Florida Life and Health Insurance License Practice Test

If P's premiums on a participating life policy are waived due to a disability, what does P still receive?

1. Monthly statements

2. Declared dividends

3. A refund of premiums

4. No benefits

The correct answer is: Declared dividends

When a policyholder's premiums are waived due to disability, they are still eligible to receive declared dividends. This is because participating life policies are designed to provide both insurance coverage and the potential for investment gains through dividends. A policyholder may still receive regular statements about their policy, but they will not need to pay any premiums while they are disabled. A refund of premiums is not typically part of a participating life policy and choosing this option would result in incorrect information. Lastly, it is incorrect to say that the policyholder would not receive any benefits - they would still receive the benefits of their policy, but without having to pay premiums while disabled.