Section 26-A3765. EXTRAORDINARY DIVIDENDS AND OTHER DISTRIBUTIONS

 

3765.1Requests 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 twelve (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 thirty-first (31st) day of December next preceding;

 

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

 

(4)If the insurer is not a life insurer, the net income less realized capital gains for the twelve (12)-month period ending the thirty-first (31st) day of December next preceding and the two (2) preceding twelve (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 (2) 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.

 

3765.2Subject to Subsection 7(b) of the Holding Company Act, each registered insurer shall report to the Commissioner all dividends and other distributions to shareholders within fifteen (15) business days following the declaration thereof, including the same information required by subparagraphs 3765.1(d)(1)-(5).

 

3765.3Nothing in this section shall relieve an insurer from its obligation to obtain prior written approval from the Commissioner before making any material or substantive change to its business plan pursuant to Subsection 10(f) of the Captive Insurance Company Act of 2004.

 

 

authority

Section 22 of the Captive Insurance Company Act of 2004, effective March 17, 2005 (D.C. Law 15-262; D.C. Official Code § 31-3931.21 (2011 Repl.)).

source

Final Rulemaking published at 59 DCR 13088 (November 16, 2012).