Which type of policy does not pay dividends except to stockholders?

A non-participating policy is one that does not pay dividends to policyholders. Instead, the profits generated by the insurance company are retained within the company, benefiting shareholders rather than policyholders directly. In a non-participating policy, the insured individuals pay a set premium, and in return, the insurer provides coverage as defined in the contract. Any financial surplus or profits accrued typically goes to enhance the company's financial standing, supporting stockholders, rather than being distributed to the policyholders in the form of dividends.

In contrast, a participating policy allows policyholders to receive dividends based on the company's surplus earnings. These dividends can be used in various ways, such as reducing premiums or purchasing additional coverage. Fraternal policies often function similarly to participating policies but are designed for member-based organizations, while government policies typically aim to provide coverage or benefits directly related to public welfare rather than dividends.