(a) A life insurance company may declare or pay a dividend to its:
(1) policyholders only from the expense loading and profits made by the company; and
(2) shareholders only from the company's earned surplus, as defined by the commissioner.
(b) A life insurance company that is not showing a profit may pay a dividend on its participating policies from the expense loading on those policies.
(c) A life insurance company may not discriminate between policyholders in paying a dividend from the expense loading under this section.