UK: a refund of premiums made to the insured when the claims payable under the contract are at a lower level than anticipated by the insurer.
***
MEDICAL,USA: Insurance premium returned by an insurance company to a group policyholder because the financial experience of the group has been more than the premiums collected from that which was anticipated. Also called dividend, experience rating refund, premium refund , and retroactive rate reduction .
***
UK: Term used by life reinsurers to describe the profit commission that they pay to the ceding office as a refund based on the profitability of the business.
***
Under a reinsurance agreement, that part of the profits that is returned to the cedant after recognition of contingency reserves, loss carryforward, and loss carryback provisions. See Carryover provision.