Dividend

by evan » Sat Jul 08, 2006 05:51 am
Posts: 1276
Joined: 01 May 2005

Dividend

(1) A refund of excess premium paid to the owner of an individual participating life insurance policy. Such a dividend is paid out of an insurer's divisible surplus. Also called a policy dividend or a policyowner dividend.

(2) 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 experience rating refund, experience refund, and retroactive rate reduction.

(3) A periodic payment paid by a business to a stockholder. A dividend paid in cash is called a cash dividend. A dividend paid in the form of additional shares of stock is called a stock dividend.

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