(1) Requests
for approval of extraordinary dividends or any other extraordinary distribution
to shareholders must 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 must include the
following information:
(i) The amounts, dates, and forms of
payment of all dividends or distributions (including regular dividends but
excluding distributions of the insurers 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.
(ii) Surplus as regards policyholders (total
capital and surplus) as of the 31st day of December next preceding;
(iii) 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;
(iv) 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-months periods; and
(v) 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 33-2-1114, MCA, each registered insurer shall report to
the commissioner all dividends and other distributions to shareholders within
15 business days following the declaration thereof, including the same
information required by (1) (d) (i) -(v) hereof.