Summary of Current Florida Law: Payment of Shareholder Dividends by Domestic Property and Casualty Insurers
Mar 25, 2010
A memorandum on current Florida law pertaining to the payment of dividends to shareholders by insurance companies is attached for your review and information.
This information will prove helpful as the Florida Property and Casualty Association (“FPCA”) considers an amendment filed yesterday by Senator Mike Fasano to Senate Bill 2176. A copy of the amendment also is attached.
Among other provisions, Senator Fasano’s amendment would provide that, in addition to the insurer, companies affiliated with a domestic insurer may not issue a dividend or distribute cash or other property to shareholders unless the dividend or distribution is from that part of the available and accumulated surplus funds derived from realized net operating profits on insurer business and net realized capital gains.
FPCA members will be meeting with legislators to discuss SB 2176 today, March 25, 2010.
FPCA member feedback on Senator Fasano’s amendment is needed immediately to assist in discussing the related issues with legislators. Please send all comments to Katie Webb (kwebb@cftlaw.com) at Colodny Fass.
