Can an insurance broker-agent or insurance company guarantee the amount of a future Workers Compensation dividend?
The California Code of Regulations (CCR) clearly states that broker-agents or insurance companies cannot guarantee or in any way promise the payment amount of future Workers Compensation dividends (see Title 10, Chapter 5, Subchapter 3, Article 9, Section 2505.) A broker-agent or other company representative can provide past dividend payment amounts for illustration purposes, but the policyholder dividend statement cannot directly or indirectly imply the amount of future dividend payments. If an employer feels that a broker-agent or company representative is in any way misrepresenting their dividend plan, especially by directly or indirectly promising future dividend results, then they should contact the CDI immediately through the information provided in the “Talk to Us” section of this brochure. Question: What can an employer do if there is a dispute on a Workers Compensation classification code? Answer: If an employer questions the assignment of a classification code, the broker-age
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