← All terms

Life & Health · Chapter 1 · Company Types

Participating ("Par") Policy

Definition
Policyholders participate: vote for the board and may receive policy dividends from the divisible surplus. Issued by mutual companies.
Easy to confuse with

These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.

Related terms
Drill this termChapter lessonChapter practice test
Verified against primary sources · 2026-08-10