Michigan Dividend Plan
Accident Fund’s Michigan Dividend Plan provides consistent and timely payments to your customers, is easy to calculate and leaves room for dividend prediction to insureds.

Dividend Usage Guidelines for Michigan

• Dividends are available through Accident Fund, Accident Fund General and Accident Fund National.

• Calculation is done 15 months after expiration and is based on incurred losses and audited premium.

• No varying retention factors; dividend calculation is the same for all policyholders on the plan.

• The insured receives 100 percent of the indicated dividend 15 months after policy expiration.

For more information, or to request the dividend plan for a policyholder, contact your business development consultant.

*It should be noted that dividends require approval by Accident Fund's Board of Directors. Therefore, neither dividends, nor any factors used in their calculation, may be guaranteed.

 For a PDF file of this table click here.
 

Accident Fund Michigan Dividend* Plan
	Audited Premium
	$25-50K	$50.1-75K	$75.1-100K	$100.1-200K	$200.1 and up
Loss Ratio
0.0-15.0%	8%	10%	20%	35%	40%
15.1-25.0%	6%	8%	15%	20%	25%
25.1-35.0%	5%	7%	10%	11%	12%
35.1-40.0%	4%	6%	7%	8%	9%
40.1-45.0%	2%	3%	4%	5%	6%

• The loss ratio is calculated by dividend losses by premium.

• Losses are calculated by adding paid losses and reported case reserves for the policy term.

• Losses do not include loss adjustment expense and are not adjusted for recoverable reinsurance.

• The full value of paid losses and reported case reserves is used in the calculation, meaning no stop-loss provision applies.

• Premium includes any adjustments for audit.

• The dividend amount is computed as a percentage of net earned premium.

• Dividends are calculated by Accident Fund 15 months after the policy expiration date.

*Please note that dividends are not guaranteed. The Accident Fund Board of Directors must declare dividends to policyholders.

Effective Date: 12/31/2006