A participating policy:
A) increases the face amount of the policy.
B) is a form of endowment insurance.
C) may pay dividends.
D) requires a savings function.
E) contains no tax benefits.

Question

Quizplus · Accepted Answer

A participating policy is one that may pay dividends to the policyholder, based on the insurer's financial performance. This type of policy is often used in life insurance, and is designed to give policyholders a share of the insurer's profits. The other options listed do not accurately describe a participating policy.

A Participating Policy