The following definitions apply to ARM 2.55.502:

(1) "Dividend factors" means the percentage multiplied times premium to arrive at the dividend amount payable to an eligible policyholder.

(2) "Fiscal year" or "dividend year" means the period of time between July 1 and the succeeding June 30.

(3) "Incurred losses" means:

(a) losses as reflected on the first report of the unit statistical reports including any corrections to the first report as provided to the National Council on Compensation Insurance (NCCI) for the dividend year; or

(b) incurred losses for the dividend year on a date, or on various dates based on policy period such that eligible policyholder losses are captured at equivalent maturities, as selected by the State Fund board of directors.

(4) "Individual loss sensitive dividend" means dividends authorized pursuant to 39-71-2323 , MCA, declared by the board as an amount not to exceed the approved dividend amount, and distributed based upon a table of dividend factors.

(5) "Insurance charge" means an actuarially determined loss component associated with the probability of exceeding an expected range of loss.

(6) "Loss ratios" means incurred losses divided by premium for the dividend year.

(7) "Premium" means payroll times the manual rate for each classification code, times premium modifiers, minus volume discount for the dividend year and any premium adjustment pursuant to a rating plan. The premium utilized for dividend calculation purposes shall be the premium on a date selected by the State Fund board of directors and the premium utilized is not subject to change thereafter.

(8) "Table of dividend factors" means a dividend distribution table created for each dividend year pursuant to ARM 2.55.502.