Section 26-A1616. EXTRAORDINARY DIVIDENDS AND OTHER DISTRIBUTIONS

 

1616.1Requests for approval of extraordinary dividends or any other extraordinary distribution to shareholders shall include the following:

 

(a)The amount of the proposed dividend;

 

(b)The date established for payment of the dividend;

 

(c)A statement as to whether the dividend is to be in cash or other property and, if in property, a description thereof, its cost, and its fair market value together with an explanation of the basis for valuation;

 

(d)A copy of the calculations determining that the proposed dividend is extraordinary. - The work paper shall include the following information:

 

(1)The amounts, dates and form of payment of all dividends or distributions (including regular dividends but excluding distributions of the insurers own securities) paid within the period of 12 consecutive months ending on the date fixed for payment of the proposed dividend for which approval is sought and commencing on the day after the same day of the same month in the last preceding year.

 

(2)Surplus as regards policyholders (total capital and surplus) as of the 31st day of December next preceding;

 

(3)If the insurer is a life insurer, the net gain from operations for the 12 month period ending the 31 st day of December next preceding;

 

(4)If the insurer is not a life insurer, the net income less realized capital gains for the 12-month period ending the 31st day of December next preceding and the two preceding 12-month periods; and

 

(5)If the insurer is not a life insurer, the dividend paid to stockholders excluding distributions of the insurer's own securities in the preceding two calendar years.

 

(e)A balance sheet and statement of income for the period intervening from the last annual statement filed with the Commissioner and the end of the month preceding the month in which the request for dividend approval in submitted; and

 

(f)A brief statement as to the effect of the proposed dividend upon the insurer's surplus and the reasonableness of surplus in relation to insurer's outstanding liabilities and the adequacy of surplus relative to the insurer's financial needs.

 

1616.2Subject to subjection (b) of Section 7 of the Act, each registered insurer shall report to the Commissioner all dividends and other distributions to shareholders within 15 business days following the declaration thereof, including the same information required by sections 1616.1 (d) (1)-(5).

 

 

authority

Section 10 of the Holding Company System Act of 1993, effective October 21, 1993 (D.C. Law 10-44; D.C. Official Code § 35-3701 (1997 Repl.)), Reorganization Plan No. 1 of 1983, and Mayor’s Order 94-54, dated March 7, 1994.

source

33 DCRR § 875.17 (March 1975); as amended by Final Rulemaking published at 41 DCR 2185 (April 22, 1994).

EditorNote

These regulations were originally promulgated pursuant to the authority granted in D.C. Official Code § 35-1908 (1973 ed.), and Commissioner’s Order 74-231, dated November 6, 1974.