<html> <head> <title>Rule 20:06:36:20 Mandatory control level event -- Actions of director.</title> <META NAME="Keywords" Content="Administrative Rules 20:06:36:20"> <META NAME="Description" Content="Administrative Rules 20:06:36:20 Mandatory 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>20:06:36:20.&nbsp;&nbsp;Mandatory control level event -- Actions of director.</b> If a mandatory control level event occurs for a life or health insurer or health organization, the director shall take the actions necessary to place the insurer or health organization under regulatory control under SDCL chapter <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=58-29B">58-29B.</A> The mandatory control level event is sufficient grounds for the director to take action under SDCL chapter <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=58-29B">58-29B</A>, 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 pursuant to an adjusted RBC report, the insurer or health organization is entitled to the protections of SDCL 58-29B-24 to 58-29B-30, inclusive. However, the director may forego action for up to 90 days after the mandatory control level event if the director finds a reasonable expectation that the mandatory control level event may be eliminated within that period.</p> <p class=MsoNormal>&nbsp;</p> <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If a mandatory control level event occurs for a property and casualty insurer, the director shall take the actions necessary to place the insurer under regulatory control under SDCL chapter <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=58-29B">58-29B</A>, or, if an insurer is writing no business and is running off its existing business, may allow the insurer to continue its run-off under the supervision of the director. The mandatory control level event is sufficient grounds for the director to take action under SDCL chapter <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=58-29B">58-29B</A> and the director has the rights, powers, and duties regarding the insurer set forth in SDCL chapter <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=58-29B">58-29B.</A> If the director takes actions pursuant to an adjusted RBC report, the insurer is entitled to the protections of provisions SDCL 58-29B-24 to 58-29B-30, inclusive. However, the director may forego action for up to 90 days after the mandatory control level event if the director finds a reasonable expectation that the mandatory control level event may be eliminated within that period.</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>