Louisiana Workers’ Compensation Corporation (LWCC) will pay a $23.2 million dividend to qualifying policyholders in late April, Insurance Commissioner Jim Donelon and LWCC President/CEO Kristin W. Wall announced.
LWCC’s board of directors declared the dividend for the calendar year 2006, and the Louisiana Department of Insurance approved the dividend on April 4, 2007. This is believed to be the largest single dividend ever paid in Louisiana by a workers’ compensation insurer, topping the $19.6 million that LWCC returned to policyholders last year.
LWCC (www.lwcc.com) is a private, nonprofit mutual insurance company. Since its creation by the legislature in 1991, it has become the largest writer of workers’ compensation insurance in Louisiana, covering about 22,000 policyholders.
More than 20,000 policyholders will receive a portion of the dividend. Individual dividend awards are based on a calculation that takes into account policyholders’ premium payments and longevity with LWCC over the last five years.
“It has been a year and a half since the devastating hurricanes of 2005, and this has been a period of recovery for many Louisiana businesses,” Wall said. “We are pleased to be able to return a substantial dividend to our policyholders and hope that by redirecting that money back to the business community, the state’s economic condition will continue to stabilize and strengthen.”
With this latest dividend, LWCC will have paid dividends to its policyholders for four consecutive years, totaling $68.8 million. In keeping with its commitment to provide policyholder value, the company also has lowered rates by more than 34 percent since it began operations in 1992.
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