Which of the following accurately describes a participating insurance policy?

A participating insurance policy is characterized by the potential for policyowners to receive dividends. These dividends are a portion of the insurer's profits that are distributed to participating policyholders. The amount of dividends can vary based on the company's performance, the type of policy, and other factors.

Dividends are typically provided in mutual insurance companies, where policyowners are also considered members or owners of the company. This feature aligns with the concept of participating policies, which means the policyholders share in the success of the insurer. As such, they can benefit financially through these dividends, though it's important to note that the receipt of dividends is not guaranteed each year.

The other choices do not accurately describe the feature of a participating policy. Fixed premium discounts are more associated with certain policies but do not define the nature of participation. Saying policyowners have no claim to dividends contradicts the fundamental principle of a participating policy. Moreover, the option about opting out of benefits does not accurately reflect the structure or terms of a participating policy, as benefits are typically stipulated in the policy contract rather than being optional.