Why does Preferra RRG return premium refund dividends to Preferra policyholders?
Preferra Insurance Company Risk Retention Group is a mutual insurance company dedicated to benefiting its policyholders. When Preferra has a good year, we strive to share those benefits with you.
When Preferra collects premium that exceeds its annual expenses, our goal is to return a portion of the premium to our policyholders, where it belongs.
In 2023, we experienced strong financial and operational performance. As a result, in 2024, we are returning 6.2% of your 2023 paid premiums to eligible policyholders in the form of a premium refund dividend check.
This premium refund dividend initiative reflects our commitment to maximizing the value you receive from your liability insurance company. It aligns with our mission and ethical responsibility to earn and maintain your trust, as well as our mandate to benefit our policyholders.
Please note that the payment of premium refund dividends depends on the annual financial performance of Preferra and other factors. Any premium refund dividend distribution is subject to the approval of Preferra’s board of directors and the Commissioner of the District of Columbia Department of Insurance, Securities and Banking.
What is a mutual liability insurance company?
A mutual liability insurance company is an insurance entity owned by its policyholders. In this structure, policyholders are considered members of the company and may have voting rights and the ability to participate in profit-sharing or receive dividends
The primary goal of a mutual liability insurance company is to provide insurance coverage for its members while operating on a cooperative basis. These companies often prioritize the interests of their policyholders and aim to offer stable and competitive insurance products tailored to their needs.
Who is eligible to receive a Preferra premium refund dividend check in 2024?
You are eligible to receive a Preferra premium refund dividend check in 2024 if you meet the following criteria:
- You were a current Preferra policyholder when the 2023 Preferra policyholder dividend was declared in April 2024; and
- You maintained a paid Preferra liability policy (or policies) for all 12 months of 2023.
If you held more than one policy for the entire 12 months of 2023, the total premiums paid for all policies will be considered in the calculation of your premium refund dividend check amount. Policies held less than 12 months in 2023 will not be included in the premium refund dividend calculation.
Why is Preferra returning premium refund dividends to policyholders for the first time now?
Since the company’s inception in 2012, it has been the long-held goal and intention of our board and management to provide premium refund dividends to benefit our policyholders. It was part of the company’s official, board-approved strategic vision and mission
As a mutual insurance company and risk retention group, we strive to return excess premiums after establishing adequate reserves and making provision for future expenditures. In 2023, Preferra realized that goal and worked to deliver a policyholder dividend after receiving the appropriate regulatory approval.
Preferra’s ability to return premium refund dividends to policyholders in the future, just like 2023, is based on the company’s annual financial performance and is subject to the appropriate approvals of the Preferra Board of Directors and Preferra’s insurance regulator.
Will Preferra return premium refund dividend checks to policyholders next year?
distribution of premium refund dividends depends on the company’s annual financial performance and other factors and requires approval from the Preferra board and the insurance regulator overseeing Preferra.
When will I receive my Preferra policyholder premium refund dividend check?
You will receive your Preferra policyholder premium refund dividend check in 2024 for the Preferra liability policies and premiums maintained and paid in 2023.
The Preferra premium refund dividend checks are being mailed to over 68,000 eligible, unique policyholders in staggered, first-class postal mailings and should be received in September and October. If you have not received your Preferra policyholder dividend check mailing by October 31, 2024, please contact us at [email protected].
What is the typical policyholder premium refund dividend check amount?
The policyholder premium refund dividend checks are calculated based on the number of policies you maintained for all 12 months of 2023 and the total premiums paid for those policies.
The dividend check amount will represent approximately 6.2% of the total premium paid to purchase the 2023 coverage term for all Preferra liability insurance policies you held for the entirety of 2023.
To receive the premium refund dividend check being mailed in 2024, you must have met the 2023 coverage requirements and been an active Preferra policyholder in April 2024 when the dividend was declared.
Can you apply my premium refund dividend check to my liability renewal premium payment?
While we hope to offer this option in the future, Preferra will not be able to apply your premium refund dividend check to your liability renewal payment this year due to timing and other administrative considerations.
Can you deposit my check electronically instead of sending it by mail?
No, Preferra does not retain your ACH electronic banking information and cannot process electronic check deposits on your behalf. All policyholder premium refund dividend checks are being sent via U.S. postal first-class mail.
If I have multiple Preferra liability policies, how do you calculate my premium refund dividend?
The calculation of your Preferra policyholder premium refund dividend, distributed to you in 2024, includes all Preferra liability policies that you held for the entire 12 months of 2023 with premiums paid for the same duration.
You will receive a premium refund dividend amounting to approximately 6.2% of the premium paid in 2023 for all Preferra liability policies maintained throughout 2023.
For instance, if you maintained two policies throughout 2023, and a third new product policy for only part of the year, the 2023 premium paid for the two policies held for the entire year will contribute to your premium refund dividend calculation and check payment this year.
In addition, to be eligible for a premium refund dividend, you must have been an active Preferra policyholder in April 2024 when the dividend was declared.
Who is administering the Preferra premium refund dividend check mailing?
Preferra is providing the policyholder premium refund dividend check funds and has partnered with Broadridge Corporate Issuer Solutions, a specialist in dividend check administration, to handle distribution of the checks to Preferra policyholders.
Broadridge will administer and mail the premium refund dividend checks to you on behalf of Preferra Insurance Company RRG.
If your mailing address is not accurate or if the check is returned undeliverable, undeliverable mailings will be returned to Broadridge for follow up.
What will the Preferra premium refund dividend check mailing look like? What will it include?
Your Preferra policyholder premium refund dividend check will be mailed U.S. First Class mail.
The Preferra Insurance Company RRG company name and logo will be prominently displayed on the check showing through the window envelope.
Your Preferra policyholder premium refund dividend check is issued by Broadridge Corporate Issuer Solutions. Please note that the premium refund dividend check funds are provided by Preferra.
The check showing through the window mailing envelope will include both Preferra company name and logo, and Broadridge postal information. The mailing will include the return address Broadridge, P.O. Box 1342, Brentwood, NY.
Why is my Preferra premium refund dividend check being mailed to me from another company?
Broadridge Corporate Issuer Solutions is an authorized provider of check issuance and distribution services. They utilize secure systems and processes to handle mail-based check payments for policyholders and shareholders, ensuring timely cashing, reissuance and replacements as needed.
Broadridge has extensive experience in managing check distributions by mail, supported by a dedicated call center to assist with any inquiries related to your dividend check or to facilitate replacements if your check is not received.
Partnering with Broadridge for this important task allows our team at Preferra to maintain focus on servicing our policyholder’s liability insurance needs.
Who do I contact if I did not receive my premium refund dividend check or need a replacement?
Please contact the Broadridge Check Distribution Call Center, our partner responsible for issuing and distributing Preferra policyholder dividend checks, at the following contact information from Monday – Friday, 9 am – 6 pm ET:
- 800 Phone #: 1-844-960-1024 (dedicated Preferra line)
- Direct Phone #: 1-813-255-2460 (dedicated Preferra line)
- Email: [email protected]
- Hours: Mon-Fri 9:00 AM to 6:00 PM ET
A Broadridge representative will assist you with any inquiries regarding your premium refund dividend check or facilitate a replacement if necessary.
Who do I contact if I am unsure whether I am eligible to receive a premium refund dividend check for my Preferra liability policy(ies) held all 12 months of 2023?
Check Mailing Questions?If you have any questions specifically about the premium refund dividend check distribution, feel free to contact Preferra staff at [email protected].
Change of Mailing Address? If you need to change your mailing address, please contact Preferra staff at [email protected]
Policy Questions and Changes? For all other inquiries not related to the premium refund dividend check mailing but regarding policy changes, renewals, or general policy information, please also contact 888-278-0038 or [email protected].