| Summer 2009
Agents' Guide to Dividends
"For retention, Texas Mutual's dividends are huge. And once a client has an account for a few years with a dividend record established, it's almost impossible to move them away."
—Douglas Sanford
Sanford & Tatum
In July, Texas Mutual Insurance Company began distributing $75 million in individual policyholder dividends. Approximately 38,000 employers, representing 79 percent of policyholders, qualified for a dividend. Some will have questions.
This guide will help you explain and promote our dividend program among your clients. If you have questions, call us at (800) 859-5995.
Dividend basics
A dividend is essentially a monetary
reward for policyholders in good standing
who commit to workplace safety and help
injured workers return to the job. Dividends
also reward policyholders for staying loyal to
Texas Mutual Insurance Company.
Dividend components
The individual policyholder dividend
plan includes an annual component and a
retention component.
The annual component rewards current
policyholders who had acceptable loss ratios
for the policy that expired in 2008.
The
retention component rewards current policyholders
for up to five consecutive years of
acceptable loss ratios with us, ending with
the policy that expired in 2008. Longtime
policyholders may have seen their dividends
increase because of the retention component.
Early-qualifier dividends
The $75 million dividend
plan includes about $1 million
for first-year policyholders. We
plan to distribute early-qualifier
dividends in November. We
will send you a list of your
qualifying clients in advance.
To earn an early-qualifier dividend, the policyholder:
- Must have a policy that expired between January 1, 2009 and June 30, 2009
- Must have an in-force policy on October 15, 2009 with an acceptable loss ratio.
Dividends as a retention tool
Agents report that dividends are a tool
for retaining good customers, especially
those who see their dividends increase as a
result of the retention component. Visit
our website for marketing materials
you can distribute to your clients.
“For retention, Texas Mutual’s dividends are huge,” said Douglas Sanford of Sanford & Tatum Insurance Agency. “And once a client has an account for a few years with a dividend record established, it’s almost impossible to move them away from Texas Mutual.”
Dividends and financial stability
Texas Mutual has paid more than
$670 million in individual policyholder
dividends since 1999. We have paid another
$61 million to Safety Group members.
Our dividend track record is a sign of our
continuing financial stability in today’s
turbulent economy.
Uncashed checks
We keep uncashed checks on our books for
three years. Then, we turn them over to the State
Comptroller’s Office as unclaimed property.
Policyholders can call us at (800) 859-5995 and ask us to reissue expired dividend checks. If a client moves, email us at underwriting@ texasmutual.com, or fax us at (800) 359-0650 and give us their correct address.
Dividends and taxes
Dividends could be taxable, depending
on the policyholder’s individual business
situation. Advise your clients to consult a tax
professional.
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Agents' Guide to Dividends
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