<html xmlns="http://www.w3.org/1999/xhtml" lang="en-US"><head><meta charset="UTF-8"><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 58-14-16.24 - Credit for reinsurance for reinsurers in reciprocal jurisdictions--Capital and surplus requirements.</title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.s2082931Normal { text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s2082931SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2082931CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2082931Statute { text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; 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font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2082931SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } body { text-decoration-skip-ink: none; } </style><meta name="viewport" content="width=device-width, initial-scale=1"><meta name="twitter:card" content="summary"><meta property="og:title" content="SD 58-14-16.24 - Credit for reinsurance for reinsurers in reciprocal jurisdictions--Capital and surplus requirements."><meta property="og:description" content="SDLRC Codified Law 58-14-16.24 - Credit for reinsurance for reinsurers in reciprocal jurisdictions--Capital and surplus requirements."><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes?Statute=58-14-16.24"><meta property="og:image" content="https://lawmakerdocuments.blob.core.usgovcloudapi.net/photos/logoshape.webp"><meta property="og:site_name" content="South Dakota Legislature"></head><body><div><p dir="ltr" class="s2082931Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.24" rel="noopener"><span class="s2082931SENU">58-14-16.24</span></a><span xml:space="preserve" class="s2082931SENU">. </span><span xml:space="preserve" class="s2082931CL">Credit for reinsurance for reinsurers in reciprocal jurisdictions--Capital and surplus requirements. </span></p><p dir="ltr" class="s2082931Statute"><span xml:space="preserve" class="s2082931DefaultParagraphFont">An assuming insurer under § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.23" rel="noopener"><span class="s2082931DefaultParagraphFont">58-14-16.23</span></a><span xml:space="preserve" class="s2082931DefaultParagraphFont"> shall have and maintain, on an ongoing basis:</span></p><p dir="ltr" class="s2082931StatuteNumber1"><span class="s2082931DefaultParagraphFont">(1)    A license to transact reinsurance by, and have its head office or be domiciled in, a reciprocal jurisdiction;</span></p><p dir="ltr" class="s2082931StatuteNumber1"><span class="s2082931DefaultParagraphFont">(2)    Minimum capital and surplus, or its equivalent, calculated on at least an annual basis as of the preceding December thirty-first or at the annual date otherwise statutorily reported to the reciprocal jurisdiction, and confirmed pursuant to subdivision 58-14-16.25(6) according to the methodology of its domiciliary jurisdiction, in the following amounts:</span></p><p dir="ltr" class="s2082931StatuteNumber2"><span class="s2082931DefaultParagraphFont">(a)    No less than two hundred fifty million dollars; or</span></p><p dir="ltr" class="s2082931StatuteNumber2"><span class="s2082931DefaultParagraphFont">(b)    If the assuming insurer is an association, including incorporated and individual unincorporated underwriters, minimum capital and surplus equivalents net of liabilities or own funds of the equivalent of at least two hundred fifty million dollars and a central fund containing a balance of the equivalent of at least two hundred fifty million dollars; and</span></p><p dir="ltr" class="s2082931StatuteNumber1"><span class="s2082931DefaultParagraphFont">(3)    Minimum solvency or capital ratio as follows:</span></p><p dir="ltr" class="s2082931StatuteNumber2"><span xml:space="preserve" class="s2082931DefaultParagraphFont">(a)    If the assuming insurer has its head office or is domiciled in a reciprocal jurisdiction as defined in subdivision </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.23" rel="noopener"><span class="s2082931DefaultParagraphFont">58-14-16.23</span></a><span class="s2082931DefaultParagraphFont">(1), the ratio specified in the applicable covered agreement;</span></p><p dir="ltr" class="s2082931StatuteNumber2"><span xml:space="preserve" class="s2082931DefaultParagraphFont">(b)    If the assuming insurer is domiciled in a reciprocal jurisdiction as defined in subdivision </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.23" rel="noopener"><span class="s2082931DefaultParagraphFont">58-14-16.23</span></a><span class="s2082931DefaultParagraphFont">(2), a risk-based capital ratio of three hundred percent of the authorized control level calculated in accordance with a formula developed by the NAIC and prescribed by the director; or</span></p><p dir="ltr" class="s2082931StatuteNumber2"><span xml:space="preserve" class="s2082931DefaultParagraphFont">(c)    If the assuming insurer is domiciled in a reciprocal jurisdiction as defined in subdivision </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.23" rel="noopener"><span class="s2082931DefaultParagraphFont">58-14-16.23</span></a><span class="s2082931DefaultParagraphFont">(3), after consultation with the reciprocal jurisdiction and considering any recommendations published through the NAIC, such solvency or capital ratio as the director determines to be an effective measure of solvency.</span></p><p dir="ltr" class="s2082931Normal"><span xml:space="preserve" class="s2082931000000"> </span></p><p dir="ltr" class="s2082931NoIndent"><span xml:space="preserve" class="s2082931DefaultParagraphFont-000001">Source: </span><span class="s2082931SCL">SL 2021, ch 211, § 2.</span></p></div></body></html>