Participating

A policy that pays dividends to the policy owner. This term can also refer to insurance that pays a portion of the loss, along with other insurance coverage that applies to the same risk.

Participating insurance

Type of insurance provision in which the insured is entitled to receive policy dividends that reflect the difference between the premium charged and actual costs. Premiums are calculated to give some margin over the expected cost of the insurance protection. Also called participating policy.

Participating or Pro-Rata Reinsurance

These are contracts where in the event of a loss, the amounts payable by a Direct Insurer and the Reinsurer are in proportion which are arranged before the loss. In other words, under proportional Reinsurance there is a common apportionment between the Ceding Company and the Reinsurer of original sum insured, of premiums and of losses according to a pre-determined percentage. Includes Quota Share, First Surplus, Second Surplus and all other sharing forms of reinsurance where under the reinsurer participates pro rata in all losses and in all premiums.

Participating physician

1. A physician who contracts with an HMO or other insurance company to provide services to the plan’s members. 2. A physician who has agreed to accept a plan’s payments for services to subscribers (e.g., some Blue plans). Eighty percent of practicing American physicians are participating physicians. 3. Doctor or supplier who agrees to accept assignment on all Medicare claims. These physicians or suppliers may bill the patient only for the Medicare deductible and coinsurance amounts. Also called affiliated health care provider, participating provider, in-network provider, network provider.