<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.s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0 { 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.s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0 { color: #000000; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0-000000 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0-000001 { color: #000000; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000002 { color: #000000; background: white; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } table.s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000003 { border-collapse: collapse; border: none; margin-left: 0; margin-bottom: .001pt; } td.s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000004 { vertical-align: middle; width: 97.4pt; border-top: solid #000000 1.0pt; padding-top: 0; border-right: solid #000000 1.0pt; padding-right: 5.4pt; border-bottom: solid #000000 1.0pt; padding-bottom: 0; border-left: solid #000000 1.0pt; padding-left: 5.4pt; } p.s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0-000005 { margin-top: 0; margin-bottom: 0; margin-left: 0; margin-right: 0; text-indent: 0.00in; text-align: center; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; } td.s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000006 { vertical-align: middle; width: 97.45pt; border-top: solid #000000 1.0pt; padding-top: 0; border-right: solid #000000 1.0pt; padding-right: 5.4pt; border-bottom: solid #000000 1.0pt; padding-bottom: 0; border-left: solid #000000 1.0pt; padding-left: 5.4pt; } td.s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000007 { vertical-align: top; width: 97.4pt; border-top: solid #000000 1.0pt; padding-top: 0; border-right: solid #000000 1.0pt; padding-right: 5.4pt; border-bottom: solid #000000 1.0pt; padding-bottom: 0; border-left: solid #000000 1.0pt; padding-left: 5.4pt; } span.s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0-000008 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0"><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">    </span><a href="https://sdlegislature.gov/Rules?Rule=20:06:31:27"><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0-000000">20</span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0-000000">:</span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0-000000">06</span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0-000000">:</span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0-000000">31</span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0-000000">:</span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0-000000">27</span></a><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0-000001">.  Certified reinsurers -</span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0-000001">- R</span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0-000001">atings.</span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0"> Each certified reinsurer shall be rated on a</span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0"> </span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">legal entity basis, with due consideration being given to the group rating where appropriate,</span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0"> </span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">except that an association including incorporated and individual unincorporated underwriters that</span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0"> </span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">has been approved to do business as a single certified reinsurer may be evaluated on the basis of</span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0"> </span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">its group rating. Factors that may be considered as part of the evaluation process include:</span></p><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0"><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000002"> </span></p><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0"><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">    (1)</span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">  </span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">The certified reinsurer's financial strength rating from an acceptable rating agency.</span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0"> </span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">The maximum rating that a certified reinsurer may be assigned will correspond to its financial</span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0"> </span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">strength rating as outlined in the table below. The director shall use the lowest financial strength</span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0"> </span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">rating received from an approved rating agency in establishing the maximum rating of a certified</span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0"> </span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">reinsurer. A failure to obtain or maintain at least two financial strength ratings from acceptable</span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0"> </span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">rating agencies will result in loss of eligibility for certification;</span></p><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0"><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000002"> </span></p><div align="left"><table dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000003"><tr><td class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000004"><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0-000005"><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">Ratings</span></p></td><td class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000006"><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0-000005"><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">Best</span></p></td><td class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000006"><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0-000005"><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">S&amp;P</span></p></td><td class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000006"><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0-000005"><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">Moody's</span></p></td><td class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000006"><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0-000005"><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">Fitch</span></p></td></tr><tr><td class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000007"><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0"><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">Secure - 1</span></p></td><td class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000006"><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0-000005"><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">A++</span></p></td><td class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000006"><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0-000005"><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">AAA</span></p></td><td class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000006"><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0-000005"><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">Aaa</span></p></td><td class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000006"><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0-000005"><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">AAA</span></p></td></tr><tr><td class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000007"><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0"><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">Secure -2</span></p></td><td class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000006"><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0-000005"><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">A+</span></p></td><td class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000006"><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0-000005"><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">AA+, AA, AA-</span></p></td><td class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000006"><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0-000005"><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">Aa1, Aa2, Aa3</span></p></td><td class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000006"><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0-000005"><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">AA+, AA, AA-</span></p></td></tr><tr><td class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000007"><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0"><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">Secure - 3</span></p></td><td class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000006"><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0-000005"><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">A</span></p></td><td class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000006"><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0-000005"><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">A+, A</span></p></td><td class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000006"><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0-000005"><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">A1, A2</span></p></td><td class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000006"><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0-000005"><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">A+, A</span></p></td></tr><tr><td class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000007"><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0"><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">Secure - 4</span></p></td><td class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000006"><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0-000005"><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">A-</span></p></td><td class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000006"><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0-000005"><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">A-</span></p></td><td class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000006"><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0-000005"><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">A3</span></p></td><td class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000006"><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0-000005"><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">A-</span></p></td></tr><tr><td class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000007"><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0"><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">Secure - 5</span></p></td><td class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000006"><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0-000005"><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">B++, B+</span></p></td><td class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000006"><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0-000005"><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">BBB+, BBB, BBB-</span></p></td><td class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000006"><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0-000005"><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">Baa1, Baa2, Baa3</span></p></td><td class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000006"><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0-000005"><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">BBB+, BBB, BBB-</span></p></td></tr><tr><td class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000007"><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0"><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">Vulnerable - 6</span></p></td><td class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000006"><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0-000005"><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">B, B-, C++, C+, C, C-, D, E, F</span></p></td><td class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000006"><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0-000005"><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">BB+, BB, BB-, B+, B, B-, CCC, CC, C, D, R</span></p></td><td class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000006"><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0-000005"><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">Ba1, Ba2, Ba3, B1, Bs, B3, Caa, Ca, C</span></p></td><td class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000006"><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0-000005"><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">BB+, BB, BB-, B+, B, B-, CCC+, CC, CCC-, DD</span></p></td></tr></table></div><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0"><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000002"> </span></p><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0"><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">    (2)</span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">  </span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">The business practices of the certified reinsurer in dealing with its ceding insurers,</span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0"> </span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">including its record of compliance with reinsurance contractual terms and obligations;</span></p><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0"><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000002"> </span></p><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0"><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">    (3)</span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">  </span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">For certified reinsurers domiciled in the U.S., a review of the most recent applicable</span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0"> Form</span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0"> Schedule F</span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">, provided by the director, </span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">for property/casualty reinsurers or </span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">Form </span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">Schedule S</span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">, provided by the director,</span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0"> for life and health reinsurers;</span></p><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0"><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000002"> </span></p><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0"><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">    (4)</span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">  </span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">For certified reinsurers not domiciled in the U.S., a review annually of Form CR-F,</span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0"> </span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">provided by the director, for property/casualty reinsurers or Form CR-S, provided by the</span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0"> </span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">director, for life and health reinsurers;</span></p><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0"><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000002"> </span></p><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0"><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">    (5)</span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">  </span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">The reputation of the certified reinsurer for prompt payment of claims under</span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0"> </span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">re</span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">in</span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">surance agreements, based on an analysis of </span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">the </span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">ceding insurers' </span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">Form </span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">Schedule F reporting of</span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0"> </span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">overdue reinsurance recoverables, including the proportion of obligations that are more than</span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0"> 90</span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0"> days past due or that are in dispute, with specific attention given to obligations payable to</span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0"> </span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">companies that are in administrative supervision or receivership;</span></p><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0"><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000002"> </span></p><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0"><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">    (6)</span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">  </span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">Regulatory actions against the certified reinsurer;</span></p><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0"><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000002"> </span></p><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0"><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">    (7)</span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">  </span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">The report of the independent auditor on the financial statements of the insurance</span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0"> </span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">enterprise, on the basis described in subdivision (8) of this section;</span></p><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0"><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000002"> </span></p><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0"><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">    (8)</span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">  </span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">Audited financial statements for certified reinsurers not domiciled in the U.S., regulatory filings, and actuarial opinion as filed with the</span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0"> </span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">non-U.S. jurisdiction supervisor</span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">, with a translation into English</span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">. Upon the initial application for certification, the director will</span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0"> </span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">consider audited financial statements for the last </span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">two</span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0"> years filed with its non-U.S. jurisdiction's</span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0"> </span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">supervisor;</span></p><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0"><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000002"> </span></p><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0"><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">    (9)</span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">  </span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">The liquidation priority of obligations to a ceding insurer in the certified reinsurer's</span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0"> </span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">domiciliary jurisdiction in the context of an insolvency proceeding;</span></p><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0"><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000002"> </span></p><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0"><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">    (10)</span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">  </span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">A certified reinsurer's participation in any solvent scheme of arrangement, or similar</span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0"> </span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">procedure, </span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">involving </span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">U.S. ceding insurers. The director shall receive prior notice from a</span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0"> </span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">certified reinsurer that proposes participation by the certified reinsurer in a solvent scheme of</span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0"> </span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">arrangement; and</span></p><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0"><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000002"> </span></p><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0"><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">    (</span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">1</span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">1)</span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">  </span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">Any other information deemed relevant by the direct</span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">or</span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">.</span></p><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0"><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000002"> </span></p><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0"><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">    </span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0-000001">Source:</span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0"> 44 SDR 71, effective October 23, 2017</span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">; 48 SDR 39, effective October 4, 2021</span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">.</span></p><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0"><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">    </span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0-000001">General Authority:</span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=58-14-17"><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0-000008">58-14-17</span></a><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">.</span></p><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0"><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">    </span><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0-000001">Law Implemented:</span><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=58-14-16.1"><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0-000008">58-14-16.1</span></a><span class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbC0">.</span></p><p dir="ltr" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bbP0"><span xml:space="preserve" class="s29cac7e8-4a1c-4939-a54d-ea52d58d49bb000002"> </span></p></div></body></html>