Ins 40.16(1)(b) (b) The filing insurer is the principal insurer in the insurance holding company system.

Ins 40.16(2) (2) Principal insurer statement. The question of whether the filing insurer is the principal insurer in the insurance holding company system is a question of fact. An insurer filing a registration statement or report in lieu of form B on behalf of an insurer which is its affiliate, shall set forth a brief statement of facts which will substantiate the filing insurer’s claim that it, in fact, is the principal insurer in the insurance holding company system.

Ins 40.16(3) (3) Unauthorized insurer. With the prior approval of the commissioner, an unauthorized insurer may follow any of the procedures which could be done by an authorized insurer under sub. (1).

Ins 40.16 History History: Cr. Register, July, 1993, No. 451, eff. 8-1-93.

Ins 40.17 Ins 40.17 Transactions subject to prior notice—notice filing. A person required to give notice of a proposed transaction under this chapter shall furnish the required information on form D.

Ins 40.17 History History: Cr. Register, July, 1993, No. 451, eff. 8-1-93.

Ins 40.18 Ins 40.18 Extraordinary dividends and other distributions. Requests for approval of extraordinary dividends or any other extraordinary distribution to shareholders shall include the following:

Ins 40.18(1) (1) The amount of the proposed dividend;

Ins 40.18(2) (2) The date established for payment of the dividend;

Ins 40.18(3) (3) A statement as to whether the dividend is to be in cash or other property and, if in property, a description of the property, its cost, and its fair market value together with an explanation of the basis for valuation;

Ins 40.18(4) (4) A copy of the calculations determining that the proposed dividend is extraordinary. The calculations shall include the following information:

Ins 40.18(4)(a) (a) The amounts, dates and form of payment of all dividends or distributions, including regular dividends but 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 approval is sought and commencing on the day after the same day of the same month in the previous calendar year;

Ins 40.18(4)(b) (b) Policyholder surplus as of the 31st day of December of the immediately preceding calendar year;

Ins 40.18(4)(c) (c) If the insurer is a life insurer, the net income less realized capital gains for the previous calendar year;

Ins 40.18(4)(d) (d) If the insurer is not a life insurer, the net income less realized capital gains for the previous calendar year and the 2 calendar years preceding that calendar year; and

Ins 40.18(4)(e) (e) If the insurer is not a life insurer, the dividends paid to stockholders excluding distributions of the insurer’s own securities in the preceding 3 calendar years.

Ins 40.18(5) (5) A balance sheet and statement of income for the period intervening from the last annual statement filed with the commissioner and the end of the month preceding the month in which the request for dividend approval is submitted.

Ins 40.18(6) (6) A brief statement as to the effect of the proposed dividend upon the insurer’s policyholder surplus and the reasonableness of policyholder surplus in relation to the insurer’s outstanding liabilities and the adequacy of policyholder surplus relative to the insurer’s financial needs.

Ins 40.18 History History: Cr. Register, July, 1993, No. 451, eff. 8-1-93.

Ins 40.19 Ins 40.19 Consent to jurisdiction. Any person required to file consent to jurisdiction under s. 617.11 (5), Stats., shall do so using form AA contained in the appendix to this chapter.

Ins 40.19 History History: Cr. Register, July, 1993, No. 451, eff. 8-1-93; CR14-071: am. Register August 2015 No. 716, eff. 9-1-15.

Ins 40.20 Ins 40.20 Enterprise Risk Report. The ultimate controlling person of an insurer required to file an enterprise risk report pursuant to s. Ins 40.03 (9), shall furnish the required information on Form F in the appendix.

Ins 40.20 History History: CR 14-071: am. Register August 2015 No. 716, eff. 9-1-15.

Ins 40.21 Ins 40.21 Group capital calculation.

Ins 40.21(1) (1) Discretionary annual filing exemption. Where an insurance holding company system has previously filed the annual group capital calculation at least once, the lead state commissioner has the discretion to exempt the ultimate controlling person from filing the annual group capital calculation if the lead state commissioner makes a determination based upon that filing that the insurance holding company system meets all of the following criteria:

Ins 40.21(1)(a) (a) The insurance holding company system has annual direct written and unaffiliated assumed premium including international direct and assumed premium, but excluding premiums reinsured with the Federal Crop Insurance Corporation and Federal Flood Program, of less than $1,000,000,000.

Ins 40.21(1)(b) (b) The insurance holding company system has no insurers within its holding company structure that are domiciled outside of the United States or one of its territories.

Ins 40.21(1)(c) (c) The insurance holding company system has no banking, depository or other financial entity that is subject to an identified regulatory capital framework within its holding company structure.

Ins 40.21(1)(d) (d) The insurance holding company system attests that there are no material changes in the transactions between insurers and non-insurers in the group that have occurred since the last filing of the annual group capital.