The portion of a reinsurance premium that is returned to the ceding company when claims experience is better than had been expected. See Profit Commission and Risk Charge.
Certain large policies, usually Employee's Compensation insurances, provide for a refund of premium if losses sustained are less than anticipated when the insurance was taken out.
The portion of a group insurance premium that is returned to a group policyholder whose claim experience is better than that which was expected when the premium was calculated.
In life reinsurance, a predetermined percentage of the net reinsurance profit that the reinsurer returns to the ceding company as a form of profit sharing at year-end.
Under a reinsurance agreement, that part of the profits which is returned to the cedant after recognition of contingency reserves, loss carryforward and loss carryback provisions.
A provision in most group policies for the return of premium to the policyholder because of lower than anticipated claims.
(1) The portion of a group insurance premium that is returned to a group policyholder whose claims experience is better than had been expected when the premium was calculated. Also called a dividend, an experience rating refund, and a retroactive rate reduction. See also dividend. (2) The portion of a reinsurance premium that is returned to the ceding company when claims experience is better than had been expected when the premium was calculated.
Amount returned by an insurer to a group policyholder when the financial experience of a particular group (or class to which the group belongs) has been more favorable than anticipated.
For a particular group insurance plan, the portion of a group insurance premium that is returned to a group policyholder whose claim experience is better than had been anticipated when the premium was calculated. Also known as dividend.
In life reinsurance, a refund by the reinsurer of part of the premium in proportion to the profitability of the business.
