Sources of life insurance dividends include which of the following?
I.Excess interest earned on the assets necessary to maintain legal reserves
II.Favorable mortality experience

Question

Quizplus · Accepted Answer

Life insurance dividends are payments made by an insurance company to its policyholders out of the company's divisible surplus. Dividends are not guaranteed, and their amount and frequency can vary. Sources of life insurance dividends include excess interest earned on the assets necessary to maintain legal reserves and favorable mortality experience. Both options I and II are correct.

Sources of Life Insurance Dividends Include Which of the Following