Question

which of the following is false? multiple choice stock companies generally sell nonparticipating policies. mutual companies generally sell participating policies. part of the premium is refunded to the policyholder in a participating policy. you can expect to receive a policy dividend from a stock company. a participating policy has a somewhat higher premium than a nonparticipating policy.

Answer 1

It is FALSE that, You can expect to receive a policy dividend from a stock company.

A participating policy is an insurance agreement that rewards the holder with dividends. Over the course of the policy's life, dividends are typically paid out on an annual basis and are derived from the insurance company's profits that sold the policy. The majority of policies also include an end-of-contract payment. Some participating policies might have a guaranteed dividend sum that is chosen at the time the policy is purchased. An additional name for a participating policy is a "with-profits policy."

Policyholders have two options for receiving their premium payments: they can mail them in as cash or keep them on deposit with the insurance company, where they will earn interest or have the payments added to their premiums.

Learn more about Participating policies, here

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