33-3-424. Illegal dividends -- administrative or civil penalty. (1) Any director of a domestic stock or mutual insurer who votes for or concurs in declaration or payment of a dividend to stockholders or members other than as authorized under 33-3-422 or 33-3-423 shall be jointly and severally liable, together with other such directors likewise voting for or concurring, for any loss thereby sustained by the insurer.
(2) Any stockholder receiving such an illegal dividend shall be liable in the amount thereof to the insurer.
(3) The commissioner may revoke or suspend the certificate of authority of an insurer which has declared or paid such an illegal dividend.
History: En. Sec. 454, Ch. 286, L. 1959; R.C.M. 1947, 40-4737; amd. Sec. 25, Ch. 396, L. 2017.
Structure Montana Code Annotated
Title 33. Insurance and Insurance Companies
Chapter 3. Domestic Stock and Mutual Insurers
33-3-402. Vouchers for expenditures
33-3-403. through 33-3-410 reserved
33-3-411. Contingent liability of mutual members
33-3-412. Levy of contingent liability
33-3-413. Enforcement of contingent liability
33-3-414. Nonassessable policies of mutual insurers
33-3-415. Insufficient reserves -- nonassessable policies prohibited -- revocation of authority
33-3-416. through 33-3-420 reserved
33-3-421. Participating policies
33-3-422. Dividends to stockholders
33-3-423. Dividends to mutual policyholders
33-3-424. Illegal dividends -- administrative or civil penalty
33-3-425. through 33-3-430 reserved
33-3-432. Impairment of capital or assets
33-3-433. Assessment of stockholders or members
33-3-434. Directors' liability for losses during deficiency
33-3-435. Stock transfer during impairment of capital
33-3-436. Mutual member's share of assets on liquidation
33-3-437. through 33-3-440 reserved
33-3-441. Equity securities of domestic stock insurance company -- statement of ownership
33-3-443. Short sales of equity securities prohibited -- time for delivery after sale
33-3-445. Exemptions -- arbitrage transactions
33-3-446. Exemptions -- registered securities -- holding by less than 100 persons
33-3-447. Rules of commissioner -- classifications -- effect
33-3-448. and 33-3-449 reserved