Workers’ Comp May Pay Record Dividend Idaho Agency May Return $50 Million To Policyholders

About $50 million in dividends could be returned to Idaho workers’ compensation insurance policyholders next January, the State Insurance Fund has announced.

“Although final calculations can’t be completed until later this year, if current trends continue, we will be able to issue another record dividend,” Fund Manager Drew Forney said.

“A dividend of around $50 million would amount to about 40 percent of the total premium we collected during the dividend period. Obviously, individual dividends will vary, but this is good news for all our policyholders.”

He added the returns will range from nothing to 60 percent, depending on the policyholder’s size and loss ratio. It will be calculated on the premium paid and losses incurred for each policyholder insured for at least six months between July 1994 and June 1995.

“Idaho’s employers and their employees have paid attention to safety, which resulted in a decline in claims reported and claims cost,” Forney said.

Investing in a strong market brought in an additional $22 million in earnings.

Exact amounts will be announced in December and the money issued in early 1997.

“We usually can forecast the approximate dividend around this time of year, and this year we thought we would try to inform our policyholders as far in advance as possible to assist them in their business planning for the next year,” Forney said.

Policyholders may hear more good news later this year.

The fund’s strength may have a favorable effect on the rates.

Rate changes are proposed by the National Council on Compensation Insurance.

Last year, the fund declared a dividend of $33.5 million. It has produced more than $212 million since 1984. The fund is Idaho’s largest provider of workers’ compensation insurance.