North Carolina Administrative Code › Title 11 - INSURANCE › Chapter 11 - FINANCIAL EVALUATION DIVISION › Subchapter B - SPECIAL PROGRAMS › Section .0200 - INSURANCE HOLDING COMPANY SYSTEMS › Section 11B .0222 - TRANSACTIONS SUBJECT TO PRIOR NOTICE NOTICE FILING

Current through Register Vol. 39, No. 2, July 15, 2024
(a) An
				  insurer required to give prior notice of a proposed transaction under
				  G.S.
				  58-19-30(b) shall submit a
				  completed Form D referenced in
				  11 NCAC
				  11B .0216, which can be found at
				  www.ncdoi.com.
(b) An insurer
				  required to give prior notice of an ordinary dividend or any other ordinary
				  distribution to shareholders under
				  G.S.
				  58-19-25(d) or an insurer
				  that requests, under
				  G.S.
				  58-19-30(c), approval of
				  extraordinary dividends or any other extraordinary distribution to shareholders
				  shall include the following:
(1) The amount
				  of the proposed dividend or distribution;
(2) The date established for payment of the
				  dividend or distribution;
(3) A
				  statement as to whether the dividend or distribution 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 statement identifying the dividend or
				  distribution as an ordinary dividend or other ordinary distribution subject to
				  G.S.
				  58-19-25(d) or as an
				  extraordinary dividend or other extraordinary distribution as defined in
				  G.S.
				  58-19-30(c);
(5) A copy of the calculations determining
				  that the proposed dividend or distribution is an ordinary dividend or other
				  ordinary distribution subject to
				  G.S.
				  58-19-25(d), or an
				  extraordinary dividend or other extraordinary distribution as defined in
				  G.S
				  58-19-30(c). The work paper
				  shall include the following information:
(A)
				  The amounts, dates and form of payment of all dividends or distributions
				  (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 notification is being given or 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 preceding December
				  31;
(C) If the insurer is a life
				  insurer, the net gain from operations for the 12-month period ending the
				  preceding December 31; and
(D) If
				  the insurer is not a life insurer, the net income less realized capital gains
				  for the 12-month period ending the preceding December 31.
(6) A balance sheet and statement of income
				  for the period between the last annual statement filed with the Commissioner
				  and the end of the month preceding the month in which the request for approval
				  or the prior notification of a dividend or distribution is submitted. The
				  insurer shall indicate the amount of all unrealized capital gains included in
				  unassigned funds;
(7) A brief
				  statement as to the effect of the proposed dividend or distribution 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; and
(8)
				  A brief statement as to the intended use(s) of the proposed dividend or
				  distribution by the parent, and, if applicable, any upstream parent, of the
				  insurer.