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State Fund offers biggest dividend since 1999

2012-12-12T11:07:00Z 2012-12-12T12:14:24Z State Fund offers biggest dividend since 1999By EDDIE GREGG Independent Record Helena Independent Record
December 12, 2012 11:07 am  • 

The Montana State Fund is giving qualifying policy holders a $10 million dividend, one of the largest distributions in the organization’s history.

Nearly 24,000 of the fund’s more than 26,000 workers’ compensation policy holders qualified for the dividend, which will be distributed by early January, according to the group.

The dividend is not split evenly between policy holders, but is divvied up between clients based on their safety records and other factors, said Mary Boyle, a communications specialist with the state fund.

Policy holders from July 1, 2009 to June 30, 2010 who meet the criteria for a dividend are being notified.

The most important obligation for the fund is to make sure there is enough money to cover its clients’ claims – when there is a sufficient surplus, the fund pays out a dividend to reward policy holders with top employee safety records, Boyle said.

The fund’s board of directors approved the dividend during their board meeting on Nov. 16. The Fund has offered $74 million in dividends over the last 14 years, but this is the largest single dividend since 1999, when another $10 million distribution was paid to policy holders.

“We are so pleased to be able reward our policyholders who make safety a priority for their employees,” said Laurence Hubbard, president and CEO of the Fund. “Our staff has worked hard to focus their energy on helping businesses reduce workplace injuries. In turn the dividend sends a powerful safety message to our employers that the longer you provide your employees with a safer workplace and avoid injuries, you not only have a healthier workforce you are ultimately paying lower premium costs because your accidents are down.”

Hubbard added, “As a financially sound organization, we are able to return equity in the form of dividends to qualifying Montana employers beyond what is needed for prudent business operations. While we cannot guarantee dividends into the future, we believe that continued strong performance supports our ability to share positive results with policyholders.”

The fund provides workers’ compensation coverage to more than 26,000 employers in the Montana, making it the largest workers’ compensation insurance company in Montana.

Copyright 2015 Helena Independent Record. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

(4) Comments

  1. PatrickBateman
    Report Abuse
    PatrickBateman - December 13, 2012 11:11 am
    Short memory.....20% cut in premiums last cycle on the hope that the 2011 legislative changes will yield savings even though the savings is at least 5 years away. Not sure where the "less than 5%" comment comes from. The finances are out there for every one to see and that figure is pure fiction.

  2. otis mule
    Report Abuse
    otis mule - December 13, 2012 8:40 am
    A $10 million dividend is good news that safety and training programs have been working and fewer and fewer Montanans suffer injuries on the job. A $10 million dividend is good news, and an effective way to reduce cost to those whose safety records have improved and a great incentive for other businesses to work harder with their employees to keep them safe and healthy. A $10 milliion dividend, while good, is a sad reminder that, in years past, many Montanans needlessly suffered preventable injuries on the job.
  3. Msmith24
    Report Abuse
    Msmith24 - December 13, 2012 7:35 am
    License to steal, that is what state fund is. Less than 5% of my premiums goes towards a benefit to an employee. The assumption is the other 95% goes for big brick buildings, thick steaks, whiskey, over paid CEO's and all the other stuff that goes with corruption.
  4. FromAfar
    Report Abuse
    FromAfar - December 12, 2012 7:43 pm
    A $10 million dividend is just another way of telling it's customers that their rates were too high in the first place.

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