§33-5-16. Participating policies.
(a) If so provided in its articles of incorporation, 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 such classification or determination
shall be reasonable, and shall not unfairly discriminate as between
policyholders within the same such classification. A life insurer
may issue both participating and nonparticipating policies only if
the right or absence of right to participate is reasonably related
to the premium charged.
(b) No dividend, otherwise earned, shall be made contingent
upon the payment of renewal premium on any policy.