Ohio § 3964.06

§ 3964.06.

(A) No captive insurance company shall pay any extraordinary dividend or make any other

extraordinary distribution to its shareholders or members other than in accordance

with this section.  The declaration of an extraordinary dividend or distribution shall be conditional

and shall confer no rights upon shareholders or members until thirty days after the

superintendent has received notice of the declaration thereof and has not, within

the thirty-day period, disapproved the dividend or distribution, unless the superintendent

approves the dividend or distribution within the thirty-day period. (B) Prior to paying any dividend or distribution, the insurance company shall notify

the superintendent on a form provided by the superintendent for informational purposes

within five business days following its declaration of any dividend or distribution

and at least ten calendar days prior to payment of such dividend or distribution.  Such a ten-calendar-day period is to begin on the date that the superintendent receives

the notice. (C)(1) For the purposes of this section, an extraordinary dividend or distribution includes

any dividend or distribution of cash or other property, whose fair market value, together

with that of other dividends or distributions made within the preceding twelve months,

exceeds the greater of ten per cent of the insurance company's surplus as regards

policy holders as of the thirty-first day of December immediately preceding, or the

net income of the insurance company for the twelve-month period ending the thirty-first

day of December immediately preceding. (2) Pro rata distributions of any class of the insurance company's own securities shall

not be considered an extraordinary distribution under division (C)(1) of this section. (D) Any dividend or distribution paid from a source other than earned surplus shall be

considered an extraordinary dividend or extraordinary distribution. (E) In no instance shall any extraordinary dividend or distribution be permitted by a

captive insurance company if such dividend or distribution results in a decrease of

the unimpaired, total capital and surplus of the captive insurance company below the

limits prescribed in section 3964.05 of the Revised Code . (F) For the purposes of this section, “ earned surplus ” means an amount equal to an insurance company's unassigned funds as set forth in

its most recent financial statement submitted to the superintendent, including net

unrealized capital gains and losses or revaluation of assets.