To: All California Domiciled and Commercially Domiciled Insurers; and Other Interested Parties
Subject : Ordinary Dividend Reports, Explanation of Filing Procedures, and Penalty Fees for Late Filings.
This notice is to advise insurers submitting ordinary dividend reports pursuant to the California Insurance Code (CIC) Section 1215.4 (f) et seq.(1) of the current California Department of Insurance (CDI) addresses to which those submittals should be sent, and (2) the requirement for prompt annual determination of commercial domicile status.
Pursuant to CIC Section 1215.4(a), all domestic and commercially domiciled insurers that are members of a holding company system must register with the Commissioner. Subject to subdivision of CIC Section 1215.5(g), each registered insurer shall report all dividends and other distributions to shareholders within five business days following declaration. No dividend or other distribution to shareholders may be paid until at least 10 business days after receipt by the commissioner, at the office of the department prescribed by the commissioner by notice to all insurers, of a notice of the declaration of the dividend or other distribution.
The ordinary dividend report required by CIC Section 1215.4(f) , should be submitted on the appropriate forms along with the Board of Resolution. Links to these documents are located at the bottom of this notice.
1. Filing Locations
Initial registration submitted pursuant to CIC Section 1215.4 must be filed online using Online Assistance System for Insurer Submittals (OASIS).
In addition, please submit the original signature pages of the Board of Resolution to:
California Department of Insurance
Financial Analysis Division
300 South Spring Street, South Tower, 13th Floor
Los Angeles, CA 90013
2. Commercially Domiciled Determinations
The CDI has, in the past, sent a courtesy notice to all companies that the CDI determined to be commercially domiciled. This notice was for informational purposes and gave companies an opportunity to contest CDI's determination. The notice should not be construed as CDI assuming the company's responsibility for initially making the determination and acting on that determination so as to ensure proper and timely submission of all required filings.
CIC Section 1215.13(a) specifies how to determine whether a company is commercially domiciled. Nowhere does this section place the burden of making that determination on the CDI. CIC Sections 1215.4, 1215.5 and 1215.2 specify the filing requirements applicable to commercially-domiciled insurers. Taken together, these sections provide the information necessary for an insurer to determine whether it is subject to the holding company filing requirements; the information that must be provided; and the time frames for filing. Commercially-domiciled insurers need not file reinsurance agreements, however, as explained in Bulletin 2011-2, paragraph #4 in Key Provisions Section.
It is incumbent upon each company to promptly determine its status so that all filings can be made in a timely manner. Failure of a company to ascertain its status as a commercially domiciled insurer neither relieves it of its obligation to make required filings, nor exempts from being assessed CIC Section 1215.10(a) late filing fees for not having filed within required timeframes.
Direct your inquiries regarding this notice to: Financial Analysis Division (213) 346-6451
Deputy Insurance Commissioner
Financial Surveillance Branch