§ 27-43-12. Limitations on dividends.
(a) An “extraordinary dividend or distribution” is defined as cash or other property, whose fair market value together with other dividends or distributions made within the preceding twelve (12) months exceeds the lesser of: (1) ten percent (10%) of the captive insurance company’s surplus as of the preceding December 31st; or (2) net income, not including realized capital gains for the twelve (12) months ending the preceding December 31st, excluding pro rata distribution of any class of the captive insurance company’s own securities.
(b) Each captive insurance company may carry forward the net income from the preceding two (2) years (as calculated in subsection (a) of this section for each year) less any dividends paid in the two (2) preceding years in determining whether the dividend or distribution is extraordinary.
History of Section.P.L. 1996, ch. 232, § 1; P.L. 1996, ch. 256, § 1.
Structure Rhode Island General Laws
Chapter 27-43 - Captive Insurance Companies
Section 27-43-1. - Definitions.
Section 27-43-2. - Incorporation of captive insurance companies in this state.
Section 27-43-3. - Licensing — Authority.
Section 27-43-4. - Minimum capital.
Section 27-43-5. - Minimum surplus.
Section 27-43-6. - Reports, statements, examinations, and investigations.
Section 27-43-7. - Reinsurance.
Section 27-43-8. - Exemption from chapter 34 of this title.
Section 27-43-9. - Tax on premiums collected.
Section 27-43-10. - Rules and regulations.
Section 27-43-11. - Laws applicable.
Section 27-43-12. - Limitations on dividends.
Section 27-43-13. - Captive insurance regulatory and supervision fund.