Texas Insurance Code - Section 403.002. Dividends To Policyholders In Commercial Lines
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§ 403.002. DIVIDENDS TO POLICYHOLDERS IN COMMERCIAL
LINES. (a) An insurer may pay to a commercial policyholder or
group of commercial policyholders a dividend that covers more than
one class or line of commercial business only:
(1) after the insurer establishes on an aggregate
basis adequate loss reserves for the classes or lines of commercial
insurance included within the dividend; and
(2) if the insurer has sufficient surplus from which
to pay the dividend.
(b) Not later than the 15th day before an insurer pays a
dividend described by Subsection (a), the insurer shall file with
the department notice of the insurer's intent to pay the dividend.
(c) The classes or lines of commercial business for which
dividends are authorized under this section include any commercial
class or line of commercial business regulated by Title 10 or
Chapter 5.
(d) An insurer's limitation of a dividend on one or more
classes or lines of commercial business to a group of commercial
policyholders is not unfair discrimination if the group:
(1) has clearly identifiable underwriting
characteristics; or
(2) is an association or group of business entities
engaged in similar undertakings.
Added by Acts 2005, 79th Leg., ch. 727, § 1, eff. April 1, 2007.
Section: 402.052 402.053 402.101 402.102 402.103 402.104 403.001 403.002 403.051 403.052 403.053 403.101 403.102 404.001 404.002
Last modified: August 11, 2007
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