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304.49-050 Payment of dividends -- Commissioner's approval required -Limitations -- Rescinding approval.
No captive insurer may pay a dividend out of, or other distribution with respect to,
capital or surplus, in excess of the limitations set forth in KRS 304.24-320 and
304.24-330 without the prior approval of the commissioner. Approval of an ongoing
plan for the payment of dividends or other distributions shall be conditioned upon the
retention, at the time of each payment, of capital or surplus in excess of amounts
specified by, or determined in accordance with formulas approved by, the
commissioner. The commissioner may rescind approval of all or part of the dividend
and may require repayment of all or part of the dividend amount if a dividend is paid
without approval, made in excess of the approved amount, made in excess of the
approved amount, or made in violation of the terms of the approval.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1609, effective July 15, 2010; and
ch. 91, sec. 3, effective July 15, 2010. -- Created 2000 Ky. Acts ch. 434, sec. 5,
effective July 14, 2000.
Legislative Research Commission Note (7/15/2010). A reference to the
"executive director" of insurance in this section, as amended by 2010 Ky. Acts
ch. 91, sec. 3, has been changed in codification to the "commissioner" of
insurance to reflect the reorganization of certain parts of the Executive Branch,
as set forth in Executive Order 2009-535 and confirmed by the General
Assembly in 2010 Ky. Acts ch. 24. This change was made by the Reviser of
Statutes pursuant to 2010 Ky. Acts ch. 24, sec. 1938.
Legislative Research Commission Note (7/15/2010). This section was amended
by 2010 Ky. Acts chs. 24 and 91, which do not appear to be in conflict and have
been codified together.
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