20
dividend payments. Ten years
ago, participating policies
accounted for 16 per cent of
life insurance ownership.
Of the total dividends, the
majority (over $2.4 billion
or 96.4 per cent) was paid
out under life insurance
policies. Of the remainder,
dividends under health
insurance policies accounted
for almost 3.6 per cent, with
a negligible amount under
annuities. Individual plans
accounted for nearly
81 per cent of the total
dividend payments, with the
remainder paid under group
contracts.
Canadian life and health
insurers with share capital
(stock companies) are subject
to legislation regulating the
distribution of "profits" arising
from participating policies to
participating policyholders and
to shareholders. Participating
policyholders are entitled to
at least 90 per cent of such
profits distributed by small
companies, grading up to
almost 97.5 per cent for the
largest companies.
