Question

In: Operations Management

Dividends in the construction industry are when insurance companies return portions of the surplus (gathered from...

Dividends in the construction industry are when insurance companies return portions of the surplus (gathered from premiums), to clients with relatively low loses.

True or False

Solutions

Expert Solution

TRUE.

Insurance companies share a portion of profit with selected clients who have made less or no amount of claims for their insured items in that particular financial year.That portion of surplus amount shared with clients is called dividends.

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