§ 26.1-10-05.1 — Dividends and other distribution

North Dakota § 26.1-10-05.1

• Jurisdiction: North Dakota
• Title 26.1: Insurance
• Ch. 26.1-10: Insurance Holding Company Systems

Text

1. The board of directors of any company subject to this chapter may declare and the
company may pay dividends and other distributions on its outstanding shares and
cash, property, or its own shares and on its treasury stock in its own shares, subject to
the following provisions:
a. No dividend or other distribution may be declared or paid at any time except out
of earned, as distinguished from contributed, surplus, nor when the surplus of the
company is less than the surplus required by law for the kind or kinds of business
authorized to be transacted by the insurer, nor when the payment of a dividend or
other distribution would reduce its surplus to less than such amount.
b. Except in the case of share dividends, surplus for determining whether dividends
or other distributions may be declared may not include surplus arising from

unrealized appreciation in value, or revaluation of assets, or from unrealized
profits upon investments.
c. No dividend or other distribution may be declared or paid contrary to any
restriction contained in the articles of incorporation.
d. No dividend or other distribution may be declared or paid contrary to section
26.1-10-05.
2. No payment may be made to policyholders by way of dividends unless the insurer
possesses admitted assets in the amount of such payment in excess of its capital,
minimum required surplus, and all liabilities.