October 2023 dividend Q&A for policyholders

• Policyholders in default status for nonpayment of premium at 12:01 a.m. on declaration day, September 6, or those who do not have a policy end date within the eligibility period.
• SAIF customers who are in the Assigned Risk Plan are not insured by SAIF but by the Oregon Workers’ Compensation Plan authorized by the Department of Consumer and Business Services (DCBS) and administered by the National Council on Compensation Insurance (NCCI). Therefore, assigned risk customers are not eligible for dividends.
• If you have an other states coverage policy, the premiums you pay for other states coverage are not eligible for a dividend. However, your Oregon-based premiums are eligible. 

Dividend calculation*

* Dividend percentages vary by standard premium range to account for the impact of premium volume discount on the final premium paid.

Please note: The minimum dividend is $5; no dividend will be awarded under this amount. In addition, premiums paid for other states coverage are not eligible for a dividend.

5. Why do dividend percentages differ for policyholders of different premium size?

Dividends are calculated as a percentage of standard premium. However, a customer's actual paid premium is subject to a discount based on premium size. The dividend percentages for different premium ranges have the effect of equalizing the premium discount and putting all policyholders on essentially the same footing.

6. Why did SAIF select $135 million as the total dividend amount?

The board of directors, upon recommendation of SAIF's management, determined that a dividend of $135 million can reasonably be paid while still maintaining a capital level that ensures SAIF’s long-term financial stability.   

7. How and when will dividends be distributed?

Most policyholders eligible for a dividend will receive a check in the mail. Checks are expected to be mailed during the week of October 9. In some instances, the entire dividend or a portion thereof may be applied to a premium balance or future premium payments. Policyholders should call SAIF’s billing department at 800.285.8525 if they have any questions about money that was applied to a balance due. Policyholders may also request to have their dividends applied to future premium payments.

8. Will the dividend be applied to my account balance?

Policyholders who have a current or past due balance on their account, as of end of the day September 25, will have the dividend applied to the account balance. If the dividend amount is greater than the current and/or past due balance, a check will be generated for the remainder of the dividend.

9. Can I find out how my specific dividend was calculated?

Yes. Beginning on September 29, dividend information can be accessed by logging in to your account at saif.com. The eligible premium, policy period(s) included in the dividend, and the calculation of the dividend, will be visible online at Policy Dividend. The Policy Dividend screen also will show any adjustments to your dividend because of a balance owed to SAIF, or by your request.

10. Is there a limit to the amount of dividend a customer can receive for a particular policy year?

Yes. The dividend cannot exceed 95% of the premium as of the dividend declaration date. For retrospectively rated policies, the dividend cannot exceed 95% of the estimated retrospectively rated premium based upon paid losses as of the dividend declaration date.

11. Why did SAIF pay a dividend instead of lowering rates?

By regulation, rates must be sufficient to pay the expected losses and expenses for the prospective period during which the rates are in effect. When SAIF has a good year and its capital levels are sufficient, portions of available capital may be distributed through dividends to policyholders.

12. Will I receive a dividend even if my business has switched to another carrier or was insured by SAIF for only a portion of the year?

Yes. If your business meets the dividend eligibility criteria, it will receive a dividend even if it is no longer a SAIF policyholder.

13. What happens if my business paid an amount immediately before the dividend was applied to the account?

You will receive an invoice showing a credit, which may be used to pay future premiums or other charges. If you request a refund on a future credit, SAIF will issue payment.

14. What happens if I do not pay my current bill on time and instead intend to use the dividend check to pay the bill?

Interest will accrue on any overdue amounts as specified in ORS 656.560. Interest will be added to the amount due, at the rate of 1% per month or fraction thereof, commencing with the first day of the month following the date when payment became due.

Employer payroll reports are due on or before the 15th day of the month following the reporting period. Payments that are required with the reports are also due on the 15th day of the month. Interest will be assessed if the payment is not received prior to the first of the month following the stated due date.

Therefore, any premium payment or payroll report with a premium payment due in September 2023 will be charged 1% interest if the payment is not received before October 1, 2023. Policyholders may contact their billing representative with any questions or concerns regarding their billing, or request to have their dividend be applied to their premium payment.

Payments and payroll reports may be filed online by logging into your account at saif.com. Policyholders also can quick file their reports without needing to log in.

15. Is the dividend considered income for tax purposes?

SAIF cannot provide advice about how you should treat a dividend for tax purposes. You should consult a tax professional.

16. What is the procedure if a request to change the payee name is received before the dividend checks are printed?

Please contact the SAIF billing department at 800.285.8525.

17. What is the procedure for a dividend check that has been lost or needs to be reissued?

Contact your insurance agent or SAIF representative for assistance.

If you have additional questions, please log in to your saif.com account and visit the dividends page, contact your insurance agent, or call SAIF at 800.285.8525.