US Laws, Codes, Statutes & Cases

                                  TITLE  41
                                  INSURANCE
                                  CHAPTER 28
                    ORGANIZATION AND CORPORATE PROCEDURES
                         OF STOCK AND MUTUAL INSURERS
    41-2842.  PARTICIPATING POLICIES. (1) As provided in its articles of
incorporation, a domestic stock insurer or domestic mutual insurer may issue
any or all of its policies with or without participation in profits, savings,
unabsorbed portions of premiums, or surplus; may classify policies issued and
risks insured on a participating and nonparticipating basis, and, subject to
section 41-1933(3), Idaho Code, may determine the right to participate and the
extent of participation of any class or classes of policies. Any such
classification or determination shall be reasonable.
    (2)  A life insurer may issue both participating and nonparticipating
policies only if the right or absence of right to participate is reasonably
related to the premium charged.
    (3)  No dividend, otherwise earned, shall be made contingent upon the
payment of renewal premium on any policy; except, that a participating life or
disability insurance policy providing for participation at the end of the
first or second policy year may provide that the dividend or dividends will be
paid subject to payment of premium for the next ensuing year.