1(1) 2A domestic stock insurer shall not pay any dividend or distribute cash or other property to stockholders except out of that part of its available and accumulated surplus funds which is derived from realized net operating profits on its business and net realized capital gains.
47(2) 48Dividend payments or distributions to stockholders, without prior written approval of the office, shall not exceed the larger of:67(a) 68The lesser of 10 percent of surplus or net gain from operations (life and health companies) or net income (property and casualty companies), not including realized capital gains, plus a 2-year carryforward for property and casualty companies;
105(b) 106Ten percent of surplus, with dividends payable constrained to unassigned funds minus 25 percent of unrealized capital gains;
124(c) 125The lesser of 10 percent of surplus or net investment income (net gain before capital gains for life and health companies) plus a 3-year carryforward (2-year carryforward for life and health companies) with dividends payable constrained to unassigned funds minus 25 percent of unrealized capital gains.
171(3) 172In lieu of the provisions in subsection (2), an insurer may pay a dividend or make a distribution without the prior written approval of the office when:199(a) 200The dividend is equal to or less than the greater of:2111. 212Ten percent of the insurer’s surplus as to policyholders derived from realized net operating profits on its business and net realized capital gains; or
2362. 237The insurer’s entire net operating profits and realized net capital gains derived during the immediately preceding calendar year; and
256(b) 257The insurer will have surplus as to policyholders equal to or exceeding 115 percent of the minimum required statutory surplus as to policyholders after the dividend or distribution is made; and
288(c) 289The insurer has filed notice with the office at least 10 business days prior to the dividend payment or distribution, or such shorter period of time as approved by the office on a case-by-case basis. Such notice shall not create a right in the office to approve or disapprove a dividend otherwise properly payable hereunder; and
345(d) 346The notice includes a certification by an officer of the insurer attesting that after payment of the dividend or distribution the insurer will have at least 115 percent of required statutory surplus as to policyholders.
381(4) 382The office shall not approve a dividend or distribution in excess of the maximum amount allowed in subsection (1) unless, considering the following factors, it determines that the distribution or dividend would not jeopardize the financial condition of the insurer:422(a) 423The liquidity, quality, and diversification of the insurer’s assets and the effect on its ability to meet its obligations.
442(b) 443Reduction of investment portfolio and investment income.
450(c) 451Effects on the written premium to surplus ratios as required by the Florida Insurance Code.
466(d) 467Industrywide financial conditions.
470(e) 471Prior dividend distributions of the insurer.
477(f) 478Whether the dividend is only a “pass-through” dividend from a subsidiary of the insurer.
492(5) 493A dividend or distribution by a not-for-profit insurance company subsidiary to its mutual insurance holding company, directly or indirectly through one or more intermediate holding companies, pursuant to part III of this chapter, which meets the requirements of this section and which applies to a stock insurer, is permitted under this section.
