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

Rhode Island Statutes

§ 27-5-17 — § 27-5-17. Restrictions on dividends — Payments into surplus and reserve funds.

Rhode Island·Title 27 Insurance·Ch. 27-5 Fire Insurance Policies and Reserves

§ 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 the insurance commissioner, the company shall not make or declare or pay in
            any form any dividend upon its capital stock exceeding eight percent (8%) per annum
            and six percent (6%) per annum upon the surplus funds to be formed under this chapter
            until after its guaranty surplus fund and its special reserve fund shall have together
            accumulated to an amount equal to its capital stock. Any part of the surplus profits
            of the company above its annual dividend may be equally divided between and set apart
            to 

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§ 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 the insurance commissioner, the company shall not make or declare or pay in any form any dividend upon its capital stock exceeding eight percent (8%) per annum and six percent (6%) per annum upon the surplus funds to be formed under this chapter until after its guaranty surplus fund and its special reserve fund shall have together accumulated to an amount equal to its capital stock. Any part of the surplus profits of the company above its annual dividend may be equally divided between and set apart to constitute the guaranty surplus fund and the special reserve fund, which funds shall be held and used as provided in this chapter and not otherwise. Any company doing business under this chapter that shall declare or pay any dividend contrary to the provisions contained in this section shall forfeit its charter and be liable to be proceeded against by the attorney general for its dissolution.

Rhode Island § 27-5-17 (§ 27-5-17. Restrictions on dividends — Payments into surplus and reserve funds.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Legislative History

P.L. 1907, ch. 1438, § 3; G.L. 1909, ch. 219, § 28; G.L. 1923, ch. 255, § 28; G.L. 1938, ch. 150, § 27; impl. am. P.L. 1953, ch. 3174, § 5; G.L. 1956, § 27-5-17.