State Fund Board of Directors Declare $37 Million Policyholder Dividend

February 20, 2015

SAN FRANCISCO, CA — State Fund Compensation Insurance Fund’s Board of Directors has approved a $37 million dividend to qualifying policyholders for the 2014 policy year. The dividend represents approximately 2.6 percent of policyholders’ 2014 estimated annual premium.

“In addition to declaring a $37 million dividend, we strengthened our reserve position to improve State Fund’s financial strength for the long term, thanks to strong investment returns,” said Vern Steiner, President & CEO.

In order to be eligible for the 2014 policy year dividend, policyholders must:

• Have completed no less than 335 days of continuous coverage during their 2014 policy term.
• Have not cancelled during their 2014 policy term.
• Have complied with the State Fund audit and as a result the final audit was completed within 18 months of the 2014 policy inception. No dividend shall be paid on any premium owed or paid as a result of an audit.
• Be current on 2014 premium payments.

Payments for a dividend will be based on the inception dates of policies.

This action brings total dividends declared by State Fund since 2011 to $287 million.

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Established in 1914 by the state legislature State Fund has operated for 100 years, is California’s largest provider of workers’ compensation insurance, and a vital asset to California businesses. State Fund supports California’s entrepreneurial spirit and plays a stabilizing role in the economy by providing fairly priced workers’ compensation insurance making California workplaces safe, and restoring injured workers.

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.