§ 27-8-4 - Classification of risks by mutual companies.
SECTION 27-8-4
§ 27-8-4 Classification of risks by mutualcompanies. – Any mutual insurance company incorporated by this state and any mutualinsurance company incorporated by any other state or country authorized totransact business in this state may classify the property and risks insured init at the time of issuing policies on the property, and may issue policies uponthat property and those risks under different rates of premium or premiumdeposit, corresponding as nearly as may be to the greater or lesser risk fromthe causes insured against and the loss which may attach to the several assumedrisks, and the directors of any mutual insurance company may, by vote, fix anddetermine the percentage of dividend or unused or unabsorbed premium or premiumdeposit return to be paid or credited on expiring policies, which percentagesmay differ, following the different loss experience of different classes ofrisks of the same term. But all policies insuring risks in the sameclassification shall have an equal rate of dividend or return of unused orunabsorbed premium or premium deposit upon expiration, and in case of anassessment, the rate may be different for each different class of risks.