Home > Glossary

Sliding Scale Dividend

Sliding Scale Dividend


Sliding Scale Dividend — a rating plan that pays a dividend to the insured on a loss sensitive basis. Dividends are not guaranteed and are paid based on the ratio the final audited premium bears to the total incurred losses of the insured for the specific policy period. Since losses stay open for several years after policy expiration, periodic dividend adjustments are made after the initial reconciliation.

Related Products

User ID: Subscriber Status:Free