reglab/statecodes huggingface dataset:
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:36 - Risk-based capital (RBC) reports › Section 20:06:36:08 - Company action level event - Filing of RBC plan

Current through Register Vol. 51, page 10, July 15, 2024
If a company action level event occurs, the insurer or health organization shall prepare and submit to the director an RBC plan which does the following:
(1) Identifies the conditions which contribute to the company action level event;
(2) Contains proposals of corrective actions which the insurer or health organization intends to take and which would be expected to result in the elimination of the company action level event;
(3) Provide projections of the insurer's or health organization's financial results in the current year and at least the four succeeding years, both in the absence and presence of proposed corrective actions, including projections of statutory operating income, net income, capital, and surplus. The projections for both new and renewal business must include separate projections for each major line of business and separately identify each significant income, expense, and benefit component;
(4) Identifies the key assumptions affecting the insurer's or health organization's projections and the sensitivity of the projections to the assumptions; and
(5) Identifies the quality of, and problems associated with, the insurer's or health organization's business, including its assets, anticipated business growth and associated surplus strain, extraordinary exposure to risk, mix of business, and use of reinsurance, if any, in each case.
General Authority:
SDCL  58-4-48.
Law Implemented:
SDCL  58-4-48.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:36 - Risk-based capital (RBC) reports › Section 20:06:36:09 - Time for filing RBC plan

Current through Register Vol. 51, page 10, July 15, 2024
The RBC plan must be submitted within 45 days of the company action level event or, if the insurer or health organization challenges an adjusted RBC report pursuant to §
									20:06:36:21, within 45 days after notice to the insurer or health organization that the director has, after a hearing, rejected the insurer's or health organization's challenge.
General Authority:
SDCL  58-4-48.
Law Implemented:
SDCL  58-4-48.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:36 - Risk-based capital (RBC) reports › Section 20:06:36:10 - Review of RBC plan by director

Current through Register Vol. 51, page 10, July 15, 2024
Within 60 days after the submission by an insurer or health organization of an RBC plan to the director, the director may notify the insurer whether the RBC plan shall be implemented or is, in the judgment of the director, unsatisfactory. If the director determines the RBC plan is unsatisfactory, the notice to the insurer or health organization shall set forth the reasons for the determinations and may set forth proposed revisions which will make the RBC plan satisfactory. Upon receiving notice from the director, the insurer or health organization shall prepare a revised RBC plan, which may incorporate by reference any revisions proposed by the director, and shall submit the revised RBC plan to the director within 45 days after the notice from the director or, if the insurer or health organization challenges the notice from the director under §
									20:06:36:21, within 45 days after the director notifies the insurer or health organization that the director has, after a hearing, rejected the insurer's or health organization's challenge.
General Authority:
SDCL  58-4-48.
Law Implemented:
SDCL  58-4-48.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:36 - Risk-based capital (RBC) reports › Section 20:06:36:11 - Unsatisfactory RBC plan - Notice of regulatory action event

Current through Register Vol. 51, page 10, July 15, 2024
If the director notifies an insurer or health organization that the insurer's or health organization's RBC plan or revised RBC plan is unsatisfactory, the director may, at the director's discretion and subject to the insurer's or health organization's right to a hearing under §
									20:06:36:21, specify in the notice that the notice constitutes a regulatory action level event.
General Authority:
SDCL  58-4-48.
Law Implemented:
SDCL  58-4-48.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:36 - Risk-based capital (RBC) reports › Section 20:06:36:12 - Additional filing requirements for RBC plan

Current through Register Vol. 51, page 10, July 15, 2024
Each domestic insurer or domestic health organization that files an RBC plan or revised RBC plan with the director shall file a copy of the RBC plan or revised RBC plan with the insurance director in any state in which the insurer is authorized to do business under the following circumstance:
(1) The state has an RBC provision for confidentiality substantially similar to §§
									20:06:36:22  to 20:06:36:22.02, inclusive; and
(2) If the insurance director of that state has requested the insurer or health organization in writing for the filing, the insurer or health organization shall file a copy of the RBC plan or revised RBC plan in that state by the later of 15 days after the receipt of notice to file a copy of its RBC plan or revised RBC plan with that state or the date on which the RBC plan or revised RBC plan is filed under §§
									20:06:36:09  and 20:06:36:10.
General Authority:
SDCL  58-4-48.
Law Implemented:
SDCL  58-4-48.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:36 - Risk-based capital (RBC) reports › Section 20:06:36:13 - Regulatory action level event

Current through Register Vol. 51, page 10, July 15, 2024
A regulatory action level event, for any insurer or health organization, is any of the following:
(1) The filing of an RBC report by the insurer or health organization which indicates that the insurer's or health organization's total adjusted capital is greater than or equal to its authorized control level RBC but less than its regulatory action level RBC;
(2) The notice by the director to an insurer or health organization of an adjusted RBC report that indicates the event in subdivision (1) of this section, and the insurer or health organization does not challenge the adjusted RBC report under §
									20:06:36:21;
(3) If, pursuant to §
									20:06:36:21, the insurer or health organization challenges an adjusted RBC report that indicates the event in subdivision (1) of this section, the notice by the director to the insurer or health organization that the director has, after a hearing, rejected the insurer's or health organization's challenge;
(4) The failure of the insurer or health organization to file an RBC report by the filing date, unless the insurer or health organization has provided an explanation for the failure which is satisfactory to the director and has cured the failure within 10 days after the filing date;
(5) The failure of the insurer or health organization to submit an RBC plan to the director within the time required in §
									20:06:36:09;
(6) Notice by the director to the insurer or health organization that the RBC plan or revised RBC plan submitted by the insurer or health organization is, in the judgment of the director, unsatisfactory, and the notice constitutes a regulatory action level event for the insurer or health organization, and the insurer or health organization has not challenged the determination under §
									20:06:36:21;
(7) If, pursuant to §
									20:06:36:21, the insurer or health organization challenges a determination by the director under subdivision (6) of this section, the notice by the director to the insurer or health organization that the director has, after a hearing, rejected the challenge;
(8) Notice by the director to the insurer or health organization that the insurer or health organization has failed to adhere to its RBC plan or revised RBC plan, and the failure has a substantial adverse effect on the ability of the insurer or health organization to eliminate the company action level event in accordance with its RBC plan or revised RBC plan and the insurer or health organization has not challenged that determination under §
									20:06:36:21; or
(9) If, pursuant to §
									20:06:36:21, the insurer or health organization challenges a determination by the director under subdivision (8) of this section, the notice by the director to the insurer or health organization that the director has, after a hearing, rejected the challenge.
General Authority:
SDCL  58-4-48.
Law Implemented:
SDCL  58-4-48.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:36 - Risk-based capital (RBC) reports › Section 20:06:36:14 - Regulatory action level event - Required actions by director

Current through Register Vol. 51, page 10, July 15, 2024
If a regulatory action level event occurs, the director shall do the following:
(1) Require the insurer or health organization to prepare and submit an RBC plan or, if applicable, a revised RBC plan;
(2) Perform any examination or analysis the director considers necessary of the assets, liabilities, and operations of the insurer or health organization, including a review of its RBC plan or revised RBC plan; and
(3) Subsequent to the examination or analysis, issue a corrective order specifying the corrective actions to be taken by the insurer or health organization. In determining corrective actions, the director may take into account any factors considered relevant to the insurer or health organization based on the director's examination or analysis of the assets, liabilities, and operations of the insurer or health organization, including the results of any sensitivity tests undertaken pursuant to the RBC instructions.
General Authority:
SDCL  58-4-48.
Law Implemented:
SDCL  58-4-48.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:36 - Risk-based capital (RBC) reports › Section 20:06:36:15 - Regulatory action level event - Time for filing RBC plan or revised RBC plan

Current through Register Vol. 51, page 10, July 15, 2024
The RBC plan or revised RBC plan must be submitted as follows:
(1) Within 45 days after the occurrence of the regulatory action level event;
(2) If the insurer or health organization challenges an adjusted RBC report pursuant to §
									20:06:36:21  and the challenge is not frivolous in the judgment of the director, within 45 days after the notice to the insurer or health organization that the director has, after a hearing, rejected the insurer's or health organization's challenge; or
(3) If the insurer or health organization challenges a revised RBC plan pursuant to §
									20:06:36:21  and the challenge is not frivolous in the judgment of the director, within 45 days after the notice to the insurer or health organization that the director has, after a hearing, rejected the insurer's or health organization's challenge.
General Authority:
SDCL  58-4-48.
Law Implemented:
SDCL  58-4-48.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:36 - Risk-based capital (RBC) reports › Section 20:06:36:16 - Regulatory action level event - Hiring of consultants by director

Current through Register Vol. 51, page 10, July 15, 2024
The director may retain actuaries and investment experts and other consultants necessary in the judgment of the director to review the insurer's or health organization's RBC plan or revised RBC plan; examine or analyze the assets, liabilities, and operations of the insurer or health organization; and formulate the corrective order for the insurer or health organization. The fees, costs, and expenses relating to consultants must be borne by the affected insurer or health organization or any other party as directed by the director.
General Authority:
SDCL  58-4-48.
Law Implemented:
SDCL  58-4-48.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:36 - Risk-based capital (RBC) reports › Section 20:06:36:17 - Authorized control level event

Current through Register Vol. 51, page 10, July 15, 2024
An authorized control level event is any of the following events:
(1) The filing of an RBC report by the insurer or health organization which indicates that the insurer's or health organization's total adjusted capital is greater than or equal to its mandatory control level RBC but less than its authorized control level RBC;
(2) The notice by the director to the insurer or health organization of an adjusted RBC report that indicates the event in subdivision (1) of this section, and the insurer or health organization does not challenge the adjusted RBC report under §
									20:06:36:21;
(3) If, pursuant to §
									20:06:36:21, the insurer or health organization challenges an adjusted RBC report that indicates the event in subdivision (1) of this section, notice by the director to the insurer or health organization that the director has, after a hearing, rejected the insurer's or health organization's challenge;
(4) The failure of the insurer or health organization to respond to a corrective order in a manner satisfactory to the director and the insurer or health organization has not challenged the corrective order under §
									20:06:36:21; or
(5) If the insurer or health organization has challenged a corrective order under §
									20:06:36:21  and the director has, after a hearing, rejected the challenge or modified the corrective order, the failure of the insurer or health organization to respond to the corrective order in a manner satisfactory to the director subsequent to rejection or modification by the director.
General Authority:
SDCL  58-4-48.
Law Implemented:
SDCL  58-4-48.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:36 - Risk-based capital (RBC) reports › Section 20:06:36:18 - Authorized control level event - Actions of director

Current through Register Vol. 51, page 10, July 15, 2024
If an authorized control level event occurs, the director shall do the following:
(1) Take actions required under §§
									20:06:36:13  to 20:06:36:16, inclusive, for a regulatory action level event; or
(2) If the director considers it to be in the best interests of the policyholders and creditors of the insurer or health organization and of the public, take the actions necessary to cause the insurer or health organization to be placed under regulatory control under SDCL chapter 58-29 B. If the director takes such actions, the authorized control level event is sufficient grounds for the director to take action under SDCL chapter 58-29 B, and the director has the rights, powers, and duties regarding the insurer or health organization set forth in SDCL chapter 58-29 B. If the director takes actions under this subdivision pursuant to an adjusted RBC report, the insurer or health organization is entitled to the protections afforded to insurers or health organizations under the provisions of SDCL  58-29B-24 to  58-29B-30, inclusive.
General Authority:
SDCL  58-4-48.
Law Implemented:
SDCL  58-4-48.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:36 - Risk-based capital (RBC) reports › Section 20:06:36:19 - Mandatory control level event

Current through Register Vol. 51, page 10, July 15, 2024
A mandatory control level event is any of the following:
(1) The filing of an RBC report which indicates that the insurer's or health organization's total adjusted capital is less than its mandatory control level RBC;
(2) Notice by the director to the insurer or health organization of an adjusted RBC report that indicates the event in subdivision (1) of this section, and the insurer or health organization does not challenge the adjusted RBC report under §
									20:06:36:21; or
(3) If, pursuant to §
									20:06:36:21, the insurer or health organization challenges an adjusted RBC report that indicates the event in subdivision (1) of this section, notice by the director to the insurer or health organization that the director has, after a hearing, rejected the insurer's or health organization's challenge.
General Authority:
SDCL  58-4-48.
Law Implemented:
SDCL  58-4-48.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:36 - Risk-based capital (RBC) reports › Section 20:06:36:20 - Mandatory control level event - Actions of director

Current through Register Vol. 51, page 10, July 15, 2024
If a mandatory control level event occurs for a life or health insurer or health organization, the director shall take the actions necessary to place the insurer or health organization under regulatory control under SDCL chapter 58-29 B. The mandatory control level event is sufficient grounds for the director to take action under SDCL chapter 58-29 B, and the director has the rights, powers, and duties regarding the insurer or health organization set forth in SDCL chapter 58-29 B. If the director takes actions pursuant to an adjusted RBC report, the insurer or health organization is entitled to the protections of SDCL  58-29B-24 to  58-29B-30, inclusive. However, the director may forego action for up to 90 days after the mandatory control level event if the director finds a reasonable expectation that the mandatory control level event may be eliminated within that period.
If a mandatory control level event occurs for a property and casualty insurer, the director shall take the actions necessary to place the insurer under regulatory control under SDCL chapter 58-29B, or, if an insurer is writing no business and is running off its existing business, may allow the insurer to continue its run-off under the supervision of the director. The mandatory control level event is sufficient grounds for the director to take action under SDCL chapter 58-29B and the director has the rights, powers, and duties regarding the insurer set forth in SDCL chapter 58-29B. If the director takes actions pursuant to an adjusted RBC report, the insurer is entitled to the protections of provisions SDCL  58-29B-24 to  58-29B-30, inclusive. However, the director may forego action for up to 90 days after the mandatory control level event if the director finds a reasonable expectation that the mandatory control level event may be eliminated within that period.
General Authority:
SDCL  58-4-48.
Law Implemented:
SDCL  58-4-48.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:36 - Risk-based capital (RBC) reports › Section 20:06:36:21 - Hearings

Current through Register Vol. 51, page 10, July 15, 2024
An insurer or health organization may challenge any determination or action by the director by requesting the director for a confidential division hearing within five days after notice to an insurer or health organization by the director for one of the following reasons:
(1) Notice of an adjusted RBC report:
(2) Notice that the insurer's or health organization's RBC plan or revised RBC plan is unsatisfactory and the notice constitutes a regulatory action level event;
(3) Notice that the insurer or health organization has failed to adhere to its RBC plan or revised RBC plan and that the failure has a substantial adverse effect on the ability of the insurer or health organization to eliminate the company action level event in accordance with its RBC plan or revised RBC plan; or
(4) Notice of a corrective order.
Upon receipt of the insurer's or health organization's request for a hearing, the director shall set a date for the hearing which is at least 10 but not more than 30 days after the date of the insurer's or health organization's request.
General Authority:
SDCL  58-4-48.
Law Implemented:
SDCL  58-4-48.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:36 - Risk-based capital (RBC) reports › Section 20:06:36:22 - Confidentiality of RBC reports

Current through Register Vol. 51, page 10, July 15, 2024
All RBC reports, to the extent that information in them is not required to be set forth in a publicly available annual statement schedule, and RBC plans, including the results or report of any examination or analysis of an insurer or health organization performed pursuant to §
									20:06:36:14  and any corrective order issued by the director pursuant to examination or analysis, for any domestic or foreign insurer, or any domestic or foreign health organization, which are filed with the director are confidential. This information may not be made public and is not subject to subpoena other than by the director. The director may make this information public only for the purpose of enforcement actions pursuant to this chapter or any other provision of SDCL Title 58.
Neither the director nor any person who receives documents, materials, or other information while acting under the authority of the director is permitted or required to testify in any private civil action concerning any confidential documents, materials, or information subject to this section.
General Authority:
SDCL  58-4-48.
Law Implemented:
SDCL  58-4-48.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:36 - Risk-based capital (RBC) reports › Section 20:06:36:22.01 - Confidentiality of RBC reports - Sharing and receiving of information by director

Current through Register Vol. 51, page 10, July 15, 2024
In order to assist in the performance of the director's duties, the director:
(1) May share documents, materials, or other information, including the confidential and privileged documents, materials, or information subject to this section, with other state, federal, and international regulatory agencies, with the NAIC and its affiliates and subsidiaries, and with state, federal, and international law enforcement authorities, provided that the recipient agrees to maintain the confidentiality and privileged status of the document, material, or other information; and
(2) May receive documents, materials, or information, including otherwise confidential and privileged documents, materials, or information, from the NAIC and its affiliates and subsidiaries, and from regulatory and law enforcement officials of other foreign or domestic jurisdictions, and shall maintain as confidential or privileged any document, material, or information with notice or the understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the document, material, or information.
General Authority:
SDCL  58-4-48.
Law Implemented:
SDCL  58-4-48.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:36 - Risk-based capital (RBC) reports › Section 20:06:36:22.02 - Confidentiality of RBC reports - Waiver

Current through Register Vol. 51, page 10, July 15, 2024
No waiver of any applicable privilege or claim of confidentiality in the documents, materials, or information occurs as a result of disclosure to the director or a result of sharing as authorized under §§
									20:06:36:22  or 20:06:36:22.01.
General Authority:
SDCL  58-4-48.
Law Implemented:
SDCL  58-4-48.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:36 - Risk-based capital (RBC) reports › Section 20:06:36:23 - Assertions regarding RBC reports prohibited

Current through Register Vol. 51, page 10, July 15, 2024
Except as otherwise required by this chapter, any person engaged in any manner in the insurance business may not make, either directly or indirectly, an assertion, representation, or statement known to the public in any manner, including radio, television, and any printed form, regarding the RBC level of any insurer or health organization or regarding any component derived in the calculation of the RBC level of any insurer or health organization. Such an action is considered misleading.
If an insurer or health organization is able to prove to the director that a materially false statement comparing the insurer's or health organization's total adjusted capital to any of its RBC levels or an inappropriate comparison of any other amount to the insurer's or health organization's RBC levels has been published in a written publication, the insurer or health organization may publish an announcement in a written publication for the sole purpose of rebutting the materially false statement or inappropriate comparison.
General Authority:
SDCL  58-4-48.
Law Implemented:
SDCL  58-4-48.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:36 - Risk-based capital (RBC) reports › Section 20:06:36:24 - Use of RBC reports in ratemaking and premium setting prohibited

Current through Register Vol. 51, page 10, July 15, 2024
The RBC instructions, RBC reports, adjusted RBC reports, RBC plans, and revised RBC plans may be used by the director only for monitoring the solvency of insurers or health organizations and the need for possible corrective action and may not be used for ratemaking, or considered or introduced as evidence in any rate proceeding, or used to calculate or derive any elements of an appropriate premium level or rate of return for any line of insurance which an insurer, health organization, or any affiliate is authorized to write.
General Authority:
SDCL  58-4-48.
Law Implemented:
SDCL  58-4-48.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:36 - Risk-based capital (RBC) reports › Section 20:06:36:25 - Exemption

Current through Register Vol. 51, page 10, July 15, 2024
The director may exempt from the application of this chapter any domestic property and casualty insurer which meets the following requirements:
(1) Writes direct business only in this state;
(2) Writes direct annual premiums of $2,000,000 or less; and
(3) Assumes no reinsurance in excess of five percent of direct premiums written.
The director may exempt from the application of this chapter any domestic health organization which meets the following requirements:
(1) Writes direct business only in this state;
(2) Assumes no reinsurance in excess of five percent of direct premiums written; and
(3) Writes direct annual premiums for comprehensive medical business of $2,000,000 or less; or
(4) Is a limited health service organization that covers less than 2,000 lives.
General Authority:
SDCL  58-4-48.
Law Implemented:
SDCL  58-4-48.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:36 - Risk-based capital (RBC) reports › Section 20:06:36:26 - Foreign insurers and health organizations - Filing of RBC reports and plans

Current through Register Vol. 51, page 10, July 15, 2024
At the written request of the director, any foreign insurer or foreign health organization shall submit to the director an RBC report as of the end of the calendar year just ended by the later of the date an RBC report would be required to be filed by a domestic insurer or domestic health organization under this chapter or 15 days after the request is received by the foreign insurer or foreign health organization.
At the written request of the director, any foreign insurer or foreign health organization shall promptly submit to the director a copy of any RBC plan that is filed with the insurance director of another state.
General Authority:
SDCL  58-4-48.
Law Implemented:
SDCL  58-4-48.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:36 - Risk-based capital (RBC) reports › Section 20:06:36:27 - Foreign insurers and health organizations - Filing of RBC plans after certain events

Current through Register Vol. 51, page 10, July 15, 2024
If a company action level event, regulatory action level event, or authorized control level event occurs for any foreign insurer or foreign health organization as determined under the RBC statute applicable in the state of domicile of the insurer or health organization or, if no RBC statute is in force in that state, under the provisions of this chapter and the insurance director of the state of domicile of the foreign insurer or foreign health organization fails to require the foreign insurer or foreign health organization to file an RBC plan in the manner specified under that state's RBC statute or, if no RBC statute is in force in that state, under §§
									20:06:36:07  to 20:06:36:12, inclusive, of this chapter, the foreign insurer or foreign health organization shall file an RBC plan with the director. The failure of the foreign insurer or foreign health organization to file an RBC plan with the director is grounds to order the insurer or health organization to cease and desist from writing new insurance business in this state.
General Authority:
SDCL  58-4-48.
Law Implemented:
SDCL  58-4-48.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:36 - Risk-based capital (RBC) reports › Section 20:06:36:28 - Foreign insurers and health organizations - Mandatory control level event

Current through Register Vol. 51, page 10, July 15, 2024
If a mandatory control level event occurs for any foreign insurer or foreign health organization and no domiciliary receiver has been appointed for the foreign insurer or foreign health organization under the rehabilitation and liquidation statute applicable in the state of domicile of the foreign insurer or foreign health organization, the director may apply to the circuit court of Hughes County, as permitted under SDCL chapter 58-29 B, for the liquidation of property of foreign insurers or foreign health organizations found in this state. The occurrence of the mandatory control level event is adequate grounds for the application.
General Authority:
SDCL  58-4-48.
Law Implemented:
SDCL  58-4-48.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:37 - Actuarial opinions and memorandums › Section 20:06:37:01 - Definitions

Current through Register Vol. 51, page 10, July 15, 2024
Terms used in this chapter are defined as follows:
(1) "Actuarial opinion," the opinion of an appointed actuary regarding the adequacy of the reserves and related actuarial items based on an asset adequacy analysis in accordance with this chapter and with presently accepted actuarial standards as set forth in
Actuarial Standards of Practice
;
(2) "Actuarial Standards Board," the board established by the American Academy of Actuaries to develop and promulgate standards of actuarial practice;
(3) "Annual statement," the statement required by SDCL  58-6-75 to be filed by the company with the director annually;
(4) "Appointed actuary," an individual who is appointed or retained in accordance with the requirements in §
									20:06:37:06  to provide the actuarial opinion and supporting memorandum as required by SDCL  58-26-46 to  58-26-55, inclusive;
(5) "Asset adequacy analysis," an analysis that meets the standards and other requirements referred to in §
									20:06:37:07;
(6) "Director," the director of the South Dakota Division of Insurance;
(7) "Company," a life insurance company, fraternal benefit society, or reinsurer subject to this chapter;
(8) "Qualified actuary," an individual who meets the requirements in §
									20:06:37:05.
General Authority:
SDCL  58-26-46.
Law Implemented:
SDCL  58-26-46.
Actuarial Standards of Practice
, American Academy of Actuaries. Copies may be obtained from the American Academy of Actuaries free of charge on the website:
http://www.actuarialstandardsboard.org/asops.htm
.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:37 - Actuarial opinions and memorandums › Section 20:06:37:02 - Scope

Current through Register Vol. 51, page 10, July 15, 2024
This chapter applies to all life insurance companies and fraternal benefit societies doing business in this state and to all life insurance companies and fraternal benefit societies which are authorized to reinsure life insurance, annuities, or accident and health insurance business in this state.
This chapter shall be applied in a manner that allows the appointed actuary to utilize his or her professional judgment in performing the asset analysis and developing the actuarial opinion and supporting memoranda, consistent with relevant actuarial standards of practice. However, the director has the authority to specify particular methods of actuarial analysis and actuarial assumptions if, in the director's judgment, these specifications are necessary for an acceptable opinion to be rendered relative to the adequacy of reserves and related items.
This chapter is applicable to any annual statement filed with the director. A statement of opinion on the adequacy of the reserves and related actuarial items based on an asset adequacy analysis in accordance with §§
									20:06:37:29  to 20:06:37:39, inclusive, and a memorandum in support thereof in accordance with §§
									20:06:37:40  to 20:06:37:47, inclusive, is required each year.
General Authority:
SDCL  58-26-46.
Law Implemented:
SDCL  58-26-46.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:37 - Actuarial opinions and memorandums › Section 20:06:37:04 - Submission of statement of actuarial opinions

Current through Register Vol. 51, page 10, July 15, 2024
The statement of an appointed actuary, entitled "Statement of Actuarial Opinion," must be included on or attached to page 1 of the annual statement for each year. The statement must set forth an opinion relating to reserves and related actuarial items held in support of policies and contracts in accordance with §§
									20:06:37:29  to 20:06:37:39, inclusive.
Upon written request by the company, the director may grant an extension of the date for submission of the statement of actuarial opinion.
General Authority:
SDCL  58-26-46.
Law Implemented:
SDCL  58-26-46.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:37 - Actuarial opinions and memorandums › Section 20:06:37:05 - Qualified actuary

Current through Register Vol. 51, page 10, July 15, 2024
A qualified actuary is an individual who meets the following requirements:
(1) Is a member in good standing of the American Academy of Actuaries;
(2) Is qualified to sign statements of actuarial opinion for life and health insurance company annual statements in accordance with the qualification standards of the American Academy of Actuaries for actuaries signing such statements, "Qualification Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States," American Academy of Actuaries, effective January 1, 2008;
(3) Is familiar with the valuation requirements applicable to life and health insurance companies;
(4) Has not been found by the director to have done any of the following pursuant to notice and hearing, or if so found and disciplined, has subsequently been reinstated as a qualified actuary:
(a) Violated any provision of, or any obligation imposed by SDCL Title 58 or other law in the course of dealings as a qualified actuary;
(b) Been found guilty of fraudulent or dishonest practices;
(c) Demonstrated incompetency to act as a qualified actuary, a lack of cooperation, or untrustworthiness;
(d) Submitted to the director after the effective date of this chapter, an actuarial opinion or memorandum that the director rejected because it did not meet the provisions of this chapter, including standards set by the Actuarial Standards Board in
Actuarial Standards of Practice
; or
(e) Resigned or been removed as an actuary within the past five years as a result of acts or omissions indicated in any adverse report on examination or as a result of failure to adhere to generally accepted actuarial standards; and
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:37 - Actuarial opinions and memorandums › Section 20:06:37:06 - Appointed actuary

Current through Register Vol. 51, page 10, July 15, 2024
An appointed actuary is a qualified actuary who is appointed or retained to prepare the statement of actuarial opinion required by this chapter either directly by or by the authority of the board of directors through an executive officer of the company. The company shall give the director timely written notice of the name, title, and, in the case of a consulting actuary, the name of the firms, and the manner of appointment or retention of each person appointed or retained by the company as an appointed actuary. The company must state in the notice that the person meets the requirements of §
									20:06:37:05. The notice must state if any person appointed or retained as an appointed actuary replaces a previously appointed actuary, and give the reasons for replacement.
Once notice of an appointed actuary is furnished, no further notice is required; however, the company must give the director timely written notice if the actuary ceases to be appointed or retained as an appointed actuary or to meet the requirements in §
									20:06:37:05.
General Authority:
SDCL  58-26-52.
Law Implemented:
SDCL  58-26-46.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:37 - Actuarial opinions and memorandums › Section 20:06:37:07 - Standards for asset adequacy analysis

Current through Register Vol. 51, page 10, July 15, 2024
The asset adequacy analysis required by this chapter:
(1) Must conform to the standards of practice in Actuarial Standard of Practice No. 22, "Statements of Opinion Based on Asset Adequacy Analysis by Appointed Actuaries for Life or Health Insurers" adopted by the Actuarial Standards Board, September 2001, and on any additional standards under this chapter. These standards must form the basis of the statement of actuarial opinion in accordance with §§
									20:06:37:29  to 20:06:37:39, inclusive;
(2) Shall be based on methods of analysis as are deemed appropriate for such purposes by the Actuarial Standards Board.
General Authority:
SDCL  58-26-47.
Law Implemented:
SDCL  58-26-47.
Actuarial Standards of Practice
, American Academy of Actuaries. Copies may be obtained free of charge on the website:
http://www.actuarialstandardsboard.org/asops.htm
.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:37 - Actuarial opinions and memorandums › Section 20:06:37:08 - Liabilities to be covered

Current through Register Vol. 51, page 10, July 15, 2024
Pursuant to SDCL  58-26-46 to  58-26-55, inclusive, the statement of actuarial opinion applies to all business in force on the statement date, whether directly issued or assumed, regardless of when or where issued.
If the appointed actuary determines as the result of asset adequacy analysis that a reserve should be held in addition to the aggregate reserve held by the company and calculated in accordance with methods set forth in SDCL  58-26-75,  58-26-76, and  58-26-81 to  58-26-84, inclusive, the company must establish the additional reserve.
Additional reserves established under this section and considered not necessary in subsequent years may be released. Any amounts released must be disclosed in the actuarial opinion for the applicable year. The release of such reserves is not considered an adoption of a lower standard of valuation.
General Authority:
SDCL  58-26-46,  58-26-47,  58-26-50.
Law Implemented:
SDCL  58-26-46,  58-26-47,  58-26-50.
Example:
Statement of actuarial opinion would apply to reserves of Exhibits 5, 6, and 7, and claim liabilities in Exhibit 8, Part I of the annual statement and equivalent items in the separate account statement or statements pursuant to SDCL chapter 58-28.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:37 - Actuarial opinions and memorandums › Section 20:06:37:29 - Contents of statement of actuarial opinion based on asset adequacy analysis

Current through Register Vol. 51, page 10, July 15, 2024
The statement of actuarial opinion based on an asset adequacy analysis submitted in accordance with this section consists of the following:
(1) A paragraph identifying the appointed actuary and the actuary's qualifications (see §
									20:06:37:31);
(2) A scope paragraph identifying the subjects on which an opinion is to be expressed and describing the scope of the appointed actuary's work, including a tabulation delineating the reserves and related actuarial items which have been analyzed for asset adequacy and the method of analysis (see §
									20:06:37:32) and identifying the reserves and related actuarial items covered by the opinion which have not been analyzed;
(3) A reliance paragraph describing those areas, if any, where the appointed actuary has deferred to other experts in developing data, procedures or assumptions, e.g., anticipated cash flows from currently owned assets, including variation in cash flows according to economic scenarios (see §
									20:06:37:33). supported by a statement of each such expert in the form prescribed by §
									20:06:37:39;
(4) An opinion paragraph expressing the appointed actuary's opinion about the adequacy of the supporting assets to mature the liabilities (see §
									20:06:37:36); and
(5) One or more additional paragraphs as needed in individual company cases, as follows:
(a) If the appointed actuary considers it necessary to state a qualification of the opinion;
(b) If the appointed actuary must disclose an inconsistency between the method of analysis or basis of asset allocation used at the prior opinion date, and that used for this opinion;
(c) If the appointed actuary must disclose whether additional reserves of the prior opinion date are released as of this opinion date, and the extent of the release;
(d) If the appointed actuary chooses to add a paragraph briefly describing the assumptions which form the basis for the actuarial opinion.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:37 - Actuarial opinions and memorandums › Section 20:06:37:31 - Opening paragraph

Current through Register Vol. 51, page 10, July 15, 2024
The opening paragraph must generally indicate the appointed actuary's relationship to the company and the actuary's qualifications to sign the opinion. For a company actuary, the opening paragraph of the actuarial opinion must read as follows:
I, [name], am [title] of [insurance company name] and a member of the American Academy of Actuaries. I was appointed by, or by the authority of, the Board of Directors of the insurer to render this opinion as stated in the letter to the director dated [insert date]. I meet the academy qualification standards for rendering the opinion and am familiar with the valuation requirements applicable to life and health insurance companies.
For a consulting actuary, the opening paragraph must contain a sentence similar to the following:
I, [name], a member of the American Academy of Actuaries, am associated with the firm of [name of consulting firm]. I have been appointed by, or by the authority of, the Board of Directors of [name of company] to render this opinion as stated in the letter to the director dated [insert date] I meet the academy qualification standards for rendering the opinion and am familiar with the valuation requirements applicable to life and health insurance companies.
General Authority:
SDCL  58-26-46,  58-26-47,  58-26-50.
Law Implemented:
SDCL  58-26-46,  58-26-47,  58-26-50.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:37 - Actuarial opinions and memorandums › Section 20:06:37:32 - Scope paragraph

Current through Register Vol. 51, page 10, July 15, 2024
The scope paragraph must indicate a statement such as the following:
I have examined the actuarial assumptions and actuarial methods used in determining reserves and related actuarial items listed below, as shown in the annual statement of the company, as prepared for filing with state regulatory officials, as of December 31, 19[ ]. Tabulated below are those reserves and related actuarial items which have been subjected to asset adequacy analysis. [Insert tables of items subject to asset adequacy analysis contained in Appendix A at the end of this chapter].
General Authority:
SDCL  58-26-46,  58-26-47,  58-26-50.
Law Implemented:
SDCL  58-26-46,  58-26-47,  58-26-50.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:37 - Actuarial opinions and memorandums › Section 20:06:37:33 - Notation of actuary's reliance upon experts

Current through Register Vol. 51, page 10, July 15, 2024
If the appointed actuary has relied on other experts to develop certain portions of the analysis, the reliance paragraph must include a statement such as the following:
I have relied on [name], [title] for [e.g., anticipated cash flows from currently owned assets, including variations in cash flows according to economic scenarios or certain critical aspects of the analysis performed in conjunction with forming my opinion], as certified in the attached statement. I have reviewed the information relied upon for reasonableness.
The statement of reliance on other experts must be accompanied by a statement by each of the experts in the form prescribed by §
									20:06:37:39.
General Authority:
SDCL  58-26-46,  58-26-47,  58-26-50.
Law Implemented:
SDCL  58-26-46,  58-26-47,  58-26-50.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:37 - Actuarial opinions and memorandums › Section 20:06:37:34 - Reliance paragraph - Examination of underlying assets and liability records completed

Current through Register Vol. 51, page 10, July 15, 2024
If the appointed actuary has examined the underlying asset and liability records, the reliance paragraph must also include the following:
My examination included review of the actuarial assumptions and actuarial methods and of the underlying basic asset and liability records and those tests of the actuarial calculations that I considered necessary. I also reconciled the underlying basic asset and liability records to [exhibits and schedules listed as applicable] of the company's current annual statement.
General Authority:
SDCL  58-26-46,  58-26-47,  58-26-50.
Law Implemented:
SDCL  58-26-46,  58-26-47,  58-26-50.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:37 - Actuarial opinions and memorandums › Section 20:06:37:35 - Reliance paragraph - Examination of underlying records not completed

Current through Register Vol. 51, page 10, July 15, 2024
If the appointed actuary has not examined the underlying records, but has relied upon data (e.g., listings and summaries of policies in force or asset records) prepared by the company, the reliance paragraph shall include a sentence such as the following:
In forming my opinion on [specify types of reserves] I relied upon data prepared by [name and title of company officer certifying in force records or other data] as certified in the attached statements. I evaluated that data for reasonableness and consistency. I also reconciled that data to [exhibits and schedules to be listed as applicable] of the company's current annual statement. In other aspects, my examination included review of the actuarial assumptions and actuarial methods used and tests of the calculations I considered necessary.
Such a section must be accompanied by a statement by each person relied upon in the form prescribed in §
									20:06:37:39.
General Authority:
SDCL  58-26-46,  58-26-47,  58-26-50.
Law Implemented:
SDCL  58-26-46,  58-26-47,  58-26-50.