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Insurance Definition: DIVIDENDS

By Compuquotes Team on March 27th, 2008

DIVIDENDS:

Definition:

  • Money returned to policyholders from an insurance company's earnings. Considered a partial premium refund rather than a taxable distribution, reflecting the difference between the premium charged and actual losses. Many life insurance policies and some property/casualty policies pay dividends to their owners. Life insurance policies that pay dividends are called participating policies.

Information provided by Insurance Information Institute

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