Washington § 48.08.020 - Reduction of capital stock.

Full text of Washington Revised Code of Washington § 48.08.020 — Reduction of capital stock., with citation guidance and answers to common questions.

§ 48.08.020. Reduction of capital stock.

(1) Reduction of the capital stock of a domestic stock insurer shall be by amendment of its articles of incorporation. No such reduction shall be made which results in capital stock less in amount than the minimum required by this code for the kinds of insurance thereafter to be transacted by the insurer.
(2) No surplus funds of the insurer resulting from a reduction of its capital stock shall be distributed to stockholders, except as a stock dividend on a subsequent increase of capital stock, or upon dissolution of the insurer, or upon approval of the commissioner of a distribution upon proof satisfactory to him or her that the distribution will not impair the interests of policyholders or the insurer's solvency.
(3) Upon such reduction of capital stock, the insurer's directors shall call in any outstanding stock certificates required to be changed pursuant thereto, and issue proper certificates in their stead.
[ 2009 c 549 s 7028; 1947 c 79 s .08.02; Rem. Supp. 1947 s 45.08.02.]

Source: official Washington text · Last verified 2026-08-27

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Frequently Asked Questions About Washington § 48.08.020

What does Revised Code of Washington § 48.08.020 cover?

Section 48.08.020 ("Reduction of capital stock.") is part of the Revised Code of Washington, the codified statutory law of Washington. 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 Washington § 48.08.020?

A common citation format is "Revised Code of Washington § 48.08.020" (Washington). 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 Washington law?

No. This page is for research and education and may not include the most recent amendments. For official current law, check the Washington official source linked on this page or consult a licensed Washington attorney.

How does Washington § 48.08.020 apply to my situation?

Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Washington can advise on how this section applies to you. Contact your state or local bar association for a referral.

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