N.Y. Insurance Law § 4114: Mutual companies; dividends

§ 4114. Mutual companies; dividends. The board of directors of a

mutual property/casualty insurance company may from time to time fix and

determine an amount to be declared and paid as a dividend or as a return

of unused or unabsorbed premiums or premium deposits on policies,

retaining such sums as they may deem necessary to meet outstanding

policy obligations and for the maintenance of reserves and surplus as

herein provided. The determination, declaration and payment of such

dividend shall be subject to section one thousand two hundred eleven of

this chapter. In declaring any dividend to policyholders, the board of

directors may make reasonable classifications of policies. Every such

classification shall be filed with the superintendent and shall not

become effective unless approved by the superintendent as fair,

equitable, not impracticable in operation and not unfairly

discriminatory. Any such classification approved by the superintendent

shall remain in effect until disapproved by the superintendent or until

withdrawn with the superintendent's approval by the company filing the

same. The requirements as to filing and approval, as applied to any

foreign or alien mutual property/casualty insurance company, shall apply

only to risks located or resident in this state.