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.