Colorado § 10-3-204 - Payment of dividends.
Full text of Colorado Colorado Revised Statutes § 10-3-204 — Payment of dividends., with citation guidance and answers to common questions.
§ 10-3-204. Payment of dividends.
(1) The amount of dividend payments by any domestic insurance company is wholly within the discretion of its directors or of the duly constituted executive committee thereof. No dividend shall be paid except from the company's surplus.
(2) It is unlawful for the directors, trustees, managers, or officers of any domestic insurance company, directly or indirectly, to make or pay any dividends or pay any interest, bonus, or other allowance in lieu of dividends, other than premium refunds and deductions guaranteed, except from the company's surplus and from profits arising from the company's business. Any person who is found guilty of violating any provision of this section shall be punished by a fine of not more than one thousand dollars.
Source: L. 25: p. 313, § 2. L. 33: p. 615, § 2. CSA: C. 87, § 43. CRS 53: § 72-2-3. C.R.S. 1963: § 72-2-2.
ANNOTATION
Law reviews. For article, "One Year Review of Agency, Partnerships, and Corporations", see 39 Dicta 61 (1962).
This section is criminal. Guarantee Reserve Life Ins. Co. v. Holzwarth, 148 Colo. 366, 366 P.2d 377 (1961).
There is nothing inconsistent in § 7-5-111 and this section. Guarantee Reserve Life Ins. Co. v. Holzwarth, 148 Colo. 366, 366 P.2d 377 (1961).
There is civil liability under § 7-5-111. The fact that an officer and director of a corporation might be tried and punished for unlawful acts under this section does not preclude his being answerable in a civil action under § 7-5-111 for the same acts though not designated as unlawful. Guarantee Reserve Life Ins. Co. v. Holzwarth, 148 Colo. 366, 366 P.2d 377 (1961).
Source: official Colorado text · Last verified 2026-08-27
Frequently Asked Questions About Colorado § 10-3-204
What does Colorado Revised Statutes § 10-3-204 cover?
Section 10-3-204 ("Payment of dividends.") is part of the Colorado Revised Statutes, the codified statutory law of Colorado. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Colorado § 10-3-204?
A common citation format is "Colorado Revised Statutes § 10-3-204" (Colorado). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Colorado law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Colorado official source linked on this page or consult a licensed Colorado attorney.
How does Colorado § 10-3-204 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Colorado can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Colorado.