LegalFix
Sign In

Section 59A-34-20 - Dividends to policyholders.

NM Stat § 59A-34-20 (2019) (N/A)
Copy with citation
Copy as parenthetical citation

A. The directors of a domestic mutual insurer may from time to time apportion and pay or credit to its members dividends only out of that part of its surplus funds which represents net realized savings, net realized earnings and net realized capital gains, all in excess of the surplus required by law to be maintained by the insurer.

B. Subject to Section 393 [59A-20-28 NMSA 1978] (special requirements as to participating policies) of the Insurance Code, a domestic stock insurer may pay dividends to holders of its participating policies out of its available surplus.

C. No such dividend shall be paid which is inequitable or which unfairly discriminates between classifications or policies within the same classification.

History: Laws 1984, ch. 127, § 566.

Am. Jur. 2d, A.L.R. and C.J.S. references. — 43 Am. Jur. 2d Insurance § 120.

44 C.J.S. Insurance § 127 et seq.

Previous Section
Section 59A-34-19 - Participating policies.
Next Section
Section 59A-34-21 - Illegal dividends; penalty.