reglab/statecodes huggingface dataset:
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 12 - Insurance Claims And Benefits › Section 58-12-37 - Promulgation of rules regarding definitions and records.

58-12-37. Promulgation of rules regarding definitions and records.
The director may promulgate rules, pursuant to chapter 1-26, to carry out the purposes of §§58-12-31 to 58-12-37, inclusive. In promulgating rules, the director shall consider the impact of the rule on the cost and availability of insurance in this state and the degree of protection that the rule will have for the insurance buying public in this state. The rules are limited to the following areas:
(1)Definition of terms; and
(2)Record keeping.
Source:
SL 2014, ch 235, §7.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 13 - Limit Of Risk Insured › Section 58-13-1 - Maximum single risk assumed.

58-13-1. Maximum single risk assumed.
No insurer shall retain any risk on any one subject of insurance, whether located or to be performed in this state or elsewhere, in an amount exceeding ten percent of its surplus to policyholders.
Source:
SL 1966, ch 111, ch 4, §11 (1).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 13 - Limit Of Risk Insured › Section 58-13-2 - Subject of insurance defined.

58-13-2. Subject of insurance defined.
A "subject of insurance" for the purposes of this chapter, as to insurance against fire and hazards other than windstorm, earthquake, or other catastrophe hazards, includes all properties insured by the same insurer which are customarily considered by underwriters to be subject to loss or damage from the same fire or the same occurrence of such other hazard insured against.
Source:
SL 1966, ch 111, ch 4, §11 (2).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 13 - Limit Of Risk Insured › Section 58-13-3 - Surplus to policyholders defined.

58-13-3. Surplus to policyholders defined.
"Surplus to policyholders" for the purposes of this chapter, in addition to the insurer's capital and surplus, shall be deemed to include any voluntary reserves which are not required pursuant to law, and shall be determined from the last sworn statement of the insurer on file with the director, or by the last report of examination of the insurer, whichever is the more recent at time of assumption of risk.
Source:
SL 1966, ch 111, ch 4, §11 (5).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 13 - Limit Of Risk Insured › Section 58-13-4 - Deduction for reinsurance or cosuretyship.

58-13-4. Deduction for reinsurance or cosuretyship.
Reinsurance ceded for which credit is allowed pursuant to chapter 58-14 shall be deducted in determining risk retained. As to surety risks, deductions shall also be made of the amount assumed by any established incorporated cosurety and the value of any security deposited, pledged, or held subject to the surety's consent and for the surety's protection.
Source:
SL 1966, ch 111, ch 4, §11 (3).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 13 - Limit Of Risk Insured › Section 58-13-5 - Chapter inapplicable when maximum possible loss not ascertainable.

58-13-5. Chapter inapplicable when maximum possible loss not ascertainable.
This chapter shall not apply to life or health insurance, annuities, title insurance, insurance of wet marine and transportation risks, workers' compensation insurance, employer's liability coverages, nor to any policy or type of coverage as to which the maximum possible loss to the insurer is not readily ascertainable on issuance of the policy.
Source:
SL 1966, ch 111, ch 4, §11 (6).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 13 - Limit Of Risk Insured › Section 58-13-6 - Application of chapter to alien insurers.

58-13-6. Application of chapter to alien insurers.
As to alien insurers, this chapter shall relate only to risks and surplus to policyholders of the insurer's United States branch.
Source:
SL 1966, ch 111, ch 4, §11 (4).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-1 - "Reinsurance" defined.

58-14-1. Reinsurance defined.
"Reinsurance" is a contract under which an originating insurer, called the "ceding insurer," procures insurance for itself in another insurer, called the "assuming insurer" or the "reinsurer," with respect to part or all of any insurance risk of the originating insurer.
Source:
SL 1966, ch 111, ch 4, §9.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-3 - Risk limits applicable.

58-14-3. Risk limits applicable.
An insurer may only reinsure risks within the limits it is authorized to insure.
Source:
SL 1966, ch 111, ch 4, §10 (1); SL 1992, ch 344, §14.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-4 - Credit not allowable as an asset or deduction from liability to ceding insurer--Exceptions--Payments.

58-14-4. Credit not allowable as an asset or deduction from liability to ceding insurer--Exceptions--Payments.
No credit may be allowed, as an asset or as a deduction from liability, to any ceding insurer for reinsurance unless the reinsurance contract provides, in substance, that in the event of the insolvency of the ceding insurer, the reinsurance is payable under a contract reinsured by the reinsurer on the basis of reported claims allowed in the liquidation proceeding or proof of payment of the claim by a guaranty association without diminution because of the insolvency of the ceding insurer. Such payments shall be made directly to the ceding insurer or to its domiciliary liquidator unless:
(1)The contract or other written agreement specifically provides another payee of such reinsurance in the event of the insolvency of the ceding insurer; or
(2)The reinsurer, with the consent of the direct insured, has assumed such policy obligations of the ceding insurer as direct obligations of the reinsurer to the payees under such policies and in substitution for the obligations of the ceding insurer to such payees. The consent of the liquidator is required for any such assumption of policy obligations effected after an order of liquidation.
Source:
SL 1966, ch 111, ch 4, §10 (3); SL 1992, ch 344, §15; SL 2005, ch 274, §3.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-4.1 - Association election to succeed to rights and obligations of insolvent insurer under reinsurance contract--Reinsurer's liability to pay claims.

58-14-4.1. Association election to succeed to rights and obligations of insolvent insurer under reinsurance contract--Reinsurer's liability to pay claims.
Notwithstanding §58-14-4, if a life and health insurance guaranty association has made the election to succeed to the rights and obligations of the insolvent insurer under the contract of reinsurance, the reinsurer's liability to pay covered reinsured claims continues under the contract of reinsurance, subject to the payment to the reinsurer of the reinsurance premiums for such coverage. Payment for such reinsured claims may only be made by the reinsurer pursuant to the direction of the guaranty association or its designated successor. Any payment made at the direction of the guaranty association or its designated successor by the reinsurer discharges the reinsurer of any further liability to any other party for the claim payment.
Source:
SL 2005, ch 274, §4.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-4.2 - Liquidator of insolvent ceding insurer to provide notice to reinsurer of claim against ceding insurer--Investigation and election to interpose defense.

58-14-4.2. Liquidator of insolvent ceding insurer to provide notice to reinsurer of claim against ceding insurer--Investigation and election to interpose defense.
The reinsurance agreement may provide that the domiciliary liquidator of an insolvent ceding insurer shall give written notice to the reinsurer of the pendency of a claim against such ceding insurer on the contract reinsured within a reasonable time after such claim is filed in the liquidation proceeding. During the pendency of such claim, any reinsurer may investigate such claim and interpose, at its own expense, in the proceeding where such claim is to be adjudicated any defenses that it deems available to the ceding insurer or its liquidator. Such expense may be filed as a claim against the insolvent ceding insurer as a Class 6 claim pursuant to §58-29B-124 to the extent of a proportionate share of the benefit that may accrue to the ceding insurer solely as result of the defense undertaken by the reinsurer. If two or more reinsurers are involved in the same claim and a majority in interest elect to interpose a defense to such claim, the expense shall be apportioned in accordance with the terms of the reinsurance agreement as though such expense had been incurred by the ceding insurer.
Source:
SL 2005, ch 274, §5.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-5 - Reinsurance contracts filed by ceding insurer--Cancellation or material change, duty to inform director.

58-14-5. Reinsurance contracts filed by ceding insurer--Cancellation or material change, duty to inform director.
A ceding insurer shall file copies of all reinsurance contracts with the director and shall promptly inform the director in writing of the cancellation or any other change of any of its reinsurance treaties or arrangements.
Source:
SL 1966, ch 111, ch 4, §10 (4); SL 1992, ch 344, §16.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-6 - Original insured--No interest in reinsurance.

58-14-6. Original insured--No interest in reinsurance.
The original insured has no interest in a contract of reinsurance.
Source:
SL 1966, ch 111, ch 32, §5.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-7 - Credit for reinsurance allowed for domestic ceding insurer as asset or reduction.

58-14-7. Credit for reinsurance allowed for domestic ceding insurer as asset or reduction.
Credit for reinsurance shall be allowed a domestic ceding insurer as either an asset or a reduction from liability on account of reinsurance ceded only when the reinsurer meets any one of the requirements of §58-14-8, 58-14-9, 58-14-10, 58-14-11, 58-14-14, or 58-14-16.1. If meeting the requirements of §58-14-10 or 58-14-11, the requirements of §58-14-15 shall also be met. Credit shall be allowed under §58-14-8, 58-14-9, or 58-14-10 only as respects cessions of those kinds or classes of business which the assuming insurer is licensed or permitted to write or assume in its state of domicile or, in the case of a United States branch of an alien assuming insurer, in the state through which it is entered and licensed to transact insurance or reinsurance.
Source:
SL 1992, ch 344, §1; SL 2017, ch 211, §1.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-8 - Credit allowed for reinsurance if assuming insurer licensed in state.

58-14-8. Credit allowed for reinsurance if assuming insurer licensed in state.
Credit shall be allowed if the reinsurance is ceded to an assuming insurer which is licensed to transact insurance or reinsurance in this state.
Source:
SL 1992, ch 344, §2.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-9 - Requirements for reinsurer to be accredited.

58-14-9. Requirements for reinsurer to be accredited.
Credit shall be allowed if the reinsurance is ceded to an assuming insurer that is accredited as a reinsurer in this state. For a reinsurer to be accredited, the reinsurer shall:
(1)File with the director evidence of its submission to this state's jurisdiction;
(2)Submit to this state's authority to examine its books and records;
(3)Be licensed to transact insurance or reinsurance in at least one state or, in the case of a United States branch of an alien assuming insurer, be entered through and licensed to transact insurance or reinsurance in at least one state;
(4)File annually with the director a copy of its annual statement filed with the insurance department of its state of domicile and a copy of its most recent audited financial statement; and
(5)Demonstrate to the satisfaction of the director that the reinsurer has adequate financial capacity to meet reinsurance obligations and is otherwise qualified to assume reinsurance from domestic insurers. An assuming insurer is deemed to meet this requirement as of the time of the assuming insurer's application if the assuming insurer maintains a surplus as regards policyholders in an amount not less than twenty million dollars and the assuming insurer's accreditation has not been denied by the director within ninety days after submission of the assuming insurer's application.
The director, after reviewing the documents submitted, may approve or disapprove the reinsurer.
No credit may be allowed a domestic ceding insurer if the assuming insurer's accreditation has been revoked by the director after notice and hearing.
To qualify as an accredited reinsurer, an assuming insurer shall meet all of the requirements of this section.
The director may deny accreditation if the director determines that accreditation would not be in the best interest of the ceding insurer and policyholders.
Source:
SL 1992, ch 344, §3; SL 2017, ch 211, §2.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-10 - A lien assuming insurer--Standards--Surplus required--Examination of records.

58-14-10. A lien assuming insurer--Standards--Surplus required--Examination of records.
Credit shall be allowed if the reinsurance is ceded to an assuming insurer which is domiciled and licensed in, or in the case of a United States branch of an alien assuming insurer is entered through, a state which employs standards regarding credit for reinsurance substantially similar to those applicable under this chapter and the assuming insurer or United States branch of an alien assuming insurer:
(1)Maintains a surplus as regards policyholders in an amount not less than twenty million dollars; and
(2)Submits to the authority of this state to examine its books and records.
Subdivision (1) of this section does not apply to reinsurance ceded and assumed pursuant to pooling arrangements among insurers in the same holding company system.
Source:
SL 1992, ch 344, §4.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-11 - Credit for reinsurance ceded to insurer maintaining trust fund for payment of valid claims--Annual report of assuming insurer.

58-14-11. Credit for reinsurance ceded to insurer maintaining trust fund for payment of valid claims--Annual report of assuming insurer.
Credit shall also be allowed if the reinsurance is ceded to an assuming insurer that maintains a trust fund in a qualified United States financial institution for the payment of the valid claims of the assuming insurer's United States ceding insurers, their assigns and successors in interest. The assuming insurer shall report annually to the director information substantially the same as that required to be reported on the National Association of Insurance Commissioners annual statement form by licensed insurers to enable the director to determine the sufficiency of the trust fund. The assuming insurer shall submit to examination of the assuming insurer's books and records by the director and bear the expense of examination.
Credit for reinsurance may not be granted pursuant to this section unless the form of the trust and any amendments to the trust have been approved by the commissioner of the state where the trust is domiciled, or the commissioner of another state has accepted principal regulatory oversight of the trust pursuant to the terms of the trust instrument.
Source:
SL 1992, ch 344, §5; SL 1994, ch 378; SL 2017, ch 211, §3.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-11.1 - Trust fund requirements for single assuming insurer.

58-14-11.1. Trust fund requirements for single assuming insurer.
The trust fund in §58-14-11 for a single assuming insurer shall consist of funds in trust in an amount not less than the assuming insurer's liabilities attributable to reinsurance ceded by United States ceding insurers, and, in addition, the assuming insurer shall maintain a trusteed surplus of not less than twenty million dollars, except as provided in this section.
At any time after a single assuming insurer has permanently discontinued underwriting new business secured by the trust for at least three years, the director with principal regulatory oversight of the trust may authorize a reduction in the required trusteed surplus, but only after a finding, based on an assessment of the risk, that the new required surplus level is adequate for the protection of United States ceding insurers, policyholders, and claimants in light of reasonably foreseeable adverse loss development. The risk assessment may involve an actuarial review, including an independent analysis of reserves and cash flows, and shall consider all material risk factors, including when applicable the lines of business involved, the stability of the incurred loss estimates, and the effect of the surplus requirements on the assuming insurer's liquidity or solvency. The minimum required trusteed surplus may not be reduced to an amount less than thirty percent of the assuming insurer's liabilities attributable to reinsurance ceded by the United States ceding insurers covered by the trust.
Source:
SL 2017, ch 211, §4.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-12 - Trust fund requirements for group of incorporated underwriters.

58-14-12. Trust fund requirements for group of incorporated underwriters.
In the case of a group of incorporated underwriters, the trust in §58-14-11 shall be in an amount not less than the group's several liabilities attributable to business ceded by United States ceding insurers to any member of the group pursuant to reinsurance contracts issued in the name of the group. In addition, the group shall maintain a joint trusteed surplus of which one hundred million dollars shall be held jointly for the benefit of United States ceding insurers of any member of the group as additional security for any liabilities, and each member of the group shall make available to the director an annual certification of the member's solvency by the member's domiciliary regulator and financial statements of each underwriter member of the group prepared by its independent public accountant within ninety days after its financial statements are due to be filed with the group's domiciliary regulator. The group shall maintain a trust fund in an amount not less than the group's several liabilities attributable to business ceded by United States domiciled ceding insurers to any member of the group pursuant to reinsurance contracts issued in the name of the group.
A group of incorporated underwriters under this section are those under common administration which comply with the filing requirements contained in §58-14-11, that has continuously transacted an insurance business outside the United States for at least three years immediately prior to making application for accreditation, that submits to this state's authority to examine its books and records and bears the expense of the examination, and that has aggregate policyholders' surplus of at least ten billion dollars.
Source:
SL 1992, ch 344, §6; SL 2017, ch 211, §5.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-12.1 - Trust fund requirements for group including incorporated and individual unincorporated underwriters.

58-14-12.1. Trust fund requirements for group including incorporated and individual unincorporated underwriters.
In the case of a group including incorporated and individual unincorporated underwriters, the trust in §58-14-11 shall consist of a trusteed account in an amount not less than the respective underwriters' several liabilities attributable to business ceded by United States domiciled ceding insurers to any underwriter in the group. Notwithstanding the other provisions of this chapter, the trust in §58-14-11 for reinsurance ceded under reinsurance agreements with an inception date on or before June 30, 1993, and not amended or renewed after that date, shall consist of a trusteed account in an amount not less than the respective underwriters' several insurance and reinsurance liabilities attributable to business written in the United States. In addition to these trusts, the group shall maintain in trust a trusteed surplus of which one hundred million dollars shall be held jointly for the benefit of United States domiciled ceding insurers of any member of the group for all years of account.
The incorporated members of the group with a trust under §58-14-11 may not be engaged in any business other than underwriting as a member of the group and shall be subject to the same level of regulation and solvency control by the group's domiciliary regulator as are the unincorporated members.
Within ninety days after its financial statements are due to be filed with the group's domiciliary regulator, the group shall provide to the director an annual certification by the group's domiciliary regulator of the solvency of each underwriter member or, if a certification is unavailable, financial statements, prepared by independent public accountants, of each underwriter member of the group.
Source:
SL 2017, ch 211, §6.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-13 - Establishment of trust--Annual report of balance and investments--Certification of termination of trust.

58-14-13. Establishment of trust--Annual report of balance and investments--Certification of termination of trust.
The form of the trust in §58-14-11 and any trust amendments shall be filed with the director of each state in which the ceding insurer beneficiaries of the trust are domiciled. The trust instrument shall provide that contested claims shall be valid and enforceable upon the final order of any court of competent jurisdiction in the United States. The trust shall vest legal title to its assets in the trustees of the trust for its United States policyholders and ceding insurers, their assigns and successors in interest. The trust and the assuming insurer are subject to examination as determined by the director. The trust shall remain in effect for as long as the assuming insurer has outstanding obligations due under the reinsurance agreements subject to the trust.
No later than February twenty-eighth of each year, the trustees shall report to the director in writing setting forth the balance of the trust and listing the trust's investments at the preceding year end and shall certify the date of termination of the trust, if so planned, or certify that the trust does not expire prior to the next following December thirty-first.
Source:
SL 1992, ch 344, §7; SL 2017, ch 211, §7.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-14 - Reinsurance credit for certain insurers limited to risks in foreign or alien jurisdictions.

58-14-14. Reinsurance credit for certain insurers limited to risks in foreign or alien jurisdictions.
Credit shall be allowed if the reinsurance is ceded to an assuming insurer not meeting the requirements of §58-14-8, 58-14-9, 58-14-10, 58-14-11, or 58-14-16.1 but only with respect to the insurance of risks located in foreign or alien jurisdictions where the reinsurance is required by applicable law or regulation of that jurisdiction.
Source:
SL 1992, ch 344, §8; SL 2017, ch 211, §8.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-15 - Allowance of credit for certain insurers not licensed, certified, or accredited in state.

58-14-15. Allowance of credit for certain insurers not licensed, certified, or accredited in state.
If the assuming insurer is not licensed, certified, or accredited to transact insurance or reinsurance in this state, the credit permitted by §58-14-10 or 58-14-11 may not be allowed unless the assuming insurer agrees in the reinsurance agreements:
(1)That in the event of the failure of the assuming insurer to perform the assuming insurer's obligations under the terms of the reinsurance agreement, the assuming insurer, at the request of the ceding insurer, shall submit to the jurisdiction of any court of competent jurisdiction in any state of the United States, comply with all requirements necessary to give the court jurisdiction, and abide by the final decision of any court or of any appellate court in the event of an appeal; and
(2)To designate the director or a designated attorney as its true and lawful attorney upon whom may be served any lawful process in any action, suit or proceeding instituted by or on behalf of the ceding company.
This section is not intended to conflict with or override the obligation of the parties to a reinsurance agreement to arbitrate their disputes if arbitration is created in the agreement.
Source:
SL 1992, ch 344, §9; SL 2017, ch 211, §9.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-16 - Asset or reduction from liability for reinsurance ceded to insurer not meeting requirements of § 58-14-7--Security.

58-14-16. Asset or reduction from liability for reinsurance ceded to insurer not meeting requirements of §58-14-7--Security.
An asset or a reduction from liability for the reinsurance ceded by a domestic insurer to an assuming insurer not meeting the requirements of §58-14-7 shall be allowed in an amount not exceeding the liabilities carried by the ceding insurer. The reduction shall be in the amount of funds held by or on behalf of the ceding insurer, including funds held in trust for the ceding insurer, under a reinsurance contract with the assuming insurer as security for the payment of obligations. The security shall be held in the United States subject to withdrawal solely by, and under the exclusive control of, the ceding insurer; or, in the case of a trust, it shall be held in a qualified United States financial institution, as defined in §58-14-23. This security may be in the form of:
(1)Cash;
(2)Securities listed by the securities valuation office of the National Association of Insurance Commissioners (NAIC), including any security deemed exempt from filing as defined by the Purposes and Procedures Manual of the NAIC Investment Analysis Office as adopted by administrative rule, and qualifying as admitted assets;
(3)Clean, irrevocable, unconditional letters of credit, issued or confirmed by a qualified United States financial institution as defined in §58-14-16.18, effective no later than December thirty-first of the year for which the filing is being made, and in the possession of, or in the trust of, the ceding insurer on or before the filing date of the assuming insurer's annual statement. Letters of credit meeting applicable standards of issuer acceptability as of the dates of issuance or confirmation shall, notwithstanding the issuing or confirming institution's subsequent failure to meet applicable standards of issuer acceptability, continue to be acceptable as security until the security's expiration, extension, renewal, modification, or amendment, whichever occurs first; or
(4)Any other form of security acceptable to the director.
Source:
SL 1992, ch 344, §10; SL 2017, ch 211, §10.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-16.1 - Credit allowed for reinsurance ceded to certified reinsurer.

58-14-16.1. Credit allowed for reinsurance ceded to certified reinsurer.
Credit shall be allowed if the reinsurance is ceded to an assuming insurer that has been certified by the director as a reinsurer in this state and secures the assuming insurer's obligations in accordance with the requirements of §§58-14-16.2 to 58-14-16.15, inclusive.
Source:
SL 2017, ch 211, §12.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-16.2 - Eligibility for certification as reinsurer.

58-14-16.2. Eligibility for certification as reinsurer.
In order to be eligible for certification as a reinsurer, the assuming insurer shall:
(1)Be domiciled and licensed to transact insurance or reinsurance in a qualified jurisdiction, as determined by the director pursuant to §§58-14-16.4 to 58-14-16.6, inclusive;
(2)Maintain minimum capital and surplus, or its equivalent, in an amount promulgated in rule by the director;
(3)Maintain financial strength ratings from two or more rating agencies deemed acceptable by the director pursuant to regulation;
(4)Agree to submit to the jurisdiction of this state, appoint the director as the assuming insurer's agent for service of process in this state, and agree to provide security for one hundred percent of the assuming insurer's liabilities attributable to reinsurance ceded by the United States ceding insurers if the assuming insurer resists enforcement of a final United States judgment;
(5)Agree to meet applicable information filing requirements as determined by the director, both with respect to an initial application for certification and on an ongoing basis; and
(6)Satisfy any other requirements for certification deemed relevant by the director.
Source:
SL 2017, ch 211, §13.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-16.3 - Eligibility for certification of association including incorporated and individual unincorporated underwriters.

58-14-16.3. Eligibility for certification of association including incorporated and individual unincorporated underwriters.
An association including incorporated and individual unincorporated underwriters may be a certified reinsurer. In addition to satisfying the requirements of §58-14-16.2, to be eligible for certification:
(1)The association shall satisfy the association's minimum capital and surplus requirements through the capital and surplus equivalents, net of liabilities, of the association and the association's members, which shall include a joint central fund that may be applied to any unsatisfied obligation of the association or any of its members, in an amount determined by the director to provide adequate protection;
(2)The incorporated members of the association may not be engaged in any business other than underwriting as a member of the association and shall be subject to the same level of regulation and solvency control by the association's domiciliary regulator as are the unincorporated members; and
(3)Within ninety days after its financial statements are due to be filed with the association's domiciliary regulator, the association shall provide to the director an annual certification by the association's domiciliary regulator of the solvency of each underwriter member. If the annual certification is unavailable, the association shall file financial statements, prepared by independent public accountants, of each underwriter member of the association.
Source:
SL 2017, ch 211, §14.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-16.4 - List of qualified jurisdictions from which domiciled insurer eligible for consideration for certification.

58-14-16.4. List of qualified jurisdictions from which domiciled insurer eligible for consideration for certification.
The director shall create and publish a list of qualified jurisdictions, under which an assuming insurer licensed and domiciled in the jurisdiction is eligible to be considered for certification by the director as a certified reinsurer.
If a certified reinsurer's domiciliary jurisdiction ceases to be a qualified jurisdiction, the director has the discretion to suspend the reinsurer's certification indefinitely, in lieu of revocation.
Source:
SL 2017, ch 211, §15.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-16.5 - Eligibility of non-United States domiciliary jurisdiction to be recognized as qualified jurisdiction.

58-14-16.5. Eligibility of non-United States domiciliary jurisdiction to be recognized as qualified jurisdiction.
To determine whether the domiciliary jurisdiction of a non-United States assuming insurer is eligible to be recognized as a qualified jurisdiction, the director shall evaluate the appropriateness and effectiveness of the reinsurance supervisory system of the jurisdiction, both initially and on an ongoing basis, and consider the rights, benefits, and the extent of reciprocal recognition afforded by the non-United States jurisdiction to reinsurers licensed and domiciled in the United States. A qualified jurisdiction shall agree to share information and cooperate with the director with respect to all certified reinsurers domiciled within that jurisdiction. A jurisdiction may not be recognized as qualified jurisdiction if the director has determined the jurisdiction does not adequately and promptly enforce final United States judgments and arbitration awards. Additional factors may be considered at the discretion of the director.
Source:
SL 2017, ch 211, §16.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-16.6 - National Association of Insurance Commissioners' list of qualified jurisdictions.

58-14-16.6. National Association of Insurance Commissioners' list of qualified jurisdictions.
A list of qualified jurisdictions shall be published through the National Association of Insurance Commissioners. The director shall consider the list in determining qualified jurisdictions. If the director approves a jurisdiction as qualified that does not appear on the list of qualified jurisdictions, the director shall provide a thoroughly documented justification with criteria to be developed in administrative rules promulgated by the director, pursuant to chapter 1-26, to establish criteria for determining the qualifications of the jurisdictions.
United States jurisdictions that meet the requirements for accreditation under the National Association of Insurance Commissioners financial standards and accreditation program shall be recognized as qualified jurisdictions.
Source:
SL 2017, ch 211, §17.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-16.7 - Rating of certified reinsurer.

58-14-16.7. Rating of certified reinsurer.
The director shall assign a rating to each certified reinsurer, giving due consideration to the financial strength ratings that have been assigned by rating agencies deemed acceptable to the director. The director shall publish a list of all certified reinsurers and their ratings.
Source:
SL 2017, ch 211, §18.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-16.8 - Obligations assumed from United States ceding insurers to be secured consistent with rating.

58-14-16.8. Obligations assumed from United States ceding insurers to be secured consistent with rating.
A certified reinsurer shall secure obligations assumed from United States ceding insurers under §§58-14-16.9 to 58-14-16.13, inclusive, at a level consistent with the certified reinsurer's rating. The director may promulgate rules, pursuant to chapter 1-26, to establish standards under §§58-14-16.9 to 58-14-16.13, inclusive.
Source:
SL 2017, ch 211, §19.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-16.9 - Security required for domestic ceding insurer to qualify for full financial statement credit for reinsurance ceded to certified reinsurer.

58-14-16.9. Security required for domestic ceding insurer to qualify for full financial statement credit for reinsurance ceded to certified reinsurer.
In order for a domestic ceding insurer to qualify for full financial statement credit for reinsurance ceded to a certified reinsurer, the certified reinsurer shall maintain security in a form acceptable to the director and consistent with §58-14-16, or in a multibeneficiary trust in accordance with §58-14-11, except as otherwise provided in §§58-14-16.8 to 58-14-16.13, inclusive.
Source:
SL 2017, ch 211, §20.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-16.10 - Trust accounts of certified reinsurer securing obligations as multibeneficiary trust.

58-14-16.10. Trust accounts of certified reinsurer securing obligations as multibeneficiary trust.
If a certified reinsurer maintains a trust to fully secure the certified reinsurer's obligations subject to §58-14-11 and chooses to secure the certified reinsurer's obligations incurred as a certified reinsurer in the form of a multibeneficiary trust, the certified reinsurer shall maintain separate trust accounts for the certified reinsurer's obligations incurred under reinsurance agreements issued or renewed as a certified reinsurer with reduced security as permitted by this chapter or comparable laws of other United States jurisdictions and for the certified reinsurer's obligations subject to §58-14-11. It shall be a condition to the grant of certification that the certified reinsurer shall have bound itself, by the language of the trust and agreement with the director with principal regulatory oversight of each trust account, to fund upon termination of any trust account, out of the remaining surplus of the trust any deficiency of any other trust account.
Source:
SL 2017, ch 211, §21.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-16.11 - Minimum trusteed surplus requirements.

58-14-16.11. Minimum trusteed surplus requirements.
The minimum trusteed surplus requirements are not applicable with respect to a multibeneficiary trust maintained by a certified reinsurer for the purpose of securing obligations incurred under §§58-14-16.8 to 58-14-16.13, inclusive, except that the trust shall maintain a minimum trusteed surplus of ten million dollars.
Source:
SL 2017, ch 211, §22.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-16.12 - Reduction in allowable credit for insufficient security.

58-14-16.12. Reduction in allowable credit for insufficient security.
With respect to obligations incurred by a certified reinsurer under §§58-14-16.8 to 58-14-16.13, inclusive, if the security is insufficient, the director shall reduce the allowable credit by an amount proportionate to the deficiency and has the discretion to impose further reductions in allowable credit upon finding that there is a material risk the certified reinsurer' s obligations may not be paid in full when due.
Source:
SL 2017, ch 211, §23.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-16.13 - Terminated or suspended certification--Inactive status.

58-14-16.13. Terminated or suspended certification--Inactive status.
A certified reinsurer whose certification has been terminated for any reason shall be treated as a certified reinsurer required to secure one hundred percent of the certified reinsurer's obligations. For the purposes of this section, the term, terminated, means revocation, suspension, voluntary surrender, and inactive status. If the director continues to assign a higher rating as permitted by other provisions regarding certification, this requirement does not apply to a certified reinsurer in inactive status or to a reinsurer whose certification has been suspended.
Source:
SL 2017, ch 211, §24.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-16.14 - Applicant for certification certified as reinsurer in National Association of Insurance Commissioners accredited jurisdiction.

58-14-16.14. Applicant for certification certified as reinsurer in National Association of Insurance Commissioners accredited jurisdiction.
If an applicant for certification has been certified as a reinsurer in a National Association of Insurance Commissioners accredited jurisdiction, the director has the discretion to defer to that jurisdiction's certification and has the discretion to defer to the rating assigned by that jurisdiction. Upon approval by the director, the applicant shall be considered to be a certified reinsurer in this state.
Source:
SL 2017, ch 211, §25.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-16.15 - Inactive certified reinsurers.

58-14-16.15. Inactive certified reinsurers.
A certified reinsurer that ceases to assume new business in this state may request to maintain the certified reinsurer's certification in inactive status in order to continue to qualify for a reduction in security for the certified reinsurer's in-force business. An inactive certified reinsurer shall continue to comply with all applicable requirements of certification, and the director shall assign a rating that takes into account, if relevant, the reasons why the reinsurer is not assuming new business.
Source:
SL 2017, ch 211, §26.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-16.16 - Management and notice requirements regarding ceding insurer's reinsurance recoverables.

58-14-16.16. Management and notice requirements regarding ceding insurer's reinsurance recoverables.
A ceding insurer shall take steps to manage the ceding insurer's reinsurance recoverables proportionate to the ceding insurer's own book of business. A domestic ceding insurer shall notify the director within thirty days after reinsurance recoverables from any single assuming insurer, or group of affiliated assuming insurers, exceeds fifty percent of the domestic ceding insurer's last reported surplus to policyholders, or after the ceding insurer determined that reinsurance recoverables from any single assuming insurer, or group of affiliated assuming insurers, is likely to exceed this limit. The notification shall demonstrate the exposure is safely managed by the domestic ceding insurer.
Source:
SL 2017, ch 211, §27.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-16.17 - Diversification of ceding insurer's reinsurance program--Notice requirements.

58-14-16.17. Diversification of ceding insurer's reinsurance program--Notice requirements.
A ceding insurer shall take steps to diversify the ceding insurer's reinsurance program. A domestic ceding insurer shall notify the director within thirty days after ceding to any single assuming insurer, or group of affiliated assuming insurers, more than twenty percent of the ceding insurer's gross written premium in the prior calendar year, or after the ceding insurer has determined that the reinsurance ceded to any single assuming insurer, or group of affiliated assuming insurers, is likely to exceed this limit. The notification shall demonstrate the exposure is safely managed by the domestic ceding insurer.
Source:
SL 2017, ch 211, §28.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-16.18 - Qualified United States financial institution defined for purposes of subdivision 58-14-16(3).

58-14-16.18. Qualified United States financial institution defined for purposes of subdivision 58-14-16(3).
For the purposes of subdivision 58-14-16(3), a qualified United States financial institution, means an institution that:
(1)Is organized or, in the case of a United States branch or agency office of a foreign banking organization, licensed under the laws of the United States or any state thereof;
(2)Is regulated, supervised, and examined by United States federal or state authorities having regulatory authority over banks and trust companies; and
(3)Has been determined by either the director or the Securities Valuation Office of the National Association of Insurance Commissioners to meet the standards of financial condition and standing as are considered necessary and appropriate to regulate the quality of financial institutions whose letters of credit will be acceptable to the director.
Source:
SL 2017, ch 211, §29.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-16.19 - Trust agreement conditions for assuming insurers not meeting certain requirements.

58-14-16.19. Trust agreement conditions for assuming insurers not meeting certain requirements.
If the assuming insurer does not meet the requirements of §58-14-8, 58-14-9, or 58-14-10, the credit permitted by §58-14-11 or 58-14-16.1 may not be allowed unless the assuming insurer agrees in the trust agreement to the following conditions:
(1)Notwithstanding any other provisions in the trust instrument, if the trust fund is inadequate because the trust fund contains an amount less than the amount less than the amount required, or if the grantor of the trust has been declared insolvent or placed into receivership, rehabilitation, liquidation, or similar proceedings under the laws of its state or country of domicile, the trustee shall comply with an order of the director with regulatory oversight over the trust or with an order of court of competent jurisdiction directing the trustee to transfer to the director with regulatory oversight all of the assets of the trust fund;
(2)The assets shall be distributed by and claims shall be filed with and valued by the director with regulatory oversight in accordance with the laws of the state in which the trust is domiciled that are applicable to the liquidation of domestic insurance companies;
(3)If the director with regulatory oversight determines that the assets of the trust fund or any part thereof are not necessary to satisfy the claims of the United States ceding insurer of the grantor of the trust, the assets or part thereof shall be returned by the director with regulatory oversight to the trustee for distribution in accordance with the trust agreement; and
(4)The grantor shall waive any right otherwise available to the grantor under United States law that is inconsistent with this section.
Source:
SL 2017, ch 211, §30.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-16.20 - Suspension or revocation of reinsurer' s accreditation or certification.

58-14-16.20. Suspension or revocation of reinsurer' s accreditation or certification.
If an accredited or certified reinsurer ceases to meet the requirements for accreditation or certification, the director may suspend or revoke the reinsurer' s accreditation or certification. The director shall give the reinsurer notice and opportunity for hearing. The suspension or revocation may not take effect until after the director's order on hearing, unless:
(1)The reinsurer waives the reinsurer's right to hearing;
(2)The director's order is based on regulatory action by the reinsurer's domiciliary jurisdiction or the volunteer surrender or termination of the reinsurer' s eligibility to transact insurance or reinsurance business in the reinsurer's domiciliary jurisdiction or in the primary certifying state of the reinsurer under §58-14-16.14; or
(3)The director finds that an emergency requires immediate action and a court of competent jurisdiction has not stayed the director's action.
Source:
SL 2017, ch 211, §31.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-16.21 - Credit for reinsurance during suspension or revocation.

58-14-16.21. Credit for reinsurance during suspension or revocation.
While a reinsurer's accreditation or certification is suspended, no reinsurance contract issued or renewed after the effective date of the suspension qualifies for credit except to the extent that the reinsurer's obligations under the contract are secured in accordance with §58-14-16. If a reinsurer's accreditation or certification is revoked, no credit for reinsurance may be granted after the effective date of the revocation except to the extent the reinsurer's obligations under the contract are secured in accordance with §58-14-16 or §§58-14-16.8 to 58-14-16.13, inclusive.
Source:
SL 2017, ch 211, §32.