Dividend Program

Dividend Program2019-02-13T09:55:13+00:00

What Are the Criteria for the Dividend* Program?

  • Profitability dividend program developed per MDFFSG Insurance Committee
  • Must be a member of MDFFSG to participate
  • Must be a member at time of dividend issue to receive dividend
  • The association must be profitable per MDFFSG Insurance Committee guidelines
  • The MDFFSG issues all Profitability Dividends to its members

How Does the Profitability Dividend and Dividend Program Work?

90% of the total program dividend will be distributed to participants based on premium percentage and account loss factors. Summary of each dollar received

For Every $1.00 of Dividend Dollar Issued to MDFFSG

  • MDFFSG committee disburses .90 to the all currently profitable** active MDFFSG members who participated (based on their time during that period)
  • MDFFSG retains .10

Dividend Calculated and Paid 10 Months after Anniversary Date of the Group

  • 50% of the indicated dividend will paid within 10 months after the anniversary date
  • 75%, minus what has been previously paid, will be paid 12 months subsequently
  • 12 months later, 100% of the balance will be paid
  • This process is repeated for each year the policies are in force

So to sum it up..in the first calculation there is one check (if all criteria is met), the second year for dividend calculation year, there could be two checks (again, if all criteria is met), and so on. As loss ratio improves, a higher dividend can be paid out from previous years

* Dividends are subject to any laws/regulations of Missouri. It is understood that dividends are paid at the direction of the Farmers Board of Governors and are not guaranteed. It is a violation of law to promise a dividend or indicate the amount of a dividend prior to the policy expiration.
** Approximate current premium
***Each account must merit its own 40% or better in loss ratio in order to participate in the dividend disbursement – rule of MDFFSG Committee