Ordinary dividends; extraordinary dividends and other distributions

(a) Requests for approval of extraordinary dividends or any other extraordinary distribution 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 copy of the calculations determining that the proposed dividend is extraordinary. The work paper shall include the following information: (i) Theamounts,datesandformofpaymentofalldividendsordistributions(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. (5) The insurer's most recent annual or quarterly balance sheet and statement of income filed pursuant to Section 38a-53, a statement as to whether there has been a material change in the financial condition of the insurer since such financial report was filed with the Commissioner; and (6) 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) Subject to subsection (f) of Section 38a-136 of the General Statutes, 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 subsections (a) (4) (i)–(v).