You and your client Kerpal have concluded that his insurance needs would be best served with a participating whole life policy. You have reviewed the historical dividend scale and he is satisfied with the performance. However, Kerpal is concerned that the amount of the dividend is not guaranteed and he asks you what would make the dividends go down? Which of the following factors would cause a decline in participating policy holder dividends?

a) more policy holders died than expected

b) the provincial insurance regulators lower the policy reserves required

c) administrative expenses were lower than expected

d) investment returns were higher than expected