Which of these describe a participating insurance policy?
Question: Which of these describe a participating insurance policy?
A. Policyowners are entitled to receive dividends.
B. Policyowners pay assessments for company losses.
C. Stock companies allow their policyowners to share in any company earnings.
D. Policyowners are not entitles to vote for members of the board of directors.
A. Policyowners are entitled to receive dividends.
A participating insurance policy is a type of policy in which the policyholders are entitled to receive dividends. These dividends are a share of the surplus earnings of the insurance company. The amount of the dividend is typically based on the company's financial performance and the profitability of the participating policies. Policyholders who hold participating policies are considered to be "participants" in the insurance company's earnings and are eligible to receive these dividends as a return on their policy's investment.
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