<html> <head> <title>Rule 20:06:09:28 Determining adequacy of surplus.</title> <META NAME="Keywords" Content="Administrative Rules 20:06:09:28"> <META NAME="Description" Content="Administrative Rules 20:06:09:28 Determining adequacy of surplus."> <meta name=Generator content="Microsoft Office HTML Filter 2.0"> <meta http-equiv=Content-Type content="text/html; charset=windows-1252"> <meta name=Originator content="Microsoft Word 10"> <style> <!-- --> </style> </head> <body lang=EN-US> <div> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>20:06:09:28.&nbsp;&nbsp;Determining adequacy of surplus.</b> In applying the factors in SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=58-5A-34">58-5A-34</A>, adequacy of surplus, the director shall consider the net effect of all of those factors plus other factors bearing on the financial condition of the insurer. In comparing the surplus maintained by each insurer, the director shall consider the extent to which each of these factors varies from company to company. In determining the quality and liquidity of investments in subsidiaries, the director shall consider the individual subsidiary and discount or disallow its valuation in accordance with SDCL 58-5A-34.</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Source:</b> 20 SDR 36, effective September 19, 1993.</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>General Authority:</b> SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=58-5A-70">58-5A-70.</A></p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Law Implemented:</b> SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=58-5A-34">58-5A-34</A>, <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=58-5A-70">58-5A-70</A>, <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=58-5A-77">58-5A-77.</A></p> </div> </body> </html>