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of Liberty Mutual. This endorsement provided that the policy was
nonassessable. As a nonassessable policyholder, petitioner could
not be assessed for Liberty Mutual's losses and expenses in
excess of the premiums paid for the 1984 California workers'
compensation policy. The Participating Provision Endorsement
also reiterated the statutory provision in California which made
it unlawful for Liberty Mutual to promise the future payment of
dividends before the expiration of the 1984 policy period, and
the endorsement noted that dividends are payable only as
determined by the board of directors of Liberty Mutual following
the expiration.
The policy also contained a Redetermination Agreement
Endorsement which provided that an initial apportionment of
dividends may be made from a surplus accumulated from the
California workers' compensation insurance following termination
of the policy. Further, the policy provided that if a subsequent
dividend is greater than the dividend previously paid to
petitioner, Liberty Mutual shall pay to petitioner the additional
dividend shown to be due. However, if the subsequent dividend is
less than the dividend previously paid to petitioner, petitioner
shall refund the amount by which the previous dividend exceeds
the current dividend.
The audited premium for the policy is based upon actual
payroll amounts during the policy period for various job
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