Sec. 884.253. DIVIDENDS. (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.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2E.080, eff. April 1, 2009.
Structure Texas Statutes
Title 6 - Organization of Insurers and Related Entities
Subtitle E - Mutual and Fraternal Companies and Related Entities
Chapter 884 - Stipulated Premium Insurance Companies
Subchapter F. General Powers and Duties of Stipulated Premium Company
Section 884.251. Deposit of Company's Funds
Section 884.252. Payments to Officers, Directors, and Employees
Section 884.254. Transfer of Stock