Texas § 1806.106 PROFIT SHARING WITH CERTAIN ASSOCIATIONS AUTHORIZED.

Texas Statutes

§ 1806.106 — PROFIT SHARING WITH CERTAIN ASSOCIATIONS AUTHORIZED.

Texas § 1806.106

Code INInsurance Code

This text of Texas § 1806.106 (PROFIT SHARING WITH CERTAIN ASSOCIATIONS AUTHORIZED.) is published on Counsel Stack Legal Research, covering Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Tex. Insurance Code Code Ann. § 1806.106 (2026).

Text

Sec. 1806.106. PROFIT SHARING WITH CERTAIN ASSOCIATIONS AUTHORIZED.

(a)This subchapter does not prohibit an insurer from sharing profits with policyholders who are part of a group program established by a nonprofit business association and who participate in the group program because of membership in the association.

(b)An insurer that elects to make distributions under this section must:

(1)file a written application describing the insurer's distribution with the commissioner for approval of a policyholder dividend amount that exceeds 10 percent of surplus; or

(2)notify the commissioner in writing of each distribution of a policyholder dividend amount that is not greater than 10 percent of surplus.

(c)If the commissioner does not act on the application on or before the fifth business

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Sec. 1806.106. PROFIT SHARING WITH CERTAIN ASSOCIATIONS AUTHORIZED. (a) This subchapter does not prohibit an insurer from sharing profits with policyholders who are part of a group program established by a nonprofit business association and who participate in the group program because of membership in the association.
(b) An insurer that elects to make distributions under this section must:
(1) file a written application describing the insurer's distribution with the commissioner for approval of a policyholder dividend amount that exceeds 10 percent of surplus; or
(2) notify the commissioner in writing of each distribution of a policyholder dividend amount that is not greater than 10 percent of surplus.
(c) If the commissioner does not act on the application on or before the fifth business day after the date the commissioner receives the application, the distribution is considered approved.

Legislative History

Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017 ), Sec. 2, eff. April 1, 2007. Amended by: Acts 2013, 83rd Leg., R.S., Ch. 463 (S.B. 1006 ), Sec. 6, eff. June 14, 2013.