Legal Definitions - participating policy

A participating policy is a type of insurance policy that allows the policyholder to receive dividends or rebates from future premiums. This type of policy is issued by a mutual company.

For example, if you have a participating life insurance policy, you may receive a portion of the company's profits in the form of a dividend. This dividend can be used to reduce your premiums or increase the value of your policy.

Another example is a participating health insurance policy. If the insurance company earns a profit, they may distribute a portion of that profit to policyholders in the form of a rebate.

Overall, a participating policy allows the policyholder to share in the success of the insurance company.