reglab/housing_qa huggingface dataset:
SD Codified L § 58-43-2 (2021)
2021 South Dakota Codified Laws|Title 58 - Insurance|Chapter 43 - Independent Audit Of Insurers|Section 58-43-2 - Annual audit required--Filing audited financial report--Extension of filing date--Audit committee.

58-43-2. Annual audit required--Filing audited financial report--Extension of filing date--Audit committee.Each insurer having direct premiums written in this state of more than one million dollars in any calendar year and more than one thousand policyholders or certificate holders of directly written policies nationwide at the end of a calendar year is required to have an annual audit by an accountant of the financial statements reporting the financial position and the results of operations. This chapter also applies to insurers having assumed premiums pursuant to contracts or treaties of reinsurance of one million dollars or more. The director may require insurers with less than one million dollars in direct premiums and less than one thousand policyholders or certificate holders to have independent audits to determine the financial status of the insurer.The insurer shall file an audited financial report with the director on or before June first for the immediately preceding year. The director may require an insurer to file an audited financial report earlier than June first with ninety days advance notice to the insurer.Extensions of the June first filing date may be granted by the director for thirty-day periods upon showing by the insurer and its accountant to the director that there is good cause for an extension. The request for extension shall be submitted in writing to the director not less than ten days prior to the due date in sufficient detail to permit the director to make an informed decision.If an extension is granted, a similar extension of thirty days is granted for the filing of the Management's Report of Internal Control over Financial Reporting.Each insurer required to file an annual audited financial report pursuant to this chapter shall designate a group of individuals as constituting the insurer's audit committee. The audit committee of an entity that controls an insurer may be deemed to be the insurer's audit committee for purposes of this chapter at the election of the controlling person. Source: SL 1992, ch 357, §2; SL 2009, ch 271, §3.
SD Codified L § 58-43-3 (2021)
2021 South Dakota Codified Laws|Title 58 - Insurance|Chapter 43 - Independent Audit Of Insurers|Section 58-43-3 - Foreign or alien insurers--Exemption.

58-43-3. Foreign or alien insurers--Exemption.Foreign or alien insurers, filing audited financial reports in another state which report has been found by the director to be substantially similar to the requirements of §58-43-4, are exempt if:(1)A copy of the audited financial report, communication of internal control related matters noted in an audit, and the accountant's letter of qualifications which are filed with the other state are filed with the director in accordance with the filing dates specified in §§58-43-2, 58-43-14, and 58-43-15. Canadian insurers may submit accountants' reports as filed with the Office of the Superintendent of Financial Institutions, Canada;(2)A copy of any notification of adverse financial condition report filed with that other state is filed with the director within the time specified in §58-43-14.This section does not prohibit, preclude or in any way limit the director of insurance from ordering or conducting or performing examinations of insurers under this title. Source: SL 1992, ch 357, §3; SL 2009, ch 271, §4.
SD Codified L § 58-43-4 (2021)
2021 South Dakota Codified Laws|Title 58 - Insurance|Chapter 43 - Independent Audit Of Insurers|Section 58-43-4 - Annual audited financial report--Contents.

58-43-4. Annual audited financial report--Contents.The annual audited financial report shall report the financial position of the insurer as of the end of the most recent calendar year and the results of its operations, cash flows, and changes in capital and surplus for the year then ended. The audit shall reflect the statutory accounting practices prescribed, or otherwise permitted, by the division. The report shall include the following:(1)Report of the accountant;(2)Balance sheet reporting admitted assets, liabilities, capital, and surplus;(3)Statement of operations;(4)Statement of cash flows;(5)Statement of changes in capital and surplus; and(6)Notes to financial statements.Any notes to financial statements shall be prepared in accordance with the Annual Statement Instructions Manual and the Accounting Practices and Procedures Manual prescribed by the National Association of Insurance Commissioners as promulgated by rules by the director pursuant to chapter 1-26 and shall also include a reconciliation of differences, if any, between the audited statutory financial statements and the annual statement filed pursuant to §58-6-75 with a written description of the nature of these differences. Source: SL 1992, ch 357, §4; SL 2003, ch 257, §1; SL 2009, ch 271, §5.
SD Codified L § 58-43-5 (2021)
2021 South Dakota Codified Laws|Title 58 - Insurance|Chapter 43 - Independent Audit Of Insurers|Section 58-43-5 - Financial statements.

58-43-5. Financial statements.The financial statements included in the audited financial report shall be prepared in a form and using language and groupings substantially the same as the relevant sections of the annual statement filed pursuant to §58-6-75 and the financial statement shall be comparative, presenting the amounts as of December thirty-first of the current year and the amounts as of the immediately preceding December thirty-first. In the first year in which an insurer is required to file an audited financial report, the comparative data may be omitted. Source: SL 1992, ch 357, §5.
SD Codified L § 58-43-5.1 (2021)
2021 South Dakota Codified Laws|Title 58 - Insurance|Chapter 43 - Independent Audit Of Insurers|Section 58-43-5.1 - Examination of financial statements by accountant.

58-43-5.1. Examination of financial statements by accountant.Financial statements furnished pursuant to §58-43-4 shall be examined by the independent certified public accountant. The audit of the insurer's financial statements shall be conducted in accordance with generally accepted auditing standards. In accordance with AU Section 319 of the Professional Standards of the AICPA, Consideration of Internal Control in a Financial Statement Audit as of January 1, 2009, the independent certified public accountant should obtain an understanding of internal control sufficient to plan the audit. To the extent required by AU Section 319, for those insurers required to file a Management's Report of Internal Control over Financial Reporting pursuant to §58-43-16.13, the independent certified public accountant should consider, as that term is defined in Statement on Auditing Standards (SAS) No. 102, Defining Professional Requirements in Statements on Auditing Standards as of January 1, 2009, the most recently available report in planning and performing the audit of the statutory financial statements. Consideration shall be given to the procedures illustrated in the Financial Condition Examiners Handbook promulgated by the National Association of Insurance Commissioners as adopted by the director by rules promulgated pursuant to chapter 1-26, as the independent certified public accountant deems necessary. Source: SL 2009, ch 271, §14.
SD Codified L § 58-43-6 (2021)
2021 South Dakota Codified Laws|Title 58 - Insurance|Chapter 43 - Independent Audit Of Insurers|Section 58-43-6 - Registration of retained accountant--Letter of acknowledgment from accountant.

58-43-6. Registration of retained accountant--Letter of acknowledgment from accountant.Each insurer required to file an annual audited financial report shall, within sixty days after becoming subject to the requirement, register with the director in writing the name and address of the independent certified public accountant or accounting firm retained to conduct the annual audit set forth in this chapter. Any insurer not retaining an independent certified public accountant on July 1, 2009, shall register the name and address of the insurer's retained independent certified public accountant not less than six months before the date when the first audited financial report is to be filed.The insurer shall obtain a letter from the accountant, and file a copy with the director, stating that the accountant is aware of the laws of the state of domicile that relate to accounting and financial matters and affirming that the accountant will express his or her opinion on the financial statements in terms of their conformity to the statutory accounting practices prescribed or permitted and specify any exceptions. Source: SL 1992, ch 357, §6; SL 2009, ch 271, §6.
SD Codified L § 58-43-7 (2021)
2021 South Dakota Codified Laws|Title 58 - Insurance|Chapter 43 - Independent Audit Of Insurers|Section 58-43-7 - Notification of dismissal or resignation of insurer's accountant--Reporting disagreements.

58-43-7. Notification of dismissal or resignation of insurer's accountant--Reporting disagreements.If an accountant who was the accountant for the immediately preceding filed audited financial report is dismissed or resigns, the insurer shall mail notification to the director within five business days of the dismissal or resignation. The insurer shall mail the director a separate letter within ten business days of the above notification stating whether in the twenty-four months preceding this dismissal or resignation there were any disagreements with the former accountant on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of the former accountant, would have caused him to make reference to the subject matter of the disagreement in connection with his opinion. Source: SL 1992, ch 357, §7.
SD Codified L § 58-43-8 (2021)
2021 South Dakota Codified Laws|Title 58 - Insurance|Chapter 43 - Independent Audit Of Insurers|Section 58-43-8 - Explanation of disagreements between insurer and accountant--Letters from both insurer and accountant to director.

58-43-8. Explanation of disagreements between insurer and accountant--Letters from both insurer and accountant to director.The disagreements required in §58-43-7 to be reported include both those resolved to the former accountant's satisfaction and those not resolved to the former accountant's satisfaction. Disagreements contemplated by this section are those that occur at the decision-making level, such as, between personnel of the insurer responsible for presentation of its financial statements and personnel of the accounting firm responsible for rendering its report. The insurer shall request in writing the former accountant to furnish a letter addressed to the insurer stating whether the accountant agrees with the statements contained in the insurer's letter and, if not, stating the reasons for which he does not agree. The insurer shall furnish the responsive letter from the former accountant to the director together with its own. The accountant shall also furnish a copy of the responsive letter to the director. Source: SL 1992, ch 357, §8.
SD Codified L § 58-43-9 (2021)
2021 South Dakota Codified Laws|Title 58 - Insurance|Chapter 43 - Independent Audit Of Insurers|Section 58-43-9 - Qualifications of accountant.

58-43-9. Qualifications of accountant.An accountant shall be recognized as qualified as long as the accountant conforms to the standards of the profession, as contained in the Code of Professional Ethics of the American Institute of Certified Public Accountants and the requirements of chapter 36-20B and rules promulgated pursuant to that chapter. Source: SL 1992, ch 357, §9; SL 2007, ch 294, §2.
SD Codified L § 58-43-9.1 (2021)
2021 South Dakota Codified Laws|Title 58 - Insurance|Chapter 43 - Independent Audit Of Insurers|Section 58-43-9.1 - Disqualification of accountant.

58-43-9.1. Disqualification of accountant.No person or firm may be recognized as a qualified independent certified public accountant if the person or firm:(1)Is not in conformity with the Code of Professional Ethics of the American Institute of CPA's and in all states in which the accountant is licensed to practice, or, for a Canadian or British company, that is not a chartered accountant; or(2)Has either directly or indirectly entered into an agreement of indemnity or release from liability with respect to the audit of the insurer. Source: SL 2007, ch 294, §3.
SD Codified L § 58-43-9.2 (2021)
2021 South Dakota Codified Laws|Title 58 - Insurance|Chapter 43 - Independent Audit Of Insurers|Section 58-43-9.2 - Disqualification of accountant for services provided contemporaneously with audit.

58-43-9.2. Disqualification of accountant for services provided contemporaneously with audit.The director may not recognize as a qualified independent certified public accountant, nor accept an annual audited financial report, prepared in whole or in part by an accountant who provides to an insurer, contemporaneously with the audit, the following nonaudit services:(1)Bookkeeping or other services related to the accounting records or financial statements of the insurer;(2)Financial information systems design and implementation;(3)Appraisal or valuation services, fairness opinions, or contribution-in-kind reports;(4)Actuarially-oriented advisory services involving the determination of amounts recorded in the financial statements. The accountant may assist an insurer in understanding the methods, assumptions, and inputs used in the determination of amounts recorded in the financial statement only if it is reasonable to conclude that the services provided will not be subject to audit procedures during an audit of the insurer's financial statements. An accountant's actuary may also issue an actuarial opinion or certification on an insurer's reserves if the following conditions have been met:(a)Neither the accountant nor the accountant's actuary has performed any management functions or made any management decisions;(b)The insurer has competent personnel or engages a third party actuary to estimate the reserves for which management takes responsibility; and(c)The accountant's actuary tests the reasonableness of the reserves after the insurer's management has determined the amount of the reserves;(5)Internal audit outsourcing services;(6)Management functions or human resources;(7)Broker or dealer, investment adviser, or investment banking services;(8)Legal services or expert services unrelated to the audit; or(9)Any other services that the director determines, by rules promulgated pursuant to chapter 1-26, are impermissible. Source: SL 2009, ch 271, §8.
SD Codified L § 58-43-9.3 (2021)
2021 South Dakota Codified Laws|Title 58 - Insurance|Chapter 43 - Independent Audit Of Insurers|Section 58-43-9.3 - Exemption from disqualification provisions of § 58-43-9.2.

58-43-9.3. Exemption from disqualification provisions of §58-43-9.2.Any insurer having direct written and assumed premiums of less than one hundred million dollars in any calendar year may request an exemption from the provisions of §58-43-9.2. The insurer shall file with the director a written statement discussing the reasons why the insurer should be exempt from these provisions. If the director finds, upon review of this statement, that compliance with these provisions would constitute a financial or organizational hardship upon the insurer, an exemption may be granted. Source: SL 2009, ch 271, §9.
SD Codified L § 58-43-9.4 (2021)
2021 South Dakota Codified Laws|Title 58 - Insurance|Chapter 43 - Independent Audit Of Insurers|Section 58-43-9.4 - Services which do not disqualify accountant--Audit committee preapproval.

58-43-9.4. Services which do not disqualify accountant--Audit committee preapproval.A qualified independent certified public accountant who performs the audit may engage in other nonaudit services, including tax services, that are not described in or that do not conflict with the provisions of §58-43-9.2, only if the activity is approved in advance by the audit committee, in accordance with the provisions of §58-43-9.5. Source: SL 2009, ch 271, §10.
SD Codified L § 58-43-9.5 (2021)
2021 South Dakota Codified Laws|Title 58 - Insurance|Chapter 43 - Independent Audit Of Insurers|Section 58-43-9.5 - Preapproval of auditing and nonaudit services by audit committee--SOX compliant entities.

58-43-9.5. Preapproval of auditing and nonaudit services by audit committee--SOX compliant entities.Any auditing services or nonaudit services provided to an insurer by the qualified independent certified public accountant of the insurer shall be preapproved by the audit committee. This preapproval requirement is waived with respect to nonaudit services if the insurer is a SOX compliant entity or a direct or indirect wholly-owned subsidiary of a SOX compliant entity or:(1)The aggregate amount of all such nonaudit services provided to the insurer constitutes not more than five percent of the total amount of fees paid by the insurer to its qualified independent certified public accountant during the fiscal year in which the nonaudit services are provided;(2)The services were not recognized by the insurer at the time of the engagement to be nonaudit services; and(3)The services are promptly brought to the attention of the audit committee and approved prior to the completion of the audit by the audit committee or by one or more members of the audit committee who are the members of the board of directors to whom authority to grant such approvals has been delegated by the audit committee. Source: SL 2009, ch 271, §11.
SD Codified L § 58-43-9.6 (2021)
2021 South Dakota Codified Laws|Title 58 - Insurance|Chapter 43 - Independent Audit Of Insurers|Section 58-43-9.6 - Delegation of preapproval duties.

58-43-9.6. Delegation of preapproval duties.The audit committee may delegate to one or more designated members of the audit committee the authority to grant the preapprovals required by the provisions of §58-43-9.5. The decisions of any member to whom this authority is delegated shall be presented to the full audit committee at each of its scheduled meetings. Source: SL 2009, ch 271, §12.
SD Codified L § 58-43-9.7 (2021)
2021 South Dakota Codified Laws|Title 58 - Insurance|Chapter 43 - Independent Audit Of Insurers|Section 58-43-9.7 - Disqualification of accountant due to previous employment of partner or senior manager of insurer--Relief from requirement.

58-43-9.7. Disqualification of accountant due to previous employment of partner or senior manager of insurer--Relief from requirement.The director may not recognize an independent certified public accountant as qualified for a particular insurer if a member of the board, president, chief executive officer, controller, chief financial officer, chief accounting officer, or any person serving in an equivalent position for that insurer, was employed by the independent certified public accountant and participated in the audit of that insurer during the one-year period preceding the date that the most current statutory opinion is due. This section shall only apply to partners and senior managers involved in the audit.An insurer may make application to the director for relief from this requirement on the basis of unusual circumstances. The insurer shall file, with the insurer's annual statement filing, the approval for relief with the states that it is licensed in, with the states that it is doing business in, and with the National Association of Insurance Commissioners. If the nondomestic state accepts electronic filing with the National Association of Insurance Commissioners, the insurer shall file the approval in an electronic format acceptable to the National Association of Insurance Commissioners. Source: SL 2009, ch 271, §13.
SD Codified L § 58-43-10 (2021)
2021 South Dakota Codified Laws|Title 58 - Insurance|Chapter 43 - Independent Audit Of Insurers|Section 58-43-10 - Rotation of accountant--Application for relief from rotation requirement.

58-43-10. Rotation of accountant--Application for relief from rotation requirement.The lead or coordinating audit partner, having primary responsibility for the audit pursuant to this chapter, may not act in that capacity for more than five consecutive years. The person shall be disqualified from acting in that or a similar capacity for the same company or its insurance subsidiaries or affiliates for a period of five consecutive years. An insurer may make application to the director for relief from the above rotation requirements for good cause. This application shall be made at least thirty days before the end of the calendar year. The director may consider the following factors in determining if the relief should be granted:(1)Number of partners, expertise of the partners or the number of insurance clients in the currently registered firm;(2)Premium volume of the insurer; or(3)Number of jurisdictions in which the insurer transacts business.The insurer shall file, with the insurer's annual statement filing, the approval for relief with the states that the insurer is licensed in, with the states that the insurer is doing business in, and with the National Association of Insurance Commissioners. If the nondomestic state accepts electronic filing with the National Association of Insurance Commissioners, the insurer shall file the approval in an electronic format acceptable to the National Association of Insurance Commissioners. Source: SL 1992, ch 357, §10; SL 2009, ch 271, §7.
SD Codified L § 58-43-11 (2021)
2021 South Dakota Codified Laws|Title 58 - Insurance|Chapter 43 - Independent Audit Of Insurers|Section 58-43-11 - Rejection of accountant or audited financial report--Grounds.

58-43-11. Rejection of accountant or audited financial report--Grounds.The director may not recognize as an accountant, nor accept any annual audited financial report, prepared in whole or in part by, any natural person who:(1)Has been convicted of fraud, bribery, a violation of the Racketeer Influenced and Corrupt Organizations Act, 18 U.S.C. §§1961-1968, or any dishonest conduct or practices under federal or state law;(2)Has been found to have violated the insurance laws of this state with respect to any previous reports submitted under this chapter; or(3)Has demonstrated a pattern or practice of failing to detect or disclose material information in previous reports filed under the provisions of this chapter. Source: SL 1992, ch 357, §11.
SD Codified L § 58-43-12 (2021)
2021 South Dakota Codified Laws|Title 58 - Insurance|Chapter 43 - Independent Audit Of Insurers|Section 58-43-12 - Disqualification hearing.

58-43-12. Disqualification hearing.An accountant which has been disqualified or any firm which has had an accountant disqualified by the director may request a hearing on the disqualification. The director may, as a result of the hearing, require the insurer to replace the accountant with another qualified accountant. Source: SL 1992, ch 357, §12.