Texas § IN.403.002 - DIVIDENDS TO POLICYHOLDERS IN COMMERCIAL LINES
Full text of Texas The Texas Constitution § IN.403.002 — DIVIDENDS TO POLICYHOLDERS IN COMMERCIAL LINES, with citation guidance and answers to common questions.
§ IN.403.002. DIVIDENDS TO POLICYHOLDERS IN COMMERCIAL LINES
DIVIDENDS TO POLICYHOLDERS IN COMMERCIAL LINES. (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. Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017 ), Sec. 1, eff. April 1, 2007. SUBCHAPTER B. ESTIMATE OF PROFITS
Source: official Texas text · Last verified 2026-08-27
Frequently Asked Questions About Texas § IN.403.002
What does The Texas Constitution § IN.403.002 cover?
Section IN.403.002 ("DIVIDENDS TO POLICYHOLDERS IN COMMERCIAL LINES") is part of the The Texas Constitution, the codified statutory law of Texas. 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 Texas § IN.403.002?
A common citation format is "The Texas Constitution § IN.403.002" (Texas). 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 Texas law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Texas official source linked on this page or consult a licensed Texas attorney.
How does Texas § IN.403.002 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Texas 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 Texas.