What does Dividend mean? Read on to discover the definition & meaning of the term Dividend - to help you better understand the language used in insurance policies.
In insurance, this means a refund to the policyholder of that portion of their premium which is not needed to pay their share of the losses and expenses incurred during the policy period. Dividends are paid by mutual, participating stock companies and sometimes by reciprocals.
We hope the you have a better understanding of the meaning of Dividend.