Texas Insurance Code - Not Codified - Article 21.32. Unlawful Dividend
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Art. 21.32. UNLAWFUL DIVIDEND.
Article repealed effective April 1, 2007
No life, health, fire, marine, or inland insurance company,
organized under the laws of this state, shall make any dividend
except from the surplus profits arising from its business. In
estimating such profits, there shall be reserved therefrom the
lawful reserve on all unexpired risks computed in the manner as
provided elsewhere in this Code, and also there shall be reserved
the amount of all unpaid losses, whether adjusted or unadjusted;
all sums due the company on bonds, mortgages, stocks and
book-accounts, of which no part of the principal or the interest
thereon has been paid during the year preceding such estimate of
profits, and upon which suit for foreclosures or collections has
not been commenced, or which after judgment has been obtained
thereon shall have remained more than two years unsatisfied, and
upon which interest shall not have been paid. In case of any such
judgment, the interest due or accrued thereon and remaining unpaid
shall also be reserved. Any dividend made contrary to the
provisions of this Article shall subject the company making it to a
forfeiture of its charter, and the Board shall forthwith revoke its
certificate of authority.
Acts 1951, 52nd Leg., ch. 491. Amended by Acts 1959, 56th Leg., p.
637, ch. 291, Sec. 2.
Article: 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 21.42
Last modified: August 11, 2007
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