<html> <head> <title>Rule 20:06:19:02 Purchase and exercise of exchange-traded call and put options.</title> <META NAME="Keywords" Content="Administrative Rules 20:06:19:02"> <META NAME="Description" Content="Administrative Rules 20:06:19:02 Purchase and exercise of exchange-traded call and put options."> <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>20:06:19:02.&nbsp;&nbsp;Purchase and exercise of exchange-traded call and put options.</b> An insurance company's cost for the purchase or investment in call or put options, except in a closing purchase transaction, is limited to the amount authorized in SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=58-27-51">58-27-51</A>, substantiated by a trade confirmation or other proof of ownership issued to the insurance company by an entity meeting the requirements in subdivision 20:06:19:01(6).</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; An insurance company may not purchase exchange-traded call options for an underlying security in an amount which, when combined with its current security holdings, would exceed the limits in SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=58-27-15">58-27-15</A>, <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=58-27-27">58-27-27</A>, <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=58-27-29">58-27-29</A>, <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=58-27-53">58-27-53</A>, <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=58-27-54">58-27-54</A>, and <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=58-27-57">58-27-57</A> to <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=58-27-60">58-27-60</A>, inclusive.</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Source:</b> 13 SDR 75, effective December 21, 1986.</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>General Authority:</b> SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=58-4-1">58-4-1</A>, <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=58-27-7">58-27-7.</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=58-27-7">58-27-7.</A></p> </div> </body> </html>