31A-5-420 - Payment of dividends by mutual insurers. - Utah Statutes

31A-5-420. Payment of dividends by mutual insurers.
(1) When it is in the best interests of the company, the directors of a domestic mutualinsurer shall declare, apportion, and pay to its members dividends from its net savings andearnings.
(2) The insurer shall make a reasonable classification of its participating policies and itsassumed risks. No dividend shall be paid that is inequitable, unfairly discriminates betweenclassifications of insurance contracts, or unfairly discriminates between policies within the sameclassification.
(3) Unless stated in the policy, no dividend, otherwise earned, shall be contingent uponthe payment of the renewal premium on any policy.
(4) Subsection (1) may not be construed to require an insurer determined by the UnitedStates Internal Revenue Service to be a nonprofit organization to pay a dividend in a mannerwhich would jeopardize that status.

Enacted by Chapter 242, 1985 General Session