North Dakota Administrative Code
Title 45 - Insurance, Commissioner of
Article 45-03 - Regulation of Insurance Companies
Chapter 45-03-05 - Insurance Holding Company System Model Regulation With Reporting Forms and Instructions
Section 45-03-05-18 - Extraordinary dividends and other distributions
Universal Citation: ND Admin Code ยง 45-03-05-18
Current through Supplement No. 394, October, 2024
1. Requests 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 of the property, 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 workpaper must include the
following information:
(1) 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 twelve 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 the next preceding December
thirty-first;
(3) If the insurer is
a life insurer, the net gain from operations for the twelve-month period ending
the next preceding December thirty-first;
(4) If the insurer is not a life insurer, the
net income less realized capital gains for the twelve-month period ending the
next preceding December thirty-first and the two preceding twelve-month
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 subsection 2 of North Dakota Century Code section 26.1-10-05, each registered insurer shall report to the commissioner all dividends and other distributions to shareholders within fifteen business days following the declaration thereof, including the same information required by subdivision d of subsection 1.
General Authority: NDCC 26.1-10-12
Law Implemented: NDCC 26.1-10-04
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