The 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 and CEO.

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

1) Have completed no less than 335 days of continuous coverage during their 2014 policy term.
2) Have not canceled during their 2014 policy term.
3) 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.
4) 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.

San Francisco-based State Fund is the largest workers’ compensation insurance carrier in the state with more than 130,000 employer policyholders. Dividends were temporarily suspended after a $92 million dollar distribution in 2001 until the approval of a $50 million dividend in 2011 followed by a $100 million dividend for the 2012 policy year and another $100 million dividend for the 2013 policy year and now a $37 million dividend for last year. Since its inception in 1914, the State Fund has paid more than $5 billion in dividends to policyholders.