State Fund is a not-for-profit organization committed to serving our policyholders and providing as much value as possible. Our strong financial position, ongoing excellent claims performance, and sound returns on our fixed income investment portfolio allow us to give money back to our policyholders for the seventh year in a row.
What is the standard dividend?
The standard dividend returns money to qualifying policyholders with policies that incepted or renewed between January 1, 2025, and December 31, 2025.
What are the eligibility requirements for a policyholder to receive the standard dividend?
The 2025 standard dividend is available to policyholders who meet the following criteria:
- Policy took effect between January 1, 2025, and December 31, 2025.
- Policy was not cancelled for cause.
- Policyholder paid their final premium bill in full for their 2025 policy by the due date indicated in their final premium bill.
- State Fund must receive full payment from the policyholder by the due date shown on their final premium bill for the policyholder to remain eligible for a dividend. If final payment is not received by the date indicated in the final bill, the policyholder will not receive a dividend.
- Final premium billing for the policyholder’s 2025 policy is based on either required payroll reports, provided by the policyholder to State Fund, and/or upon a physical/virtual audit of required policy records provided by the policyholder.
- If the policyholder fails to provide required payroll reports and/or required policy records for an audit, and as a result an estimated premium is used to determine final premium for the 2025 policy year, the policyholder is not eligible for a dividend for the 2025 policy year.
Are policyholders with minimum premium policies eligible for a dividend?
Yes, policyholders with minimum premium policies may be eligible to receive a dividend assuming they meet all eligibility requirements listed above.
Which premium will we use to calculate the dividend?
We will calculate dividends based on either the initial estimated annual premium (EAP) at time of policy inception or the final premium, whichever amount is lowest. For policy terms less than 365 days, we will use the pro-rated initial EAP to compare to the final premium in the calculation of the dividend.
Are policyholders with short-term policies eligible to receive a pro-rated dividend?
Yes, policyholders with short-term policies are eligible to receive a pro-rated dividend if their policy has not been cancelled for cause and the policyholder meets all other eligibility requirements listed above. To calculate the pro-rated dividend for a short-term policy, we will use the pro-rated initial EAP to compare to the final premium in the calculation of the dividend.
When will dividends be calculated and checks issued?
We will calculate the dividend for a policy once the policyholder pays their final premium bill in full. After we have received the policyholder’s final payment, we will send the policyholder a policyholder dividend statement that explains whether they qualified for a dividend. Qualified policyholders who meet all eligibility requirements will receive a dividend check along with their policyholder dividend statement.
If a policy was cancelled during the year and then reinstated, does this effect eligibility for a dividend?
If we issued a cancellation notice to the policyholder and later withdrew it during the policy term, the policyholder is still eligible to receive a standard dividend if they meet all other eligibility requirements. If the policy remained cancelled for cause, the policyholder is not eligible to receive a dividend.
Who should a broker or policyholder contact for more information?
- Brokers, please call customer support at (888) 782-8338 or contact your marketing representative.
- Brokered policyholders, please contact your broker for more information.
- Direct policyholders, please contact customer support at (888) 782-8338.
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.