Ill. Admin. Code tit. 50, § 655.30 - Prior Notification of Dividends and Other Distributions
a) Notice
1) Ordinary Dividends. Any domestic company
required, pursuant to Code Section 131.16, to notify the Director of a dividend
or other distribution to its shareholders shall notify the Director of the
proposed dividend or distribution in writing within 5 business days following
declaration and no less than 10 business days prior to payment. The 10 day
period shall begin the day the notice is received by the Department. The notice
shall be deemed incomplete unless all the information required by this Part has
been included.
2) Extraordinary
Dividends or Other Extraordinary Distributions. Any domestic company required,
pursuant to Code Section
131.20 a, to notify the Director
of an extraordinary dividend or other extraordinary distribution to its
shareholders shall notify the Director of the proposed dividend or distribution
in writing within 5 business days following declaration and no less than 30
days prior to payment. The 30 day period shall begin the day the notice is
received by the Department. The notice shall be deemed incomplete unless all
the information required by this Part has been included in the
notice.
3) Proof of Receipt.
Certified Mail confirmation, confirmation from a commercial delivery service,
or the date stamped upon the notice by the Department acknowledging receipt of
the filing required by this Part shall serve as proof of the date of receipt of
the filing.
b) The
domestic company shall provide to the Director the information required by, and
in the format specified by, Illustration A, Form D-2.
c) The notification shall be directed to the
Deputy Director of the Financial-Corporate Regulatory Division of the Illinois
Department of Insurance, Springfield, Illinois 62767.
d) In the case of a proposed payment of
extraordinary dividends pursuant to Code Section
131.20 a, the Director may
require supplemental information in addition to the information required by
Illustration A, Form D-2. Supplemental information required by the Director may
include but is not limited to: a statement in narrative form of the effects of
the proposed dividends on the company's most recent Management Discussion and
Analysis; a statement of financial position; a statement of operations; a
statement of cash flows; a statement of changes in capital and surplus
accounts; a statement in schedule form of risk-based capital requirements; and
a statement of significant trends in reinsurance programs, premium volume
and/or mix, losses, benefits and general expenses.
e) For the purposes of the Department's
review of proposed dividend payments, the factors set forth in Code Section
131.20(2) are
not intended to be an exhaustive list. In determining the adequacy and
reasonableness of an insurer's surplus, no single factor shall be controlling.
Instead, the Director will consider the net effect of all these factors plus
any other factors bearing on the financial condition of the insurer. In
comparing the surplus maintained by other insurers, the Director will consider
the extent to which each of the factors varies from company to company and, in
determining the quality and liquidity of investments in subsidiaries, the
Director will consider the individual subsidiary and may discount or disallow
its valuation to the extent that the individual investments warrant.
Notes
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