40-233. Dividends, interest or bonus; payment from earned surplus. - Kansas Statutes

40-233

Chapter 40.--INSURANCE Article 2.--GENERAL PROVISIONS

      40-233.   Dividends, interest or bonus; payment from earned surplus.It is unlawful for the directors, trustees,managers or officersof an insurance company organized under the laws of thisstate,directly or indirectly, to make or pay dividends on its capital stock,or pay any interest, bonus or other allowance in lieu of dividends except outofearned surplus as distinguished from contributed surplus.Earned surplus shall be calculated after reserving a sum equal to allliabilities of the company and may include all or part of surplus arising fromunrealized capital gains or revaluation of assets.Any dividends or payments made contrary to the provisions ofthis section shall subject the company to a forfeiture of its charter.

      History:   L. 1927, ch. 231, 40-233; L. 1935, ch. 196, § 1;L. 1993, ch. 45, § 1; July 1.