Definitions for "Participating Insurance"
Life insurance under which an insurance company agrees to distribute to policyholders the part of its surplus which its Board of Directors determines is not needed at the end of the business year. Such a distribution serves to reduce the premium the policyholder had paid. (See also: Policy dividend; nonparticipating policy)
A life insurance policy whose owners are eligible to share in the distribution of dividends paid out of the surplus of the company.
An insurance policy that pays a dividend to its holder.