1.    The board of directors of any company subject to this chapter may declare and the company may pay dividends and other distributions on its outstanding shares and    cash, property, or its own shares and on its treasury stock in its own shares, subject to the following provisions:

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a.    No dividend or other distribution may be declared or paid at any time except out of earned, as distinguished from contributed, surplus, nor when the surplus of the company is less than the surplus required by law for the kind or kinds of business authorized to be transacted by the insurer, nor when the payment of a dividend or other distribution would reduce its surplus to less than such amount.

b.    Except in the case of share dividends, surplus for determining whether dividends or other distributions may be declared may not include surplus arising from unrealized appreciation in value, or revaluation of assets, or from unrealized profits upon investments.

c.    No dividend or other distribution may be declared or paid contrary to any restriction contained in the articles of incorporation.

d.    No dividend or other distribution may be declared or paid contrary to section 26.1-10-05.

2.    No payment may be made to policyholders by way of dividends unless the insurer possesses admitted assets in the amount of such payment in excess of its capital, minimum required surplus, and all liabilities.