State Fund is a not for profit organization and our mission is to provide fair pricing for workers’ compensation insurance. When State Fund’s financial position allows, we return money to our policyholders through the declaration of dividends.
Initiatives such as our specialized claims process (1P), our opioid reduction program, and our outstanding 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.
Due to the COVID-19 crisis, State Fund is expediting the distribution of 2019 policyholder dividends. In order to ensure faster delivery, we have also relaxed several requirements that can result in delayed payment to policyholders. On and after May 26, 2020, policies that have already expired and met the original criteria for 2019 dividends will begin receiving 15% EAP dividend payments. Beginning June 29, 2020, eligible policies expiring after May 26, 2020, will receive a 15% EAP dividend for their 2019 policy. Dividends are based on the policyholder’s initial EAP and will be calculated within one week of the 2019 policy expiration date.
State Fund previously announced an expanded list of criteria to qualify for dividend distribution. To help ease the financial burden created by the COVID-19 crisis and speed up dividend payments, we have eliminated the requirement that policyholders wait for final billing of their 2019 policy and make final payment.
The new criteria for receiving 2019 dividends include:
Yes, if eligible, policyholders with Minimum Premium policies will receive 15% of their EAP.
Policies that were cancelled for cause and remained cancelled during the policy term or cancelled and then insured elsewhere, are ineligible. If a notice of cancellation was received and later withdrawn during the policy term, the policy is eligible as long as it meets all other eligibility requirements.
State Fund will send a policyholder dividend notice to every employer who had a policy issued in the 2019 calendar year. This statement explains whether you are eligible or ineligible for a dividend. If you are eligible to receive a dividend payment, the statement also explains how the dividend was calculated.
If, on the date the dividend check is issued, there is an unpaid premium amount owing for the 2019 or later policies, this unpaid amount is deducted [i.e. offset] from the 2019 dividend payment.
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To encourage policyholders and brokers to help establish accurate Estimated Annual Premium (EAP) and collect accurate premium throughout the year. Dividends will be calculated based upon the EAP provided by the broker or policyholder at the time of policy inception.
Dividend checks will be sent via U.S. Mail.
Information is available at State Fund Online.
Under California law it is unlawful for an insurer to promise the future payment of dividends.
Since its creation in 1914, State Fund has paid more than $5 billion in dividends to policyholders.
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.
