State Fund Declaring 5% EAP Dividend and 5% LASD Dividend for 2022 Policy Year

Dear Agent:

State Fund’s Board of Directors is announcing plans to distribute two separate dividends for policy year 2022.

First, they are declaring a 5% dividend for qualifying policyholders with policies that took effect between January 1, 2022 and December 31, 2022. This dividend is approximately 5% of the estimated annual premium (EAP) reported during that time period, equal to approximately $54 million. This is the fourth consecutive year they have declared an EAP dividend.

The 2022 dividend is available to policyholders who:

Have policies that incepted or renewed between January 1, 2022 and December 31, 2022
Have policies that have not been cancelled for cause prior to expiration
Have cooperated with final audit (if required) and final bill has been paid in full for 2022 policy

Payment of the 2022 dividend for eligible policyholders is dependent on timing of final audit and payment of final bill, and will occur no sooner than 18 months after policy inception. The earliest payments will begin in the second half of 2023. State Fund will notify policyholders about this declaration via email in the coming weeks.

Second, they are declaring a 5% Large Account Safety Dividend (LASD) for qualifying policyholders with policies that took effect between January 1, 2022 and December 31, 2022. Policyholders with Standard Premium of $500,000 or greater at date of policy inception (irrespective of whether the premium level changes during the policy term) may qualify for this dividend if they meet all the eligibility criteria. The LASD is approximately $4.5 million.

This is a great opportunity for you to connect with your State Fund clients to ensure that they meet the dividend eligibility requirements. We’ll continue to reach out to you as State Fund gets closer to delivering dividend checks.

If you have any questions regarding your client’s dividend eligibility or payments, please contact RIC, your official State Fund access partner at 888-693-7892 option 4.

Thank you for your continued business,

Your RIC Team