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