What does Experience Refund mean? Read on to discover the definition & meaning of the term Experience Refund - to help you better understand the language used in insurance policies.
An experience refund is the portion of the profits from insurance that is given back to a policyholder whose claims are below the coverage they have paid for during the entire policy period. It is also the term used for money returned to a ceding company from a reinsurer for claims that do not exceed the actuarial projections.
We hope the you have a better understanding of the meaning of Experience Refund.