ID H0454

Changes the threshold for extraordinary dividends from "lesser" to "greater" of either 10% of surplus or net gain/income from the preceding 12 months.

Allows non-life insurers to carry forward net income from the previous two calendar years to determine whether a dividend qualifies as extraordinary.

Permits insurers to declare conditional dividends upon director approval, with shareholders gaining no rights until approval is granted or the 30-day review period expires.

Requires domestic insurers that are holding company members to notify the director within five (5) business days of declaring nonextraordinary dividends and at least ten (10) days before payment.

Clarifies that "earned surplus" means unassigned funds as reported on the insurer's annual statement for purposes of dividend distribution authority.