California Code of Regulations
Title 10 - Investment
Chapter 5 - Insurance Commissioner
Subchapter 5 - Stock Insurers-Corporate Affairs
Article 3 - Insurance Holding Company Systems-Reporting and Disclosure Forms
Section 2683.19 - Extraordinary Dividends and Distributions

Universal Citation: 10 CA Code of Regs 2683.19

Current through Register 2024 Notice Reg. No. 38, September 20, 2024

(a) Requests pursuant to the provisions of Insurance Code Section 1215.5 (c) for approval of extraordinary dividends or extraordinary distributions (hereinafter in this Section referred to as "dividend(s)") to stockholders shall include the following:

(1) The amount and date established for payment thereof;

(2) A statement whether payment is to be in cash or property, and if in property, the fair market value of that property, and an explanation of the valuation basis.

(3) The amounts and dates of all dividends (including regular dividends) 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.

(4) A balance sheet and statement of income for the period intervening between the end of the year covered in the last annual statement filed with the Commissioner and the end of the last calendar quarter prior to the date on which the request for approval is filed with the Commissioner, plus such additional financial information, if any, as the Commissioner may require.

(5) A brief statement as to the effect of the proposed dividend upon the insurer's surplus and reasonableness of its remaining surplus in relationship to its outstanding liabilities, and upon the adequacy of its remaining surplus in relationship to its financial needs.

(b) The payment of an extraordinary dividend, as defined in Insurance Code Section 1215.5 (c), by a company which is qualified according to Section 1215.1 (b) (2) ibid., both before and after payment thereof is deemed automatically approved. The registrant shall give written notice (by letter) to the Commissioner of the declaration thereof, pursuant to Section 1215.4 (d) ibid.

1. Change without regulatory effect amending subsection (a)(4) filed 7-14-2021 pursuant to section 100, title 1, California Code of Regulations (Register 2021, No. 29). Filing deadline specified in Government Code section 11349.3(a) extended 60 calendar days pursuant to Executive Order N-40-20.

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