The correct answer is: C. Both A & B
The portfolio method is a method of sharing profits in which the insurer pays a dividend to each policyholder based on the amount of insurance in force. The current money method is a method of sharing profits in which the insurer pays a dividend to each policyholder based on the amount of premiums paid.
Both methods are used by insurers to share profits with policyholders. The portfolio method is more common for life insurance policies, while the current money method is more common for property and casualty insurance policies.
The portfolio method is a more conservative method of sharing profits, as it is based on the amount of insurance in force. This means that the insurer is less likely to have to pay out a dividend if there are a lot of claims. The current money method is a more aggressive method of sharing profits, as it is based on the amount of premiums paid. This means that the insurer is more likely to have to pay out a dividend if there are a lot of claims.
The choice of which method to use is up to the insurer. The insurer will consider factors such as the type of insurance policy, the financial stability of the insurer, and the expectations of policyholders.