Rules & Regulations of the State of Tennessee
Title 0780 - Commerce and Insurance
Subtitle 0780-01 - Insurance Division
Chapter 0780-01-67 - Insurance Holding Company System Regulations with Reporting Forms and Instructions
Section 0780-01-67-.17 - EXTRAORDINARY DIVIDENDS AND OTHER DISTRIBUTIONS
Universal Citation: TN Comp Rules and Regs 0780-01-67-.17
Current through September 24, 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 thereof, 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 work paper shall 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 insurers own securities) paid
within the period of twelve (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;
2. Surplus as
regards policyholders (total capital and surplus) as of the 31st day of
December next preceding;
3. If the
insurer is a life insurer, the net gain from operations for the 12-month period
ending the 31st day of December next preceding;
4. If the insurer is not a life insurer, the
net income less realized capital gains for the 12-month period ending the 31st
day of December next preceding and the two preceding 12-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 (2) 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 T.C.A. § 56-11-206(b) each registered insurer shall report to the Commissioner all dividends and other distributions to shareholders within fifteen (15) business days following the declaration thereof, including the same information required by subparagraph (1)(d) above.
Authority: T.C.A. §§ 56-2-301, 56-11-206 and 56-11-209.
Disclaimer: These regulations may not be the most recent version. Tennessee 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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