Dividend and participating plans

(1) (a) This part does not prohibit the distribution by an insurer to a policyholder of any of the following allowed or returned by the insurer: (i) dividends; (ii) savings; or (iii) unabsorbed premium deposits. (b) Notwithstanding Subsection (1)(a), an insurer may not distribute dividends, savings, or unabsorbed premium deposits to an entity that has no insurable interest in the insurance. (2) An insurer may not unfairly discriminate between policyholders in the payment of dividends, savings, or unabsorbed premium deposits. (3) (a) A declaration of dividends or schedule explaining the basis for the distribution of dividends, savings, or unabsorbed premium deposits allowed or returned by an insurer to its policyholders is not a rating plan or system if the insurer: (i) determines and declares the declaration or schedule after a specified policy accounting period; and (ii) files the declaration or schedule pursuant to Section 31A-21-310. (b) A declaration or schedule described under Subsection (3)(a) is not required to be filed with the commissioner under this chapter. (4) (a) A dividend or participating plan developed by insurers establishing given criteria for eligibility and the general basis for distribution for a dividend, if declared, is considered a rating plan if the plan is to be applicable to an insurance policy from its inception. (b) A plan described in Subsection (4)(a) shall be filed with the commissioner pursuant to this part. (5) An insurer may not make the distribution of a dividend or any portion of a dividend conditioned upon renewal of the policy or contract.