If a loan is taken on a participating policy dividends for that policy while there is a loan against the policy will be?

If a loan is taken against a participating policy, the dividends earned on that policy will be calculated on the total cash value, which is reduced by the amount of the outstanding loan. This means that the dividends will be lower than they would be without the loan. Additionally, any dividends paid out can be used to offset the loan interest or can be applied to reduce the loan balance. It's important to monitor the policy to ensure it remains in good standing.