November 18, 2018
Safety Pays Dividends
At Montana State Fund we believe safety pays for our policyholders. One way we do that is through the dividend program. In September, our Board of Directors declared a $40 million dividend which will be distributed among 23,000 deserving policyholders.
Dividends are a way for us to share our good financial results with our employers who helped make it possible. It rewards and encourages safe and cost-effective behavior and reduces the overall cost of workers’ compensation insurance. The dividend comes from policyholder equity beyond what is determined necessary and prudent to meet current and projected long-term future obligations. Dividends cannot be guaranteed. Each year, MSF’s Board of Directors examine our independent actuary’s analysis of needed funds and determine if a dividend can be declared.
Since 1999 we have returned $256 million of total dividends to our policyholders. In addition to providing dividends as a return of premium to our customers, MSF has reduced premium rates or held the rates steady since 2007. Since July of 2007, premium rates have been reduced 42% and are currently at the lowest level since the creation of the Montana State Fund in 1991.
If you have further questions about our dividend program, please contact one of our customer service specialists at 800-332-6102.