Which of the following is correct?

A. The entire surplus would be distributed to policyholders

B. The entire surplus would be distributed to shareholders

C. A portion of the surplus would be left for distribution to shareholders

D. All of the above

Answer: Option C

Solution(By Examveda Team)

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.