Louisiana Administrative Code
Title 37 - INSURANCE Part
Part XIII - Regulations
Chapter 1 - Regulation Number 31-Holding Company
Section XIII-125 - Extraordinary Dividends and Other Distributions
Universal Citation: LA Admin Code XIII-125
Current through Register Vol. 50, No. 9, September 20, 2024
A. Requests for approval of extraordinary dividends or any other extraordinary distribution to shareholders shall include the following:
1. the amount of the proposed
dividend;
2. the date established
for payment of the dividend;
3. 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 evaluation;
4. a copy of the calculations determining
that the proposed dividend is extraordinary. The work paper shall include the
following information:
a. the amounts, dates,
and form of payment of all dividends or distributions (including regular
dividends but excluding distributions of the 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;
b. surplus as regards policyholders (total
capital and surplus) as of the thirty-first day of December next
preceding;
c. if the insurer is a
life insurer, the net gain from operations for the 12-month period ending the
thirty-first day of December next preceding;
d. if the insurer is not a life insurer, the
net income less realized capitalized gains for the 12-month period ending the
thirty-first day of December next preceding and the two preceding 12-month
periods; and
e. if the insurer is
not a life insurer, the dividends paid to stockholders, excluding distributions
of the insurers own securities in the preceding two calendar years;
5. 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
6. a brief statement as to the effect of the
proposed dividend upon the insurers 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.
B. Subject to R.S. 22:691.7(B), each registered insurer shall report to the commissioner all dividends and other distributions to shareholders within 15 business days following the declaration thereof, including the same information required by Paragraph A.4.
AUTHORITY NOTE: Promulgated in accordance with R.S. 22:691.1-691.27.
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