N.Y. ISC Law § 4106

§ 4106. Stock companies; participating policies. A stock\nproperty/casualty insurance company authorized to do business in this\nstate may include in its charter a provision authorizing the board of\ndirectors to permit its policyholders from time to time to participate\nin the profits of its operations through the payment of dividends to\npolicyholders. For the purpose of carrying into effect this provision,\nthe board of directors may from time to time make reasonable\nclassifications of policies. Every such classification of risks shall\nbe filed with the superintendent and shall not be effective as to\npolicies issued or delivered in this state unless approved by the\nsuperintendent as fair and equitable and not unfairly discriminatory.\nAny classification approved by the superintendent shall remain in effect\nin this state until disapproved by him or until withdrawn or modified\nwith his approval by the company filing the same. No dividends to\npolicyholders shall be declared or paid by any such company except out\nof its earned surplus as defined in subsection (a) of section four\nthousand one hundred five of this article.\n