KRS 304.49-050: Payment of dividends -- Commissioner's approval required --

Limitations -- Rescinding approval.

No captive insurer may pay a dividend out of, or other distribution with respect to, capital

or surplus, in excess of the limitations set forth in KRS 3 04.24-320 and 304.24 -330

without the prior approval of the commissioner. Approval of an ongoing plan for the

payment of dividends or other distributions shall be conditioned upon the retention, at the

time of each payment, of capital or surplus in excess o f amounts specified by, or

determined in accordance with formulas approved by, the commissioner. The

commissioner may rescind approval of all or part of the dividend and may require

repayment of all or part of the dividend amount if a dividend is paid with out approval,

made in excess of the approved amount, made in excess of the approved amount, or made

in violation of the terms of the approval.