§431:4-207  Participating policies. 
(a)  Any domestic stock insurer may, if its charter so provides, issue policies
entitled to participate from time to time in the earnings of the insurer
through dividends.



(b)  The directors of a stock insurer may from
time to time apportion and pay to the holders of participating policies
dividends only out of that part of its surplus which is in excess of its
required capital and minimum surplus.  The dividends may be paid or credited
according to a reasonable classification of its policies.  No dividend shall be
paid which unfairly discriminates among policies within the same
classification.



(c)  No such insurer shall issue in this State
both participating and nonparticipating policies for the same class of risks, unless
the right or absence of right to participate is reasonably related to the
premium charge or the special character of the risk assumed.



(d)  Dividends to participating life insurance
policies issued by the insurer shall be paid only out of its surplus funds as
defined in section 431:4-101.  Dividends to participating policies for other
classes of insurance shall be paid only out of that part of the surplus funds
which is derived from any realized net profits.



(e)  No dividend, otherwise earned, shall be
made contingent upon the payment of renewal premium on any policy. [L 1987, c
347, pt of §2]