§ 7-706. Extraordinary dividends and distributions
West's Annotated Code of MarylandInsurance
MD Code, Insurance, § 7-706
§ 7-706. Extraordinary dividends and distributions
(a)(1) In this section, “earned surplus” means the part of surplus that, after deduction of all losses, represents the net earnings, gains, or profits that have not been distributed to shareholders as dividends, transferred to stated capital, transferred to capital surplus, or applied to other purposes allowed by law.
(b) In this section, “extraordinary dividend” or “extraordinary distribution” includes any dividend or distribution of cash or other property with a fair market value, that when combined with the fair market value of any other dividends or distributions made in the preceding 12 months exceeds the lesser of:
(c)(1) In determining whether a dividend or distribution is extraordinary under this section, an insurer that is not a life insurer may carry forward net investment income from the 3 calendar years prior to the preceding calendar year that has not already been paid out as dividends.
(d) An insurer that is not a life insurer may pay an extraordinary dividend only out of earned surplus.
(e) A domestic insurer may not pay an extraordinary dividend or make any other extraordinary distribution to its shareholders unless:
(f)(1) Notwithstanding any other provision of law, an insurer may declare an extraordinary dividend or extraordinary distribution conditioned on the Commissioner's approval.
Credits
Added by Acts 1995, c. 36, § 1, eff. Oct. 1, 1997. Amended by Acts 2000, c. 661, § 1, eff. Oct. 1, 2000.
Formerly Art. 48A, § 497.
MD Code, Insurance, § 7-706, MD INSURANCE § 7-706
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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