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At Pinnacol, there’s nothing we love more than seeing money put back into Colorado businesses like yours. And with $70 million in general dividends going to our customers this year, we’re proud to help employers in every county across Colorado stay strong.

To learn more about your 2019 general dividend, review the Frequently Asked Questions below, or contact a customer service representative at (303) 361-4000 or (800) 873-7242.

What is a dividend?

A dividend is a portion of a mutual insurance company's surplus, paid to its customers. 

Many workers’ comp carriers in Colorado are stock insurance companies that pay dividends to their stockholders. But because we don't have stockholders, we pay dividends to our customers that earn it through their commitment to workplace safety and effective claims management.

What are the criteria for receiving the general dividend?

The policy has an expiration date between June 2, 2017, and June 1, 2018

The customer is in good standing

In most instances, the underwriting program or individual policy has a loss ratio better than 71.3 percent. Different circumstances apply to special programs.

Why don't you lower your rates instead of paying a dividend?

In 2019, we’re doing both: lowering rates and paying a dividend. But rates and dividends are two very different calculations that occur under unique circumstances.

Rates are based on future projections; dividends are based on past experience. Our ultimate goal is rate stability year after year, so we set prices based on the best information about the future. But we wait to pay dividends until results from the previous period are available.

Will you pay a dividend again next year?

We don't know for sure. Dividends can be impacted by policyholder claims costs, catastrophic events, the performance of our investment portfolio, even the economy. None of those factors can be predicted with perfect accuracy.

How is the general dividend determined?

The general dividend is determined based on premium size and loss ratio, factors that contribute to our underwriting performance and, ultimately, surplus.

When will I receive my dividend check?

General dividend checks will be mailed to qualified policyholders in March of 2019. But you can see how much you're set to receive before then by signing up for the policyholder portal

Is the dividend taxable?

Because the general dividend is a return of premium to the customer, we don't issue a 1099 for the dividend. If you have tax questions related to your general dividend, you should consult with your tax advisor.

Why not credit my premium instead of sending me a check?

A check gives customers more control over how to use this money; however, checks less than $25 will be applied to the policyholder's account.

How much general dividend money should I expect to receive?

Dividend amounts vary based on each underwriting program's or individual customer's premium amount and loss ratio. The average customer general dividend paid in 2018 was $944. 

Why didn't I receive a general dividend?

There are a few reasons why you might not have received a general dividend: 

Dividend amounts are based on each policyholder's contribution to surplus through both premiums paid and loss ratio. So if you or your underwriting program does not have a loss ratio better than 71.3 percent, you will not qualify for a dividend. Or if you're a member of a safety group program that does not have a loss ratio better than 71.3 percent, you won't receive a general dividend, regardless of your claims history.

If you owe Pinnacol money, the dividend amount will be applied to the outstanding balance in most circumstances.

Customers with a non-compliant audit will not receive a dividend.

Am I eligible if I participate in one of the alternative-pricing programs?

Yes. Policyholders that participate in one of Pinnacol's alternative rating programs such as Large Deductible Programs and Group Large Deductible Programs are eligible to receive general dividends. The group and the individual policyholder must have contributed to surplus to be eligible.

Participants in the Safety Group Dividend Program or Individual Loss Control Dividend Program are eligible to receive both their program and general dividends. 

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