1. (a) Except as provided in subsection (b) of this section, dividends may be declared by an HMO at any time from any and all admitted assets in excess of all liabilities, as long as that HMO meets or exceeds its deposit, minimum net worth and risk-based capital requirements.
2. (b) An HMO shall give the commissioner at least 30 days' notice before the HMO shall make or pay any dividend or distribution of cash or other property (excluding pro rata distributions of any class of the HMO's own securities), whose fair market value together with that of other dividends or distributions made within the preceding 12 months exceeds the greater of 10% of the HMO's net worth as of the 31st day of December next preceding, or the net gain from operations of such HMO.

Source Note:The provisions of this §11.807 adopted to be effective June 27, 1991, 16 TexReg 3258; amended to be effective March 30, 2000, 25 TexReg 2646.