§ 33-3-424

33-3-424. Illegal dividends -- administrative or civil penalty. (1) Any director of a domestic stock or mutual insurer who votes for or concurs in declaration or payment of a dividend to stockholders or members other than as authorized under 33-3-422 or 33-3-423 shall be jointly and severally liable, together with other such directors likewise voting for or concurring, for any loss thereby sustained by the insurer. (2) Any stockholder receiving such an illegal dividend shall be liable in the amount thereof to the insurer. (3) The commissioner may revoke or suspend the certificate of authority of an insurer which has declared or paid such an illegal dividend. History: En. Sec. 454, Ch. 286, L. 1959; R.C.M. 1947, 40-4737; amd. Sec. 25, Ch. 396, L. 2017.