SECTION 6.409. Dividends and Distributions

(a) A captive insurance company must notify the Commissioner of a policyholder dividend or distribution within 30 days of issuing the dividend.

(b) Dividends and distributions to holders of equity interests that are not policyholder dividends or distributions under subsection (a) of this section must be approved by the Commissioner before payment. The captive insurance company must notify the Commissioner of its intent to make such a payment at least 30 days prior to the payment date. The notice must include:

(1) The amount of the declared dividend or distribution;

(2) The declaration date;

(3) The proposed payment date;

(4) The net writings to policyholders' surplus ratio before and after the payment is made; and

(5) The net reserves to policyholders' surplus ratio before and after the payment is made.

Source Note: The provisions of this §6.409 adopted to be effective April 27, 2014, 39 TexReg 3232; amended to be effective December 30, 2018, 43 TexReg 8432