Preferred Risk Participation Program
Individual accounts often want to receive dividends based on their own experience. Accounts with favorable experience that is acceptable to our underwriters can participate in a return-of-premium (dividend) program.
The dividend calculation is based on the employer’s loss ratio for each year. Twelve months after the expiration date of the policy period, the calculation will be made to determine the loss ratio.
Incurred losses used in calculating loss ratios will be those in effect at the time of the dividend calculation. Dividends are contingent upon a satisfactory audit and continued coverage until the normal expiration date.
Subsequent changes to incurred losses will not reduce nor increase the amount of the dividend declared in a given year.
Please contact us for more details.
- Participants in an individual dividend program can receive up front discounts of 20% and dividends up to 29% of the premium.
- Each individual account is written on a guaranteed cost contract.
- Dividend is protected. If incurred claims are increased after a dividend is declared the policyholder will not have to return any portion of the dividend.
- Each policyholder can participate in loss control efforts that may help reduce claims and improve their loss ratios.