A policy entitling a policyholder to receive dividends from the surplus of an insurer to the extent that dividends are declared by its board of directors.
A policy offers the potential of sharing in the success of an insurance company through the receipt of dividends.
Policy under which the policyholder is eligible to receive dividends.
A policy under which policy dividends are paid.
A life insurance policy under which the company distributes to policyholders the part of its surplus that its board of directors determines is not needed at the end of the business year. Such a distribution reduces the premium that the policyholder had paid. See policy dividend and nonparticipating policy.
A participating policy is also known as a with-profits or par policy. A participating policy charges a higher premium than a non-participating policy. In return, the policy owner shares in the life insurance company's divisible surplus, in the form of bonus allotted to the policy. The bonus is allotted in addition to the guaranteed sum assured. This bonus is paid along with the basic sum assured.
Life insurance policy that is eligible for the payment of dividends by the sponsoring company.
Policy in which the policyowner receives shares (commonly called dividends) of the divisible surplus of the company. At the beginning of each year, the insurance company does not know how many claims they will get that year. The insurance company must collect enough in premiums to cover claims, even in very bad years. Sometimes the amount of money collected exceeds what is required to cover expenses and pay claims, this is the divisible surplus.
A policy that earns dividends.
Life insurance policy where the policyowner receives dividends from the insurance company's surplus.
A life insurance policy that is eligible for the payment of dividends by the insurer (see also Dividend.)
A type of insurance policy that allows policyowners to receive policy dividends. Also known as par policy. See also dividend.
A policy under which the insured shares in the saving resulting from good underwriting and favorable loss experience. Such policies are usually written by mutuals, sometimes by reciprocals, and occasionally by stock companies.
An insurance policy the holder of which is entitled to a share of the insurer's surplus.
A participating policy is typically issued by a mutual life insurer whose profits (surplus) are for the benefit of its policyholders. If there is sufficient surplus to be paid out amongst the current policyholders, they will be paid out in the form of dividends. Dividends can be taken in cash, used to reduce the premium due, or used to purchase additional paid up insurance.
General] an insurance or annuity policy under which the policyholder is entitled to participate in the distributable surplus of the company [identical to ASOP No. 10
A life insurance policy under which the 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.
An insurance policy under which the policyowner shares in the insurance company's divisible surplus by receiving policy dividends. Also known as a par policy. See also dividend.
A life insurance policy whose owner receives dividends based upon the profitability of the insurance company