Tex. Ins. Code Section 2052.004
Policyholder Dividends

(a)

Subject to Subsections (b) and (c), this subtitle may not be construed to prohibit an insurance company, including the Texas Mutual Insurance Company, from issuing participating policies.

(b)

A policyholder dividend under a workers’ compensation insurance policy:

(1)

must be approved by the department if the insurer’s policyholder dividend amount exceeds 10 percent of surplus; and

(2)

may not be approved by the department until the insurance company has adequate reserves.

(c)

For purposes of Subsection (b), reserves must be computed on the same basis for all classes of insurance companies operating under this subtitle and Section 2051.002 (Construction of Certain Laws).

(d)

An insurer must notify the department in writing of a distribution if the insurer’s policyholder dividend amount is not greater than 10 percent of surplus.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2H.005, eff. April 1, 2009.
Acts 2013, 83rd Leg., R.S., Ch. 463 (S.B. 1006), Sec. 7, eff. June 14, 2013.

Source: Section 2052.004 — Policyholder Dividends, https://statutes.­capitol.­texas.­gov/Docs/IN/htm/IN.­2052.­htm#2052.­004 (accessed May 26, 2025).

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Verified:
May 26, 2025

§ 2052.004. Policyholder Dividends's source at texas​.gov