§431:12-111  Readjustment of premiums;dividends.  (a)  Any mass merchandising agreement may provide for thereadjustment of the rate of premium based on experience at the end of the firstyear for any subsequent year of insurance, and such readjustment may be maderetroactive only for the policy year.

(b)  If a policy dividend is declared or areduction in rate is made or continued under any mass merchandising plan, theexcess, if any, of the aggregate dividends or rate reductions under the policyand all other group insurance policies of the policyholder over aggregateexpenditure for insurance under such policies made from funds contributed bythe policyholder, or by an employer of an insured person, or by a union orassociation to which an insured person belongs, including expenditures made inconnection with administration of such policies, shall be applied by thepolicyholder for the sole benefit of insured employees. [L 1987, c 347, pt of§2]