(a) On December 31 of each year, or as soon after as practicable, each mutual life insurance company shall determine the amount of surplus earned by the company during that year.
(b) Not later than the end of the second year in which a policy issued by the company is in effect, the company shall provide to the policyholder:
(1) an annual accounting of the company’s divisible surplus; and
(2) if all premiums due on the policy have been paid for at least two years, a fair allocation of the company’s divisible surplus that remains after deducting:
(A) any amount approved by the commissioner for retirement of any unpaid loans made under § 882.253;
(B) the company’s contingency reserve; and
(C) any earned surplus the company allocated to unencumbered surplus as provided by this chapter.

(c) The company shall immediately submit to the commissioner a detailed report of an allocation of divisible surplus made under this section. The president or secretary of the company shall sign the report under oath.