Section 760 IAC 1-15.1-12 - StandardsAuthority: IC 27-1-3-7
Affected: IC 27-1-23-4
Sec. 12.
(a) Requests by domestic insurers for approval of extraordinary dividends or any other extraordinary distribution to security holders shall include the following: (1) The: (A) date established for payment of the dividend; and(B) amount of the proposed dividend.(2) 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.(3) The amounts and dates of all dividends or distributions (including regular dividends but excluding distributions of the insurer's 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.(4) Surplus as regards policyholders (total capital and surplus) as of the thirty-first day of December next preceding.(5) 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, including an analysis of the factors contained in IC 27-1-23-4(f).(6) If the insurer is a life insurer, the net gain from operations for the twelve (12) month period ending December 31 next preceding.(7) If the insurer is not a life insurer, the net income less realized capital gains for the twelve (12) month period ending December 31 next preceding and the two (2) preceding twelve (12) month periods.(8) If the insurer is not a life insurer, the dividends paid to security holders in the preceding two (2) calendar years.(9) If the insurer is not a life insurer, the dividends paid to stockholders excluding distributions of that insurer's own securities in the preceding two (2) calendar years.(10) 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.(b) The factors set forth in IC 27-1-23-4(f) 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. The commissioner, instead, will consider the net effect of all of these factors, plus other factors bearing on the financial condition of the insurer. In comparing the surplus maintained by other insurers, the commissioner will consider the extent to which each of these factors varies from company to company and in determining the quality and liquidity of investments in subsidiaries, the commissioner will consider the individual subsidiary and may discount or disallow its valuation to the extent that the individual investments so warrant. Department of Insurance; 760 IAC 1-15.1-12; filed Oct 18, 1994, 3:55 p.m.: 18 IR 528; readopted filed Sep 14, 2001, 12:22 p.m.: 25 IR 531; readopted filed Nov 27, 2007, 4:01 p.m.: 20071226-IR-760070717RFA; readopted filed Nov 26, 2013, 3:43 p.m.: 20131225-IR-760130479RFA; filed Dec 18, 2013, 11:11 a.m.: 20140115-IR-760130007FRAReadopted filed 11/19/2019, 9:18 a.m.: 20191218-IR-760190497RFA