Indiana § 27-1-3-25 Review of ordinary shareholder dividends to determine reasonableness

Indiana Statutes

§ 27-1-3-25 — Review of ordinary shareholder dividends to determine reasonableness

Indiana·Title 27 INSURANCE·Art. 1 DEPARTMENT OF INSURANCE·Ch. 3 General Powers and Duties of the Department

The department shall establish and maintain a procedure under which the department, at least one (1) time each year, reviews the ordinary shareholder dividends paid by each domestic insurer to determine whether dividends paid by the insurer are reasonable in relation to the following:

(1)The adequacy of the level of surplus as regards policyholders of the insurer remaining after the payment of dividends.

(2)The quality of the earnings of the insurer and the extent to which the reported earnings of the insurer include extraordinary items, such as surplus relief, reinsurance transactions, and reserve destrengthening.

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The department shall establish and maintain
a procedure under which the department, at least one (1) time each
year, reviews the ordinary shareholder dividends paid by each domestic
insurer to determine whether dividends paid by the insurer are
reasonable in relation to the following:
(1) The adequacy of the level of surplus as regards policyholders
of the insurer remaining after the payment of dividends.
(2) The quality of the earnings of the insurer and the extent to
which the reported earnings of the insurer include extraordinary
items, such as surplus relief, reinsurance transactions, and reserve
destrengthening.

Indiana § 27-1-3-25 (Review of ordinary shareholder dividends to determine reasonableness) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.