When Dividends Are Left to Accumulate at Interest, the Insurer

question 62

Multiple Choice

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?

• A) As a cash withdrawal.
• B) As premium applied to the purchase by the policyholder of paid-up insurance.
• C) As marketable securities
• D) As premium to pay up or mature the policy.