Multiple choice general knowledge

Mention the policy where policyowner shares the insurance company's divisible surplus?

  1. Participating Policy

  2. Non - Par Policy

  3. Par Policy

  4. None of the options
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

In insurance, a participating (or 'par') policy is one where the policyowner shares in the insurance company's divisible surplus profits. These policies pay dividends to policyholders when the company performs well. Non-par (non-participating) policies do not share in surplus profits - premiums are fixed and no dividends are paid.

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