N.Y. Insurance Law § 6407: Restrictions on dividends

§ 6407. Restrictions on dividends. (a) No title insurance corporation

shall declare or pay any cash or property dividend on its capital

shares, or declare or distribute a stock dividend except out of earned

surplus, meaning, for the purpose of this section, surplus not

attributable to contributions made to surplus within five years next

preceding or to appreciation in value of investments not sold or

otherwise disposed of.

(b) No such corporation shall declare or pay any cash or property

dividend to shareholders which, together with all such dividends

declared or paid by it during the next preceding twelve months, exceeds

ten percent of its then outstanding capital shares unless, after

deducting such dividends, it has a surplus to policyholders at least

equal to fifty percent of its reinsurance reserve or a surplus at least

equal to fifty percent of the minimum capital required of such insurer

to transact the business of title insurance, whichever shall be greater.

For the purpose of this section, "surplus" means the amount of the

insurer's admitted assets in excess of (i) all of its liabilities,

including its reinsurance reserve, and (ii) its outstanding capital

shares.

(c) No such corporation shall declare or distribute any stock dividend

which shall reduce surplus to an amount less than fifty percent of its

then outstanding capital shares.