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When dividends are left to accumulate at interest, the insurer typically sends a notice to each policyholder showing the amount accumulated at the end of the policy year. The notice also shows the dividend credited and interest earned for that policy year. The dividend left at interest may later be received by or credited to the policyholder in several ways. Which of the following is/are out of those ways?
Suggested Answer: A, B, D
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12 comments · newest first
JA
Javier
3 days ago
A and D seem valid. Cash withdrawal and premium payments make sense.
AU
Audrie
8 days ago
Agreed, John. Dividends are usually not in that form.
BR
Brice
13 days ago
I think C is out. Marketable securities don’t fit here.
CA
Carmen
18 days ago
D) is a common method, for sure!
ER
Eric
24 days ago
Wait, can you really use dividends for premiums? Sounds too good to be true!
RO
Rosendo
29 days ago
C) As marketable securities? That seems off.
DI
Diane
1 month ago
I think B) is also correct, right?
GE
Gennie
1 month ago
A) As a cash withdrawal is definitely one way.
SA
Samuel
1 month ago
I feel a bit confused about the different ways dividends can be used. I know about cash and premiums, but I'm unsure about the specifics of marketable securities.
MA
Malinda
2 months ago
I practiced a similar question where dividends were used for paid-up insurance, so I feel confident about that option.
AR
Arletta
2 months ago
I think cash withdrawals and applying dividends to premiums are common methods, but I can't recall if they allow for marketable securities.
CE
Celestine
2 months ago
I remember studying about how dividends can be used, but I'm not sure if marketable securities are a valid option.