Which of the following allows for potential cash returns after the policy period?

The option identified is correct because dividend plans essentially provide a return of surplus profits to policyholders after the insurer has assessed its claims experience and overall financial status at the end of the policy period. In a dividend plan, after determining that there are excess funds, the insurer distributes dividends to policyholders based on the performance of the policy and the profitability of the group.

This potential cash return is contingent upon the policyholder’s continued participation in the plan, the overall financial results of the insurer, and any specified criteria detailed in the policy. Dividend plans represent a form of profit-sharing, where policyholders potentially receive money back if the risk was lower than anticipated or the insurer performed well financially.

In contrast, guaranteed cost plans do not provide an opportunity for cash returns; they operate based on predetermined costs for coverage without regard to the insurer’s excess profits. Retrospective rating plans adjust premiums based on the actual loss experience during the policy period, which may affect future costs but not involve direct cash returns. Monopolistic plans, often found in workers' compensation coverage in certain jurisdictions, do not offer dividends as they are not structured for surplus distribution to policyholders.