Texas Insurance Code - Not Codified - Article 21.31. Unlawful Dividends
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Art. 21.31. UNLAWFUL DIVIDENDS.
Article repealed effective April 1, 2007
It shall not be lawful for any insurance company organized
under the laws of this State to make any dividend, except from
surplus profits arising from its business. In estimating such
profits, there shall be reserved therefrom the lawful reserve on
all unexpired risks and also the amount of all unpaid losses,
whether adjusted or unadjusted, and all other debts due and
payable, or to become due and payable, by the company. Any
dividends made contrary to any provision of this article shall
subject the company making them to a forfeiture of its charter; and
the Board shall forthwith revoke its certificate of authority. The
Board shall give such company at least ten (10) days' notice in
writing of its intention to revoke such certificate, stating
specifically the reasons why it intends to revoke same.
Acts 1951, 52nd Leg., ch. 491.
Article: 7.20-1 21.11-2 21.20-2 21.28-A 21.28-C 21.28-D 21.28-E 21.31 21.32 21.32A 21.39 21.39-A 21.39-B 21.40 21.41
Last modified: August 11, 2007
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