Texas Insurance Code 1806.056 – Profit Sharing Based On Combat Duty Authorized
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(a) This subchapter does not prohibit an insurer from distributing to policyholders who are on active duty in the United States Armed Forces any estimated profits resulting from service by those policyholders in a foreign country in a combat theater of operations after January 1, 1990.
(b) An insurer that elects to make distributions under this section must:
(1) file a written application describing the insurer’s distribution with the commissioner for approval of a policyholder dividend amount that exceeds 10 percent of surplus; or
(2) notify the commissioner in writing of each distribution of a policyholder dividend amount that is not greater than 10 percent of surplus.
Terms Used In Texas Insurance Code 1806.056
- in writing: includes any representation of words, letters, or figures, whether by writing, printing, or other means. See Texas Government Code 312.011
- United States: includes a department, bureau, or other agency of the United States of America. See Texas Government Code 311.005
- Written: includes any representation of words, letters, symbols, or figures. See Texas Government Code 311.005
(c) If the commissioner does not act on the application on or before the fifth business day after the date the commissioner receives the application, the distribution is considered approved.
(d) An insurer may distribute estimated profits among policyholders under this section based on:
(1) the time served by a policyholder in a combat theater of operations;
(2) the location of the policyholder’s military service;
(3) the duration of the applicable insurance policy; or
(4) any other reasonable basis.