US Laws, Codes, Statutes & Cases

§164.  Dividends; payments limited when reserve deficient

Payments in the form of dividends or otherwise shall not be made to its stockholders by any domestic life insurer, unless its assets exceed, to the amount of such payment, the amount of its paid-up capital stock and all its liabilities, including its reinsurance reserves, computed upon a basis hereinabove provided, and no payments shall be made to the policyholders of any such insurer, except for matured claims, and in the purchase of surrendered policies, unless its assets exceed to the amount of such payments, its liabilities, including its reinsurance reserves, computed as hereinabove provided.  

Provided that, in the case of any insurer availing itself of the reduction in the reserves allowed in R.S. 22:162 on funeral or cash policies, no payments shall be made to its stockholders in the form of dividends or otherwise, unless and until the reserve is equal to seventy-five per cent on funeral policies and one hundred per cent on the cash policies and that portion of combination policies providing for cash benefits, of the full reserve as computed in accordance with Sub-sections A, B, C, and D of R.S. 22:162.  

Acts 1958, No. 125.