Dividends paid to policyholders on participating policies are treated by the IRS as a return of premium

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Dividends paid to policyholders on participating policies are treated by the IRS as a return of premium and are not subject to income tax. Dividends to shareholders in a stock company, however, are taxable income to the recipients.

Do you believe this difference in treatment is justified? Why or why not?

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Fundamentals Of Risk And Insurance

ISBN: 978-1118534007

11th Edition

Authors: Emmett J. Vaughan ,Therese M. Vaughan

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Question Posted: Jul 19, 2024 08:00 PM

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Dividends paid to policyholders on participating policies are treated by the IRS as a return of premium

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Fundamentals Of Risk And Insurance

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