Indiana Code 27-1-3-26. 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:
(2) is not adequate to the financial needs of the insurer.
(1) is not reasonable in relation to the outstanding liabilities of the insurer; and
Terms Used In Indiana Code 27-1-3-26
- Department: means "the department of insurance" of this state. See Indiana Code 27-1-2-3
- insurer: means a company, firm, partnership, association, order, society or system making any kind or kinds of insurance and shall include associations operating as Lloyds, reciprocal or inter-insurers, or individual underwriters. See Indiana Code 27-1-2-3
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- shareholder: means one who is a holder of record of shares of stock in a corporation, unless the context otherwise requires. See Indiana Code 27-1-2-3
As added by P.L.130-1994, SEC.5 and P.L.116-1994, SEC.9.