Life Insurance Basics
What does a policyowner receive under a participating policy that a nonparticipating policy does not provide?
Answer and explanation
Answer: B. Participating policies share in the insurer's favourable mortality, expense and investment experience through dividends, which are not guaranteed. Nonparticipating policies fix the premium and benefits and pay no dividends.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, participating and nonparticipating
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