MEDICAL,USA: 1. Refund of excess premium paid to the owner of an individual participating life insurance policy. It reflects the difference between the premium charged and actual experience. Also called policy dividend or policy owner dividend . 2. Part of a group insurance premium that is returned to a group policyholder that has a better claims experience than had been projected when the premium was calculated. Also called experience rating refund, experience refund , and retroactive rate reduction . 3. In a mutual or participating company, it is quarterly or annual payments by a business to a stockholder. Dividends paid in cash are called cash dividends . Dividends paid with shares of stock are called stock dividends .
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A refund of part of the premium on a participating policy a share of policyholder surplus funds apportioned for distribution.
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US: A return of part of the premium on participating insurance to reflect he difference between the premium charged and the combination of actual mortality, expense and investment experience. Such premiums are calculated to provide some margin over the anticipated cost of the insurance protection.
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The return of party of the policy’s premium for a policy issued on a participating basis by either a mutual or stock insurer. A portion of the surplus paid to the stockholders of a corporation.
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When an insurer returns part of the premium paid by an insured for a policy, or a part of a surplus paid to each stockholder in a company.