28Oct 2020

State Fund Announces $75 Million Mid-Year Dividend for 2020

As we continue to navigate through these uncertain times, we are happy to be able to assist our policyholders in any way we can. On August 27, our Board of Directors declared a $75 million dividend for qualifying policyholders with polices that took effect between January 1, 2020 and August 26, 2020. This dividend equals approximately ten percent of the Estimated Annual Premium (EAP) reported during the time period.

Through July of this year, we’re reporting approximately $700 million in premium and approximately $60 million in realized capital gains.

The 2020 Mid-Year Dividend Plan is based on 2020 EAP, and is available to policyholders who:

  • Have policies that took effect between January 1, 2020 and August 26, 2020
  • Do not have their 2020 policy cancelled for cause

Approximately six months after the expiration of a 2020 policy, State Fund clients will receive a Policyholder Dividend Statement explaining whether or not they are eligible for a dividend. For clients who are eligible, a dividend check will also be enclosed with the Policyholder Dividend Statement.

While the Board cannot promise future dividends, this mid-year declaration does not affect the possibility of a future dividend for the remainder of the 2020 policy year. Our Board will consider dividends again for the remainder of the 2020 policy year at its November meeting.

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.

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