§ 6407. Restrictions on dividends. (a) No title insurance corporation
shall declare or pay any cash or property dividend on its capital
shares, or declare or distribute a stock dividend except out of earned
surplus, meaning, for the purpose of this section, surplus not
attributable to contributions made to surplus within five years next
preceding or to appreciation in value of investments not sold or
otherwise disposed of.

(b) No such corporation shall declare or pay any cash or property
dividend to shareholders which, together with all such dividends
declared or paid by it during the next preceding twelve months, exceeds
ten percent of its then outstanding capital shares unless, after
deducting such dividends, it has a surplus to policyholders at least
equal to fifty percent of its reinsurance reserve or a surplus at least
equal to fifty percent of the minimum capital required of such insurer
to transact the business of title insurance, whichever shall be greater.
For the purpose of this section, "surplus" means the amount of the
insurer's admitted assets in excess of (i) all of its liabilities,
including its reinsurance reserve, and (ii) its outstanding capital
shares.

(c) No such corporation shall declare or distribute any stock dividend
which shall reduce surplus to an amount less than fifty percent of its
then outstanding capital shares.