<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><title></title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s480f8e89-6a61-48c8-8e3c-91545e3e1f11P0 { margin-top: 0; margin-bottom: 0; margin-left: 0; margin-right: 0; text-indent: 0.00in; text-align: justify; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; } span.s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0-000000 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0-000001 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0-000002 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s480f8e89-6a61-48c8-8e3c-91545e3e1f11000003 { color: black; background: white; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s480f8e89-6a61-48c8-8e3c-91545e3e1f11C2 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; text-decoration: underline; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11P0"><span xml:space="preserve" class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0">    </span><a href="https://sdlegislature.gov/Rules?Rule=20:06:09:51"><span class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0-000000">20:06:09:51</span></a><span xml:space="preserve" class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0-000001">.  </span><span class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0-000001">Criteria for requiring the group capital calculation</span><span class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0-000001">.</span><span xml:space="preserve" class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0"> </span><span xml:space="preserve" class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0">Notwithstanding an exemption granted under § </span><a href="https://sdlegislature.gov/Rules?Rule=20:06:09:49"><span class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0-000002">20:06:09:49</span></a><span class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0">, the lead state director or commissioner may require at any time the ultimate controlling person to file an annual group capital calculation, completed in accordance with the National Association of Insurance Commissioners Group Capital Calculation Instructions, 2022 edition, if any of the following criteria are met</span><span class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0">:</span></p><p dir="ltr" class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11P0"><span xml:space="preserve" class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11000003"> </span></p><p dir="ltr" class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11P0"><span xml:space="preserve" class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0">    </span><span xml:space="preserve" class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0">(1)  </span><span class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0">Any insurer within the insurance holding company system is in a Risk-Based Capital action level event as set forth in §§</span><span xml:space="preserve" class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0"> </span><a href="https://sdlegislature.gov/Rules?Rule=20:06:36:07"><span class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0-000002">20:06:36:07</span></a><span xml:space="preserve" class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0">, </span><a href="https://sdlegislature.gov/Rules?Rule=20:06:36:13"><span class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0-000002">20:06:36:13</span></a><span xml:space="preserve" class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0">, </span><a href="https://sdlegislature.gov/Rules?Rule=20:06:36:17"><span class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0-000002">20:06:36:17</span></a><span xml:space="preserve" class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0">, and </span><a href="https://sdlegislature.gov/Rules?Rule=20:06:36:19"><span class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0-000002">20:06:36:19</span></a><span class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0">, inclusive, or a similar standard for a non-U.S. insurer</span><span class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0">;</span></p><p dir="ltr" class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11P0"><span xml:space="preserve" class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11000003"> </span></p><p dir="ltr" class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11P0"><span xml:space="preserve" class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0">    </span><span xml:space="preserve" class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0">(2)  </span><span class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0">Any insurer within the insurance holding company system meets one or more of the standards of an insurer deemed to be in hazardous financial condition as set forth in §</span><span xml:space="preserve" class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0"> </span><a href="https://sdlegislature.gov/Rules?Rule=20:06:23:02"><span class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0-000002">20:06:23:02</span></a><span class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0">; or</span></p><p dir="ltr" class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11P0"><span xml:space="preserve" class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11000003"> </span></p><p dir="ltr" class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11P0"><span xml:space="preserve" class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0">    (3)  </span><span class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0">Any insurer within the insurance holding company system otherwise exhibits qualities of a troubled insurer as determined by the lead state director or commissioner based on unique circumstances</span><span class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0">.</span></p><p dir="ltr" class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11P0"><span xml:space="preserve" class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11000003"> </span></p><p dir="ltr" class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11P0"><span xml:space="preserve" class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0">    </span><span class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0-000001">Source:</span><span xml:space="preserve" class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0"> </span><span class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0">50 SDR 157, effective July 1, 2024</span><span class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0">.</span></p><p dir="ltr" class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11P0"><span xml:space="preserve" class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0">    </span><span class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0-000001">General Authority:</span><span xml:space="preserve" class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=58-5A-94"><span class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0-000002">58-5A-94</span></a><span xml:space="preserve" class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0">, </span><a href="https://sdlegislature.gov/Statutes?Statute=58-5A-95"><span class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0-000002">58-5A-95</span></a><span class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0">.</span></p><p dir="ltr" class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11P0"><span xml:space="preserve" class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0">    </span><span class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0-000001">Law Implemented:</span><span xml:space="preserve" class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0"> SDCL </span><span xml:space="preserve" class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0">SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=58-5A-94"><span class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0-000002">58-5A-94</span></a><span xml:space="preserve" class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0">, </span><a href="https://sdlegislature.gov/Statutes?Statute=58-5A-95"><span class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0-000002">5</span><span class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0-000002">8</span><span class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0-000002">-5A-95</span></a><span class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0">.</span></p><p dir="ltr" class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11P0"><span xml:space="preserve" class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11000003"> </span></p><p dir="ltr" class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11P0"><span xml:space="preserve" class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0">    </span><span xml:space="preserve" class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0-000001">Example: </span><span class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0">(3) The  unique circumstances referenced include the type and volume of business written, ownership and organizational structure, federal agency requests, and international supervisor requests</span><span class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0">.</span></p><p dir="ltr" class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11P0"><span xml:space="preserve" class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11000003"> </span></p><p dir="ltr" class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11P0"><span xml:space="preserve" class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0-000001">    Reference: </span><span class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0-000001">Group Capital Calculation Instructions</span><span xml:space="preserve" class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0">, 2022 edition, National Association of Insurance Commissioners (NAIC). Copies may be obtained from the NAIC, 1100 Walnut Street, Ste. 1500, Kansas City, MO 64106-2197, (816) 783-8300; </span><a href="https://content.naic.org/"><span class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C2">http://www.naic.org</span></a><span class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0">. Cost: $0</span><span class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11C0">.</span></p><p dir="ltr" class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11P0"><span xml:space="preserve" class="s480f8e89-6a61-48c8-8e3c-91545e3e1f11000003"> </span></p></div></body></html>