Setting the policy to Enabled lets users send to and receive from family members (according to Family Service) their passwords.
When the policy is Enabled or not set, there is a button in the Password Manager allowing to send a password.
The received passwords are stored into user's account and are available in the Password Manager.
Setting the policy to Disabled means users can't send passwords from Password Manager to other users, and can't receive passwords from other users.
The feature is not available if synchronization of Passwords is turned off (either via user settings or SyncDisabled policy is Enabled).
Managed accounts aren't eligible to join or create a family group and therefore cannot share passwords.