Our Board of Directors approved a 15 percent dividend for our qualifying policyholders with policies that took effect between January 1, 2019, and August 19, 2019. This dividend equals approximately $105 million and will average about $1,400 per employer. While we can’t promise future dividends, the Board will consider dividends again for the remainder of the 2019 policy year at its February meeting in 2020.
Initiatives such as our specialized claims process, our opioid reduction program, and our strong investment performance–as well as the general improvement in the workers’ compensation insurance market–have contributed to our excellent financial position and our ability to return money to our policyholders.
The 2019 Mid-Year Dividend Plan is based on 2019 estimated annual premiums paid through July 31, 2019. The dividend is available to approximately 75,000 policyholders who:
- Have policies that took effect January 1, 2019, through August 19, 2019.
- Pay their premiums on time and have kept their policy in good standing during the 2019 policy year.
- Finalize their final audit
Beginning in the second half of next year, all of your State Fund clients will receive a Dividend Result Disclosure Statement (DRDS) that explains whether or not they have been deemed eligible for a dividend. For your clients who have been deemed eligible, they will have a dividend check enclosed with the DRDS.
This is a great opportunity for you to connect with your State Fund clients to ensure that they meet the dividend eligibility requirements. We’ll continue to reach out to you as we get closer to delivering dividend checks. You may also log into State Fund Online to see the dividend status of your accounts.
Disclaimer: Under California law it is unlawful for an insurer to promise the future payment of dividends under an unexpired workers’ compensation insurance policy or to misrepresent the conditions for dividend payment. Dividends are payable only pursuant to conditions determined by the Board of Directors or other governing board of the Company following policy expiration. It is a misdemeanor for any insurer or officer or agent thereof, or any insurance broker or solicitor, to promise the payment of future workers’ compensation dividends. Past dividend performance is no guarantee of an insurer’s future dividend performance.