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The State Compensation Insurance Fund announced this week that it plans to return $50 million in policy premiums to California employers. The State Fund provides workers’ compensation insurance to approximately 130,000 employers in California.
In a press release this past week, the Department of Insurance indicated that it had expressed concerns with State Fund’s original premium return proposal, which limited the premium return or dividends to renewing policyholders only. During these discussions the Department urged State Fund to re-evaluate its proposal and consider returning dividends to all 2011 policyholders.
According to State Fund the credit would be available to 2011 policyholders who:
In addition, State Fund’s Board of Directors decided to remove the renewal requirement. The total return is estimated at approximately 5.2 percent of State Fund’s 2011 estimated annual premiums. According to State Fund, this return will be applied to premiums in 2012. The most recent dividend that was declared by State Fund came in 2001 which was more than $92 million.