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Your mutual insurance company is considering demutualizing. The Deficit Reduction Act of 1984 resulted in increased tax liabilities, and your company is at a disadvantage

Your mutual insurance company is considering demutualizing. The Deficit Reduction Act of 1984 resulted in increased tax liabilities, and your company is at a disadvantage when attempting to raise funds. You are undecided about demutualizing, but you're concerned about policyholder rights. Other board members are interested in converting the company to a mutual holding company. What is your reaction to that particular demutualization option?

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