California’s State Compensation Insurance Fund will distribute a roughly $75 million dividend to its qualifying policyholders with policies that took effect between Jan. 1 and Aug. 26.
The dividend equals roughly 10% of the estimated annual premium reported during that period.
State Fund’s board will consider dividends again for the remainder of the 2020 policy year later this year. Through July, State Fund reported roughly $700 million in estimated annual premium and approximately $60 million in realized capital gains.
“We’re working hard to support our policyholders in every way we can during this difficult time,” State Fund President and CEO Vern Steiner said in a statement. “Due to our strong, stable financial position and the claims outcomes we’ve seen over the past several years, we’re able to return money to policyholders and we want to let them know it’s coming as early as possible. This is money they can count on as they plan for next year amidst so much uncertainty.”
State Fund last year declared an approximate $160 million dividend for 2019 policyholders.
State Fund policyholders eligible for a 2020 dividend will receive their payments after the expiration date of their individual policies.
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