<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><title></title><meta name="Generator" content="PowerTools for Open XML" /><style>p.sba1389e5-dc15-42f0-86e5-b341f91413d8P0 { 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%; } span.sba1389e5-dc15-42f0-86e5-b341f91413d8C0 { color: #000000; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.sba1389e5-dc15-42f0-86e5-b341f91413d8C0-000000 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.sba1389e5-dc15-42f0-86e5-b341f91413d8000001 { color: #000000; background: white; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.sba1389e5-dc15-42f0-86e5-b341f91413d8000002 { color: #000000; background: white; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } h1.sba1389e5-dc15-42f0-86e5-b341f91413d8P1 { margin-top: 0; margin-bottom: 0; margin-left: 0; margin-right: 0; text-indent: 0.00in; text-align: justify; background: white; font-family: Times; font-size: 12pt; line-height: 108%; } span.sba1389e5-dc15-42f0-86e5-b341f91413d8C0-000003 { color: #000000; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.sba1389e5-dc15-42f0-86e5-b341f91413d8P0-000004 { 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.sba1389e5-dc15-42f0-86e5-b341f91413d8C0-000005 { 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="sba1389e5-dc15-42f0-86e5-b341f91413d8P0"><span style="white-space: pre-wrap;" xml:space="preserve" class="sba1389e5-dc15-42f0-86e5-b341f91413d8C0">CHAPTER </span><a href="https://sdlegislature.gov/Rules?Rule=20:06:59"><span style="white-space: pre-wrap;" class="sba1389e5-dc15-42f0-86e5-b341f91413d8C0-000000">20</span><span style="white-space: pre-wrap;" class="sba1389e5-dc15-42f0-86e5-b341f91413d8C0-000000">:</span><span style="white-space: pre-wrap;" class="sba1389e5-dc15-42f0-86e5-b341f91413d8C0-000000">06</span><span style="white-space: pre-wrap;" class="sba1389e5-dc15-42f0-86e5-b341f91413d8C0-000000">:</span><span style="white-space: pre-wrap;" class="sba1389e5-dc15-42f0-86e5-b341f91413d8C0-000000">59</span></a></p><p dir="ltr" class="sba1389e5-dc15-42f0-86e5-b341f91413d8P0"><span style="white-space: pre-wrap;" xml:space="preserve" class="sba1389e5-dc15-42f0-86e5-b341f91413d8000001"> </span></p><p dir="ltr" class="sba1389e5-dc15-42f0-86e5-b341f91413d8P0"><span style="white-space: pre-wrap;" class="sba1389e5-dc15-42f0-86e5-b341f91413d8C0">PRINCIPLE-BASED RESERVING</span></p><p dir="ltr" class="sba1389e5-dc15-42f0-86e5-b341f91413d8P0"><span style="white-space: pre-wrap;" xml:space="preserve" class="sba1389e5-dc15-42f0-86e5-b341f91413d8000002"> </span></p><p dir="ltr" class="sba1389e5-dc15-42f0-86e5-b341f91413d8P0"><span style="white-space: pre-wrap;" xml:space="preserve" class="sba1389e5-dc15-42f0-86e5-b341f91413d8000002"> </span></p><h1 dir="ltr" class="sba1389e5-dc15-42f0-86e5-b341f91413d8P1"><span style="white-space: pre-wrap;" class="sba1389e5-dc15-42f0-86e5-b341f91413d8C0-000003">Section</span></h1><p dir="ltr" class="sba1389e5-dc15-42f0-86e5-b341f91413d8P0-000004"><a href="https://sdlegislature.gov/Rules?Rule=20:06:59:01"><span style="white-space: pre-wrap;" class="sba1389e5-dc15-42f0-86e5-b341f91413d8C0-000005">20</span><span style="white-space: pre-wrap;" class="sba1389e5-dc15-42f0-86e5-b341f91413d8C0-000005">:</span><span style="white-space: pre-wrap;" class="sba1389e5-dc15-42f0-86e5-b341f91413d8C0-000005">06</span><span style="white-space: pre-wrap;" class="sba1389e5-dc15-42f0-86e5-b341f91413d8C0-000005">:</span><span style="white-space: pre-wrap;" class="sba1389e5-dc15-42f0-86e5-b341f91413d8C0-000005">59</span><span style="white-space: pre-wrap;" class="sba1389e5-dc15-42f0-86e5-b341f91413d8C0-000005">:</span><span style="white-space: pre-wrap;" class="sba1389e5-dc15-42f0-86e5-b341f91413d8C0-000005">01</span></a><span style="white-space: pre-wrap;" xml:space="preserve" class="sba1389e5-dc15-42f0-86e5-b341f91413d8C0-000003">        </span><span style="white-space: pre-wrap;" class="sba1389e5-dc15-42f0-86e5-b341f91413d8C0-000003">Valuation manual--Operative date.</span></p><p dir="ltr" class="sba1389e5-dc15-42f0-86e5-b341f91413d8P0-000004"><span style="white-space: pre-wrap;" xml:space="preserve" class="sba1389e5-dc15-42f0-86e5-b341f91413d8000002"> </span></p><p dir="ltr" class="sba1389e5-dc15-42f0-86e5-b341f91413d8P0-000004"><span style="white-space: pre-wrap;" xml:space="preserve" class="sba1389e5-dc15-42f0-86e5-b341f91413d8000002"> </span></p></div></body></html><br /><hr><br /><html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><title></title><meta name="Generator" content="PowerTools for Open XML" /><style>p.sffef1be7-0113-4a2c-a0c5-a46765d1a95dP0 { 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.sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0 { background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0-000000 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0-000001 { background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.sffef1be7-0113-4a2c-a0c5-a46765d1a95d000002 { background: white; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0-000003 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.sffef1be7-0113-4a2c-a0c5-a46765d1a95dC2 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; text-decoration: underline; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.sffef1be7-0113-4a2c-a0c5-a46765d1a95dP0-000004 { margin-top: 0; line-height: 115.0%; margin-bottom: 10pt; margin-left: 0; margin-right: 0; text-indent: 0.00in; text-align: left; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; } </style></head><body><div><p dir="ltr" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dP0"><span style="white-space: pre-wrap;" xml:space="preserve" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0">    </span><a href="https://sdlegislature.gov/Rules?Rule=20:06:59:01"><span style="white-space: pre-wrap;" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0-000000">20</span><span style="white-space: pre-wrap;" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0-000000">:</span><span style="white-space: pre-wrap;" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0-000000">06</span><span style="white-space: pre-wrap;" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0-000000">:</span><span style="white-space: pre-wrap;" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0-000000">59</span><span style="white-space: pre-wrap;" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0-000000">:</span><span style="white-space: pre-wrap;" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0-000000">01</span></a><span style="white-space: pre-wrap;" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0-000001">.  Valuation manual</span><span style="white-space: pre-wrap;" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0-000001">-</span><span style="white-space: pre-wrap;" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0-000001">-</span><span style="white-space: pre-wrap;" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0-000001">O</span><span style="white-space: pre-wrap;" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0-000001">perative date.</span><span style="white-space: pre-wrap;" xml:space="preserve" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0"> The valuation of reserve liabilities</span><span style="white-space: pre-wrap;" xml:space="preserve" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0"> </span><span style="white-space: pre-wrap;" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0">for life insurance contracts, annuity and pure endowment contracts, accident and health</span><span style="white-space: pre-wrap;" xml:space="preserve" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0"> </span><span style="white-space: pre-wrap;" xml:space="preserve" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0">contracts, and deposit-type contracts </span><span style="white-space: pre-wrap;" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0">must</span><span style="white-space: pre-wrap;" xml:space="preserve" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0"> be calculated in accordance with the standards in the Valuation Manual of the National Association of</span><span style="white-space: pre-wrap;" xml:space="preserve" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0"> I</span><span style="white-space: pre-wrap;" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0">nsurance Commissioners, 20</span><span style="white-space: pre-wrap;" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0">25</span><span style="white-space: pre-wrap;" xml:space="preserve" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0"> edition. The operative date for the valuation manual is January 1, 20</span><span style="white-space: pre-wrap;" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0">25</span><span style="white-space: pre-wrap;" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0">.</span></p><p dir="ltr" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dP0"><span style="white-space: pre-wrap;" xml:space="preserve" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95d000002"> </span></p><p dir="ltr" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dP0"><span style="white-space: pre-wrap;" xml:space="preserve" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0">    </span><span style="white-space: pre-wrap;" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0-000001">Source:</span><span style="white-space: pre-wrap;" xml:space="preserve" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0"> </span><span style="white-space: pre-wrap;" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0">43</span><span style="white-space: pre-wrap;" xml:space="preserve" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0"> SDR </span><span style="white-space: pre-wrap;" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0">80</span><span style="white-space: pre-wrap;" xml:space="preserve" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0">, effective </span><span style="white-space: pre-wrap;" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0">December 5, 2016</span><span style="white-space: pre-wrap;" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0">; 45 SDR 10, effective August 2, 2018; 46 SDR 26, effective September 4, 2019; 46 SDR 147, effective July 2, 2020</span><span style="white-space: pre-wrap;" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0">; 47 SDR 137, effective June 28, 2021; 49 SDR 9, effective August 9, 2022; 50 SDR 13, effective August 10, 2023; 50 SDR 157, effective July 1, 2024; 51 SDR 142, effective July 3, 2025</span><span style="white-space: pre-wrap;" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0">.</span></p><p dir="ltr" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dP0"><span style="white-space: pre-wrap;" xml:space="preserve" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0">    </span><span style="white-space: pre-wrap;" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0-000001">General Authority:</span><span style="white-space: pre-wrap;" xml:space="preserve" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=58-26-45.1"><span style="white-space: pre-wrap;" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0-000003">58</span><span style="white-space: pre-wrap;" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0-000003">-</span><span style="white-space: pre-wrap;" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0-000003">26</span><span style="white-space: pre-wrap;" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0-000003">-</span><span style="white-space: pre-wrap;" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0-000003">45.1</span></a><span style="white-space: pre-wrap;" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0">.</span></p><p dir="ltr" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dP0"><span style="white-space: pre-wrap;" xml:space="preserve" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0">    </span><span style="white-space: pre-wrap;" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0-000001">Law Implemented:</span><span style="white-space: pre-wrap;" xml:space="preserve" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=58-26-44.1"><span style="white-space: pre-wrap;" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0-000003">58</span><span style="white-space: pre-wrap;" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0-000003">-</span><span style="white-space: pre-wrap;" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0-000003">26-44.1</span></a><span style="white-space: pre-wrap;" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0">(11)</span><span style="white-space: pre-wrap;" xml:space="preserve" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0">, </span><a href="https://sdlegislature.gov/Statutes?Statute=58-26-45.1"><span style="white-space: pre-wrap;" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0-000003">58-26-45.1</span></a><span style="white-space: pre-wrap;" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0">.</span></p><p dir="ltr" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dP0"><span style="white-space: pre-wrap;" xml:space="preserve" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95d000002"> </span></p><p dir="ltr" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dP0"><span style="white-space: pre-wrap;" xml:space="preserve" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0">    </span><span style="white-space: pre-wrap;" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0-000001">Reference: Valuation Manual of the National Association of Insurance</span><span style="white-space: pre-wrap;" xml:space="preserve" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0-000001"> </span><span style="white-space: pre-wrap;" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0-000001">Commissioners</span><span style="white-space: pre-wrap;" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0">, 20</span><span style="white-space: pre-wrap;" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0">25</span><span style="white-space: pre-wrap;" xml:space="preserve" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0"> edition, National Association of Insurance Commissioners</span><span style="white-space: pre-wrap;" xml:space="preserve" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0"> (NAIC)</span><span style="white-space: pre-wrap;" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0">.</span><span style="white-space: pre-wrap;" xml:space="preserve" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0"> </span><span style="white-space: pre-wrap;" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0">Copies may be obtained from the NAIC, 1100 Walnut Street, Ste. 1500, Kansas City, MO</span><span style="white-space: pre-wrap;" xml:space="preserve" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0"> </span><span style="white-space: pre-wrap;" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0">64106-2197, (816) 783-8300</span><span style="white-space: pre-wrap;" xml:space="preserve" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0">; </span><a href="https://content.naic.org/"><span style="white-space: pre-wrap;" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC2">http://www.naic.org</span></a><span style="white-space: pre-wrap;" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0">.</span><span style="white-space: pre-wrap;" xml:space="preserve" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dC0"> Cost: $0.</span></p><p dir="ltr" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95dP0-000004"><span style="white-space: pre-wrap;" xml:space="preserve" class="sffef1be7-0113-4a2c-a0c5-a46765d1a95d000002"> </span></p></div></body></html>