US Laws, Codes, Statutes & Cases

                                  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.