All of the following statements are true about participating and nonparticipating policies, except:
A. They are sometimes referred to as par and non-par.
B. Participating policies allow a policyowner to share in a mutual company's divisible surplus in the form of dividends.
C. Non-participating policies issue dividends to shareholders.
D. Non-participating policies issue dividends to policyowners.
Ans: D. Non-participating policies issue dividends to policyowners.
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