SAN FRANCISCO, CA — State Compensation Insurance Fund’s Board of Directors has approved a $100 million dividend to qualifying policyholders for the 2013 policy year. The dividend represents approximately 8.6 percent of policyholders’ 2013 estimated annual premium and demonstrates the effectiveness of the business improvements and operational efficiencies implemented by the organization.
"State Fund has made significant progress this year by improving efficiency and establishing a new rate structure to provide fairly-priced workers’ compensation insurance,” commented Larry Mulryan, Board Chair. "We are committed to being a competitive workers' compensation insurance provider that brings value to California employers. Part of that value is the ability to return funds to our policyholders in the form of a dividend."
This action brings total dividends declared since 2011 to $250 million. Since its inception State Fund has paid more than $5 billion in dividends to policyholders—a record unparalleled among all California workers’ compensation insurance carriers.
Disclaimer statement: 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.
EDITOR’S NOTE: Established in 1914 by the state legislature, State Fund is California’s largest provider of workers’ compensation insurance and a vital asset to California businesses. Completely self supporting, State Fund plays a stabilizing role in California’s economy by maintaining an open door policy that ensures all employers have a strong and stable option for their workers’ compensation needs.
