2005 Idaho Code - 41-3809 — DIVIDENDS AND DISTRIBUTIONS

                                  TITLE  41
                                  INSURANCE
                                  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.