§ 58‑7‑130. Dividends and distributions to stockholders.
(a) Each domesticinsurance company in North Carolina shall be restricted by the Commissionerfrom the payment of any dividends or other distributions to its stockholderswhenever the Commissioner determines from examination of the company'sfinancial condition that the payment of future dividends or other distributionswould cause a hazardous financial condition, impair the financial soundness ofthe company or be detrimental to its policyholders, and those restrictionsshall continue in force until the Commissioner specifically permits the paymentof dividends or other distributions to stockholders by the company through awritten authorization.
(b) A domestic stockinsurance company shall not declare or pay dividends or other distributions toits stockholders from any source other than unassigned surplus without theCommissioner's prior written approval. For purposes of this section,"unassigned surplus" means an amount equal to the unassigned funds ofa company as reflected in the company's most recent financial statement filedwith the Commissioner under G.S. 58‑2‑165, including all or part ofthe surplus arising from unrealized capital gains or revaluation of assets.
(c) A transfer out ofpaid‑in and contributed surplus to common or preferred capital stock willbe permitted on a case‑by‑case basis, with the Commissioner's priorapproval, depending on the necessity for a company to make the transfer.
(d) Nothing in thissection and no action taken by the Commissioner in any way restricts theliability of stockholders under G.S. 58‑7‑125.
(e) Dividends and otherdistributions paid to stockholders are subject to the requirements andlimitations of G.S. 58‑19‑25(d) and G.S. 58‑19‑30(c). (1945, c. 386; 1991, c. 720,s. 9; 2001‑223, s. 5.2; 2002‑187, s. 2.5; 2006‑105, s. 3.1.)
§ 58‑7‑130. Dividends and distributions to stockholders.
(a) Each domesticinsurance company in North Carolina shall be restricted by the Commissionerfrom the payment of any dividends or other distributions to its stockholderswhenever the Commissioner determines from examination of the company'sfinancial condition that the payment of future dividends or other distributionswould cause a hazardous financial condition, impair the financial soundness ofthe company or be detrimental to its policyholders, and those restrictionsshall continue in force until the Commissioner specifically permits the paymentof dividends or other distributions to stockholders by the company through awritten authorization.
(b) A domestic stockinsurance company shall not declare or pay dividends or other distributions toits stockholders from any source other than unassigned surplus without theCommissioner's prior written approval. For purposes of this section,"unassigned surplus" means an amount equal to the unassigned funds ofa company as reflected in the company's most recent financial statement filedwith the Commissioner under G.S. 58‑2‑165, including all or part ofthe surplus arising from unrealized capital gains or revaluation of assets.
(c) A transfer out ofpaid‑in and contributed surplus to common or preferred capital stock willbe permitted on a case‑by‑case basis, with the Commissioner's priorapproval, depending on the necessity for a company to make the transfer.
(d) Nothing in thissection and no action taken by the Commissioner in any way restricts theliability of stockholders under G.S. 58‑7‑125.
(e) Dividends and otherdistributions paid to stockholders are subject to the requirements andlimitations of G.S. 58‑19‑25(d) and G.S. 58‑19‑30(c). (1945, c. 386; 1991, c. 720,s. 9; 2001‑223, s. 5.2; 2002‑187, s. 2.5; 2006‑105, s. 3.1.)
§ 58‑7‑130. Dividends and distributions to stockholders.
(a) Each domesticinsurance company in North Carolina shall be restricted by the Commissionerfrom the payment of any dividends or other distributions to its stockholderswhenever the Commissioner determines from examination of the company'sfinancial condition that the payment of future dividends or other distributionswould cause a hazardous financial condition, impair the financial soundness ofthe company or be detrimental to its policyholders, and those restrictionsshall continue in force until the Commissioner specifically permits the paymentof dividends or other distributions to stockholders by the company through awritten authorization.
(b) A domestic stockinsurance company shall not declare or pay dividends or other distributions toits stockholders from any source other than unassigned surplus without theCommissioner's prior written approval. For purposes of this section,"unassigned surplus" means an amount equal to the unassigned funds ofa company as reflected in the company's most recent financial statement filedwith the Commissioner under G.S. 58‑2‑165, including all or part ofthe surplus arising from unrealized capital gains or revaluation of assets.
(c) A transfer out ofpaid‑in and contributed surplus to common or preferred capital stock willbe permitted on a case‑by‑case basis, with the Commissioner's priorapproval, depending on the necessity for a company to make the transfer.
(d) Nothing in thissection and no action taken by the Commissioner in any way restricts theliability of stockholders under G.S. 58‑7‑125.
(e) Dividends and otherdistributions paid to stockholders are subject to the requirements andlimitations of G.S. 58‑19‑25(d) and G.S. 58‑19‑30(c). (1945, c. 386; 1991, c. 720,s. 9; 2001‑223, s. 5.2; 2002‑187, s. 2.5; 2006‑105, s. 3.1.)
