Arkansas Code § 23-69-131 - Unauthorized Dividends Prohibited

(a) Any director of a domestic stock or mutual insurer who votes for or concurs in the declaration or payment of a dividend, other than as authorized under § 23-69-129 or § 23-69-130, to stockholders or members shall upon conviction be guilty of a Class A misdemeanor and shall be jointly and severally liable, together with other directors likewise voting for or concurring, for any loss sustained by the insurer.

(b) Any stockholder receiving such a dividend shall be liable in the amount thereof to the insurer.

(c) The Insurance Commissioner may revoke or suspend the certificate of authority of an insurer which has declared or paid a dividend other than as so authorized.

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Last modified: November 15, 2016