Sec. 17. No domestic company shall make any payments in form of dividends or otherwise to its shareholders, for or on account of any interest in or relation to the company as shareholders, unless it possesses assets in the amount of such payment, in excess of its liabilities, including its capital stock: Provided, That in no instance shall such dividend reduce the surplus below an amount equal to fifty per cent (50%) of the capital stock of such company; and no domestic company shall make any payments to its members or policyholders for or on account of any interest in or relation to the company as members or policyholders, except for matured claims or other policy obligations and in the purchase of surrender values, unless it possesses assets in the amount of such payments in excess of its liabilities.
Formerly: Acts 1935, c.162, s.95.
Structure Indiana Code
Article 1. Department of Insurance
Chapter 7. General Corporate Powers and Responsibilities of Insurance Companies
27-1-7-1. "Corporation" Defined
27-1-7-2. Capacity and Authority to Act; General Rights, Privileges, and Powers; Excluded Powers
27-1-7-3. Principal Office; Change of Location
27-1-7-5. Stock Certificate; Contents; Transferability
27-1-7-9. Voting Rights of Policyholders and Members; Proxy Votes
27-1-7-9.5. Shareholders' Derivative Proceedings; Procedure
27-1-7-11. Citizenship and Residence Qualifications of Directors
27-1-7-13. Officers; Secretary; Duties; Resignation; Removal; Contract Rights
27-1-7-14. Bonding Officers Having Access to Money or Securities; Blanket Bond
27-1-7-15. Loans to or Borrowing by Directors or Officers; Offense; Exceptions
27-1-7-16. Books and Records to Be Kept at Principal Office
27-1-7-17. Restrictions on Dividend Payments
27-1-7-19. Mutual or Stock Companies; Borrowing for Surplus Funds
27-1-7-22. Vouchers for Disbursements
27-1-7-23. Annual or Other Required Statements; Material False Statement