Our Partnership Pays Dividends
Dividends are a result of strong investment earnings from our customers’ premium dollars, efficient claims processing and safer workplaces. When that happens, our customers share in the financial strength of our company.
Frequently Asked Questions
As Montana’s not-for-profit option for workers’ compensation insurance, we share strong financial results through dividends. Through efficient claims management, improved safety efforts by employers and their workers, and responsible stewardship and investment of policyholder premium dollars, we take what would otherwise be considered profit and return it to our customers (unlike for-profit insurance companies).
On September 13, 2024, our Board of Directors declared a RECORD $43 million dividend to more than 22,000 policyholders. MSF has returned $474 million to our customers since 1999.
Both current and former MSF policyholders with either coverage that expired in 2023 or coverage that was both effective and expired in 2022, will be eligible for a dividend. This timeframe is known as dividend year 2023.
Policyholders will not receive a dividend if:
- They cancelled and did not have at least 6 months of coverage for a policy period that expired in the dividend year described above.
- They had past due payroll reports, or incomplete audits within the dividend year described above that were not resolved prior to July 31, 2024.
Policyholders will receive an account credit for their dividend if:
- Their policy has an outstanding item such as bad debt, referred to collections, promissory note, bankruptcy, or are cancelled with a balance or payroll report owed to MSF. After the credit has been applied, if a balance remains, a check will be issued.
Is there a minimum dividend check amount?
Yes, the minimum dividend amount is $100.
How do you calculate my dividend?
Dividend amounts are a flat percentage of premium paid. If the dividend calculates to less than $100, the dividend is $100. For this year, the flat rate used is 26.04%.
Do smaller accounts receive a lesser percentage of dividends than large accounts?
All policyholders are receiving the same percent, unless their calculated dividend is less than $100, in which case, their dividend is $100.
I participated in a group association safety plan. Does that affect my eligibility for a dividend?
You may still be eligible for a dividend. The resulting dividend percentage will be applied to premium net of any premium adjustments or group retrospective returns.
How many employers will receive a dividend?
More than 22,000 employers will receive a dividend from MSF this year.
Does every insurance company declare dividends to policyholders?
No, dividend payments are not required of insurance companies. Many insurance companies are owned by stockholders and are more likely to pay dividends back to stockholders. Others pay stockholders and policyholders. MSF pays dividends solely to policyholders.
Does Montana State Fund declare dividends each year?
Dividends cannot be guaranteed. Each year, MSF’s Board of Directors examines our financial position and our independent actuary’s analysis of our policyholder equity and determines if a dividend can safely be declared; however, MSF has been able to return a dividend for 26 straight years.
Why don’t you just lower my premiums instead of giving me a dividend?
Dividends are separate from rates. Most of the time, MSF operates at an underwriting loss or break-even, meaning premium collected from rates either does not cover, or just covers expenses. Investment income covers any expense deficit. Dividends are a product of better-than-expected investment performance, and fewer than expected losses (accidents). Dividends are not guaranteed as investment performance can vary from year-to-year.
MSF strives to create a stable rate environment while returning a share of the financial gains to policyholders through a dividend declaration, rather than fluctuate rates up and down as financial gains or losses occur.
I am part of a Professional Employer Organization (PEO), but I did not receive a dividend. Why?
Call your team’s Customer Service Specialist at 800-332-6102 and we will look up your account. If our system indicates that you belonged to one of our PEO organizations, your premium was combined with all accounts belonging to the PEO, and if a dividend was awarded, it was mailed to your PEO as one check.
Please contact a Customer Service Specialist at 800-332-6102 and we will find out what happened. It may be that your address or business name has changed, and the check was initially sent to the wrong place.
MSF can issue you a quote directly, or we have partnerships with many independent insurance agents throughout the state (and these agents will be able to assist you with reestablishing your policy with us). There is no extra charge to use an agent.
Access an alphabetical listing of all appointed agents by city.