The Illinois Department of Insurance has adopted a new rule, 50 Ill. Adm. Code 1305, Prior Notification of Dividends or Distributions.  Illinois Public Act 100-1118, effective November 27, 2018, added a new section to Article VIIC of the Illinois Insurance Code, Domestic Insurance Companies, namely, section 123C-26 [215 ILCS 5/123C-26] which mandates that captive insurance companies shall notify the Director when issuing dividends or distributions to policyholders [215 ILCS 5/123C-26.A] and which mandates that the Director approve that issuance and adopt rules to implement the approval process [215 ILCS 5/123C26.B].  The new rule describes the information that shall be provided to the Director by a domestic captive insurance company to notify the Director to seek approval of all dividends and other distributions under Section 123C-26 of the Illinois Insurance Code and provides penalties for the failure to comply with this Part.  The rule was adopted August 14, 2020 and is effective July 31, 2020.