Texas Insurance Code

§ 841.253 — LIFE INSURANCE COMPANY'S PAYMENT OF DIVIDENDS

IN § 841.253Title 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES · Part C. LIFE, HEALTH, AND ACCIDENT INSURERS AND RELATED ENTITIES · Ch. 841. LIFE, HEALTH, OR ACCIDENT INSURANCE COMPANIES · Art. F. GENERAL POWERS, DUTIES, AND LIMITATIONS

Statute text

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(a)A life insurance company may declare or pay a dividend to its:

(1)policyholders only from the expense loading and profits made by the company; and

(2)shareholders only from the company's earned surplus, as defined by the commissioner.

(b)A life insurance company that is not showing a profit may pay a dividend on its participating policies from the expense loading on those policies.

(c)A life insurance company may not discriminate between policyholders in paying a dividend from the expense loading under this section.

Legislative history

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.