Participating and Non-participating Companies

Participating company offers a dividend on its policies, and a non-participating company does not.

Usually the term "participating companies" refers to an insurance company that writes policies that allow policyholders to "participate" in the results by paying dividends. Non-participating companies do not offer dividends.

States have different regulations on the ability for a carrier group to offer both participating and non-participating policies through separate companies within the group. In some states, the carrier must declare one or the other for the entire group. In other states, a carrier group can offer both through separate companies.

The Indiana DOI allows one carrier to do both (offer participating and non-participating policies). The ICRB By-laws do not address this situation.

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