Insurance companies; dividends and distributions. (SB546)

Introduced By

Sen. Walter Stosch (R-Glen Allen) with support from co-patron Sen. Steve Newman (R-Forest)

Progress

Introduced
Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law

Description

Insurance companies; dividends and distributions. Prohibits a domestic insurer from declaring or paying a dividend or other distribution from any source other than earned surplus without the State Corporation Commission's prior approval. The measure defines an extraordinary dividend or distribution, and provides that insurers may declare an extraordinary dividend or distribution conditioned upon the Commission's approval. The Commission is authorized to limit or disallow the payment of ordinary dividends by insurers that are financially distressed or troubled. The bill also (i) prohibits domestic insurers from entering into transactions with persons within an insurance company holding system if their purpose is to avoid the review that is required of material transactions between insurers that are members of an insurance company holding system and their affiliates; (ii) requires the quality of an insurer's earnings and the extent to which the earnings include extraordinary items to be considered in determining whether an insurer's surplus to policyholders is reasonable in relation to its outstanding liabilities; and (iii) requires insurers that are members of an insurance company holding system to report dividends and other distributions to the Commission within five business days following their declaration and at least 30 days prior to their payment; currently, such distributions must be reported within two days following their declaration. Read the Bill »

Status

04/05/2006: signed by governor

History

DateAction
01/11/2006Prefiled and ordered printed; offered 01/11/06 062620824
01/11/2006Referred to Committee on Commerce and Labor
01/16/2006Fiscal impact statement from SCC (SB546)
01/23/2006Reported from Commerce and Labor (15-Y 0-N)
01/25/2006Constitutional reading dispensed (39-Y 0-N)
01/25/2006VOTE: (39-Y 0-N)
01/26/2006Read second time and engrossed
01/27/2006Read third time and passed Senate (38-Y 0-N)
01/27/2006VOTE: (38-Y 0-N)
01/27/2006Communicated to House
02/13/2006Placed on Calendar
02/13/2006Read first time
02/13/2006Referred to Committee on Commerce and Labor
02/16/2006Reported from Commerce and Labor (21-Y 0-N)
02/20/2006Read second time
02/21/2006Read third time
02/21/2006Passed House BLOCK VOTE (98-Y 0-N)
02/21/2006VOTE: BLOCK VOTE PASSAGE (98-Y 0-N)
02/27/2006Bill text as passed Senate and House (SB546ER)
02/27/2006Enrolled
02/28/2006Signed by Speaker
03/01/2006Signed by President
03/02/2006Fiscal impact statement from SCC (SB546ER)
04/05/2006G Approved by Governor-Chapter 577 (effective 7/1/06)
04/12/2006G Acts of Assembly Chapter text (CHAP0577)