The entire surplus would be distributed to policyholders
The entire surplus would be distributed to shareholders
A portion of the surplus would be left for distribution to shareholders
All of the above
✅ The correct answer is C.
Earned surplus is the sum of a company’s profits, after dividend payments, since the company’s inception. A portion of the surplus would be left for distribution to shareholders.
Earned surplus is the sum of a company’s profits, after dividend payments, since the company’s inception. A portion of the surplus would be left for distribution to shareholders.