Illinois Administrative Code
Title 50 - INSURANCE
Part 655 - PRIOR NOTIFICATION OF DIVIDENDS ON COMMON STOCK AND OTHER DISTRIBUTIONS
Section 655.30 - Prior Notification of Dividends and Other Distributions
Current through Register Vol. 48, No. 12, March 22, 2024
a) Notice
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 131.20a, 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.