Definitions for "Experience refund"
The portion of a reinsurance premium that is returned to the ceding company when claims experience is better than had been expected. See Profit Commission and Risk Charge.
Certain large policies, usually Employee's Compensation insurances, provide for a refund of premium if losses sustained are less than anticipated when the insurance was taken out.
The portion of a group insurance premium that is returned to a group policyholder whose claim experience is better than that which was expected when the premium was calculated.