N.Y. Insurance Law § 4106: Stock companies; participating policies

§ 4106. Stock companies; participating policies. A stock

property/casualty insurance company authorized to do business in this

state may include in its charter a provision authorizing the board of

directors to permit its policyholders from time to time to participate

in the profits of its operations through the payment of dividends to

policyholders. For the purpose of carrying into effect this provision,

the board of directors may from time to time make reasonable

classifications of policies. Every such classification of risks shall

be filed with the superintendent and shall not be effective as to

policies issued or delivered in this state unless approved by the

superintendent as fair and equitable and not unfairly discriminatory.

Any classification approved by the superintendent shall remain in effect

in this state until disapproved by him or until withdrawn or modified

with his approval by the company filing the same. No dividends to

policyholders shall be declared or paid by any such company except out

of its earned surplus as defined in subsection (a) of section four

thousand one hundred five of this article.