§ 26-44-106 — Dividends and other distributions

(a) A domestic insurer shall not pay any extraordinary
dividend or make any other extraordinary distribution to its
shareholders until thirty (30) days after the commissioner has
received notice of the declaration of dividend and has not
disapproved payment, or the commissioner has approved the
payment whichever is shorter.
(b) For purposes of this section, an extraordinary
dividend or distribution includes any dividend or distribution
of cash or other property, whose fair market value together with
that of other dividends or distributions made within the
preceding twelve (12) months exceeds the lesser of:
(i) Ten percent (10%) of the insurer's surplus as
regards policyholders as of December 31 of the year immediately
preceding; or
(ii) The net gain from operations of the insurer, if
the insurer is a life insurer, or the net income, if the insurer
is not a life insurer, not including realized capital gains, for
the twelve (12) month period ending December 31 of the year
immediately preceding, nor pro rata distributions of the
insurer's own securities.
(c) In determining whether a dividend or distribution is
extraordinary, an insurer other than a life insurer may carry
forward net income from the previous two (2) calendar years that
has not already been paid out as dividends. This carry-forward
shall be computed by taking the net income from the second and
third preceding calendar years, not including realized capital
gains, less dividends paid in the second and immediate preceding
calendar years.
(d) Notwithstanding any other provision of law, an insurer
may declare an extraordinary dividend or distribution which is
conditional upon the commissioner's approval. This declaration
shall confer no rights upon shareholders until the commissioner
has approved the payment or the commissioner has not disapproved
the payment within thirty (30) days, whichever is shorter.