dividends
A partial return of premium to the insured based on the insurer's financial
performance or on the insured's own loss experience. Insurers cannot legally
guarantee the payment of dividends. In the captive arena, there are two kinds:
policyholder dividends are paid back through the insurance premium process to
the insureds. They are before-tax expenses for the captive.
Shareholder dividends
are paid to the captive's shareholders after tax (and are then taxed again to
the shareholder).
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RF III.B