Texas Insurance Code - Not Codified - Article 5.41-2. Multiple Line Dividends
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Texas Laws > Insurance Code - Not Codified > Texas Insurance Code - Not Codified - Article 5.41-2. Multiple Line Dividends
Art. 5.41-2. MULTIPLE LINE DIVIDENDS.
Article repealed effective April 1, 2007
Sec. 1. An insurer may pay to a commercial policyholder or
group of commercial policyholders a dividend which covers more than
one class or line of commercial business. This dividend may only be
paid to the policyholder or group of policyholders after adequate
loss reserves are established on an aggregate basis for the classes
or lines of commercial insurance included within the dividend, and
the insurer must have sufficient surplus from which to pay the
dividend. An insurer shall file a notice of its intent to pay such
dividend with the department at least 15 days prior to the payment
of the dividend.
Sec. 2. Limitation of the payment of a dividend on one or more
classes or lines of commercial business to a group of commercial
policyholders shall not be unfair discrimination so long as the
group has clearly identifiable underwriting characteristics or is
an association or group of business entities engaged in similar
undertakings.
Sec. 3. The classes or lines of commercial business for which
dividends are authorized under this article include any or all of
the commercial classes or lines of commercial business regulated by
this chapter.
Added by Acts 1997, 75th Leg., ch. 1322, Sec. 1, eff. Sept. 1, 1997.
Article: 5.36 5.37 5.38 5.39 5.40 5.41 5.41-1 5.41-2 5.41-3 5.42 5.43 5.43-1 5.43-2 5.43-3 5.45
Last modified: August 11, 2007
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