Massachusetts General Laws ch. 175 sec. 93E – Mutual life, liability and casualty companies; issuance of policies; dividends
Section 93E. No policy shall be issued by a mutual company formed to transact business under the sixteenth clause of section forty-seven, or under clause (e) of section forty-eight A, until it has established a fully paid-up guaranty capital of not less than the combined capital and surplus provisions required under section forty-eight. Such guaranty capital shall be divided into shares of one hundred dollars each, to be invested as provided by this chapter for the investment of the capital stock of domestic companies, other than life. Stockholders of such guaranty capital and policyholders of such a company shall be subject to the same provisions of law relative to their right to vote as apply respectively to stockholders in stock companies and policyholders in mutual companies. The stockholders of such guaranty capital shall be entitled to annual dividends, not exceeding eight per cent, payable from the net surplus of the company, and such guaranty capital shall be redeemed by an appropriation of net surplus for that purpose whenever the net surplus, computed on the basis fixed by sections nine to twelve, inclusive, is twice the amount of said guaranty capital.
Terms Used In Massachusetts General Laws ch. 175 sec. 93E
- Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization