<html> <head> <title>Rule 20:06:36:18 Authorized control level event -- Actions of director.</title> <META NAME="Keywords" Content="Administrative Rules 20:06:36:18"> <META NAME="Description" Content="Administrative Rules 20:06:36:18 Authorized control level event -- Actions of director."> <meta http-equiv=Content-Type content="text/html; charset=windows-1252"> <meta name=Generator content="Microsoft Word 14 (filtered)"> <style> <!-- /* Font Definitions */ @font-face {font-family:Calibri; panose-1:2 15 5 2 2 2 4 3 2 4;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {margin:0in; margin-bottom:.0001pt; text-align:justify; font-size:12.0pt; font-family:"Times New Roman","serif";} @page WordSection1 {size:8.5in 11.0in; margin:1.0in 1.0in 1.0in 1.0in;} div.WordSection1 {page:WordSection1;} --> </style> </head> <body lang=EN-US> <div class=WordSection1> <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>20:06:36:18.&nbsp;&nbsp;Authorized control level event -- Actions of director.</b> If an authorized control level event occurs, the director shall do the following:</p> <p class=MsoNormal>&nbsp;</p> <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1)&nbsp;&nbsp;Take actions required under &#167;&#167;&nbsp;20:06:36:13 to 20:06:36:16, inclusive, for a regulatory action level event; or</p> <p class=MsoNormal>&nbsp;</p> <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2)&nbsp;&nbsp;If the director considers it to be in the best interests of the policyholders and creditors of the insurer or health organization and of the public, take the actions necessary to cause the insurer or health organization to be placed under regulatory control under SDCL chapter <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=58-29B">58-29B.</A> If the director takes such actions, the authorized control level event is sufficient grounds for the director to take action under SDCL chapter 58-29B, and the director has the rights, powers, and duties regarding the insurer or health organization set forth in SDCL chapter <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=58-29B">58-29B.</A> If the director takes actions under this subdivision pursuant to an adjusted RBC report, the insurer or health organization is entitled to the protections afforded to insurers or health organizations under the provisions of SDCL 58-29B-24 to 58-29B-30, inclusive.</p> <p class=MsoNormal>&nbsp;</p> <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Source:</b> 23 SDR 228, effective July 3, 1997; 41 SDR 93, effective December 3, 2014.</p> <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>General Authority:</b> SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=58-4-48">58-4-48.</A></p> <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Law Implemented:</b> SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=58-4-48">58-4-48.</A></p> <p class=MsoNormal>&nbsp;</p> </div> </body> </html>