20:06:38:34. Expenses. Each year, the insurer shall choose the method used to allocate overhead expenses for all illustrations and the method of determining assumed expenses for all policy forms from the following:
(1) Fully allocated expenses;
(2) Marginal expenses;
(3) The generally recognized expense table in Appendix A at the end of this chapter; or
(4) Another generally recognized expense table based on fully allocated expenses representing a significant portion of insurance companies and approved by the director pursuant to § 20:06:38:35.
For the purpose of determining assumed expenses, marginal expenses may be used only if greater than a generally recognized expense table. If no generally recognized expense table is approved, fully allocated expenses must be used.
Source: 23 SDR 228, effective July 1, 1997.
General Authority: SDCL 58-33-5.1.
Law Implemented: SDCL 58-33-5.1.
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