Current as of May 06, 2021 | Updated by FindLaw Staff
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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 (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.
Cite this article: FindLaw.com - New Mexico Statutes Chapter 59A. Insurance Code § 59A-34-20. Dividends to policyholders - last updated May 06, 2021 | https://codes.findlaw.com/nm/chapter-59a-insurance-code/nm-st-sect-59a-34-20/
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