State Fund is a not-for-profit organization committed to serving our policyholders and providing as much value as possible. Our strong financial position, excellent claims performance over the last several years, and the recent increase in interest rates on our fixed income investment portfolio allows us to return money to our policyholders for the fifth year in a row.
What is the Estimated Annual Premium (EAP) dividend?
The EAP dividend returns money to qualifying policyholders with policies that incepted or renewed between January 1, 2023 and December 31, 2023.
What are the eligibility requirements to receive the EAP dividend?
The 2023 EAP dividend is available to policyholders who meet the following criteria:
- Have policies that took effect between January 1, 2023 and December 31, 2023.
- Policy has not been cancelled for cause.
- Policyholder has cooperated with final audit (if required) and final premium bill for the 2023 policy has been paid in full within 90 days of mailing the final premium bill to policyholder.
- Payment of the 2023 dividend for eligible policyholders is dependent on timing of final audit and payment of final bill, and will occur no sooner than 18 months after policy inception. The earliest payments will begin in the second half of 2024.
- Policyholders will receive a Policyholder Dividend Statement that explains whether or not they have been deemed eligible for a dividend. Eligible policyholders will receive a dividend check with the Policyholder Dividend Statement.
Are short-term policies eligible for a pro-rated dividend?
Short-term policies are eligible unless the policy was cancelled for cause.
Will Minimum Premium policies receive a dividend payment?
Yes, Minimum Premium policies are eligible. Please see above requirements.
Are there any policies not eligible for dividends?
Yes, the following are ineligible:
- OSC policies (other states coverage)
- Non-participating policies
- Flat cancellation policies
- Administrative policies which do not provide insurance coverage
What EAP figure will the dividend be based on?
Estimated Annual Premium at the inception of the policy.
When will dividends be calculated and checks issued?
Payment of the 2023 dividend for eligible policyholders is dependent on timing of final audit and payment of final bill, and will occur no sooner than 18 months after policy inception. Policyholders will receive a Policyholder Dividend Statement that explains whether or not they have been deemed eligible for a dividend. Eligible policyholders will receive a dividend check with the Policyholder Dividend Statement.
If a policy was cancelled during the year and then reinstated, does this affect eligibility for a dividend?
If a notice of cancellation was received and later withdrawn during the policy term, the policy is eligible as long as it meets all other eligibility requirements. If the policy remained cancelled for cause, it is not eligible for a dividend.
Who should a broker or policyholder contact for more information?
- Brokers, please call your Senior Marketing Representative or our Broker Hotline at (800) 834-2393.
- Brokered policyholders, please contact your broker for more information.
- Non-brokered policyholders, please contact your assigned underwriter or call our Customer Service Center at (888) 782-8338.
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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.