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§ 7-705. Notice of intention to pay dividends or distribution to shareholders

West's Annotated Code of MarylandInsurance

West's Annotated Code of Maryland
Insurance (Refs & Annos)
Title 7. Maryland Insurance Acquisitions Disclosure and Control Act (Refs & Annos)
Subtitle 7. Transactions Within Insurance Holding Company Systems (Refs & Annos)
MD Code, Insurance, § 7-705
§ 7-705. Notice of intention to pay dividends or distribution to shareholders
Currentness
In general
(a) Except as provided in § 7-706 of this subtitle, before an insurer subject to registration under Subtitle 6 of this title pays a dividend or makes a distribution to its shareholders, the insurer shall notify the Commissioner of its intention to pay the dividend or make the distribution.
Deadline for notice
(b) The insurer shall notify the Commissioner under subsection (a) of this section:
(1) within 5 business days after the declaration; and
(2) at least 10 days before the payment or distribution date.
Confidentiality of notice
(c) The Commissioner shall keep the notice required by subsection (a) of this section confidential until the payment or distribution date.
Order by Commissioner that dividend not be paid
(d) If the Commissioner finds that, after the payment or distribution to shareholders under this section, the insurer's surplus as regards policyholders would be inadequate or could lead the insurer to a hazardous financial condition, the Commissioner may order that the dividend not be paid.

Credits

Added by Acts 1995, c. 36, § 1, eff. Oct. 1, 1997.
Formerly Art. 48A, § 497.
MD Code, Insurance, § 7-705, MD INSURANCE § 7-705
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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