The premium that is refunded to holders of a participating policy is called the policy dividend.

Name: The premium that is refunded to holders of a participating policy is called the policy dividend.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This statement is true. The policy dividend is the portion of the insurance company's surplus that is distributed to policyholders who have participating policies. It is essentially a refund of part of the premium paid on the policy.

The Premium That Is Refunded to Holders of a Participating