The State Compensation Insurance Fund (SCIF) has decided to remove its requirement that policyholders renew in order to get a dividend. The State Fund Board of directors resolved unanimously in a special board this morning to amend its plan after its original plan’s legality was questioned.
The Board’s resolution reads in pertinent part: the Board of Directors hereby approves and adopts the 2011 dividend plan as amended, which will provide qualifying policyholders who have obtained or renewed a policy in 2011 with either a credit against the policyholder’s 2012 policy premium payment or a dividend payment; which credit or payment shall be based upon the policyholder’s 2011 estimated annual premium (EAP)…”
SCIF announced the change this morning after at a special meeting of its board of directors. The move comes after Workers’ Comp Executive reported that the conditions placed on the dividend policy appeared to violate state law.
The board also resolved that the amount of any additional premium owed and/or paid by a policyholder and any refund of premium to a State Fund policyholder resulting from an audit on the policyholder’s 2011 policy shall be excluded in the calculation of the credit or payment.
The dividend or credit shall be conditioned upon: “1) the completion of a final audit on the policyholder’s 2011 policy within 18 months of the renewal date or effective date. 2) at the time the payment of cash dividend or credit on renewal the policyholder is current with all premium payments, 3) compliance with the policyholder’s policy requirements, as determined by the president.”
(Filed in Sacramento by Bess Shapiro)