Section 0780-01-78-.05 - DIVIDENDS(1) No county mutual insurance company may pay a dividend to its policyholders in any year in which its surplus is less than that of the previous year without providing the commissioner with such information as might be deemed necessary by the commissioner to determine that such payment is reasonable. No payment may be made until the commissioner informs the county mutual insurance company in writing that such payment has been deemed reasonable by the commissioner.(2) No county mutual insurance company may pay a dividend to its policyholders which would cause the county mutual insurance company to fall below one hundred twenty percent (120%) of the surplus level required to do business in its geographic area, as found in T.C.A. §§ 56-22-105(c) and 56-22-106(f)(1), or which might otherwise cause it to fail to maintain a surplus of at least thirty three percent (33%) of the county mutual insurance company's gross premium for the twelve (12) month period prior to the declaration of the dividend, as found in T.C.A. § 56-22-106(f)(2).Tenn. Comp. R. & Regs. 0780-01-78-.05
Original rule filed October 19, 2007; effective January 2, 2008.Authority: §§ T.C.A. 56-22-109(b), and 56-22-120.