Fla. Stat. 628.371
Dividends to stockholders
(1)
A domestic stock insurer shall not pay any dividend or distribute cash or other property to stockholders except out of that part of its available and accumulated surplus funds which is derived from realized net operating profits on its business and net realized capital gains.(2)
Dividend payments or distributions to stockholders, without prior written approval of the office, shall not exceed the larger of:The lesser of 10 percent of surplus or net gain from operations (life and health companies) or net income (property and casualty companies), not including realized capital gains, plus a 2-year carryforward for property and casualty companies;Ten percent of surplus, with dividends payable constrained to unassigned funds minus 25 percent of unrealized capital gains;The lesser of 10 percent of surplus or net investment income (net gain before capital gains for life and health companies) plus a 3-year carryforward (2-year carryforward for life and health companies) with dividends payable constrained to unassigned funds minus 25 percent of unrealized capital gains.(a)
The lesser of 10 percent of surplus or net gain from operations (life and health companies) or net income (property and casualty companies), not including realized capital gains, plus a 2-year carryforward for property and casualty companies;(b)
Ten percent of surplus, with dividends payable constrained to unassigned funds minus 25 percent of unrealized capital gains;(c)
The lesser of 10 percent of surplus or net investment income (net gain before capital gains for life and health companies) plus a 3-year carryforward (2-year carryforward for life and health companies) with dividends payable constrained to unassigned funds minus 25 percent of unrealized capital gains.(3)
In lieu of the provisions in subsection (2), an insurer may pay a dividend or make a distribution without the prior written approval of the office when:The dividend is equal to or less than the greater of:Ten percent of the insurer’s surplus as to policyholders derived from realized net operating profits on its business and net realized capital gains; or
The insurer’s entire net operating profits and realized net capital gains derived during the immediately preceding calendar year; and
The insurer will have surplus as to policyholders equal to or exceeding 115 percent of the minimum required statutory surplus as to policyholders after the dividend or distribution is made; andThe insurer has filed notice with the office at least 10 business days prior to the dividend payment or distribution, or such shorter period of time as approved by the office on a case-by-case basis. Such notice shall not create a right in the office to approve or disapprove a dividend otherwise properly payable hereunder; andThe notice includes a certification by an officer of the insurer attesting that after payment of the dividend or distribution the insurer will have at least 115 percent of required statutory surplus as to policyholders.(a)
The dividend is equal to or less than the greater of:Ten percent of the insurer’s surplus as to policyholders derived from realized net operating profits on its business and net realized capital gains; orThe insurer’s entire net operating profits and realized net capital gains derived during the immediately preceding calendar year; and(b)
The insurer will have surplus as to policyholders equal to or exceeding 115 percent of the minimum required statutory surplus as to policyholders after the dividend or distribution is made; and(c)
The insurer has filed notice with the office at least 10 business days prior to the dividend payment or distribution, or such shorter period of time as approved by the office on a case-by-case basis. Such notice shall not create a right in the office to approve or disapprove a dividend otherwise properly payable hereunder; and(d)
The notice includes a certification by an officer of the insurer attesting that after payment of the dividend or distribution the insurer will have at least 115 percent of required statutory surplus as to policyholders.(4)
The office shall not approve a dividend or distribution in excess of the maximum amount allowed in subsection (1) unless, considering the following factors, it determines that the distribution or dividend would not jeopardize the financial condition of the insurer:The liquidity, quality, and diversification of the insurer’s assets and the effect on its ability to meet its obligations.Reduction of investment portfolio and investment income.Effects on the written premium to surplus ratios as required by the Florida Insurance Code.Industrywide financial conditions.Prior dividend distributions of the insurer.Whether the dividend is only a “pass-through” dividend from a subsidiary of the insurer.(a)
The liquidity, quality, and diversification of the insurer’s assets and the effect on its ability to meet its obligations.(b)
Reduction of investment portfolio and investment income.(c)
Effects on the written premium to surplus ratios as required by the Florida Insurance Code.(d)
Industrywide financial conditions.(e)
Prior dividend distributions of the insurer.(f)
Whether the dividend is only a “pass-through” dividend from a subsidiary of the insurer.(5)
A dividend or distribution by a not-for-profit insurance company subsidiary to its mutual insurance holding company, directly or indirectly through one or more intermediate holding companies, pursuant to part III of this chapter, which meets the requirements of this section and which applies to a stock insurer, is permitted under this section.
Source:
Section 628.371 — Dividends to stockholders, https://www.flsenate.gov/Laws/Statutes/2024/0628.371 (accessed Aug. 7, 2025).