A participating policy allows the policyholders the same rights to dividends as they would receive if they were corporate stockholders.

Name: A participating policy allows the policyholders the same rights to dividends as they would receive if they were corporate stockholders.
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Question

Quizplus · Accepted Answer

A participating policy does allow policyholders to receive dividends, but these dividends are considered returns of excess premiums and not the same as corporate stock dividends, which are shares of profit paid to shareholders.

A Participating Policy Allows the Policyholders the Same Rights to Dividends