Current through Register Vol. 48, No. 12, March 22, 2024
a) Notice
1) Any domestic captive insurance company
required by Section 123C-26 of the Code to notify the Director of a dividend or
other distribution to holders of an equity interest in the captive insurance
company shall notify the Director of the proposed dividend or distribution in
writing within 5 business days following the 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) 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
captive insurance company shall provide to the Director the information
required in this Part on Form D-2 (see 50 Ill. Adm. Code 655.Illustration A) or
on a similar form from and via the website of the Department.
c) The notification shall be directed to the
Deputy Director of the Financial-Corporate Regulatory Division of the Illinois
Department of Insurance, 320 W. Washington Street, Springfield, Illinois
62767.
d) The notification shall
contain the following information:
1) name and
addresses of the company sending the notification and of any companies on whose
behalf the notification is being sent;
2) date of mailing;
3) name, title, address and telephone number
or email address for the person to whom notices should be sent regarding this
notification;
4) the amount of the
dividend or other distribution and the date established for payment;
5) a statement as to whether the dividend or
other distribution is to be in cash or other property, and, if in property, a
description of the property, its cost, statutory carrying value, and the fair
market value of the property, together with an explanation of the basis for
valuation;
6) the amounts and
payment dates of all dividends paid within the period of 12 consecutive months
ending on the date fixed for payment of the proposed dividend for which
notification is being given or approval is being sought;
7) 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 prior
notification of the dividend is submitted, indicating the amount of all
unrealized capital gains included in unassigned funds;
8) a brief statement of:
A) the effect of the proposed dividend upon
the insurer's surplus;
B) the
reasonableness of surplus in relation to the insurer's outstanding liabilities;
and
C) the adequacy of surplus
relative to the insurer's financial position;
9) a calculation of the insurer's risk based
capital level as of the most recently filed financial statement (quarterly or
annual), adjusted to show the effect of the proposed dividend or other
distribution; and
10) date, name
and signature of the individual sending the notification, attested to by an
officer of the company.
e) In determining whether to approve the
issuance of the dividends or other distributions, the Director shall review the
notification, information included in the notification, and any other relevant
information to determine if the issuance or other distribution may materially
impair the domestic captive insurance company or companies.