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Texas Insurance Code - INS § 884.253. Dividends

Current as of January 01, 2024 | Updated by FindLaw Staff

(a) A stipulated premium company may declare or pay a dividend to its shareholders only from the profits made by the company, not including surplus from the sale of stock.

(b) A stipulated premium company may not pay a dividend, other than a stock dividend, unless:

(1) any deficiency reserve under Section 884.453 has been eliminated; and

(2) the capital of the company is maintained in an amount of at least $100,000.

(c) A stipulated premium company that complies with Subsection (b) may pay cash dividends in accordance with Sections 403.001 and 403.052.

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Cite this article: FindLaw.com - Texas Insurance Code - INS § 884.253. Dividends - last updated January 01, 2024 | https://codes.findlaw.com/tx/insurance-code/ins-sect-884-253/

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