2006 Minnesota Statutes

66A.34 DIVIDENDS.
    Subdivision 1. Annual apportionment and accounting of surplus. Every life insurance
company doing business in this state conducted on the mutual plan or in which policyholders are
entitled to share in the profits or surplus shall make an annual apportionment and accounting of
divisible surplus to each policyholder, beginning not later than the end of the third policy year, on
all participating policies hereafter issued; and each such policyholder shall be entitled to and be
credited with or paid, in the manner hereinafter provided, such a portion of the entire divisible
surplus as has been contributed thereto by that person's policy.
    Subd. 2. Policyholder to choose. Every policyholder shall, on all participating policies
hereafter issued, be permitted, after that person's policy has been in force five years, annually, to
select the manner and method of the application of the surplus to be annually apportioned to that
person's policy from among those set forth in the policy. All apportioned surplus not actually paid
over to the insured, or applied in the reduction of current or future premiums or in the purchase
of paid-up insurance or pure endowment additions, shall be credited to the insured and carried
as an actual liability and be paid at the maturity of the policy.
    Subd. 3. Waiver prohibited. No agreement between the company and the policyholder or
applicant for insurance shall be held to waive any of the provisions of subdivisions 1 and 2.
    Subd. 4. Policies issued prior to January 1, 1908. Every life insurance company doing
business in this state conducted on the mutual plan, or in which policyholders are entitled to
share in the profits or surplus, shall, on all policies of life insurance issued prior to January 1,
1908, under the conditions of which the distribution of surplus is deferred to a fixed or specified
time, and contingent upon the policy being in force and the insured living at that time, annually
ascertain the amount of surplus to which all such policies as a separate class are entitled, and shall
annually apportion to such policies as a class the amount of surplus so ascertained, and carry the
amount of such apportioned surplus, plus the actual interest earnings and accretions of such
fund, as a distinct and separate liability to such class of policies on and for which the same was
accumulated, and no company or any of its officers shall be permitted to use any part of such
apportioned surplus fund for any purpose other than the express purpose for which the same was
accumulated. This subdivision shall not apply to industrial policies.
    Subd. 5. Required policy provision. The required policy provision is contained in section
61A.03, subdivision 1, paragraph (f).
History: 1967 c 395 art 2 s 26; 1986 c 444; 2005 c 69 art 2 s 18