KRS 304.24-330: Dividends to policyholders.

(1) The directors of a mutual insurer may from time to time apportion and pay to its

members dividends only out of that part of its surplus which is in excess of its

required minimum surplus and which represents net realized savings and net

realized earnings.

(2) Such dividends shall be paid or credited to policyholders according to such

reasonable classifications of its policies as the directors may in their discretion from

time to time establish. No dividend shall be paid which unfairly discriminates as

between policies within the same classification.