividends. ABC undergoes a change in company ownership and begins to pays its policyholders dividends, instead of its stockholders. What is the term that describes the transformation that ABC company has undergone?



a. Demutualization

(b.) Mutualization

c. Transfer to a noncommercial insurer

d. Transfer to a nonprofit insurer



Answer: B

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