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PARRIS N. GLENDENING, Governor
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Ch. 661
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2. for the immediately preceding calendar year, the net gain
from operation of an insurer that is a life insurer or the net income of an insurer other
than a life insurer.
(d) Before paying an extraordinary dividend or making an extraordinary
distribution, an insurer subject to registration under Subtitle 6 of this title shall
notify the Commissioner of its intent to pay the extraordinary dividend or make the
extraordinary distribution.
(e) The insurer shall notify the Commissioner under subsection (d) of this
section at least 30 days before the extraordinary dividend is to be paid or the
extraordinary distribution is to be made.
(f) The insurer may pay an extraordinary dividend or make an extraordinary
distribution to its shareholders only if, within 30 days after the Commissioner
receives the notice, the Commissioner either approves the payment or distribution, or
does not disapprove the payment or distribution.]
(A) (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:
(1) 10% OF THE INSURER'S SURPLUS AS REGARDS POLICYHOLDERS AS
OF DECEMBER 31 OF THE PRECEDING YEAR; OR
(2) (I) FOR A LIFE INSURER, THE NET GAIN FROM OPERATIONS OF
THE INSURER NOT INCLUDING:
1. REALIZED CAPITAL GAINS FOR THE 12-MONTH PERIOD
ENDING DECEMBER 31 OF THE PRECEDING YEAR; AND
2. PRO RATA DISTRIBUTIONS OF ANY CLASS OF THE
INSURER'S OWN SECURITIES; OR
(II) FOR AN INSURER THAT IS NOT A LIFE INSURER, THE NET
INVESTMENT INCOME OF THE INSURER NOT INCLUDING:
1. REALIZED CAPITAL GAINS FOR THE 12-MONTH PERIOD
ENDING DECEMBER 31 OF THE PRECEDING YEAR; AND
2. PRO RATA DISTRIBUTIONS OF ANY CLASS OF THE
INSURER'S OWN SECURITIES.
(B) (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 2 3 CALENDAR YEARS
PRIOR TO THE PRECEDING CALENDAR YEAR THAT HAS NOT ALREADY BEEN PAID
OUT AS DIVIDENDS.
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- 3387 -
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