Which of the following statements about participating policies is NOT correct?

A) They are issued only by stock companies.
B) The annual premium rate is generally higher than that for nonparticipating policies.
C) They are eligible for dividends.
D) They enable the policyowner to share in the earnings of the company."

Ans: A) They are issued only by stock companies.

Business

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A stock split is usually taxable to a firm as it restructures the capital

Indicate whether the statement is true or false

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The optimal capital structure is the one that balances ________

A) return and risk factors in order to maximize profits B) return and risk factors in order to maximize earnings per share C) return and risk factors in order to maximize market value D) return and risk factors in order to maximize dividends

Business