31A-21-310 - Dividends on policies.
31A-21-310. Dividends on policies.
(1) Section 31A-22-418 applies to life insurance and annuities.
(2) Any insurer may distribute a portion of surplus attributable to policies other than lifeinsurance or annuities, in amounts and with classifications the board of directors determines to befair and reasonable. This distribution may not be contingent on the renewal of any policy or ofpremium payments unless the policy stated that limitation when it was written. A scheduleexplaining the basis for the distribution shall be filed with the commissioner prior to thedistribution. The schedule shall be kept confidential by the commissioner unless he finds that theinterests of insureds and the public require that it be made public.
(3) Any insurer may distribute surplus to any class of policyholder, even if their policiesdo not provide for it. A schedule explaining the basis for the distribution shall be filed with thecommissioner under Subsection (2) at least 30 days prior to the distribution. The commissionershall disallow any distribution which is materially unfair to other policyholders or which wouldplace the insurer in a financially hazardous condition.
(4) It is permissible to provide an indivisible dividend to classes of policyholders havingmore than one type of policy, including a combination of life or annuities with other types ofinsurance.
Enacted by Chapter 242, 1985 General Session