Policies and Procedures dealing with State Fund Workers’ Compensation Insurance Funds

1. Any distribution of funds to any member, derived from a dividend, will not be reduced or forfeited except for reasons set forth in the articles of incorporation, bylaws, agreements of the Association, rules and regulationsand no such reductions or forfeiture have been make known by written communication to the member prior to inception of his insurance coverage during the policy periods for which such dividend adjustment is made.

2. The Association may subtract the amount of any premiums paid by the Association under the premium guarantee for a member company, since the Association may make payment on their behalf, from the dividends distributed to the member company.

3. If a member company participating in the group policy is not a current member of the Association in the year of dividend payment, the Association reserves the right to return only the individually earned dividend.

4. The Association reserves the right to defray any costs accrued because of the administration for the group workers’ compensation insurance policy by retaininga portion of the dividends paid to the Association.

5. The Association reserves the right to retain the entire dividend if the administrative cost to distribute the dividend exceeds its amount.

6. The Association will notify all members of its policy regarding these procedures before the inception date of the group workers’ compensation insurance policy, before each annual renewalof said policy and before said policy is enacted.

7. After reasonable attempts to distribute, the Association will place unclaimed dividends in a reserve fund for a period of four years from thedate the dividend was mailed by the Association to the respective recipients; thereafter the unclaimed dividends will be the property of the Association.

8. The Association will retain any interest earned on dividends prior to distribution, including interest earned on unclaimed dividends.

9. Participation in the Association’s group workers’ compensation insurance program isat the discretion of the Association and or the underwriter of said group program.  Membership in the Association is not a guaranteed right to participation in the workers’ compensation insurance program.