2013 New York Consolidated Laws
ISC - Insurance
Article 41 - (4101 - 4121) PROPERTY/CASUALTY INSURANCE COMPANIES
4114 - Mutual companies; dividends.

 
    §  4114.  Mutual  companies;  dividends.  The  board of directors of a
  mutual property/casualty insurance company may from time to time fix and
  determine an amount to be declared and paid as a dividend or as a return
  of unused or  unabsorbed  premiums  or  premium  deposits  on  policies,
  retaining  such  sums  as  they  may  deem necessary to meet outstanding
  policy obligations and for the maintenance of reserves  and  surplus  as
  herein  provided.  The  determination,  declaration  and payment of such
  dividend shall be subject to section one thousand two hundred eleven  of
  this  chapter.  In declaring any dividend to policyholders, the board of
  directors may make reasonable classifications of  policies.  Every  such
  classification  shall  be  filed  with  the superintendent and shall not
  become  effective  unless  approved  by  the  superintendent  as   fair,
  equitable,   not   impracticable   in   operation   and   not   unfairly
  discriminatory. Any such classification approved by  the  superintendent
  shall  remain in effect until disapproved by the superintendent or until
  withdrawn with the superintendent's approval by the company  filing  the
  same.  The  requirements  as  to  filing and approval, as applied to any
  foreign or alien mutual property/casualty insurance company, shall apply
  only to risks located or resident in this state.