I received a dividend check from my auto insurance last year that was the result of reduced vehicle usage/milage representing a percentage of my annual premium in 2020.
The closest related FAQ on Pennsylvania Department of Revenue regarding payments received in response to the Covid-19 pandemic in 2020 being subject to PA Personal Income Tax was answered by the Department with the following:
The Department does not follow IRC § 139. The taxability of these payments would be dependent on the nature of the payments and would have to be reviewed on a case by case basis.
TT never asked a question on dividends received of this nature, so I'm guessing no, probably not.
No, that would not be taxable income. That would be refund of your insurance premium.
This is not my area of expertise but I would consider it a return of premium and wouldn’t report it.