# Mont. Code Ann. § 33-2-1114: 33-2-1114 Dividends and other distributions -- commissioner approval

> Montana · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_MT_T33_C2_P11_S33-2-1114

## Section

- **Citation:** Mont. Code Ann. § 33-2-1114
- **Heading:** 33-2-1114 Dividends and other distributions -- commissioner approval
- **Jurisdiction:** Montana
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** MT Code / Title 33 / Chapter 2 / Part 11 / Section 33-2-1114

## Text

33-2-1114 . Dividends and other distributions -- commissioner approval. (1) An insurer subject to registration under 33-2-1111 and 33-2-1112 may not pay any extraordinary dividend or make any other extraordinary distribution to its shareholders until 30 days after the commissioner has received notice of the declaration of the dividend or distribution and has not within the period disapproved the payment or the commissioner has approved payment within the 30-day period.

(2) 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 10% of the insurer's surplus as regards policyholders as of December 31 next preceding, but may not include pro rata distributions of any class of the insurer's own securities.

(3) Notwithstanding any other provision of law, an insurer may declare an extraordinary dividend or distribution which is conditional upon the commissioner's approval, and the declaration may not confer rights upon shareholders until the commissioner has approved the payment of the dividend or distribution or the commissioner has not disapproved the payment within the 30-day period referred to in subsection (1).

(4) An insurer subject to subsection (1) may not pay any other dividend or make any other distribution to its shareholders unless the insurer has notified the commissioner of the payment 15 days prior to the payment date. The notice must be kept confidential until the payment date of the dividend. The commissioner may order that a dividend not be paid if the commissioner finds that the insurer's surplus as regards policyholders, following the payment to shareholders, would be inadequate or could lead the insurer to a hazardous financial condition.

## Nearby sections

- [Mont. Code Ann. § 33-2-1101 33-2-1101 Definitions](https://www.frixlaw.com/law-library/statutes/STATE_MT_T33_C2_P11_S33-2-1101.md)
- [Mont. Code Ann. § 33-2-1102 33-2-1102 Authorization of subsidiaries](https://www.frixlaw.com/law-library/statutes/STATE_MT_T33_C2_P11_S33-2-1102.md)
- [Mont. Code Ann. § 33-2-1103 33-2-1103 Additional investment authority -- exemption from other investment restrictions -- determination of qualification -- divestiture](https://www.frixlaw.com/law-library/statutes/STATE_MT_T33_C2_P11_S33-2-1103.md)
- [Mont. Code Ann. § 33-2-1104 33-2-1104 Acquisition or divestiture of control of or merger with domestic insurer -- filing requisites](https://www.frixlaw.com/law-library/statutes/STATE_MT_T33_C2_P11_S33-2-1104.md)
- [Mont. Code Ann. § 33-2-1105 33-2-1105 Approval by commissioner -- hearings -- notice](https://www.frixlaw.com/law-library/statutes/STATE_MT_T33_C2_P11_S33-2-1105.md)
- [Mont. Code Ann. § 33-2-1106 33-2-1106 Exemptions -- violations -- jurisdiction](https://www.frixlaw.com/law-library/statutes/STATE_MT_T33_C2_P11_S33-2-1106.md)
- [Mont. Code Ann. § 33-2-1111 33-2-1111 Registration of insurers -- requisites -- termination](https://www.frixlaw.com/law-library/statutes/STATE_MT_T33_C2_P11_S33-2-1111.md)
- [Mont. Code Ann. § 33-2-1112 33-2-1112 Exemptions -- disclaimer -- violations](https://www.frixlaw.com/law-library/statutes/STATE_MT_T33_C2_P11_S33-2-1112.md)
- [Mont. Code Ann. § 33-2-1113 33-2-1113 Transactions with affiliates -- standards](https://www.frixlaw.com/law-library/statutes/STATE_MT_T33_C2_P11_S33-2-1113.md)
- [Mont. Code Ann. § 33-2-1114 33-2-1114 Dividends and other distributions -- commissioner approval](https://www.frixlaw.com/law-library/statutes/STATE_MT_T33_C2_P11_S33-2-1114.md)
- [Mont. Code Ann. § 33-2-1115 33-2-1115 Examination](https://www.frixlaw.com/law-library/statutes/STATE_MT_T33_C2_P11_S33-2-1115.md)
- [Mont. Code Ann. § 33-2-1116 33-2-1116 Confidentiality of information](https://www.frixlaw.com/law-library/statutes/STATE_MT_T33_C2_P11_S33-2-1116.md)
- [Mont. Code Ann. § 33-2-1117 33-2-1117 Rules](https://www.frixlaw.com/law-library/statutes/STATE_MT_T33_C2_P11_S33-2-1117.md)
- [Mont. Code Ann. § 33-2-1118 33-2-1118 Injunctions](https://www.frixlaw.com/law-library/statutes/STATE_MT_T33_C2_P11_S33-2-1118.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_MT_T33_C2_P11_S33-2-1114. Check the current official text before relying on it. Not legal advice.