New York Laws
Article 41 - Property/casualty Insurance Companies
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in this state until disapproved by him or until withdrawn or modified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.

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