Dear Agent,
State Fund’s Board of Directors announced plans to distribute two separate dividends for policy year 2024.
First, they are declaring a 15% EAP dividend for qualifying policyholders with policies that took effect between January 1, 2024, and December 31, 2024. This dividend is approximately 15% of the estimated annual premium (EAP) reported during that period, equal to approximately $149 million. This is the sixth consecutive year State Fund has declared an EAP dividend.
The 2024 dividend is available to policyholders who:
- Have policies that incepted or renewed between January 1, 2024, and December 31, 2024.
- Have policies that have not been cancelled for cause prior to expiration.
- Have cooperated with final audit (if required) and have paid their final premium bill for the 2024 policy in full within 90 days of the final premium bill mailing date.
Payment of the 2024 dividend for eligible policyholders depends on timing of final audit and payment of final bill and will occur no sooner than 18 months after policy inception. State Fund will begin issuing the earliest dividend payments in the second half of 2025. They will notify policyholders about this declaration via email in the coming weeks.
Second, they are declaring a 7.5% large account safety dividend (LASD) for qualifying policyholders with policies that took effect between January 1, 2024, and December 31, 2024. Policyholders with standard premium of $500,000 or greater at date of policy inception (irrespective of whether the premium level changes during the policy term) may qualify for this dividend if they meet all the eligibility criteria. The LASD is approximately $6 million.
This is a great opportunity for you to connect with your State Fund clients to ensure they meet the dividend eligibility requirements. We’ll communicate with you again as they get closer to delivering dividend checks.
If you have any questions regarding dividend eligibility or payments, please contact us, your official State Fund Access Partner, at 888-693-7892.
Thank you,
Your Amwins’ Access State Fund Team
Disclaimer: 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. Forfeiture of a right to, reduction in the amount of, or delay in the payment of a policyholder's dividend due to the policyholder's failure to accept renewal of the policy or subsequent policies issued by the same insurer is illegal and constitutes an unfair practice.
