What is a participating group insurance plan?
Most group insurance plans are participating, meaning that, in some form, the group policyowner participates in any better-than-anticipated expense or claims experience. This form may be the payment of dividends (usually through mutual companies) or experience rating premium refunds (usually through stock companies). Dividend payments are never guaranteed but they usually apply whether or not the group policy is renewed. Premium refunds are not guaranteed and may be contingent upon policy renewal, but they can be applied retroactively.