US Laws, Codes, Statutes & Cases

                                  TITLE  41
                                  INSURANCE
                                  CHAPTER 19
                           LIFE INSURANCE POLICIES
                            AND ANNUITY CONTRACTS
    41-1933.  PARTICIPATING AND NONPARTICIPATING POLICIES -- ACCOUNTING. (1) A
life insurer issuing both participating and nonparticipating policies shall
maintain a system of accounting which segregates the participating from the
nonparticipating business and clearly shows the profits and losses upon each
such category of business. The insurer's annual statement as filed with the
director under section 41-335 shall provide such information with respect to
such categories as is called for in connection therewith.
    (2)  For the purposes of such accounting the insurer shall make a
reasonable allocation as between the respective such categories of the
expenses of such general operations or functions as are jointly shared. Any
allocation of expense as between the respective categories shall be made upon
a reasonable basis, to the end that each category shall bear a just portion of
joint expense involved in the administration of the business of such category.
    (3)  No policy hereafter shall provide for, and no life insurer or
representative shall hereafter knowingly offer or promise payment, credit, or
distribution of participating "dividends", "earnings", "profits" or "savings",
by whatever name called, to participating policies out of such profits,
earnings or savings on nonparticipating policies. This provision shall not be
deemed to restrict the generality of section 41-1314 (rebates, illegal
inducements).