Participating and Nonparticipating Policies; Earned Dividend Not to Be Made Contingent Upon Payment of Renewal Premium

  1. Law
  2. Georgia Code
  3. Insurance
  4. Domestic Stock and Mutual Insurers
  5. General Provisions
  6. Participating and Nonparticipating Policies; Earned Dividend Not to Be Made Contingent Upon Payment of Renewal Premium

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  1. If so provided in its charter, a domestic stock or domestic mutual insurer may issue any or all of its policies with or without participation in profits, savings, or unabsorbed portions of premiums, may classify policies issued on a participating or nonparticipating basis, and may determine the right to participate and the extent of participation of any class or classes of policies. Any classification or determination shall be reasonable and shall not unfairly discriminate as between policyholders within the same classification.
  2. No dividend, otherwise earned, shall be made contingent upon the payment of a renewal premium on any policy.

(Code 1933, § 56-1521, enacted by Ga. L. 1960, p. 289, § 1.)

OPINIONS OF THE ATTORNEY GENERAL

Existing company must amend charter to issue participating shares.

- A Georgia stock insurance company chartered after 1950, but before the adoption of this title by Ga. L. 1960, p. 289, must amend its charter in order to issue participating policies if no reference is made to such policies in the charter. 1965-66 Op. Att'y Gen. No. 66-51.

RESEARCH REFERENCES

ALR.

- Apportionment of divisible surplus of insurance company between different policies, 108 A.L.R. 1212.


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