State Codes and Statutes
Statutes > Idaho > Title41 > T41ch38 > T41ch38sect41-3809INSURANCE
CHAPTER 38
ACQUISITIONS OF CONTROL AND INSURANCE HOLDING COMPANY SYSTEMS
41-3809. Dividends and distributions. (1) No insurer subject to registration under the provisions of this chapter shall pay any extraordinary dividend or make any other extraordinary distribution to its stockholders until sixty (60) days after the director has received notice of the declaration thereof, and has not within such period disapproved such payment, or the director shall have approved such payment within such sixty (60) day period. For purposes of this section, an extraordinary dividend or distribution is any dividend or distribution which, together with other dividends or distributions made within the preceding twelve (12) months, exceeds the greater of ten per cent (10%) of the insurer’s surplus to policyholders as of December 31 of the year immediately preceding, or 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, for the twelve (12) month period ending December 31 of the year immediately preceding, but shall not include pro rata distributions of any class of the insurer’s own securities. Notwithstanding any other provision of law, an insurer may declare an extraordinary dividend or distribution which is conditional upon the director’s approval thereof, and such a declaration shall confer no rights upon stockholders until the director has approved the payment of the dividend or distribution or the director has not disapproved such payment within the period referred to above.
(2) A domestic insurer that is a member of a holding company system shall notify the director in writing of any dividends to be paid or other distributions to be made to shareholders within five (5) business days following the declaration of the dividend or distribution, and shall notify the director in writing at least ten (10) days, commencing from the date of receipt by the director, prior to the payment of any dividends or the making of any other distribution.
