|By PR Newswire||
|October 5, 2012 05:50 PM EDT||
SAN FRANCISCO, Oct. 5, 2012 /PRNewswire/ --The State Fund Board of Directors approved a $100 million dividend to qualifying policyholders for the 2012 policy year. The dividend represents approximately 10 percent of policyholders' 2012 estimated annual premium and is a direct result of sound investment returns and improved efficiencies at State Fund.
State Fund's Board of Directors also authorized a seven percent rate reduction that reflects the savings of SB 863. The rates will apply to the filing currently under review by the California Department of Insurance (CDI) and are expected to take effect in the first quarter of 2013.
"State Fund has made significant progress in its restructuring plan that is on track to reduce annual expenses by $300 million over a three-year period," said Tom Rowe, CEO and President. "We've made difficult but necessary decisions over the past couple of years and our improved efficiency, disciplined pricing combined with solid investment returns enables us to return money to California employers who are still struggling with a slow economic recovery. State Fund is committed to serving California's businesses and employees and helping to grow California's future."
The dividend and rate reduction were approved October 4 in Napa by State Fund's Board of Directors and Executive Committee at a special meeting.
EDITOR'S NOTE: 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.
SOURCE State Fund