Section 7-705 - Regulation of dividends and distributions - In general.
§ 7-705. Regulation of dividends and distributions - In general.
(a) Notice to Commissioner required.- 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.
(b) Time of notice.- 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.
(c) Confidentiality of notice.- The Commissioner shall keep the notice required by subsection (a) of this section confidential until the payment or distribution date.
(d) Order not to pay dividend.- 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.
[An. Code 1957, art. 48A, § 497; 1995, ch. 36.]