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



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