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General Laws of Massachusetts - Chapter 178A Savings Bank Life Insurance. - Section 1 Definitions

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Section 10. The company may distribute to its stockholders only such dividends with respect to its capital stock as the directors of the company and the policyholders protective board shall approve. Prior to granting any such approval, said board shall review the operations of the company and if it finds that the company is being operated soundly and that its expenses, earnings and mortality are consistent with the company’s purpose of providing safe, low cost insurance, it shall approve such dividends and report its findings, together with the reasons therefor, to the commissioner. The commissioner shall consider the report of the board and may, after notice and hearing if he deems the same to be necessary, veto any such approval if he determines that the payment of such dividends would impair the financial stability of the company or its ability to offer safe, low cost insurance. If the commissioner has failed to act within sixty days after receipt of the approval and findings of said board, the company may pay such dividends without further delay or action. Any decision of the commissioner vetoing the payment of any such dividends may be judicially reviewed by the superior court of Suffolk county in accordance with the provisions of section fourteen of chapter thirty A.

Last modified: March 17, 2010