§ 26-16-107 — Dividends

Wyoming § 26-16-107

• Jurisdiction: Wyoming
• Title 26: Insurance Code
• Ch. 16: LIFE INSURANCE AND ANNUITY CONTRACTS

Text

(a) In participating policies, beginning not later than
the end of the third policy year, the insurer shall annually
ascertain and apportion the divisible surplus, if any, that will
accrue on the policy anniversary or other dividend date
specified in the policy, provided the policy is in force and all
premiums to that date are paid. Except as otherwise provided in
this section, any dividend payable, at the option of the party
entitled to elect the option, shall be either payable in cash or
applied to any of the other dividend options provided by the
policy. If any other dividend options are provided, the policy
shall further state which option is automatically effective if
the party does not elect some other option. If the policy
specifies a period within which the other dividend option may be
elected, the period shall be not less than thirty (30) days
following the date on which the dividend is due and payable. The
annually apportioned dividend is payable in cash within the
meaning of the cash option specified in this subsection even
though the policy provides that payment of the dividend is to be
deferred for a specified period, provided the period does not
exceed six (6) years from the date of apportionment and that
interest will be added to the dividend at a specified rate.
(b) Renewable term policies of ten (10) years or less may
provide that:
(i) The surplus accrued to the policies shall be
determined and apportioned each year after the second policy
year and accumulated during each renewal period;
(ii) At the end of the renewal period, on the
insured's renewal of the policy, the insurer shall apply the
accumulated surplus as an annuity for the next succeeding
renewal term in reducing premiums.
(c) In participating industrial life insurance policies,
instead of the provision required in subsection (a) of this
section, there shall be a provision that beginning not later
than the end of the fifth policy year, the policy shall
participate annually in the divisible surplus, if any, in the
manner set forth in the policy.
(d) This section does not apply to insurance issued in
consideration of lapsed or surrendered policies.