Tex. Ins. Code § 403.002 · Subchapter A. PAYMENT OF DIVIDENDS
DIVIDENDS TO POLICYHOLDERS IN COMMERCIAL LINES.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(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.
Notes and commentary — not statutory text
History
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/IN/htm/IN.403.htm
- Text hash
- sha256 d9f26c9348446bb546a2eead349018ddc09e8ca210393a6d2f7dbb4500a0fc76
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
This section cites
Provisions in this library that the text above cites, as it prints each citation. A range cited as “ss. 61.13-61.16” links its first and last provisions.
Cited by 7 provisions
Provisions in this library whose text cites Tex. Ins. Code § 403.002. Each shows the citation as that text prints it.
Insurance Code
- Tex. Ins. Code § 36.002ADDITIONAL RULEMAKING AUTHORITY.Printed as Section 37.051(a), 403.002, 501.159, 941.003(b)(1)
- Tex. Ins. Code § 252.002MAXIMUM RATE; ANNUAL ADJUSTMENT.Printed as Section 403.002
- Tex. Ins. Code § 1805.001APPLICABILITY OF CHAPTER.Printed as Section 403.002
- Tex. Ins. Code § 1806.151APPLICABILITY OF SUBCHAPTER.Printed as Section 403.002
- Tex. Ins. Code § 1807.002INAPPLICABILITY OF CERTAIN LAWS TO MARINE INSURANCE; EXCEPTION.Printed as Sections 36.002, 37.051, 403.002, and 501.159
- Tex. Ins. Code § 2001.001APPLICABILITY OF SUBTITLE.Printed as Section 403.002
- Tex. Ins. Code § 2002.006PROVISIONS GOVERNING CERTAIN CONDITIONS OR RISKS.Printed as Sections 403.002, 2001.001-2001.006, 2001.009, and 2001.010
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.