Rhode Island General Laws Title 27. Insurance § 27-43-12. Limitations on dividends

(a) An “extraordinary dividend or distribution” is defined as cash or other property whose fair market value together with other dividends or distributions made within the preceding twelve (12) months exceeds the lesser of: (1) ten percent (10%) of the captive insurance company's surplus as of the preceding December 31; or (2) net income, not including realized capital gains for the twelve (12) months ending the preceding December 31, excluding pro rata distribution of any class of the captive insurance company's own securities.

(b) Each captive insurance company may carry forward the net income from the preceding two (2) years (as calculated in subsection (a) of this section for each year) less any dividends paid in the two (2) preceding years in determining whether the dividend or distribution is extraordinary.