Code of Maine Rules
02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION
031 - BUREAU OF INSURANCE
Chapter 180 - INSURANCE HOLDING COMPANY SYSTEM MODEL RULE WITH REPORTING FORMS AND INSTRUCTIONS
Section 031-180-21 - Dividends and Other Distributions
Universal Citation: 02 ME Code Rules ยง 031-180-21
Current through 2024-38, September 18, 2024
A. Notice of proposed dividends or distributions 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 valuation;
(4) A request for approval of an
extraordinary dividend or a notice that the proposed dividend was not
determined to be extraordinary;
(5)
A copy of the calculations determining whether or not 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 insurer's 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 31st day of December next preceding;
(c) If the insurer is a life insurer, the net
gain from operations for the most recent complete calendar year;
(d) If the insurer is not a life insurer, the
net gain from operations for each of the three most recent complete calendar
years; and
(e) 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.
(6) A balance sheet and statement
of income for the period intervening from the last annual statement filed with
the Superintendent and the end of the month preceding the month in which the
request for dividend approval is submitted; and
(7) 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.
B. Regulatory review of dividends and other distributions to shareholders is subject to the filing requirements and other provisions of Subsection 11-C of the Act.
Disclaimer: These regulations may not be the most recent version. Maine may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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