Which of the following best describes life insurance policy dividends?

Insurance

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Which of the following best describes life insurance policy dividends?

A) Policy dividends represent earnings to shareholders who hold stock in insurance companies.

B) Policy dividends are an intentional return of a portion of the premiums paid.

C) Policy dividends provide the policyowners with a level, annual cash flow.

D) Policy dividends affect the costs of virtually all insurance policies issued today.

Answer: B) Policy dividends are an intentional return of a portion of the premiums paid.

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