 
Health Insurance California >> Worker’sCompensation >> Is it possible to guarantee payment of a future dividend? Is it possible to guarantee payment of a future dividend ? No. It is a misdemeanor for any insurance company, agent
or a broker to promise the payment of future
workers compensation dividends. Under California State law, the insurance
company’s board of directors or other governing body should review the
actual and overall loss experience of the workers
compensation business since its final dividend declaration. This governing
body then decides whether the insurer has a surplus from which dividends
might lawfully be paid. Such insurance
dividends needs to be declared by resolution adopted after end of
the insurance policy term. This declaration should specify the dividend
plans, formulas or/and schedules to be applied. Any person who makes or
causes to be made any knowingly false or fraudulent material statement
or any material representation for the purpose of obtaining or could be
denying workers
compensation benefits or payments is guilty of a felony.
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