SECTIONS 4050-4052 - California Statutes

INSURANCE CODE

SECTION 4050-4052

4050. The directors of a domestic mutual insurer may from time to
time apportion and pay or credit to its members dividends only out of
that part of its surplus funds which represents net realized
savings, net realized earnings, and net realized capital gains, all
in excess of a surplus equivalent to the aggregate of paid-in capital
and unassigned surplus required by this code for the issuance of a
certificate of authority to a capital stock insurer transacting the
same classes of insurance.

4051. A dividend otherwise proper may be payable out of such
savings, earnings, and gains even though the insurer's total surplus
is then less than the aggregate of contributed surplus remaining
unpaid by the insurer.

4052. The payment of any such dividends on a workmen's compensation
policy shall be subject to the provisions of Section 11738 and for
that purpose a mutual policy shall be considered to be a
participating policy.