In liability Insurance, separate limits of liability for bodily injury and property damage claims. Many divided limit liability Policy contain three separate limits for (i) bodily injury to each person. (ii) bodily injury to two or more persons injured in the same accident, and (iii) property damage per accident, See Also: “Split limit.”
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Divided or Specific Coverage
Property Insurance that applies separate Policy limits to narrowly defined types of property or to the same type of property at different locations.
Dividend
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.
Dividend accumulation (Life Insurance)
An option in a life insurance policy that allows the insured to accumulate any dividends paid out to him or her. These dividends stay with the insurer and earn compound interest.
Dividend accumulations
Policy dividend funds left on deposit with the insurer. Also called dividend credits .
Dividend addition
Amount of paid-up life insurance purchased with a policy dividend and added to the face value amount of the policy. This is an option written into the life insurance policy. Also called paid-up additions .
Dividend additions (Life Insurance)
An option in a policy that allows the insured to leave the dividends paid out to him or her by the insurer with the insurer. These dividends are then used to purchase a single premium life insurance policy.
Dividend credits
See: dividend accumulations .
Dividend expenses
Amount of money that it costs the insurance company to maintain each policy in force for the current year.
Dividend interest rate
Sum of money that accumulates and that represents the actual rate earned on an insurer’s present investments. The dividend interest rate is used to calculate policy owner dividends.