New York Laws
Article 80 - Mutual Holding Company
8003 - Dividend Practices.

(1) continue the dividend practices of the reorganizing insurer;
(2) continue the dividend practices of the reorganizing insurer and
adopt such other dividend practices as, at the effective date or at any
time thereafter, may be permitted under applicable law or regulation or
approved by the superintendent; or
(3) adopt such other alternative with respect to dividend practices as
the superintendent may approve.
(b) Following the effective date of the plan, the reorganized insurer
shall, on or before the date on which the mutual holding company holds,
directly or indirectly through one or more stock holding companies, less
than seventy-five percent of the issued and outstanding voting stock of
the reorganized insurer, either:
(1) (A) establish a closed block, for policyholder dividend purposes
only, consisting of all of the participating individual policies and
contracts of the mutual life insurer or the reorganized insurer, as the
case may be, in force on the effective date and for which the insurer
had an experience-based dividend scale payable in the year of the
implementation date, to which closed block, on or before the
implementation date, shall be allocated assets of the insurer in an
amount that produces cash flows, together with anticipated revenues from
the closed block business, expected to be sufficient to support the
closed block business including provision for payment of claims and
those expenses and taxes specified in the terms for the establishment of
the closed block and to provide for continuation of the dividend
practices in effect on the effective date if the closed block is
established on or before the one hundred eightieth day after the
effective date, or otherwise the dividend practices in effect on the
implementation date, provided, however, that no policies or contracts
entering into force after the implementation date will be included in
the closed block, and provided, further, that, in determining dividend
practices of the reorganizing insurer, the superintendent shall review
dividend scales in effect for at least two years prior to the filing of
the reorganization plan; and
(B) the terms for the establishment of the closed block may provide
for conditions under which, with the approval of the superintendent, the
reorganized insurer may cease to maintain the closed block and
allocation of assets thereto, but regardless of such a cessation the
policies and contracts constituting closed block business shall remain
obligations of the reorganized insurer and any dividends on such
policies and contracts shall be determined and apportioned by the board
of directors of the reorganized insurer in accordance with the terms of
such policies and contracts and applicable provisions of this chapter;
or
(2) provide as to participating individual policies and contracts of
the reorganizing or reorganized insurer in such manner as the
superintendent may approve.
(c) The general terms for the establishment of the closed block or
such alternative provision under subsection (b) of this section and the
proposed dividend policy shall be included in the plan under section
eight thousand two of this article.
(d) The superintendent may appoint one or more consultants as the
superintendent shall reasonably deem necessary to advise the
superintendent regarding the proposed terms for the establishment of the
closed block or the alternative provision under subsection (a) or (b) of

this section; and the reorganizing insurer shall be responsible for the
reasonable fees and expenses of any such consultants.
(e) For purposes of this section, "implementation date" means the date
as of which the closed block is established, as specified in the terms
for the establishment of the closed block.