What is a defining feature of "Non-participation" insurers?

The defining feature of non-participation insurers is that no dividends go to policyholders. In a non-participating insurance model, the policyholders do not share in the insurer’s profits, which means that they do not receive dividends based on the company’s financial performance. This model is contrasted with participating insurers, where policyholders may receive dividends as a return of surplus from the profits made by the insurer.

Understanding the structure of non-participation insurance helps clarify its operational framework. Typically, these types of insurers offer lower premiums compared to participating insurers because they do not have to account for potential dividend payments. Thus, the absence of dividends is what distinctly characterizes this type of insurance provider.

The other options mentioned do not accurately capture the essential characteristic of non-participating insurers. While policyholders receiving dividends reflects a cooperative or mutual ownership structure, government ownership and incorporation status relate to regulatory and organizational aspects that may or may not influence dividend distribution.