Examlex
Which of the following statements is CORRECT?
Nonparticipating
In insurance, refers to a policy that does not entitle the policyholder to share in the surplus profits of the insurer.
Participating
In finance, it often refers to securities or policies that allow owners to receive dividends, or share in profits beyond a specified amount.
Cumulative
Refers to something increasing in quantity, degree, or force by successive additions, often used in the context of cumulative dividends or interest.
Non-cumulative
A term, often referring to preferred shares or dividends, indicating that if a dividend is not declared, it does not accumulate and is not owed in future periods.
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