Order to Limit Ordinary Shareholder Dividends

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Sec. 26. The department shall establish and follow a practice under which the department issues an order to a domestic insurer to limit the payment of ordinary shareholder dividends by the insurer if the department determines that the surplus of the insurer as regards policyholders:

(1) is not reasonable in relation to the outstanding liabilities of the insurer; and

(2) is not adequate to the financial needs of the insurer.

As added by P.L.130-1994, SEC.5 and P.L.116-1994, SEC.9.


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