VACAVILLE, Calif /PRNewswire/ — On November 18th, 2011, State Fund announced plans to disburse $50 million to qualifying policyholders in the form of a premium credit that is based on 2011 estimated annual premiums and will be applied during the 2012 policy year. The credit would be available to 2011 policyholders 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.
State Fund’s Board of Directors has amended part of this declaration to eliminate the renewal requirement following discussions with California Department of Insurance (CDI).
“We had very constructive discussions with the Department and agreed to drop the renewal requirement. The dividend declaration is a positive development for California employers and we felt it was best to move forward without distraction and appreciated CDI’s input,” said Larry Mulryan, State Fund’s Board Chair.
Tom Rowe, State Fund’s CEO and President has described the dividend as a down payment on State Fund’s continued commitment to help California employers manage the cost of their workers’ compensation insurance.
State Fund announced a zero-net increase in its most recent rate filing and increased discounts for qualifying members of its 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.
EDITOR’S NOTE: 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.