210 Neb. Admin. Code, ch. 24, § 020 - Extraordinary dividends and other distributions

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

020.01 The amount of the proposed dividend;

020.02 The date established for payment of the dividend;

020.03 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;

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

020.04A The amounts, dates and form of payment of all dividends or distributions (including regular dividends but excluding distributions of the insurer's 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;

020.04B Surplus as regards policyholders (total capital and surplus) as of the 31st day of December next preceding;

020.04C If the insurer is a life insurer, the net gain from operations for the 12-month period ending the 31st day of December next preceding;

020.04D 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

020.05E If the insurer is not a life insurer, the dividends paid to stockholders excluding distributions of the insurer's own securities in the preceding two calendar years.

020.05 A balance sheet and statement of income for the period intervening from the last annual statement filed with the Director and the end of the month preceding the month in which the request for dividend approval is submitted; and

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

020.07 Subject to §§ 44-2134 and § 44-325, each registered insurer shall give notice to the Director of all dividends and other distributions to shareholders within five (5) business days following the declaration thereof, and shall not pay any such dividends or other distributions to shareholders within ten (10) business days following receipt of such notice by the Director unless, for good cause shown, the Director has approved payment within such ten (10) business day period. The same information required by subsection 020.04 shall be submitted to the Director.

Notes

210 Neb. Admin. Code, ch. 24, § 020