2013 New York Consolidated Laws
ISC - Insurance
Article 41 - (4101 - 4121) PROPERTY/CASUALTY INSURANCE COMPANIES
4106 - Stock companies; participating policies.

 
    §   4106.   Stock   companies;   participating   policies.   A   stock
  property/casualty insurance company authorized to do  business  in  this
  state  may  include  in its charter a provision authorizing the board of
  directors to permit its policyholders from time to time  to  participate
  in  the  profits  of  its operations through the payment of dividends to
  policyholders.  For the purpose of carrying into effect this  provision,
  the   board   of  directors  may  from  time  to  time  make  reasonable
  classifications of policies.  Every such classification of  risks  shall
  be  filed  with  the  superintendent  and  shall  not be effective as to
  policies issued or delivered  in  this  state  unless  approved  by  the
  superintendent  as  fair  and equitable and not unfairly discriminatory.
  Any classification approved by the superintendent shall remain in effect
  in this state until disapproved by him or until  withdrawn  or  modified
  with  his  approval  by  the  company  filing  the same. No dividends to
  policyholders shall be declared or paid by any such company  except  out
  of  its  earned  surplus  as  defined  in subsection (a) of section four
  thousand one hundred five of this article.