View this article online: https://www.insurancejournal.com/news/west/2021/01/04/595959.htm
State Compensation Insurance Fund in California on Monday announced plans to distribute a $39 million dividend to its qualifying policyholders with policies that took effect between Aug. 27 and Dec. 31, 2020.
The dividend equals roughly 10% of the estimated annual premium reported during that time period. The announcement follows up State Fund’s August declaration of a roughly 10% mid-year dividend that applied to all policies incepted between Jan. 1 and Aug. 26, 2020. The dividend distribution for the entire year amounts to nearly $114 million.
Through 2020, State Fund reportedly roughly $1.13 billion in premium.
“This has been a very challenging year for our policyholders and we’re glad we can continue to support them with this dividend declaration,” State Fund President and CEO Vern Steiner said in a statement. “We took a number of actions during 2020 to help our policyholders, including accelerating the delivery of our 2019 dividend payments and providing more than $40 million in COVID-19 safety support grants. This latest declaration continues that support—all qualifying State Fund policyholders now know they can expect another dividend payment next year.”
State Fund policyholders will begin to receive dividend payments during the second half of next year. Since its creation in 1914, State Fund has paid out more than $5 billion in dividends to policyholders.
State Fund is California’s not for profit provider of workers’ compensation and funded solely by premiums and investment income.