Texas Statutes and Rules Common to Life and Health Insurance

Under Texas law, who owns a stock insurance company, and who receives its distributed profits?

Answer and explanation
Answer: A. A stock insurer is owned by its shareholders, who elect the board and receive corporate dividends. Its policies are ordinarily nonparticipating, so policyholders receive no policy dividends.Source: Texas Insurance Code — Tex. Ins. Code ch. 841, domestic stock life insurance companies

On the exam in: Texas · difficulty: easy

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