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 a surplus equivalent to the aggregate of paid-in capital and unassigned surplus required by this code for the issuance of a certificate of authority to a capital stock insurer transacting the same classes of insurance.
Cal. Ins. Code § 4050
Dividends to Policyholders
Applied in 1 court decision — leading case 16 Cal. App. 4th 365 - Barnes v. State Farm Mutual Automobile Insurance (1993)
Most recently applied in 16 Cal. App. 4th 365 - Barnes v. State Farm Mutual Automobile Insurance (June 1993)
Added by Stats. 1963, Ch. 1772.
Official source: California Legislative Information. Reproduced from public-domain California statutes; confirm against the official source for the current text. Not legal advice.