Code Section

Insurance Code - INS

DIVISION 2. CLASSES OF INSURANCE [1880 - 12880.6]

  ( Division 2 enacted by Stats. 1935, Ch. 145. )
  

PART 6. INSURANCE COVERING LAND [12340 - 12661]

  ( Part 6 enacted by Stats. 1935, Ch. 145. )
  

CHAPTER 1. Title Insurance [12340 - 12418.4]

  ( Chapter 1 enacted by Stats. 1935, Ch. 145. )
  

ARTICLE 3. Title Insurers: Finances and Investments [12370 - 12377]
  ( Article 3 enacted by Stats. 1935 )

  
12373.  

A title insurer shall not make any dividends except from profits remaining on hand after retaining unimpaired assets aggregating in value an amount equal to the sum of the following:

(a) The aggregate par value of the shares of its capital stock issued and outstanding, including treasury shares;

(b) The amount required to be set apart as the title insurance surplus fund;

(c) The amount required to be maintained in the unearned premium reserve;

(d) The amount required to be maintained in the reserve for unpaid losses and loss adjustment expense;

(e) A sum sufficient to pay all liabilities for expenses and taxes and all other indebtedness.

(Amended by Stats. 1965, Ch. 272.)