New York Laws
Article 41 - Property/casualty Insurance Companies
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withdrawn with the superintendent's approval by the company filing the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.