{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-1330.1.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-1330.1.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-1330.1.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-1330.1.html"}],"law_id":71817,"edition_id":1,"section_id":71817,"structure_id":13290,"section_number":"38.2-1330.1","catch_line":"Dividends and other distributions","history":"2006, c. 577; 2014, c. 309.","full_text":"A\n\nExcept as otherwise provided by law, a domestic insurer shall not declare or pay a dividend or other distribution from any source other than earned surplus without the Commission’s prior written approval. For purposes of this section, “earned surplus” means an amount equal to the unassigned funds (surplus) of an insurer as set forth in the most recent annual statement of the insurer filed with the Commission including all or part of the surplus arising from unrealized capital gains or revaluation of assets. No domestic insurer shall pay an extraordinary dividend or make any other extraordinary distribution to its shareholders until the earlier of:1\n\nThirty days after the Commission has received written notice of the declaration thereof and has not within such period disapproved such payment; or2\n\nThe Commission’s approval of such payment.B\n\nFor 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 12 months exceeds the greater of (i) 10 percent of such insurer’s surplus as regards policyholders as of the immediately preceding December 31 or (ii) the net gain from operations of such insurer, if such insurer is a life insurer, or the net income, if such insurer is not a life insurer, not including realized capital gains, for the 12-month period ending the immediately preceding December 31, but shall not include pro rata distributions of any class of the insurer’s own securities.C\n\nIn determining whether a dividend or distribution is extraordinary, an insurer other than a life insurer may carry forward net income from the previous two calendar years that has not already been paid out as dividends. This carry-forward shall be computed by taking the net income from the second and third preceding calendar years, not including realized capital gains, less dividends paid in the second and immediate preceding calendar years.D\n\nNotwithstanding any other provision of law, an insurer may declare an extraordinary dividend or distribution that is conditional upon the Commission’s approval thereof, and such declaration shall confer no rights upon shareholders until:1\n\nThe Commission has approved the payment of such dividend or distribution; or2\n\nThe Commission has not disapproved such payment within the 30-day period described in subsection A.E\n\nThe Commission may limit or disallow the payment of ordinary dividends by a domestic insurer if the insurer is presently or potentially financially distressed or troubled. The Commission shall set forth the specific reasons for limiting or disallowing the payment of any ordinary dividends.","order_by":null,"text":{"0":{"id":258713,"text":"Except as otherwise provided by law, a domestic insurer shall not declare or pay a dividend or other distribution from any source other than earned surplus without the Commission’s prior written approval. For purposes of this section, “earned surplus” means an amount equal to the unassigned funds (surplus) of an insurer as set forth in the most recent annual statement of the insurer filed with the Commission including all or part of the surplus arising from unrealized capital gains or revaluation of assets. No domestic insurer shall pay an extraordinary dividend or make any other extraordinary distribution to its shareholders until the earlier of:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":258714,"text":"Thirty days after the Commission has received written notice of the declaration thereof and has not within such period disapproved such payment; or","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":258715,"text":"The Commission’s approval of such payment.","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"B"},"3":{"id":258716,"text":"For 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 12 months exceeds the greater of (i) 10 percent of such insurer’s surplus as regards policyholders as of the immediately preceding December 31 or (ii) the net gain from operations of such insurer, if such insurer is a life insurer, or the net income, if such insurer is not a life insurer, not including realized capital gains, for the 12-month period ending the immediately preceding December 31, but shall not include pro rata distributions of any class of the insurer’s own securities.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A2","next_prefix":"C"},"4":{"id":258717,"text":"In determining whether a dividend or distribution is extraordinary, an insurer other than a life insurer may carry forward net income from the previous two calendar years that has not already been paid out as dividends. This carry-forward shall be computed by taking the net income from the second and third preceding calendar years, not including realized capital gains, less dividends paid in the second and immediate preceding calendar years.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"5":{"id":258718,"text":"Notwithstanding any other provision of law, an insurer may declare an extraordinary dividend or distribution that is conditional upon the Commission’s approval thereof, and such declaration shall confer no rights upon shareholders until:","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"D1"},"6":{"id":258719,"text":"The Commission has approved the payment of such dividend or distribution; or","type":"section","prefixes":["D","1"],"prefix":"1","entire_prefix":"D1","prefix_anchor":"D1","level":2,"prior_prefix":"D","next_prefix":"D2"},"7":{"id":258720,"text":"The Commission has not disapproved such payment within the 30-day period described in subsection A.","type":"section","prefixes":["D","2"],"prefix":"2","entire_prefix":"D2","prefix_anchor":"D2","level":2,"prior_prefix":"D1","next_prefix":"E"},"8":{"id":258721,"text":"The Commission may limit or disallow the payment of ordinary dividends by a domestic insurer if the insurer is presently or potentially financially distressed or troubled. The Commission shall set forth the specific reasons for limiting or disallowing the payment of any ordinary dividends.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D2"}},"ancestry":[{"id":13290,"edition_id":1,"name":"Insurance Holding Companies","identifier":"5","label":"article","depth":3,"order_by":1,"parent_id":13289,"metadata":{},"date_created":"2026-06-26 03:44:35","date_modified":"2026-06-26 03:44:35","permalink":{"id":211609,"object_type":"structure","relational_id":13290,"identifier":"5","token":"38.2\/13\/5","url":"\/38.2\/13\/5\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13289,"edition_id":1,"name":"Reports, Reserves and Examinations, Insurance Holding Companies, Reinsurance Intermediaries, and Managing General Agents","identifier":"13","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:44:35","date_modified":"2026-06-26 03:44:35","permalink":{"id":211347,"object_type":"structure","relational_id":13289,"identifier":"13","token":"38.2\/13","url":"\/38.2\/13\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12698,"edition_id":1,"name":"Insurance","identifier":"38.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":210661,"object_type":"structure","relational_id":12698,"identifier":"38.2","token":"38.2","url":"\/38.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":66587,"structure_id":13290,"section_number":"38.2-1322","catch_line":"Definitions","url":"\/38.2-1322\/","token":"38.2\/13\/5\/38.2-1322","metadata":false},{"id":84939,"structure_id":13290,"section_number":"38.2-1323","catch_line":"Acquisition of control of insurers","url":"\/38.2-1323\/","token":"38.2\/13\/5\/38.2-1323","metadata":false},{"id":72444,"structure_id":13290,"section_number":"38.2-1324","catch_line":"Contents of application","url":"\/38.2-1324\/","token":"38.2\/13\/5\/38.2-1324","metadata":false},{"id":77095,"structure_id":13290,"section_number":"38.2-1325","catch_line":"Alternate filing materials","url":"\/38.2-1325\/","token":"38.2\/13\/5\/38.2-1325","metadata":false},{"id":54281,"structure_id":13290,"section_number":"38.2-1326","catch_line":"Approval by Commission","url":"\/38.2-1326\/","token":"38.2\/13\/5\/38.2-1326","metadata":false},{"id":82872,"structure_id":13290,"section_number":"38.2-1327","catch_line":"Time for hearing; order of Commission","url":"\/38.2-1327\/","token":"38.2\/13\/5\/38.2-1327","metadata":false},{"id":65563,"structure_id":13290,"section_number":"38.2-1328","catch_line":"Exemption","url":"\/38.2-1328\/","token":"38.2\/13\/5\/38.2-1328","metadata":false},{"id":71281,"structure_id":13290,"section_number":"38.2-1329","catch_line":"Registration of insurers that are members of holding company system","url":"\/38.2-1329\/","token":"38.2\/13\/5\/38.2-1329","metadata":false},{"id":77796,"structure_id":13290,"section_number":"38.2-1330","catch_line":"Standards for transactions within an insurance holding company system; adequacy of surplus","url":"\/38.2-1330\/","token":"38.2\/13\/5\/38.2-1330","metadata":false},{"id":71817,"structure_id":13290,"section_number":"38.2-1330.1","catch_line":"Dividends and other distributions","url":"\/38.2-1330.1\/","token":"38.2\/13\/5\/38.2-1330.1","metadata":false},{"id":70122,"structure_id":13290,"section_number":"38.2-1331","catch_line":"Repealed","url":"\/38.2-1331\/","token":"38.2\/13\/5\/38.2-1331","metadata":false},{"id":84275,"structure_id":13290,"section_number":"38.2-1332","catch_line":"Examinations","url":"\/38.2-1332\/","token":"38.2\/13\/5\/38.2-1332","metadata":false},{"id":57304,"structure_id":13290,"section_number":"38.2-1332.1","catch_line":"Supervisory colleges","url":"\/38.2-1332.1\/","token":"38.2\/13\/5\/38.2-1332.1","metadata":false},{"id":62040,"structure_id":13290,"section_number":"38.2-1332.2","catch_line":"Group-wide supervision of internationally active insurance groups","url":"\/38.2-1332.2\/","token":"38.2\/13\/5\/38.2-1332.2","metadata":false},{"id":68581,"structure_id":13290,"section_number":"38.2-1333","catch_line":"Confidential treatment of information and documents","url":"\/38.2-1333\/","token":"38.2\/13\/5\/38.2-1333","metadata":false},{"id":56656,"structure_id":13290,"section_number":"38.2-1334","catch_line":"Revocation, suspension, or nonrenewal of insurer's license","url":"\/38.2-1334\/","token":"38.2\/13\/5\/38.2-1334","metadata":false},{"id":76185,"structure_id":13290,"section_number":"38.2-1334.1","catch_line":"Voting of securities, injunctions, and sequestration of voting securities","url":"\/38.2-1334.1\/","token":"38.2\/13\/5\/38.2-1334.1","metadata":false},{"id":57406,"structure_id":13290,"section_number":"38.2-1334.2","catch_line":"Recovery","url":"\/38.2-1334.2\/","token":"38.2\/13\/5\/38.2-1334.2","metadata":false},{"id":60684,"structure_id":13290,"section_number":"38.2-1334.2:1","catch_line":"Rules and regulations","url":"\/38.2-1334.2_1\/","token":"38.2\/13\/5\/38.2-1334.2_1","metadata":false},{"id":78719,"structure_id":13290,"section_number":"38.2-1334.2:2","catch_line":"Sanctions","url":"\/38.2-1334.2_2\/","token":"38.2\/13\/5\/38.2-1334.2_2","metadata":false},{"id":56478,"structure_id":13290,"section_number":"38.2-1334.2:3","catch_line":"Statutory construction and relationship to other laws","url":"\/38.2-1334.2_3\/","token":"38.2\/13\/5\/38.2-1334.2_3","metadata":false}],"previous_section":{"id":77796,"structure_id":13290,"section_number":"38.2-1330","catch_line":"Standards for transactions within an insurance holding company system; adequacy of surplus","url":"\/38.2-1330\/","token":"38.2\/13\/5\/38.2-1330","metadata":false},"next_section":{"id":70122,"structure_id":13290,"section_number":"38.2-1331","catch_line":"Repealed","url":"\/38.2-1331\/","token":"38.2\/13\/5\/38.2-1331","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-1330.1\/","history_text":"

This law was first created in 2006. The record of its establishment is cataloged in chapter 577<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 1 time. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. That modification is as follows: in 2014, chapter 309<\/a>.<\/p>","references":[{"id":71281,"section_number":"38.2-1329","catch_line":"Registration of insurers that are members of holding company system","order_by":null,"url":"\/38.2-1329\/"},{"id":68581,"section_number":"38.2-1333","catch_line":"Confidential treatment of information and documents","order_by":null,"url":"\/38.2-1333\/"}],"refers_to":false,"permalink":{"id":211647,"object_type":"law","relational_id":71817,"identifier":"38.2-1330.1","token":"38.2\/13\/5\/38.2-1330.1","url":"\/38.2-1330.1\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-1330.1\/","token":"38.2\/13\/5\/38.2-1330.1","dublin_core":{"Title":"Dividends and other distributions","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-1330.1","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Except as otherwise provided by law<\/span>, a domestic insurer<\/span> shall not declare or pay a dividend or other distribution from any source other than earned surplus<\/span> without the Commission<\/span>’s prior written approval. For purposes of this section, “earned surplus<\/span>” means an amount equal to the unassigned funds (surplus) of an insurer<\/span> as set forth in the most recent annual statement of the insurer<\/span> filed with the Commission<\/span> including all or part of the surplus arising from unrealized capital gains or revaluation of assets<\/span>. No domestic insurer<\/span> shall pay an extraordinary dividend or make any other extraordinary distribution to its shareholders until the earlier of: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Thirty days after the Commission<\/span> has received written notice of the declaration thereof and has not within such period disapproved such payment; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The Commission<\/span>’s approval of such payment. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> For 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 12 months exceeds the greater of (i) 10 percent of such insurer<\/span>’s surplus as regards policyholders as of the immediately preceding December 31 or (ii) the net gain from operations of such insurer<\/span>, if such insurer<\/span> is a life insurer<\/span>, or the net income, if such insurer<\/span> is not a life insurer<\/span>, not including realized capital gains, for the 12-month period ending the immediately preceding December 31, but shall not include pro rata distributions of any class of the insurer<\/span>’s own securities. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> In determining whether a dividend or distribution is extraordinary, an insurer<\/span> other than a life insurer<\/span> may carry forward net income from the previous two calendar years that has not already been paid out as dividends. This carry-forward shall be computed by taking the net income from the second and third preceding calendar years, not including realized capital gains, less dividends paid in the second and immediate preceding calendar years. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> Notwithstanding any other provision of law<\/span>, an insurer<\/span> may declare an extraordinary dividend or distribution that is conditional upon the Commission<\/span>’s approval thereof, and such declaration shall confer no rights upon shareholders until: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The Commission<\/span> has approved the payment of such dividend or distribution; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The Commission<\/span> has not disapproved such payment within the 30-day period described in subsection A. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> The Commission<\/span> may limit or disallow the payment of ordinary dividends by a domestic insurer<\/span> if the insurer<\/span> is presently or potentially financially distressed or troubled. The Commission<\/span> shall set forth the specific reasons for limiting or disallowing the payment of any ordinary dividends. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nDIVIDENDS AND OTHER DISTRIBUTIONS (\u00a7 38.2-1330.1)\n\nA. Except as otherwise provided by law, a domestic insurer shall not declare or\npay a dividend or other distribution from any source other than earned surplus\nwithout the Commission’s prior written approval. For purposes of this\nsection, “earned surplus” means an amount equal to the unassigned\nfunds (surplus) of an insurer as set forth in the most recent annual statement\nof the insurer filed with the Commission including all or part of the surplus\narising from unrealized capital gains or revaluation of assets. No domestic\ninsurer shall pay an extraordinary dividend or make any other extraordinary\ndistribution to its shareholders until the earlier of:\n\n 1. Thirty days after the Commission has received written notice of the\n declaration thereof and has not within such period disapproved such payment;\n or\n\n 2. The Commission’s approval of such payment.\n\nB. For purposes of this section, an extraordinary dividend or distribution\nincludes any dividend or distribution of cash or other property whose fair\nmarket value together with that of other dividends or distributions made within\nthe preceding 12 months exceeds the greater of (i) 10 percent of such\ninsurer’s surplus as regards policyholders as of the immediately preceding\nDecember 31 or (ii) the net gain from operations of such insurer, if such\ninsurer is a life insurer, or the net income, if such insurer is not a life\ninsurer, not including realized capital gains, for the 12-month period ending\nthe immediately preceding December 31, but shall not include pro rata\ndistributions of any class of the insurer’s own securities.\n\nC. In determining whether a dividend or distribution is extraordinary, an\ninsurer other than a life insurer may carry forward net income from the previous\ntwo calendar years that has not already been paid out as dividends. This\ncarry-forward shall be computed by taking the net income from the second and\nthird preceding calendar years, not including realized capital gains, less\ndividends paid in the second and immediate preceding calendar years.\n\nD. Notwithstanding any other provision of law, an insurer may declare an\nextraordinary dividend or distribution that is conditional upon the\nCommission’s approval thereof, and such declaration shall confer no rights\nupon shareholders until:\n\n 1. The Commission has approved the payment of such dividend or distribution;\n or\n\n 2. The Commission has not disapproved such payment within the 30-day period\n described in subsection A.\n\nE. The Commission may limit or disallow the payment of ordinary dividends by a\ndomestic insurer if the insurer is presently or potentially financially\ndistressed or troubled. The Commission shall set forth the specific reasons for\nlimiting or disallowing the payment of any ordinary dividends.\n\nHISTORY: 2006, c. 577; 2014, c. 309.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}