California Insurance License Exam Practice Test Practice Question
A participating life insurance policy is defined as a contract that
Correct Answer: C
Rationale: A participating life insurance policy allows the policyowner to receive a share of the insurer's surplus, typically in the form of dividends. This feature distinguishes it from non-participating policies, which do not offer such benefits.
Option A refers to group life insurance, which covers multiple individuals but is not specific to participating policies. Option B describes certain rights but does not capture the essence of participation in surplus sharing. Option D mentions potential assessments, which may apply to some policies but is not a defining characteristic of participating life insurance.
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