Which statement accurately describes how workers' compensation premiums can be adjusted through dividend plans?

The correct choice highlights that under a sliding-scale plan, the amount of dividends depends on the insured's loss history. This means that the better the loss history—typically referring to fewer or less severe claims—the more favorable the dividend payment can be. Sliding-scale dividend plans create a connection between how well the insured maintains a safe working environment and the financial rewards they receive as dividends, thus aligning the interests of the insurer and the insured.

In these plans, businesses that are more successful in preventing workplace injuries or managing risks may end up receiving larger dividends compared to those with a history of frequent or costly claims. This mechanism incentivizes companies to focus on safety and risk management practices, which can lead to lower overall workers' compensation costs in the long run.

The other options inaccurately represent how dividend plans function. For instance, stating that the dividend amount remains constant each year ignores the variable nature of dividends based on performance. Similarly, asserting that dividends are only paid if claims exceed a certain amount fails to capture the broader implications of loss experience on dividend distribution. Finally, the notion that all dividends are fixed disregards the flexibility and individual assessment inherent in sliding-scale plans, which directly relate to the insured's loss history.