Question

"In the scenario where P is the insured on a participating life policy, and premiums are waived due to a disability, how does the policy's participation feature continue to operate, and what impact does the premium waiver have on the policy's benefits and dividends?"

Answer 1

When premiums are waived on a participating life policy due to disability, the policy's participation feature continues to operate, allowing the policyholder to receive dividends and other benefits based on the insurance company's financial performance.

Step-by-step explanation:

When the insured on a participating life policy has their premiums waived due to a disability, the policy's participation feature continues to operate. The participation feature allows the policyholder to receive dividends based on the insurance company's financial performance. Even though the premiums are waived, the policyholder remains eligible to receive dividends and other benefits as long as the policy remains in force.