California – SCIF has announced a $50 million dividend to qualifying policyholders in the form of a premium credit. This is approximately 5.2 percent of estimated annual premium for the 2011 policy year.
The renewal credit will be based on 2011 estimated annual premiums and will be applied during the 2012 policy year. The credit is available to 2011 policyholders in good standing who:
- Paid their premiums timely and kept their policy in good standing in 2011,
- Renew their policy with State Fund in 2012 and continue to pay premiums timely and accurately, and
- Finalize their final audit bill for 2011 within six months of expiration.
The plan was approved November 18 in San Francisco by State Fund’s Board of Directors. The board recommended dividends this year after confirming that State Fund has adequate surplus, and is making good progress on its expense management and underwriting discipline.
“State Fund’s role in the California workers’ compensation market is to offer fair prices to all California employers. We are a company that has been in the midst of dramatic transformation the past several years. We have developed and are implementing a strategy that overhauls every aspect of how we do business. This dividend is a down payment on our continued to commitment to help California employers manage the cost of their workers’ compensation insurance,” said Tom Rowe, State Fund CEO and President.
Last week SCIF announced a zero-net increase in their most recent rate filing and increased discounts for qualifying members of their group insurance program with the California Farm Bureau Federation.
State Fund last declared a dividend in 2001, which was more than $92 million.
Since its inception in 1914, State Fund has paid more than $4.9 billion in dividends to policyholders – a record unparalleled among all California workers’ compensation carriers.