§ 27-5-17 - Restrictions on dividends – Payments into surplus and reserve funds. - Rhode Island Statutes

SECTION 27-5-17

   § 27-5-17  Restrictions on dividends –Payments into surplus and reserve funds. – After the date of filing the resolution referred to in § 27-5-16 with theinsurance commissioner, the company shall not make or declare or pay in anyform any dividend upon its capital stock exceeding eight percent (8%) per annumand six percent (6%) per annum upon the surplus funds to be formed under thischapter until after its guaranty surplus fund and its special reserve fundshall have together accumulated to an amount equal to its capital stock. Anypart of the surplus profits of the company above its annual dividend may beequally divided between and set apart to constitute the guaranty surplus fundand the special reserve fund, which funds shall be held and used as provided inthis chapter and not otherwise. Any company doing business under this chapterthat shall declare or pay any dividend contrary to the provisions contained inthis section shall forfeit its charter and be liable to be proceeded against bythe attorney general for its dissolution.