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Buying Insurance from a Mutual May Not Always Be Desirable

Question 36

Multiple Choice

Buying insurance from a mutual may not always be desirable because:


A) the mutual is trying to make a profit for the stockholders
B) you may be paying for other insureds' losses
C) premiums may be greater than that of a stock company if the mutual is improperly managed
D) the officers of the company are not responsible to the policy holders

Correct Answer:

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