20-724. Illegal dividends; violation; classification A. Any director of a domestic stock or mutual insurer who knowingly votes for or concurs in declaration or payment of an illegal dividend to stockholders or members is guilty of a class 2 misdemeanor and is jointly and severally liable, together with other such directors, for any loss thereby sustained by the insurer. B. The stockholders or members knowingly receiving such an illegal dividend shall be liable in the amount of the illegal dividend to the insurer. C. The director of the department of insurance and financial institutions may revoke or suspend the certificate of authority of an insurer that has declared or paid an illegal dividend.
Arizona Legal Code