(1) An insurer shall not pay any dividend to stockholders except out of that part of its surplus funds which is derived from any realized net profits. No cash dividend shall be paid nor distribution of assets made out of any surplus funds resulting from a decrease of capital stock effective within two (2) years prior to the declaration of the dividend.
(2) “Surplus funds” means the excess of the insurer’s assets over its liabilities, including its capital stock as a liability.

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Terms Used In Kentucky Statutes 304.24-320

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.

Effective: June 18, 1970
History: Created 1970 Ky. Acts ch. 301, subtit. 24, sec. 32, effective June 18, 1970.