Some insurers and JIAs prefer to pay dividends to members so they can charge a higher premium. Basically, the JIA keeps members' money until it is determined that enough cash remains to return a portion of the extra premium collected.
Dividends also work very well for JIAs that are assessable .
Discounted premiums are good for the members Business managers and finance officers have told APEI that they prefer to have savings up front in the form of lower premiums, rather than dividends. If the profits belong to the JIA, dividends and assessments are the way to go. If, on the other hand, the profits belong to the members, not the JIA, discounted premiums are preferable. Members should not have to renew their insurance in order to realize savings.