An insurance company financing at 8% interest plus a portion of net income is an example of what type of loan?

The scenario described, where an insurance company finances a loan at a fixed interest rate while also taking a portion of the net income, is characteristic of a participation loan. In a participation loan, the lender receives not only the interest from the loan but also a share in the profits or income generated from the asset financed by the loan. This structure aligns the lender's interests with those of the borrower, as both parties benefit directly from the financial performance of the investment.

A packaged loan typically involves multiple types of financing bundled together, which does not fit the scenario presented. A variable loan refers to a loan where the interest rate can change over the life of the loan, which is not indicated here. An open-end loan allows borrowers to access funds up to a certain limit and borrow again once they pay down the principal, but it does not involve the sharing of income.

In summary, the correct answer illustrates a financing arrangement that combines a standard interest rate with shared profits, which defines a participation loan.