Westmar Marine Insurance recently announced it paid out the first dividends under its Workers' Compensation USL&H Group dividend-paying insurance program.
"In one of the worst times in economic history, we're able to pay back money to our customers," Westmar marketing director Kelly Lam told Trade Only Today.
Under the state program, launched in 2007 and currently open only to California recreational businesses (boat dealers, marinas, boat repairers), profitable groups for Westmar — in this case, boat dealers and boat repair workers — received dividends based on a percentage of their premium.
Westmar, along with policy underwriter Zenith Insurance Company and the USL&H Safety Services Association announced the combined dividend payment of $43,776.80 to members of the boat dealer and boat repair groups for the period of July 1, 2007 through June 31, 2008.
Westmar, the retail arm of Western Marine Insurance Services, says it is the only recreational marine workers' compensation insurance program in California paying back its customers. Profitability is determined by each group's loss ratio. The marina group does not qualify for dividends at this time, according to Lam.
— Rich Armstrong