Oklahoma § 36-4007 - Dividends

§ 36-4007. Dividends

There shall be a provision in participating policies that,

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 hereinafter

Oklahoma Statutes - Title 36. Insurance

provided, any dividend so apportioned shall at the option of the

party entitled to elect such option be either (a) payable in cash or

(b) applied to any one of such other dividend options as may be

provided by the policy. If any such other dividend options are

provided, the policy shall further state which option shall be

automatically effective if such party shall not have elected some

other option. If the policy specifies a period within which such

other dividend option may be elected, such period shall be not less

than thirty (30) days following the date on which such dividend is

due and payable. The annually apportioned dividend shall be deemed

to be payable in cash within the meaning of (a) above even though

the policy provides that payment of such dividend is to be deferred

for a specified period, provided such period does not exceed six (6)

years from the date of apportionment and that interest will be added

to such dividend at a specified rate. If a participating policy

provides that the benefit under any paid-up nonforfeiture provision

is to be participating, it may provide that any divisible surplus

apportioned while the insurance is in force under such nonforfeiture

provision shall be applied in the manner set forth in the policy.

Laws 1957, p. 371, § 4007.