Compilation of Rules and Regulations of the State of Georgia
Department 120 - OFFICE OF COMMISSIONER OF INSURANCE, SAFETY FIRE COMMISSIONER AND INDUSTRIAL LOAN COMMISSIONER
Chapter 120-2 - RULES OF COMMISSIONER OF INSURANCE
Subject 120-2-23 - INSURANCE HOLDING COMPANY REGULATIONS
Rule 120-2-23-.19 - Extraordinary Dividends and Other Distributions
Universal Citation: GA Rules and Regs r 120-2-23-.19
Current through Rules and Regulations filed through March 20, 2024
(1) Request 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 other 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 December 31 next preceding;
3. If the insurer is a life insurer, the net
gain from operations for the twelve (12) month period ending December 31 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 December 31 next preceding and the two preceding twelve
(12) months periods; and
5. 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.
(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 is 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 the insurer's outstanding liabilities and the adequacy of
surplus relative to the insurer's financial needs.
(2) Subject to O.C.G.A. Section 33-13-5(b) of the Act, each registered insurer shall report to the Commissioner all dividends and other distributions to shareholders within five (5) business days following the declaration and ten (10) business days prior to payment thereof, including the same information required by Subsection (d) of this Rule.
O.C.G.A. §§ 33-2-9, 33-12-8, 33-13-9.
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