Final answer:
Life insurance policy dividends are non-taxable and are issued by the insurer, not guaranteed or issued by the Department of Insurance. The cash value aspect of such policies serves as an account that can be used by the policyholder.
Step-by-step explanation:
Dividends paid from a life insurance policy are B. non-taxable. These dividends are not guaranteed; they are a return of excess premium and depend on the insurer's performance and expenses. Dividends are issued by the insurer, not the Department of Insurance. Cash-value (whole) life insurance policies offer both a death benefit and a cash value account, which grows over time and can be used by the policyholder.