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Welcome to Beacon Mutual Policyholder Distribution Information Webpage
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Last December, Beacon’s Board of Directors declared a 3% dividend to all policyholders of
record as of December 30, 2010.
Dividends will be based on the final audited premium of each policy after its term expires.
Therefore, although some dividends will be mailed commencing in April 2011, it will take a year
for all dividends to be paid to all qualified policyholders.
Here are some frequently asked questions and answers concerning the Beacon dividend.
Please feel free to call your agent if you need more information |
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Frequently Asked Questions (FAQs)
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| 1.
When will checks be mailed out? |
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Dividend checks will be mailed within 60 days after a policyholder’s final audit has
been completed and all amounts due under the policy have been paid to Beacon,
including any audit additional premium.
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| 2.
What policies will receive a dividend? |
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Policies inforce as of December 30, 2010.
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| 3.
Will short term policies receive a dividend? |
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No. Dividends will only be issued for policies that are inforce for an annual term.
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| 4.
What premium will the dividend be based on? |
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Dividends will be based on the final audited premium of each policy after its term
expires. Therefore, although some dividends will be mailed commencing in April
2011, it will take a year for all dividends to be paid to all qualified policyholders.
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| 5.
Will a dividend be paid if a policy premium is written off to bad debt and sent to
collections? |
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No. Dividends will only be paid to accounts in good standing.
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| 6.
What if an audit additional premium was on a promissory note? |
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The dividend will be issued once the promissory note has been paid in full.
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| 7.
Will Argonaut premiums be included in the dividend calculation? |
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Yes. A 3% dividend will be issued on premiums paid to Beacon for out-of-state
policies issued by Argonaut. This dividend will be paid in a separate Beacon check
and will be mailed within 60 days after a policyholder’s final audit of its Argonaut
policy has been endorsed subject to all other dividend rules.
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| 8.
How will this dividend affect shared earnings? |
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Dividends are not part of premium; therefore, shared earnings will not be impacted
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| 9.
Will the dividend affect the loss ratio? |
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Dividends are not part of premium; therefore, loss ratio will not be impacted
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| 10.
If an account has a poor loss ratio, will they still get a dividend? |
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Yes. All policies inforce as of December 30, 2010 will receive a dividend, as long as the policy is inforce for an annual period and is paid in full.
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| 11.
Will the dividend be a separate check or can it be applied to an outstanding balance
or future installments? |
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The dividend will be a separate “stand-alone” check. It cannot be applied to any past
or future premiums due
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