TITLE 41

INSURANCE

CHAPTER 28

ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS

41-2845.  Illegal dividends — Penalty. (1) Any director of a domestic stock insurer or domestic mutual insurer who knowingly votes for or concurs in declaration or payment of a dividend to stockholders or policyholders other than as authorized under sections 41-2843 or 41-2844 shall upon conviction thereof be subject to the penalties provided by section 41-117 (general penalty), and shall be jointly and severally liable, together with other such directors likewise voting for or concurring, for any loss thereby sustained by creditors of the insurer to the extent of such dividend.

(2)  Any stockholder receiving such an illegal dividend shall be liable in the amount thereof to the insurer.

(3)  The director may revoke or suspend the certificate of authority of any insurer which has declared or paid such an illegal dividend.

History:

[41-2845, added 1961, ch. 330, sec. 613, p. 645.]