Which of the following statements is correct when comparing participating policies with non-participating policies?

Which of the following statements is correct when comparing participating policies with non-participating policies?


A) Premiums for participating policies are usually higher than for non-participating policies.

B) Dividends from participating policies are treated as taxable income, but dividends from non-participating policies are not.

C) The dividends on participating policies increase the value of the policyholder's stock, but non-participating dividends do not.

D) The guaranteed cash values in a participating policy are greater than in a non-participating policy.


Answer: A) Premiums for participating policies are usually higher than for non-participating policies.

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