Comprehensive and Detailed Step by Step Explanation:
Participating life insurance policies, often issued by mutual companies, include the possibility of dividends:
Dividends (A)represent a share of surplus profits distributed to policyowners.
Policyowners are not assessed for losses (B); the insurer bears those.
The insured and policyowner can be different individuals, making (C) incorrect.
Mutual insurers typically issue participating policies, not stock companies (D).
[References: Maryland Insurance Law on Participating Policies., ]
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