Texas Insurance Code - Not Codified - Article 21.32A. Legality Of Dividend
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Art. 21.32A. LEGALITY OF DIVIDEND.
Article repealed effective April 1, 2007
For the purpose of determining the legality of a dividend to
shareholders paid by stock domestic insurance companies authorized
to transact life, accident, and health insurance business in Texas,
all stock foreign and alien life, health, and accident insurance
companies, stock insurance companies authorized to transact
property and casualty business and fire insurance business and
domestic Lloyds', reciprocals, and title insurance companies under
the laws of the State of Texas, the "earned surplus" or "surplus
profits arising from the business" of the insurance company may
include the acquired "earned surplus" of an insurance subsidiary
which has been acquired by the insurance company, to the extent
allowed by an order of the commissioner made in accordance with the
rules of the board but only to the extent that the "earned surplus"
of the acquired subsidiary on the date of acquisition, and in
existence on the date of the order, is not otherwise reflected in
the "earned surplus" of the insurance company.
Added by Acts 1977, 65th Leg., p. 844, ch. 315, Sec. 1, eff. Aug. 29,
1977.
Article: 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 21.47
Last modified: August 11, 2007
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