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Unannotated Code of Maryland (Last Updated: May 16, 2014) |
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INSURANCE |
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TITLE 7. MARYLAND INSURANCE ACQUISITIONS DISCLOSURE AND CONTROL ACT |
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SUBTITLE 7. TRANSACTIONS WITHIN INSURANCE HOLDING COMPANY SYSTEMS |
§ 7-705. Regulation of dividends and distributions -- In general
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(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.