The leaders of a religious group decided to start a life insurance organization to insure members of the religious group. The insurer will operate as a nonprofit organization, thus receiving favorable tax treatment. The insurer formed will be a

A) health maintenance organization.
B) stock insurer.
C) fraternal insurer.
D) reciprocal exchange.

Answer: C

Business

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Plant assets purchased on long-term credit contracts should be accounted for at

a. the total value of the future payments. b. the future amount of the future payments. c. the present value of the future payments. d. none of these.

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Community attitudes, zoning restrictions, and quality of labor force are likely to be considered in which of the following location decision methods?

A) transportation method B) locational cost-volume analysis C) center-of-gravity method D) simulation E) factor-rating method

Business