New York Laws
Article 41 - Property/casualty Insurance Companies
4105 - Domestic Stock Companies; Declaration and Payment of Dividends.

(2) "adjusted net investment income" means net investment income for
the twelve months immediately preceding the declaration or distribution
of the current dividend increased by the excess, if any, of net
investment income over dividends declared or distributed during the
period commencing thirty-six months prior to the declaration or
distribution of the current dividend and ending twelve months prior
thereto; and
(3) "surplus" means the amount of the insurer's admitted assets in
excess of its capital and liabilities, and both "surplus" and "surplus
to policyholders" include any voluntary reserves, or any part thereof,
which are not required by law.
(b) If the superintendent finds, after notice and hearing, that any
such company has distributed any dividend in violation of this section,
he may order the company to cease doing any new business until the
amount of the dividend has been restored to the company. The directors
of any such company who vote in favor of the declaration and
distribution of any dividend in violation of this section shall, in
addition to all other liabilities or penalties prescribed by law, be
jointly and severally liable to the creditors, including policyholder
creditors, of the company to the extent of the dividend so declared and
distributed, and every shareholder receiving any such dividend shall be
liable to the creditors of the company to the extent of the dividend
received by such shareholder.
(c) Such company may declare and distribute a stock dividend to its
shareholders whenever it shall have a surplus, as defined in subsection
(a) hereof, in an amount at least equal to the sum of the dividend and
thirty percent of its unearned premium liability as shown by its last
statement on file with the superintendent and, for such purpose, the
company may increase its capital stock from such surplus in the manner
prescribed in section one thousand two hundred six of this chapter, and
it shall distribute the additional or increased stock to its
shareholders in proportion to the stock held by each, respectively.

Structure New York Laws