The organization may offer dividends to qualifying employers. Eligibility and distribution:

1. Dividends are not guaranteed.

2. If an employer's account has been in effect for less than an entire premium year, any dividend offered shall be prorated by the number of months the employer's account has been active with the organization. Premiums paid and losses incurred during a dividend review period defined by the organization, and other criteria identified by the organization, may be used to determine the amount of the dividend. Minimum premium and volunteer accounts are not eligible for dividend payments.

3. The organization shall offset past-due balances on any account by the dividend earned on that account.

4. A dividend is distributed in the form of a premium credit to an employer's account and may not reduce an employer's premium below the minimum premium. No monetary disbursements of dividends can be made by the organization.

5. An employer who is noncompliant, delinquent, uninsured, or who has failed to submit a payroll report may be ineligible for a dividend for the payroll period following the year in which the employer was noncompliant, delinquent, uninsured, or failed to submit a payroll report.

History: Effective May 1, 2000; amended effective July 1, 2004; July 1, 2006; July 1, 2010; April 1, 2020; January 1, 2024.

Law Implemented: NDCC 65-04-19.3