California Society of Professional Engineers

State Fund Insurance Policy

Amended September 19, 1999

Reviewed June 7, 2008

1. Eligible policyholders for participation in the CSPE Group are defined as firms whose owner or at least one of its officers or principals is a current member of CSPE or a CSPE Supporting Organization during at least a part of the calendar year policy period.

2. Because CSPE group participants now receive an up front discount on their premiums, participants that are no longer CSPE members or CSPE Supporting Organizations when the distribution is made by State Fund to CSPE, shall forfeit their claim to all dividends earned during a prior policy year. Dividends forfeited in such a manner become the property of CSPE.

Dividend Distribution

• CSPE reserves the right to withhold up to 50% of the dividend earned for a prior policy year. The portion of the dividend that CSPE chooses to distribute to participating firms shall be distributed on a pro-rata basis.

• CSPE should distribute dividends to eligible recipients in the year received as soon after July 1 as is practicable.