What does Retention Plan mean? Read on to discover the definition & meaning of the term Retention Plan - to help you better understand the language used in insurance policies.
A type of dividend plan most often used only in connection with workers compensation insurance. This plan provides that the net cost to the insured is equal to a retention factor (insurance company expenses) plus actual incurred losses, subject to a maximum equal to standard premium less premium discount. Can be used for other lines of insurance.
We hope the you have a better understanding of the meaning of Retention Plan.