02-031-180 Me. Code R. § 21

Current through 2024-46, November 13, 2024

Section 031-180-21 - Dividends and Other Distributions

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.

02-031 C.M.R. ch. 180, § 21