Cal. Code Regs. tit. 10 § 2507.1

Current through Register 2025 Notice Reg. No. 2, January 10, 2025

Section 2507.1 - Prohibition Against Unfair Discrimination

Allocation of dividends shall not be unfairly discriminatory. The dividend plans, scales, tables, formulas or schedules specified in the declaration may provide for allocation of dividends as a flat percentage of premiums or may provide for variations in the amounts of dividends or the percentages of premium paid as dividends based upon loss or expense factors or any other reasonable considerations, such as size, location, hazard, industry or trade classification, which have a probable effect on losses or expenses. Failure to apply in a consistent manner the plans, scales, tables, formulas or schedules adopted and specified in a declaration of dividends shall be prima facie evidence of unfair discrimination.

Cal. Code Regs. Tit. 10, § 2507.1

1. Change without regulatory effect adding new NOTE filed 1-8-2015 pursuant to section 100, title 1, California Code of Regulations (Register 2015, No. 2).
2. Amendment filed 5-31-2016; operative 7-1-2016 (Register 2016, No. 23).

Note: Authority cited: Sections 790.10 and 11739, Insurance Code. Reference: Sections 790.03 and 11739, Insurance Code.

1. Change without regulatory effect adding new Note filed 1-8-2015 pursuant to section 100, title 1, California Code of Regulations (Register 2015, No. 2).
2. Amendment filed 5-31-2016; operative 7/1/2016 (Register 2016, No. 23).