### Question
How does the law define policyholder dividend?


### Answer
Under *26 U.S.C. § 808*, **policyholder dividend** is defined as:

> any dividend or similar distribution to policyholders in their capacity as such

#### Citation:
  - *26 U.S.C. § 808*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter L-Insurance Companies > PART I-LIFE INSURANCE COMPANIES > Subpart C-Life Insurance Deductions**

