Payment of dividends and extraordinary dividends

1. Except as otherwise provided in this section, a captive insurer shall pay dividends out of, or make any other distributions from, its capital or surplus, or both, in accordance with the provisions set forth in NRS 692C.370, 693A.140, 693A.150 and 693A.160. 2. A captive insurer other than a state-chartered risk retention group shall not pay extraordinary dividends out of, or make any other extraordinary distribution with respect to, its capital or surplus, or both, in violation of this section unless the captive insurer has obtained the prior approval of the Commissioner to make such a payment or distribution. As used in this subsection, “extraordinary dividend” and “extraordinary distribution” mean any dividend or distribution of cash or other property, the fair market value of which, together with that of other dividends or distributions within the preceding 12 months, exceeds the greater of: (a) Ten percent of the surplus of the captive insurer as of December 31 next preceding the date of the dividend or distribution; or (b) The net income of the captive insurer for the 12-month period ending December 31 next preceding the date of the dividend or distribution. 3. A state-chartered risk retention group shall not pay any dividend or distribution without prior approval of the Commissioner.