A whole life insurance policy issued by a mutual insurer that provides a return of divisible surplus is called a

A straight whole life insurance policy is a type of permanent life insurance that provides a guaranteed death benefit and accumulates cash value, but it does not necessarily return dividends to policyholders. Thus, it lacks the "participating" feature that defines the correct answer.

A continuous premium whole life insurance policy refers to a payment structure where premiums are paid throughout the insured's life. While it may be participating, this term focuses on the payment schedule rather than the surplus return feature, making it insufficient as the correct option.

A limited pay whole life insurance policy allows for premiums to be paid over a specified period, after which no further payments are required. Similar to the other options, this policy may or may not be participating, but it does not specifically denote the return of divisible surplus characteristic of participating policies.