<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 58-14-16 - Asset or reduction from liability for reinsurance ceded to insurer not meeting requirements of § 58-14-7--Security. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2074679Normal { 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.s2074679SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2074679CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2074679Normal-000000 { 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.s2074679DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2074679Normal-000001 { margin-left: 0.70in; text-indent: -0.45in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } span.s2074679000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2074679SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2074679SCL-000003 { 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="s2074679Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16"><span class="s2074679SENU">58-14-16</span></a><span xml:space="preserve" class="s2074679SENU">. </span><span xml:space="preserve" class="s2074679CL">Asset or reduction from liability for reinsurance ceded to insurer not meeting requirements of § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-7"><span class="s2074679CL">58-14-7</span></a><span class="s2074679CL">--Security.</span></p><p dir="ltr" class="s2074679Normal-000000"><span xml:space="preserve" class="s2074679DefaultParagraphFont">An asset or a reduction from liability for the reinsurance ceded by a domestic insurer to an assuming insurer not meeting the requirements of § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-7"><span class="s2074679DefaultParagraphFont">58-14-7</span></a><span xml:space="preserve" class="s2074679DefaultParagraphFont"> shall be allowed in an amount not exceeding the liabilities carried by the ceding insurer. The reduction shall be in the amount of funds held by or on behalf of the ceding insurer, including funds held in trust for the ceding insurer, under a reinsurance contract with the assuming insurer as security for the payment of obligations. The security shall be held in the United States subject to withdrawal solely by, and under the exclusive control of, the ceding insurer; or, in the case of a trust, it shall be held in a qualified United States financial institution, as defined in § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-23"><span class="s2074679DefaultParagraphFont">58-14-23</span></a><span class="s2074679DefaultParagraphFont">. This security may be in the form of:</span></p><p dir="ltr" class="s2074679Normal-000001"><span class="s2074679DefaultParagraphFont">(1)    Cash;</span></p><p dir="ltr" class="s2074679Normal-000001"><span xml:space="preserve" class="s2074679DefaultParagraphFont">(2)    Securities listed by the securities valuation office of the National Association of Insurance Commissioners (NAIC), including any security deemed exempt from filing as defined by the Purposes and Procedures Manual of the NAIC Investment Analysis Office as adopted by administrative rule, and qualifying as admitted assets; </span></p><p dir="ltr" class="s2074679Normal-000001"><span xml:space="preserve" class="s2074679DefaultParagraphFont">(3)    Clean, irrevocable, unconditional letters of credit, issued or confirmed by a qualified United States financial institution as defined in § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.18"><span class="s2074679DefaultParagraphFont">58-14-16.18</span></a><span class="s2074679DefaultParagraphFont">, effective no later than December thirty-first of the year for which the filing is being made, and in the possession of, or in the trust of, the ceding insurer on or before the filing date of the assuming insurer's annual statement. Letters of credit meeting applicable standards of issuer acceptability as of the dates of issuance or confirmation shall, notwithstanding the issuing or confirming institution's subsequent failure to meet applicable standards of issuer acceptability, continue to be acceptable as security until the security's expiration, extension, renewal, modification, or amendment, whichever occurs first; or</span></p><p dir="ltr" class="s2074679Normal-000001"><span class="s2074679DefaultParagraphFont">(4)    Any other form of security acceptable to the director.</span></p><p dir="ltr" class="s2074679Normal"><span xml:space="preserve" class="s2074679000002"> </span></p><p dir="ltr" class="s2074679Normal"><span class="s2074679SCL">Source:</span><span xml:space="preserve" class="s2074679SCL-000003"> SL 1992, ch 344, § 10; SL 2017, ch 211, § 10.</span></p></div></body></html><br /><hr><br /><html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 58-14-16 - Asset or reduction from liability for reinsurance ceded to insurer not meeting requirements of § 58-14-7--Security. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2074680Normal { margin-top: 0; margin-bottom: 0; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2074680SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2074680CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2074680Normal-000000 { margin-top: 0; margin-bottom: 0; text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2074680DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2074680000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2074680SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2074680SCL-000002 { 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="s2074680Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.1"><span class="s2074680SENU">58-14-16.1</span></a><span xml:space="preserve" class="s2074680SENU">. </span><span class="s2074680CL">Credit allowed for reinsurance ceded to certified reinsurer.</span></p><p dir="ltr" class="s2074680Normal-000000"><span xml:space="preserve" class="s2074680DefaultParagraphFont">Credit shall be allowed if the reinsurance is ceded to an assuming insurer that has been certified by the director as a reinsurer in this state and secures the assuming insurer's obligations in accordance with the requirements of §§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.2"><span class="s2074680DefaultParagraphFont">58-14-16.2</span></a><span xml:space="preserve" class="s2074680DefaultParagraphFont"> to </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.15"><span class="s2074680DefaultParagraphFont">58-14-16.15</span></a><span class="s2074680DefaultParagraphFont">, inclusive.</span></p><p dir="ltr" class="s2074680Normal"><span xml:space="preserve" class="s2074680000001"> </span></p><p dir="ltr" class="s2074680Normal"><span class="s2074680SCL">Source:</span><span xml:space="preserve" class="s2074680SCL-000002"> SL 2017, ch 211, § 12.</span></p></div></body></html><br /><hr><br /><html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 58-14-16 - Asset or reduction from liability for reinsurance ceded to insurer not meeting requirements of § 58-14-7--Security. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2074681Normal { 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.s2074681SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2074681CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2074681Normal-000000 { 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.s2074681DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2074681Normal-000001 { margin-left: 0.70in; text-indent: -0.45in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } span.s2074681000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2074681SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2074681SCL-000003 { 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="s2074681Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.2"><span class="s2074681SENU">58-14-16.2</span></a><span xml:space="preserve" class="s2074681SENU">. </span><span class="s2074681CL">Eligibility for certification as reinsurer.</span></p><p dir="ltr" class="s2074681Normal-000000"><span class="s2074681DefaultParagraphFont">In order to be eligible for certification as a reinsurer, the assuming insurer shall:</span></p><p dir="ltr" class="s2074681Normal-000001"><span xml:space="preserve" class="s2074681DefaultParagraphFont">(1)    Be domiciled and licensed to transact insurance or reinsurance in a qualified jurisdiction, as determined by the director pursuant to §§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.4"><span class="s2074681DefaultParagraphFont">58-14-16.4</span></a><span xml:space="preserve" class="s2074681DefaultParagraphFont"> to </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.6"><span class="s2074681DefaultParagraphFont">58-14-16.6</span></a><span class="s2074681DefaultParagraphFont">, inclusive;</span></p><p dir="ltr" class="s2074681Normal-000001"><span class="s2074681DefaultParagraphFont">(2)    Maintain minimum capital and surplus, or its equivalent, in an amount promulgated in rule by the director;</span></p><p dir="ltr" class="s2074681Normal-000001"><span class="s2074681DefaultParagraphFont">(3)    Maintain financial strength ratings from two or more rating agencies deemed acceptable by the director pursuant to regulation;</span></p><p dir="ltr" class="s2074681Normal-000001"><span class="s2074681DefaultParagraphFont">(4)    Agree to submit to the jurisdiction of this state, appoint the director as the assuming insurer's agent for service of process in this state, and agree to provide security for one hundred percent of the assuming insurer's liabilities attributable to reinsurance ceded by the United States ceding insurers if the assuming insurer resists enforcement of a final United States judgment;</span></p><p dir="ltr" class="s2074681Normal-000001"><span class="s2074681DefaultParagraphFont">(5)    Agree to meet applicable information filing requirements as determined by the director, both with respect to an initial application for certification and on an ongoing basis; and</span></p><p dir="ltr" class="s2074681Normal-000001"><span class="s2074681DefaultParagraphFont">(6)    Satisfy any other requirements for certification deemed relevant by the director.</span></p><p dir="ltr" class="s2074681Normal"><span xml:space="preserve" class="s2074681000002"> </span></p><p dir="ltr" class="s2074681Normal"><span class="s2074681SCL">Source:</span><span xml:space="preserve" class="s2074681SCL-000003"> SL 2017, ch 211, § 13.</span></p></div></body></html><br /><hr><br /><html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 58-14-16 - Asset or reduction from liability for reinsurance ceded to insurer not meeting requirements of § 58-14-7--Security. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2074682Normal { 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.s2074682SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2074682CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2074682Normal-000000 { 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.s2074682DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2074682Normal-000001 { margin-left: 0.70in; text-indent: -0.45in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } span.s2074682000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2074682SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2074682SCL-000003 { 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="s2074682Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.3"><span class="s2074682SENU">58-14-16.3</span></a><span xml:space="preserve" class="s2074682SENU">. </span><span class="s2074682CL">Eligibility for certification of association including incorporated and individual unincorporated underwriters.</span></p><p dir="ltr" class="s2074682Normal-000000"><span xml:space="preserve" class="s2074682DefaultParagraphFont">An association including incorporated and individual unincorporated underwriters may be a certified reinsurer. In addition to satisfying the requirements of § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.2"><span class="s2074682DefaultParagraphFont">58-14-16.2</span></a><span class="s2074682DefaultParagraphFont">, to be eligible for certification:</span></p><p dir="ltr" class="s2074682Normal-000001"><span class="s2074682DefaultParagraphFont">(1)    The association shall satisfy the association's minimum capital and surplus requirements through the capital and surplus equivalents, net of liabilities, of the association and the association's members, which shall include a joint central fund that may be applied to any unsatisfied obligation of the association or any of its members, in an amount determined by the director to provide adequate protection;</span></p><p dir="ltr" class="s2074682Normal-000001"><span class="s2074682DefaultParagraphFont">(2)    The incorporated members of the association may not be engaged in any business other than underwriting as a member of the association and shall be subject to the same level of regulation and solvency control by the association's domiciliary regulator as are the unincorporated members; and</span></p><p dir="ltr" class="s2074682Normal-000001"><span class="s2074682DefaultParagraphFont">(3)    Within ninety days after its financial statements are due to be filed with the association's domiciliary regulator, the association shall provide to the director an annual certification by the association's domiciliary regulator of the solvency of each underwriter member. If the annual certification is unavailable, the association shall file financial statements, prepared by independent public accountants, of each underwriter member of the association.</span></p><p dir="ltr" class="s2074682Normal"><span xml:space="preserve" class="s2074682000002"> </span></p><p dir="ltr" class="s2074682Normal"><span class="s2074682SCL">Source:</span><span xml:space="preserve" class="s2074682SCL-000003"> SL 2017, ch 211, § 14.</span></p></div></body></html><br /><hr><br /><html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 58-14-16 - Asset or reduction from liability for reinsurance ceded to insurer not meeting requirements of § 58-14-7--Security. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2074683Normal { margin-top: 0; margin-bottom: 0; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2074683SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2074683CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2074683Normal-000000 { margin-top: 0; margin-bottom: 0; text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2074683DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2074683Normal-000001 { margin-top: 0; margin-bottom: 0; text-indent: 0.25in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2074683000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2074683SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2074683SCL-000003 { 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="s2074683Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.4"><span class="s2074683SENU">58-14-16.4</span></a><span xml:space="preserve" class="s2074683SENU">. </span><span class="s2074683CL">List of qualified jurisdictions from which domiciled insurer eligible for consideration for certification.</span></p><p dir="ltr" class="s2074683Normal-000000"><span class="s2074683DefaultParagraphFont">The director shall create and publish a list of qualified jurisdictions, under which an assuming insurer licensed and domiciled in the jurisdiction is eligible to be considered for certification by the director as a certified reinsurer.</span></p><p dir="ltr" class="s2074683Normal-000001"><span class="s2074683DefaultParagraphFont">If a certified reinsurer's domiciliary jurisdiction ceases to be a qualified jurisdiction, the director has the discretion to suspend the reinsurer's certification indefinitely, in lieu of revocation.</span></p><p dir="ltr" class="s2074683Normal"><span xml:space="preserve" class="s2074683000002"> </span></p><p dir="ltr" class="s2074683Normal"><span class="s2074683SCL">Source:</span><span xml:space="preserve" class="s2074683SCL-000003"> SL 2017, ch 211, § 15.</span></p></div></body></html><br /><hr><br /><html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 58-14-16 - Asset or reduction from liability for reinsurance ceded to insurer not meeting requirements of § 58-14-7--Security. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2074684Normal { margin-top: 0; margin-bottom: 0; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2074684SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2074684CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2074684Normal-000000 { margin-top: 0; margin-bottom: 0; text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2074684DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2074684000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2074684SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2074684SCL-000002 { 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="s2074684Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.5"><span class="s2074684SENU">58-14-16.5</span></a><span xml:space="preserve" class="s2074684SENU">. </span><span class="s2074684CL">Eligibility of non-United States domiciliary jurisdiction to be recognized as qualified jurisdiction.</span></p><p dir="ltr" class="s2074684Normal-000000"><span class="s2074684DefaultParagraphFont">To determine whether the domiciliary jurisdiction of a non-United States assuming insurer is eligible to be recognized as a qualified jurisdiction, the director shall evaluate the appropriateness and effectiveness of the reinsurance supervisory system of the jurisdiction, both initially and on an ongoing basis, and consider the rights, benefits, and the extent of reciprocal recognition afforded by the non-United States jurisdiction to reinsurers licensed and domiciled in the United States. A qualified jurisdiction shall agree to share information and cooperate with the director with respect to all certified reinsurers domiciled within that jurisdiction. A jurisdiction may not be recognized as qualified jurisdiction if the director has determined the jurisdiction does not adequately and promptly enforce final United States judgments and arbitration awards. Additional factors may be considered at the discretion of the director.</span></p><p dir="ltr" class="s2074684Normal"><span xml:space="preserve" class="s2074684000001"> </span></p><p dir="ltr" class="s2074684Normal"><span class="s2074684SCL">Source:</span><span xml:space="preserve" class="s2074684SCL-000002"> SL 2017, ch 211, § 16.</span></p></div></body></html><br /><hr><br /><html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 58-14-16 - Asset or reduction from liability for reinsurance ceded to insurer not meeting requirements of § 58-14-7--Security. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2074685Normal { margin-top: 0; margin-bottom: 0; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2074685SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2074685CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2074685Normal-000000 { margin-top: 0; margin-bottom: 0; text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2074685DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2074685Normal-000001 { margin-top: 0; margin-bottom: 0; text-indent: 0.25in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2074685000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2074685SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2074685SCL-000003 { 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="s2074685Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.6"><span class="s2074685SENU">58-14-16.6</span></a><span xml:space="preserve" class="s2074685SENU">. </span><span class="s2074685CL">National Association of Insurance Commissioners' list of qualified jurisdictions.</span></p><p dir="ltr" class="s2074685Normal-000000"><span xml:space="preserve" class="s2074685DefaultParagraphFont">A list of qualified jurisdictions shall be published through the National Association of Insurance Commissioners. The director shall consider the list in determining qualified jurisdictions. If the director approves a jurisdiction as qualified that does not appear on the list of qualified jurisdictions, the director shall provide a thoroughly documented justification with criteria to be developed in administrative rules promulgated by the director, pursuant to chapter </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=1-26"><span class="s2074685DefaultParagraphFont">1-26</span></a><span class="s2074685DefaultParagraphFont">, to establish criteria for determining the qualifications of the jurisdictions.</span></p><p dir="ltr" class="s2074685Normal-000001"><span class="s2074685DefaultParagraphFont">United States jurisdictions that meet the requirements for accreditation under the National Association of Insurance Commissioners financial standards and accreditation program shall be recognized as qualified jurisdictions.</span></p><p dir="ltr" class="s2074685Normal"><span xml:space="preserve" class="s2074685000002"> </span></p><p dir="ltr" class="s2074685Normal"><span class="s2074685SCL">Source:</span><span xml:space="preserve" class="s2074685SCL-000003"> SL 2017, ch 211, § 17.</span></p></div></body></html><br /><hr><br /><html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 58-14-16 - Asset or reduction from liability for reinsurance ceded to insurer not meeting requirements of § 58-14-7--Security. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2074686Normal { margin-top: 0; margin-bottom: 0; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2074686SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2074686CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2074686Normal-000000 { margin-top: 0; margin-bottom: 0; text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2074686DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2074686000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2074686SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2074686SCL-000002 { 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="s2074686Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.7"><span class="s2074686SENU">58-14-16.7</span></a><span xml:space="preserve" class="s2074686SENU">. </span><span class="s2074686CL">Rating of certified reinsurer.</span></p><p dir="ltr" class="s2074686Normal-000000"><span class="s2074686DefaultParagraphFont">The director shall assign a rating to each certified reinsurer, giving due consideration to the financial strength ratings that have been assigned by rating agencies deemed acceptable to the director. The director shall publish a list of all certified reinsurers and their ratings.</span></p><p dir="ltr" class="s2074686Normal"><span xml:space="preserve" class="s2074686000001"> </span></p><p dir="ltr" class="s2074686Normal"><span class="s2074686SCL">Source:</span><span xml:space="preserve" class="s2074686SCL-000002"> SL 2017, ch 211, § 18.</span></p></div></body></html><br /><hr><br /><html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 58-14-16 - Asset or reduction from liability for reinsurance ceded to insurer not meeting requirements of § 58-14-7--Security. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2074687Normal { margin-top: 0; margin-bottom: 0; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2074687SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2074687CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2074687Normal-000000 { margin-top: 0; margin-bottom: 0; text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2074687DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2074687000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2074687SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2074687SCL-000002 { 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="s2074687Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.8"><span class="s2074687SENU">58-14-16.8</span></a><span xml:space="preserve" class="s2074687SENU">. </span><span class="s2074687CL">Obligations assumed from United States ceding insurers to be secured consistent with rating.</span></p><p dir="ltr" class="s2074687Normal-000000"><span xml:space="preserve" class="s2074687DefaultParagraphFont">A certified reinsurer shall secure obligations assumed from United States ceding insurers under §§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.9"><span class="s2074687DefaultParagraphFont">58-14-16.9</span></a><span xml:space="preserve" class="s2074687DefaultParagraphFont"> to </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.13"><span class="s2074687DefaultParagraphFont">58-14-16.13</span></a><span xml:space="preserve" class="s2074687DefaultParagraphFont">, inclusive, at a level consistent with the certified reinsurer's rating. The director may promulgate rules, pursuant to chapter </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=1-26"><span class="s2074687DefaultParagraphFont">1-26</span></a><span xml:space="preserve" class="s2074687DefaultParagraphFont">, to establish standards under §§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.9"><span class="s2074687DefaultParagraphFont">58-14-16.9</span></a><span xml:space="preserve" class="s2074687DefaultParagraphFont"> to </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.13"><span class="s2074687DefaultParagraphFont">58-14-16.13</span></a><span class="s2074687DefaultParagraphFont">, inclusive.</span></p><p dir="ltr" class="s2074687Normal"><span xml:space="preserve" class="s2074687000001"> </span></p><p dir="ltr" class="s2074687Normal"><span class="s2074687SCL">Source:</span><span xml:space="preserve" class="s2074687SCL-000002"> SL 2017, ch 211, § 19.</span></p></div></body></html><br /><hr><br /><html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 58-14-16 - Asset or reduction from liability for reinsurance ceded to insurer not meeting requirements of § 58-14-7--Security. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2074688Normal { margin-top: 0; margin-bottom: 0; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2074688SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2074688CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2074688Normal-000000 { margin-top: 0; margin-bottom: 0; text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2074688DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2074688000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2074688SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2074688SCL-000002 { 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="s2074688Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.9"><span class="s2074688SENU">58-14-16.9</span></a><span xml:space="preserve" class="s2074688SENU">. </span><span class="s2074688CL">Security required for domestic ceding insurer to qualify for full financial statement credit for reinsurance ceded to certified reinsurer.</span></p><p dir="ltr" class="s2074688Normal-000000"><span xml:space="preserve" class="s2074688DefaultParagraphFont">In order for a domestic ceding insurer to qualify for full financial statement credit for reinsurance ceded to a certified reinsurer, the certified reinsurer shall maintain security in a form acceptable to the director and consistent with § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16"><span class="s2074688DefaultParagraphFont">58-14-16</span></a><span xml:space="preserve" class="s2074688DefaultParagraphFont">, or in a multibeneficiary trust in accordance with § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-11"><span class="s2074688DefaultParagraphFont">58-14-11</span></a><span xml:space="preserve" class="s2074688DefaultParagraphFont">, except as otherwise provided in §§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.8"><span class="s2074688DefaultParagraphFont">58-14-16.8</span></a><span xml:space="preserve" class="s2074688DefaultParagraphFont"> to </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.13"><span class="s2074688DefaultParagraphFont">58-14-16.13</span></a><span class="s2074688DefaultParagraphFont">, inclusive.</span></p><p dir="ltr" class="s2074688Normal"><span xml:space="preserve" class="s2074688000001"> </span></p><p dir="ltr" class="s2074688Normal"><span class="s2074688SCL">Source:</span><span xml:space="preserve" class="s2074688SCL-000002"> SL 2017, ch 211, § 20.</span></p></div></body></html><br /><hr><br /><html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 58-14-16 - Asset or reduction from liability for reinsurance ceded to insurer not meeting requirements of § 58-14-7--Security. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2074689Normal { margin-top: 0; margin-bottom: 0; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2074689SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2074689CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2074689Normal-000000 { margin-top: 0; margin-bottom: 0; text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2074689DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2074689000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2074689SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2074689SCL-000002 { 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="s2074689Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.10"><span class="s2074689SENU">58-14-16.10</span></a><span xml:space="preserve" class="s2074689SENU">. </span><span class="s2074689CL">Trust accounts of certified reinsurer securing obligations as multibeneficiary trust.</span></p><p dir="ltr" class="s2074689Normal-000000"><span xml:space="preserve" class="s2074689DefaultParagraphFont">If a certified reinsurer maintains a trust to fully secure the certified reinsurer's obligations subject to § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-11"><span class="s2074689DefaultParagraphFont">58-14-11</span></a><span xml:space="preserve" class="s2074689DefaultParagraphFont"> and chooses to secure the certified reinsurer's obligations incurred as a certified reinsurer in the form of a multibeneficiary trust, the certified reinsurer shall maintain separate trust accounts for the certified reinsurer's obligations incurred under reinsurance agreements issued or renewed as a certified reinsurer with reduced security as permitted by this chapter or comparable laws of other United States jurisdictions and for the certified reinsurer's obligations subject to § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-11"><span class="s2074689DefaultParagraphFont">58-14-11</span></a><span class="s2074689DefaultParagraphFont">. It shall be a condition to the grant of certification that the certified reinsurer shall have bound itself, by the language of the trust and agreement with the director with principal regulatory oversight of each trust account, to fund upon termination of any trust account, out of the remaining surplus of the trust any deficiency of any other trust account.</span></p><p dir="ltr" class="s2074689Normal"><span xml:space="preserve" class="s2074689000001"> </span></p><p dir="ltr" class="s2074689Normal"><span class="s2074689SCL">Source:</span><span xml:space="preserve" class="s2074689SCL-000002"> SL 2017, ch 211, § 21.</span></p></div></body></html><br /><hr><br /><html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 58-14-16 - Asset or reduction from liability for reinsurance ceded to insurer not meeting requirements of § 58-14-7--Security. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2074690Normal { margin-top: 0; margin-bottom: 0; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2074690SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2074690CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2074690Normal-000000 { margin-top: 0; margin-bottom: 0; text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2074690DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2074690000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2074690SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2074690SCL-000002 { 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="s2074690Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.11"><span class="s2074690SENU">58-14-16.11</span></a><span xml:space="preserve" class="s2074690SENU">. </span><span class="s2074690CL">Minimum trusteed surplus requirements.</span></p><p dir="ltr" class="s2074690Normal-000000"><span xml:space="preserve" class="s2074690DefaultParagraphFont">The minimum trusteed surplus requirements are not applicable with respect to a multibeneficiary trust maintained by a certified reinsurer for the purpose of securing obligations incurred under §§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.8"><span class="s2074690DefaultParagraphFont">58-14-16.8</span></a><span xml:space="preserve" class="s2074690DefaultParagraphFont"> to </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.13"><span class="s2074690DefaultParagraphFont">58-14-16.13</span></a><span class="s2074690DefaultParagraphFont">, inclusive, except that the trust shall maintain a minimum trusteed surplus of ten million dollars.</span></p><p dir="ltr" class="s2074690Normal"><span xml:space="preserve" class="s2074690000001"> </span></p><p dir="ltr" class="s2074690Normal"><span class="s2074690SCL">Source:</span><span xml:space="preserve" class="s2074690SCL-000002"> SL 2017, ch 211, § 22.</span></p></div></body></html><br /><hr><br /><html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 58-14-16 - Asset or reduction from liability for reinsurance ceded to insurer not meeting requirements of § 58-14-7--Security. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2074691Normal { margin-top: 0; margin-bottom: 0; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2074691SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2074691CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2074691Normal-000000 { margin-top: 0; margin-bottom: 0; text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2074691DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2074691000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2074691SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2074691SCL-000002 { 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="s2074691Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.12"><span class="s2074691SENU">58-14-16.12</span></a><span xml:space="preserve" class="s2074691SENU">. </span><span class="s2074691CL">Reduction in allowable credit for insufficient security.</span></p><p dir="ltr" class="s2074691Normal-000000"><span xml:space="preserve" class="s2074691DefaultParagraphFont">With respect to obligations incurred by a certified reinsurer under §§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.8"><span class="s2074691DefaultParagraphFont">58-14-16.8</span></a><span xml:space="preserve" class="s2074691DefaultParagraphFont"> to </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.13"><span class="s2074691DefaultParagraphFont">58-14-16.13</span></a><span class="s2074691DefaultParagraphFont">, inclusive, if the security is insufficient, the director shall reduce the allowable credit by an amount proportionate to the deficiency and has the discretion to impose further reductions in allowable credit upon finding that there is a material risk the certified reinsurer' s obligations may not be paid in full when due.</span></p><p dir="ltr" class="s2074691Normal"><span xml:space="preserve" class="s2074691000001"> </span></p><p dir="ltr" class="s2074691Normal"><span class="s2074691SCL">Source:</span><span xml:space="preserve" class="s2074691SCL-000002"> SL 2017, ch 211, § 23.</span></p></div></body></html><br /><hr><br /><html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 58-14-16 - Asset or reduction from liability for reinsurance ceded to insurer not meeting requirements of § 58-14-7--Security. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2074692Normal { margin-top: 0; margin-bottom: 0; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2074692SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2074692CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2074692Normal-000000 { margin-top: 0; margin-bottom: 0; text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2074692DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2074692000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2074692SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2074692SCL-000002 { 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="s2074692Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.13"><span class="s2074692SENU">58-14-16.13</span></a><span xml:space="preserve" class="s2074692SENU">. </span><span class="s2074692CL">Terminated or suspended certification--Inactive status.</span></p><p dir="ltr" class="s2074692Normal-000000"><span class="s2074692DefaultParagraphFont">A certified reinsurer whose certification has been terminated for any reason shall be treated as a certified reinsurer required to secure one hundred percent of the certified reinsurer's obligations. For the purposes of this section, the term, terminated, means revocation, suspension, voluntary surrender, and inactive status. If the director continues to assign a higher rating as permitted by other provisions regarding certification, this requirement does not apply to a certified reinsurer in inactive status or to a reinsurer whose certification has been suspended.</span></p><p dir="ltr" class="s2074692Normal"><span xml:space="preserve" class="s2074692000001"> </span></p><p dir="ltr" class="s2074692Normal"><span class="s2074692SCL">Source:</span><span xml:space="preserve" class="s2074692SCL-000002"> SL 2017, ch 211, § 24.</span></p></div></body></html><br /><hr><br /><html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 58-14-16 - Asset or reduction from liability for reinsurance ceded to insurer not meeting requirements of § 58-14-7--Security. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2074693Normal { margin-top: 0; margin-bottom: 0; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2074693SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2074693CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2074693Normal-000000 { margin-top: 0; margin-bottom: 0; text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2074693DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2074693000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2074693SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2074693SCL-000002 { 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="s2074693Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.14"><span class="s2074693SENU">58-14-16.14</span></a><span xml:space="preserve" class="s2074693SENU">. </span><span class="s2074693CL">Applicant for certification certified as reinsurer in National Association of Insurance Commissioners accredited jurisdiction.</span></p><p dir="ltr" class="s2074693Normal-000000"><span class="s2074693DefaultParagraphFont">If an applicant for certification has been certified as a reinsurer in a National Association of Insurance Commissioners accredited jurisdiction, the director has the discretion to defer to that jurisdiction's certification and has the discretion to defer to the rating assigned by that jurisdiction. Upon approval by the director, the applicant shall be considered to be a certified reinsurer in this state.</span></p><p dir="ltr" class="s2074693Normal"><span xml:space="preserve" class="s2074693000001"> </span></p><p dir="ltr" class="s2074693Normal"><span class="s2074693SCL">Source:</span><span xml:space="preserve" class="s2074693SCL-000002"> SL 2017, ch 211, § 25.</span></p></div></body></html><br /><hr><br /><html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 58-14-16 - Asset or reduction from liability for reinsurance ceded to insurer not meeting requirements of § 58-14-7--Security. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2074694Normal { margin-top: 0; margin-bottom: 0; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2074694SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2074694CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2074694Normal-000000 { margin-top: 0; margin-bottom: 0; text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2074694DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2074694000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2074694SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2074694SCL-000002 { 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="s2074694Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.15"><span class="s2074694SENU">58-14-16.15</span></a><span xml:space="preserve" class="s2074694SENU">. </span><span class="s2074694CL">Inactive certified reinsurers.</span></p><p dir="ltr" class="s2074694Normal-000000"><span class="s2074694DefaultParagraphFont">A certified reinsurer that ceases to assume new business in this state may request to maintain the certified reinsurer's certification in inactive status in order to continue to qualify for a reduction in security for the certified reinsurer's in-force business. An inactive certified reinsurer shall continue to comply with all applicable requirements of certification, and the director shall assign a rating that takes into account, if relevant, the reasons why the reinsurer is not assuming new business.</span></p><p dir="ltr" class="s2074694Normal"><span xml:space="preserve" class="s2074694000001"> </span></p><p dir="ltr" class="s2074694Normal"><span class="s2074694SCL">Source:</span><span xml:space="preserve" class="s2074694SCL-000002"> SL 2017, ch 211, § 26.</span></p></div></body></html><br /><hr><br /><html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 58-14-16 - Asset or reduction from liability for reinsurance ceded to insurer not meeting requirements of § 58-14-7--Security. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2074695Normal { margin-top: 0; margin-bottom: 0; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2074695SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2074695CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2074695Normal-000000 { margin-top: 0; margin-bottom: 0; text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2074695DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2074695000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2074695SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2074695SCL-000002 { 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="s2074695Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.16"><span class="s2074695SENU">58-14-16.16</span></a><span xml:space="preserve" class="s2074695SENU">. </span><span class="s2074695CL">Management and notice requirements regarding ceding insurer's reinsurance recoverables.</span></p><p dir="ltr" class="s2074695Normal-000000"><span class="s2074695DefaultParagraphFont">A ceding insurer shall take steps to manage the ceding insurer's reinsurance recoverables proportionate to the ceding insurer's own book of business. A domestic ceding insurer shall notify the director within thirty days after reinsurance recoverables from any single assuming insurer, or group of affiliated assuming insurers, exceeds fifty percent of the domestic ceding insurer's last reported surplus to policyholders, or after the ceding insurer determined that reinsurance recoverables from any single assuming insurer, or group of affiliated assuming insurers, is likely to exceed this limit. The notification shall demonstrate the exposure is safely managed by the domestic ceding insurer.</span></p><p dir="ltr" class="s2074695Normal"><span xml:space="preserve" class="s2074695000001"> </span></p><p dir="ltr" class="s2074695Normal"><span class="s2074695SCL">Source:</span><span xml:space="preserve" class="s2074695SCL-000002"> SL 2017, ch 211, § 27.</span></p></div></body></html><br /><hr><br /><html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 58-14-16 - Asset or reduction from liability for reinsurance ceded to insurer not meeting requirements of § 58-14-7--Security. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2074696Normal { margin-top: 0; margin-bottom: 0; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2074696SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2074696CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2074696Normal-000000 { margin-top: 0; margin-bottom: 0; text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2074696DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2074696000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2074696SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2074696SCL-000002 { 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="s2074696Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.17"><span class="s2074696SENU">58-14-16.17</span></a><span xml:space="preserve" class="s2074696SENU">. </span><span class="s2074696CL">Diversification of ceding insurer's reinsurance program--Notice requirements.</span></p><p dir="ltr" class="s2074696Normal-000000"><span class="s2074696DefaultParagraphFont">A ceding insurer shall take steps to diversify the ceding insurer's reinsurance program. A domestic ceding insurer shall notify the director within thirty days after ceding to any single assuming insurer, or group of affiliated assuming insurers, more than twenty percent of the ceding insurer's gross written premium in the prior calendar year, or after the ceding insurer has determined that the reinsurance ceded to any single assuming insurer, or group of affiliated assuming insurers, is likely to exceed this limit. The notification shall demonstrate the exposure is safely managed by the domestic ceding insurer.</span></p><p dir="ltr" class="s2074696Normal"><span xml:space="preserve" class="s2074696000001"> </span></p><p dir="ltr" class="s2074696Normal"><span class="s2074696SCL">Source:</span><span xml:space="preserve" class="s2074696SCL-000002"> SL 2017, ch 211, § 28.</span></p></div></body></html><br /><hr><br /><html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 58-14-16 - Asset or reduction from liability for reinsurance ceded to insurer not meeting requirements of § 58-14-7--Security. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2074697Normal { 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.s2074697SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2074697CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2074697Normal-000000 { 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.s2074697DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2074697Normal-000001 { margin-left: 0.70in; text-indent: -0.45in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } span.s2074697000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2074697SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2074697SCL-000003 { 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="s2074697Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.18"><span class="s2074697SENU">58-14-16.18</span></a><span xml:space="preserve" class="s2074697SENU">. </span><span class="s2074697CL">Qualified United States financial institution defined for purposes of subdivision 58-14-16(3).</span></p><p dir="ltr" class="s2074697Normal-000000"><span class="s2074697DefaultParagraphFont">For the purposes of subdivision 58-14-16(3), a qualified United States financial institution, means an institution that:</span></p><p dir="ltr" class="s2074697Normal-000001"><span class="s2074697DefaultParagraphFont">(1)    Is organized or, in the case of a United States branch or agency office of a foreign banking organization, licensed under the laws of the United States or any state thereof;</span></p><p dir="ltr" class="s2074697Normal-000001"><span class="s2074697DefaultParagraphFont">(2)    Is regulated, supervised, and examined by United States federal or state authorities having regulatory authority over banks and trust companies; and</span></p><p dir="ltr" class="s2074697Normal-000001"><span class="s2074697DefaultParagraphFont">(3)    Has been determined by either the director or the Securities Valuation Office of the National Association of Insurance Commissioners to meet the standards of financial condition and standing as are considered necessary and appropriate to regulate the quality of financial institutions whose letters of credit will be acceptable to the director.</span></p><p dir="ltr" class="s2074697Normal"><span xml:space="preserve" class="s2074697000002"> </span></p><p dir="ltr" class="s2074697Normal"><span class="s2074697SCL">Source:</span><span xml:space="preserve" class="s2074697SCL-000003"> SL 2017, ch 211, § 29.</span></p></div></body></html><br /><hr><br /><html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 58-14-16 - Asset or reduction from liability for reinsurance ceded to insurer not meeting requirements of § 58-14-7--Security. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2074698Normal { 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.s2074698SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2074698CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2074698Normal-000000 { 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.s2074698DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2074698Normal-000001 { margin-left: 0.70in; text-indent: -0.45in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } span.s2074698000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2074698SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2074698SCL-000003 { 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="s2074698Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.19"><span class="s2074698SENU">58-14-16.19</span></a><span xml:space="preserve" class="s2074698SENU">. </span><span class="s2074698CL">Trust agreement conditions for assuming insurers not meeting certain requirements.</span></p><p dir="ltr" class="s2074698Normal-000000"><span xml:space="preserve" class="s2074698DefaultParagraphFont">If the assuming insurer does not meet the requirements of § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-8"><span class="s2074698DefaultParagraphFont">58-14-8</span></a><span xml:space="preserve" class="s2074698DefaultParagraphFont">, </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-9"><span class="s2074698DefaultParagraphFont">58-14-9</span></a><span xml:space="preserve" class="s2074698DefaultParagraphFont">, or </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-10"><span class="s2074698DefaultParagraphFont">58-14-10</span></a><span xml:space="preserve" class="s2074698DefaultParagraphFont">, the credit permitted by § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-11"><span class="s2074698DefaultParagraphFont">58-14-11</span></a><span xml:space="preserve" class="s2074698DefaultParagraphFont"> or </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.1"><span class="s2074698DefaultParagraphFont">58-14-16.1</span></a><span xml:space="preserve" class="s2074698DefaultParagraphFont"> may not be allowed unless the assuming insurer agrees in the trust agreement to the following conditions:</span></p><p dir="ltr" class="s2074698Normal-000001"><span class="s2074698DefaultParagraphFont">(1)    Notwithstanding any other provisions in the trust instrument, if the trust fund is inadequate because the trust fund contains an amount less than the amount less than the amount required, or if the grantor of the trust has been declared insolvent or placed into receivership, rehabilitation, liquidation, or similar proceedings under the laws of its state or country of domicile, the trustee shall comply with an order of the director with regulatory oversight over the trust or with an order of court of competent jurisdiction directing the trustee to transfer to the director with regulatory oversight all of the assets of the trust fund;</span></p><p dir="ltr" class="s2074698Normal-000001"><span class="s2074698DefaultParagraphFont">(2)    The assets shall be distributed by and claims shall be filed with and valued by the director with regulatory oversight in accordance with the laws of the state in which the trust is domiciled that are applicable to the liquidation of domestic insurance companies;</span></p><p dir="ltr" class="s2074698Normal-000001"><span class="s2074698DefaultParagraphFont">(3)    If the director with regulatory oversight determines that the assets of the trust fund or any part thereof are not necessary to satisfy the claims of the United States ceding insurer of the grantor of the trust, the assets or part thereof shall be returned by the director with regulatory oversight to the trustee for distribution in accordance with the trust agreement; and</span></p><p dir="ltr" class="s2074698Normal-000001"><span class="s2074698DefaultParagraphFont">(4)    The grantor shall waive any right otherwise available to the grantor under United States law that is inconsistent with this section.</span></p><p dir="ltr" class="s2074698Normal"><span xml:space="preserve" class="s2074698000002"> </span></p><p dir="ltr" class="s2074698Normal"><span class="s2074698SCL">Source:</span><span xml:space="preserve" class="s2074698SCL-000003"> SL 2017, ch 211, § 30.</span></p></div></body></html><br /><hr><br /><html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 58-14-16 - Asset or reduction from liability for reinsurance ceded to insurer not meeting requirements of § 58-14-7--Security. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2074699Normal { 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.s2074699SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2074699CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2074699Normal-000000 { 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.s2074699DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2074699Normal-000001 { margin-left: 0.70in; text-indent: -0.45in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } span.s2074699000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2074699SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2074699SCL-000003 { 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="s2074699Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.20"><span class="s2074699SENU">58-14-16.20</span></a><span xml:space="preserve" class="s2074699SENU">. </span><span class="s2074699CL">Suspension or revocation of reinsurer' s accreditation or certification.</span></p><p dir="ltr" class="s2074699Normal-000000"><span class="s2074699DefaultParagraphFont">If an accredited or certified reinsurer ceases to meet the requirements for accreditation or certification, the director may suspend or revoke the reinsurer' s accreditation or certification. The director shall give the reinsurer notice and opportunity for hearing. The suspension or revocation may not take effect until after the director's order on hearing, unless:</span></p><p dir="ltr" class="s2074699Normal-000001"><span class="s2074699DefaultParagraphFont">(1)    The reinsurer waives the reinsurer's right to hearing;</span></p><p dir="ltr" class="s2074699Normal-000001"><span xml:space="preserve" class="s2074699DefaultParagraphFont">(2)    The director's order is based on regulatory action by the reinsurer's domiciliary jurisdiction or the volunteer surrender or termination of the reinsurer' s eligibility to transact insurance or reinsurance business in the reinsurer's domiciliary jurisdiction or in the primary certifying state of the reinsurer under § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.14"><span class="s2074699DefaultParagraphFont">58-14-16.14</span></a><span class="s2074699DefaultParagraphFont">; or</span></p><p dir="ltr" class="s2074699Normal-000001"><span class="s2074699DefaultParagraphFont">(3)    The director finds that an emergency requires immediate action and a court of competent jurisdiction has not stayed the director's action.</span></p><p dir="ltr" class="s2074699Normal"><span xml:space="preserve" class="s2074699000002"> </span></p><p dir="ltr" class="s2074699Normal"><span class="s2074699SCL">Source:</span><span xml:space="preserve" class="s2074699SCL-000003"> SL 2017, ch 211, § 31.</span></p></div></body></html><br /><hr><br /><html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 58-14-16 - Asset or reduction from liability for reinsurance ceded to insurer not meeting requirements of § 58-14-7--Security. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2074700Normal { margin-top: 0; margin-bottom: 0; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2074700SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2074700CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2074700Normal-000000 { margin-top: 0; margin-bottom: 0; text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2074700DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2074700000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2074700SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2074700SCL-000002 { 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="s2074700Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.21"><span class="s2074700SENU">58-14-16.21</span></a><span xml:space="preserve" class="s2074700SENU">. </span><span class="s2074700CL">Credit for reinsurance during suspension or revocation.</span></p><p dir="ltr" class="s2074700Normal-000000"><span xml:space="preserve" class="s2074700DefaultParagraphFont">While a reinsurer's accreditation or certification is suspended, no reinsurance contract issued or renewed after the effective date of the suspension qualifies for credit except to the extent that the reinsurer's obligations under the contract are secured in accordance with § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16"><span class="s2074700DefaultParagraphFont">58-14-16</span></a><span xml:space="preserve" class="s2074700DefaultParagraphFont">. If a reinsurer's accreditation or certification is revoked, no credit for reinsurance may be granted after the effective date of the revocation except to the extent the reinsurer's obligations under the contract are secured in accordance with § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16"><span class="s2074700DefaultParagraphFont">58-14-16</span></a><span xml:space="preserve" class="s2074700DefaultParagraphFont"> or §§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.8"><span class="s2074700DefaultParagraphFont">58-14-16.8</span></a><span xml:space="preserve" class="s2074700DefaultParagraphFont"> to </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.13"><span class="s2074700DefaultParagraphFont">58-14-16.13</span></a><span class="s2074700DefaultParagraphFont">, inclusive.</span></p><p dir="ltr" class="s2074700Normal"><span xml:space="preserve" class="s2074700000001"> </span></p><p dir="ltr" class="s2074700Normal"><span class="s2074700SCL">Source:</span><span xml:space="preserve" class="s2074700SCL-000002"> SL 2017, ch 211, § 32.</span></p></div></body></html><br /><hr><br /><html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 58-14-16 - Asset or reduction from liability for reinsurance ceded to insurer not meeting requirements of § 58-14-7--Security. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2074701Normal { margin-top: 0; margin-bottom: 0; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2074701SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2074701CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2074701Normal-000000 { margin-top: 0; margin-bottom: 0; text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2074701DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2074701000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2074701SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2074701SCL-000002 { 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="s2074701Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.22"><span class="s2074701SENU">58-14-16.22</span></a><span xml:space="preserve" class="s2074701SENU">. </span><span class="s2074701CL">Fees.</span></p><p dir="ltr" class="s2074701Normal-000000"><span xml:space="preserve" class="s2074701DefaultParagraphFont">The fee for each required document included in any application for accreditation, certification or any annual reinsurance filing, or for approval of or amendments to a trust, required by § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-5"><span class="s2074701DefaultParagraphFont">58-14-5</span></a><span xml:space="preserve" class="s2074701DefaultParagraphFont">, </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-8"><span class="s2074701DefaultParagraphFont">58-14-8</span></a><span xml:space="preserve" class="s2074701DefaultParagraphFont">, </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-9"><span class="s2074701DefaultParagraphFont">58-14-9</span></a><span xml:space="preserve" class="s2074701DefaultParagraphFont">, </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-10"><span class="s2074701DefaultParagraphFont">58-14-10</span></a><span xml:space="preserve" class="s2074701DefaultParagraphFont">, </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-11"><span class="s2074701DefaultParagraphFont">58-14-11</span></a><span xml:space="preserve" class="s2074701DefaultParagraphFont">, </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-13"><span class="s2074701DefaultParagraphFont">58-14-13</span></a><span xml:space="preserve" class="s2074701DefaultParagraphFont">, </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-14"><span class="s2074701DefaultParagraphFont">58-14-14</span></a><span xml:space="preserve" class="s2074701DefaultParagraphFont">, or §§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.1"><span class="s2074701DefaultParagraphFont">58-14-16.1</span></a><span xml:space="preserve" class="s2074701DefaultParagraphFont"> to </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.3"><span class="s2074701DefaultParagraphFont">58-14-16.3</span></a><span class="s2074701DefaultParagraphFont">, inclusive, shall be fifty dollars.</span></p><p dir="ltr" class="s2074701Normal"><span xml:space="preserve" class="s2074701000001"> </span></p><p dir="ltr" class="s2074701Normal"><span class="s2074701SCL">Source:</span><span xml:space="preserve" class="s2074701SCL-000002"> SL 2017, ch 211, § 33.</span></p></div></body></html><br /><hr><br /><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 - Asset or reduction from liability for reinsurance ceded to insurer not meeting requirements of § 58-14-7--Security. </title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.s2082930Normal { 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.s2082930SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2082930CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2082930Statute { 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.s2082930DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2082930StatuteNumber1 { margin-left: 0.75in; text-indent: -0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } a.s2082930000000 { text-decoration: none; } p.s2082930StatuteNumber2 { margin-left: 1.25in; text-indent: -0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } span.s2082930000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2082930NoIndent { text-indent: 0.00in; 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.s2082930DefaultParagraphFont-000002 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2082930SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style><meta name="viewport" content="width=device-width, initial-scale=1"><meta name="twitter:card" content="summary"><meta property="og:title" content="SD 58-14-16.23 - Credit for reinsurance for reinsurers in reciprocal jurisdictions--Eligibility requirements."><meta property="og:description" content="SDLRC Codified Law 58-14-16.23 - Credit for reinsurance for reinsurers in reciprocal jurisdictions--Eligibility requirements."><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes?Statute=58-14-16.23"><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="s2082930Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.23" rel="noopener"><span class="s2082930SENU">58-14-16.23</span></a><span xml:space="preserve" class="s2082930SENU">. </span><span xml:space="preserve" class="s2082930CL">Credit for reinsurance for reinsurers in reciprocal jurisdictions--Eligibility requirements. </span></p><p dir="ltr" class="s2082930Statute"><span xml:space="preserve" class="s2082930DefaultParagraphFont">Credit must be allowed when the reinsurance is ceded to an assuming insurer with its head office or domicile in a reciprocal jurisdiction in compliance with §§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.23" rel="noopener"><span class="s2082930DefaultParagraphFont">58-14-16.23</span></a><span xml:space="preserve" class="s2082930DefaultParagraphFont"> to 58-14-16.34, inclusive. A reciprocal jurisdiction is a jurisdiction that meets one of the following:</span></p><p dir="ltr" class="s2082930StatuteNumber1"><a id="_Hlk57894053" class="s2082930000000" rel="noopener"></a><span class="s2082930DefaultParagraphFont">(1)    A non-United States jurisdiction subject to an in-force covered agreement with the United States, each within its legal authority, or, in the case of a covered agreement between the United States and European Union, is a member state of the European Union. For purposes of this chapter, a covered agreement is an agreement entered into pursuant to Dodd-Frank Wall Street Reform and Consumer Protection Act, 31 U.S.C. §§ 313 and 314, that is currently in effect or in a period of provisional application and addresses the elimination, under specified conditions, of collateral requirements as a condition for entering into any reinsurance agreement with a ceding insurer domiciled in this state or for allowing the ceding insurer to recognize credit for reinsurance</span><span class="s2082930DefaultParagraphFont">;</span></p><p dir="ltr" class="s2082930StatuteNumber1"><span class="s2082930DefaultParagraphFont">(2)    A United States jurisdiction that meets the requirements for accreditation under the NAIC financial standards and accreditation program; or</span></p><p dir="ltr" class="s2082930StatuteNumber1"><span class="s2082930DefaultParagraphFont">(3)    A qualified jurisdiction, as determined by the director pursuant to this chapter, that is not otherwise described in subdivisions (1) or (2) of this section and that the director determines meets the following additional requirements:</span></p><p dir="ltr" class="s2082930StatuteNumber2"><span class="s2082930DefaultParagraphFont">(a)    Provides that an insurer that has its head office or is domiciled in a qualified jurisdiction is allowed credit for reinsurance ceded to a United States-domiciled assuming insurer in the same manner as credit for reinsurance is allowed for reinsurance assumed by insurers domiciled in a qualified jurisdiction;</span></p><p dir="ltr" class="s2082930StatuteNumber2"><span class="s2082930DefaultParagraphFont">(b)    Does not require a United States-domiciled assuming insurer to establish or maintain a local presence as a condition for entering into a reinsurance agreement with any ceding insurer subject to regulation by the non-United States jurisdiction or as a condition to allow the ceding insurer to recognize credit for reinsurance;</span></p><p dir="ltr" class="s2082930StatuteNumber2"><span class="s2082930DefaultParagraphFont">(c)    Recognizes the United States state regulatory approach to group supervision and group capital, by providing written confirmation by a competent regulatory authority in a qualified jurisdiction that insurers and insurance groups that are domiciled or maintain their headquarters in this state or another jurisdiction accredited by the NAIC shall be subject only to worldwide prudential insurance group supervision including worldwide group governance, solvency and capital, and reporting by the director or the insurance commissioner of the domiciliary state and will not be subject to group supervision at the level of the worldwide parent undertaking of the insurance or reinsurance group by the qualified jurisdiction; and</span></p><p dir="ltr" class="s2082930StatuteNumber2"><span class="s2082930DefaultParagraphFont">(d)    Provides written confirmation by a competent regulatory authority in the qualified jurisdiction that information regarding insurers and their parent, subsidiary, or affiliated entities shall be provided to the director in accordance with a memorandum of understanding or similar document between the director and the qualified jurisdiction, including the International Association of Insurance Supervisors Multilateral Memorandum of Understanding or other multilateral memoranda of understanding coordinated by the NAIC.</span></p><p dir="ltr" class="s2082930Normal"><span xml:space="preserve" class="s2082930000001"> </span></p><p dir="ltr" class="s2082930NoIndent"><span xml:space="preserve" class="s2082930DefaultParagraphFont-000002">Source: </span><span class="s2082930SCL">SL 2021, ch 211, § 1.</span></p></div></body></html><br /><hr><br /><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 - Asset or reduction from liability for reinsurance ceded to insurer not meeting requirements of § 58-14-7--Security. </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%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s2082931DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2082931StatuteNumber1 { margin-left: 0.75in; text-indent: -0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } p.s2082931StatuteNumber2 { margin-left: 1.25in; text-indent: -0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } span.s2082931000000 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2082931NoIndent { text-indent: 0.00in; 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.s2082931DefaultParagraphFont-000001 { font-family: 'Times New Roman', 'serif'; 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; } </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><br /><hr><br /><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 - Asset or reduction from liability for reinsurance ceded to insurer not meeting requirements of § 58-14-7--Security. </title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.s2082932Normal { 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.s2082932SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2082932CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2082932Statute { 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.s2082932DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2082932StatuteNumber1 { margin-left: 0.75in; text-indent: -0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } span.s2082932000000 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2082932NoIndent { text-indent: 0.00in; 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.s2082932DefaultParagraphFont-000001 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2082932SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style><meta name="viewport" content="width=device-width, initial-scale=1"><meta name="twitter:card" content="summary"><meta property="og:title" content="SD 58-14-16.25 - Credit for reinsurance for reinsurers in reciprocal jurisdictions--Adequate assurances required."><meta property="og:description" content="SDLRC Codified Law 58-14-16.25 - Credit for reinsurance for reinsurers in reciprocal jurisdictions--Adequate assurances required."><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes?Statute=58-14-16.25"><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="s2082932Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.25" rel="noopener"><span class="s2082932SENU">58-14-16.25</span></a><span xml:space="preserve" class="s2082932SENU">. </span><span xml:space="preserve" class="s2082932CL">Credit for reinsurance for reinsurers in reciprocal jurisdictions--Adequate assurances required. </span></p><p dir="ltr" class="s2082932Statute"><span xml:space="preserve" class="s2082932DefaultParagraphFont">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="s2082932DefaultParagraphFont">58-14-16.23</span></a><span xml:space="preserve" class="s2082932DefaultParagraphFont"> shall agree in writing to provide adequate assurance to the director, in a form prescribed by the director, as follows:</span></p><p dir="ltr" class="s2082932StatuteNumber1"><span xml:space="preserve" class="s2082932DefaultParagraphFont">(1)    The assuming insurer shall provide prompt written notice and explanation to the director if the assuming insurer falls below the minimum requirements set forth in § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.24" rel="noopener"><span class="s2082932DefaultParagraphFont">58-14-16.24</span></a><span class="s2082932DefaultParagraphFont">, or if any regulatory action is taken against the assuming insurer for serious noncompliance with applicable law;</span></p><p dir="ltr" class="s2082932StatuteNumber1"><span class="s2082932DefaultParagraphFont">(2)    The assuming insurer shall consent in writing to the jurisdiction of the courts of this state and to the appointment of the director as agent for service of process. The director may require that consent for service of process be provided to the director and included in each reinsurance agreement. Nothing in this subdivision limits or alters the capacity of parties to a reinsurance agreement to agree to alternative dispute resolution mechanisms, except to the extent such agreements are unenforceable under applicable insolvency or delinquency laws;</span></p><p dir="ltr" class="s2082932StatuteNumber1"><span class="s2082932DefaultParagraphFont">(3)    The assuming insurer shall consent in writing to pay all final judgments wherever enforcement is sought as obtained by a ceding insurer or its legal successor that have been declared enforceable in the jurisdiction where the judgment was obtained;</span></p><p dir="ltr" class="s2082932StatuteNumber1"><span class="s2082932DefaultParagraphFont">(4)    Each reinsurance agreement must include a provision requiring the assuming insurer to provide security in an amount equal to one hundred percent of the assuming insurer's liabilities attributable to reinsurance ceded pursuant to that agreement if the assuming insurer resists enforcement of a final judgment that is enforceable under the law of the jurisdiction in which it was obtained or a properly enforceable arbitration award, whether obtained by the ceding insurer or by its legal successor on behalf of its resolution estate;</span></p><p dir="ltr" class="s2082932StatuteNumber1"><span class="s2082932DefaultParagraphFont">(5)    The assuming insurer shall confirm that it is not presently participating in any solvent scheme of arrangement that involves this state's ceding insurers and shall agree to notify the ceding insurer and the director and to provide security in an amount equal to one hundred percent of the assuming insurer's liabilities to the ceding insurer if the assuming insurer enters into such a solvent scheme of arrangement. Such security shall be in a form consistent with the provisions of this chapter. For purposes of this section, the term, solvent scheme of arrangement, means a foreign or alien statutory or regulatory compromise procedure subject to requisite majority creditor approval and judicial sanction in the assuming insurer's home jurisdiction either to finally commute liabilities of duly noticed classed members or creditors of a solvent debtor, or to reorganize or restructure the debts and obligations of a solvent debtor on a final basis, and which may be subject to judicial recognition and enforcement of the arrangement by a governing authority outside the ceding insurer's home jurisdiction; and</span></p><p dir="ltr" class="s2082932StatuteNumber1"><span xml:space="preserve" class="s2082932DefaultParagraphFont">(6)    An assuming insurer's supervisory authority shall confirm to the director on an annual basis, as of the preceding December thirty-first or at the annual date otherwise statutorily reported to the reciprocal jurisdiction, that the assuming insurer complies with the requirements of § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.24" rel="noopener"><span class="s2082932DefaultParagraphFont">58-14-16.24</span></a><span class="s2082932DefaultParagraphFont">.</span></p><p dir="ltr" class="s2082932Statute"><span class="s2082932DefaultParagraphFont">Nothing in this section precludes an assuming insurer from providing the director with information on a voluntary basis.</span></p><p dir="ltr" class="s2082932Normal"><span xml:space="preserve" class="s2082932000000"> </span></p><p dir="ltr" class="s2082932NoIndent"><span xml:space="preserve" class="s2082932DefaultParagraphFont-000001">Source: </span><span class="s2082932SCL">SL 2021, ch 211, § 3.</span></p></div></body></html><br /><hr><br /><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 - Asset or reduction from liability for reinsurance ceded to insurer not meeting requirements of § 58-14-7--Security. </title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.s2082933Normal { 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.s2082933SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2082933CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2082933Statute { 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.s2082933DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2082933StatuteNumber1 { margin-left: 0.75in; text-indent: -0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } p.s2082933StatuteNumber2 { margin-left: 1.25in; text-indent: -0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } span.s2082933000000 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2082933NoIndent { text-indent: 0.00in; 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.s2082933DefaultParagraphFont-000001 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2082933SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style><meta name="viewport" content="width=device-width, initial-scale=1"><meta name="twitter:card" content="summary"><meta property="og:title" content="SD 58-14-16.26 - Documents that must be provided to the division."><meta property="og:description" content="SDLRC Codified Law 58-14-16.26 - Documents that must be provided to the division."><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes?Statute=58-14-16.26"><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="s2082933Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.26" rel="noopener"><span class="s2082933SENU">58-14-16.26</span></a><span xml:space="preserve" class="s2082933SENU">. </span><span xml:space="preserve" class="s2082933CL">Documents that must be provided to the division. </span></p><p dir="ltr" class="s2082933Statute"><span xml:space="preserve" class="s2082933DefaultParagraphFont">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="s2082933DefaultParagraphFont">58-14-16.23</span></a><span xml:space="preserve" class="s2082933DefaultParagraphFont"> or its legal successor shall provide, if requested by the director, on behalf of itself and any legal predecessors, the following documentation to the director:</span></p><p dir="ltr" class="s2082933StatuteNumber1"><span class="s2082933DefaultParagraphFont">(1)    For the two years preceding entry into the reinsurance agreement and on an annual basis thereafter, the assuming insurer's annual audited financial statements in accordance with the applicable law of the jurisdiction of its head office or domiciliary jurisdiction, including the external audit report;</span></p><p dir="ltr" class="s2082933StatuteNumber1"><span class="s2082933DefaultParagraphFont">(2)    For the two years preceding entry into the reinsurance agreement, the solvency and financial condition report or actuarial opinion, if filed with the assuming insurer's supervisor; and</span></p><p dir="ltr" class="s2082933StatuteNumber1"><span class="s2082933DefaultParagraphFont">(3)    Prior to entry into the reinsurance agreement and not more than semiannually thereafter:</span></p><p dir="ltr" class="s2082933StatuteNumber2"><span class="s2082933DefaultParagraphFont">(a)    An updated list of all disputed and overdue reinsurance claims that are outstanding for ninety days or more regarding reinsurance assumed from ceding insurers domiciled in the United States; and</span></p><p dir="ltr" class="s2082933StatuteNumber2"><span class="s2082933DefaultParagraphFont">(b)    Information regarding the assuming insurer's assumed reinsurance by ceding insurer, ceded reinsurance by the assuming insurer, and reinsurance recoverable on paid and unpaid losses by the assuming insurer to allow for the evaluation of the criteria set forth in § 58-14-16.27.</span></p><p dir="ltr" class="s2082933Normal"><span xml:space="preserve" class="s2082933000000"> </span></p><p dir="ltr" class="s2082933NoIndent"><span xml:space="preserve" class="s2082933DefaultParagraphFont-000001">Source: </span><span class="s2082933SCL">SL 2021, ch 211, § 4.</span></p></div></body></html><br /><hr><br /><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 - Asset or reduction from liability for reinsurance ceded to insurer not meeting requirements of § 58-14-7--Security. </title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.s2082934Normal { 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.s2082934SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2082934CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2082934Statute { 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.s2082934DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2082934StatuteNumber1 { margin-left: 0.75in; text-indent: -0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } span.s2082934000000 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2082934NoIndent { text-indent: 0.00in; 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.s2082934DefaultParagraphFont-000001 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2082934SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style><meta name="viewport" content="width=device-width, initial-scale=1"><meta name="twitter:card" content="summary"><meta property="og:title" content="SD 58-14-16.27 - Prompt payment practices."><meta property="og:description" content="SDLRC Codified Law 58-14-16.27 - Prompt payment practices."><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes?Statute=58-14-16.27"><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="s2082934Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.27" rel="noopener"><span class="s2082934SENU">58-14-16.27</span></a><span xml:space="preserve" class="s2082934SENU">. </span><span xml:space="preserve" class="s2082934CL">Prompt payment practices. </span></p><p dir="ltr" class="s2082934Statute"><span xml:space="preserve" class="s2082934DefaultParagraphFont">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="s2082934DefaultParagraphFont">58-14-16.23</span></a><span xml:space="preserve" class="s2082934DefaultParagraphFont"> shall maintain a practice of prompt payment of claims under a reinsurance agreement. The lack of prompt payment is evidenced if any of the following criteria are met:</span></p><p dir="ltr" class="s2082934StatuteNumber1"><span class="s2082934DefaultParagraphFont">(1)    More than fifteen percent of the reinsurance recoverables from the assuming insurer are overdue and in dispute as reported to the director;</span></p><p dir="ltr" class="s2082934StatuteNumber1"><span class="s2082934DefaultParagraphFont">(2)    More than fifteen percent of the assuming insurer's ceding insurers or reinsurers have overdue reinsurance recoverable on paid losses of ninety days or more that are not in dispute and that exceed one hundred thousand dollars for each ceding insurer or as otherwise specified in a covered agreement; or</span></p><p dir="ltr" class="s2082934StatuteNumber1"><span class="s2082934DefaultParagraphFont">(3)    The aggregate amount of reinsurance recoverable on paid losses that are not in dispute but are overdue by ninety days or more exceeds fifty million dollars or as otherwise specified in a covered agreement.</span></p><p dir="ltr" class="s2082934Normal"><span xml:space="preserve" class="s2082934000000"> </span></p><p dir="ltr" class="s2082934NoIndent"><span xml:space="preserve" class="s2082934DefaultParagraphFont-000001">Source: </span><span class="s2082934SCL">SL 2021, ch 211, § 5.</span></p></div></body></html><br /><hr><br /><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 - Asset or reduction from liability for reinsurance ceded to insurer not meeting requirements of § 58-14-7--Security. </title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.s2082935Normal { 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.s2082935SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2082935CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2082935Statute { 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.s2082935DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2082935000000 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2082935NoIndent { text-indent: 0.00in; 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.s2082935DefaultParagraphFont-000001 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2082935SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style><meta name="viewport" content="width=device-width, initial-scale=1"><meta name="twitter:card" content="summary"><meta property="og:title" content="SD 58-14-16.28 - List or reciprocal jurisdictions to be published."><meta property="og:description" content="SDLRC Codified Law 58-14-16.28 - List or reciprocal jurisdictions to be published."><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes?Statute=58-14-16.28"><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="s2082935Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.28" rel="noopener"><span class="s2082935SENU">58-14-16.28</span></a><span xml:space="preserve" class="s2082935SENU">. </span><span xml:space="preserve" class="s2082935CL">List or reciprocal jurisdictions to be published. </span></p><p dir="ltr" class="s2082935Statute"><span class="s2082935DefaultParagraphFont">The director shall timely create and publish a list of reciprocal jurisdictions that includes any reciprocal jurisdiction as defined under this chapter. A list of reciprocal jurisdictions is published by the NAIC and the director shall consider any other reciprocal jurisdiction included on the list. The director may approve a jurisdiction that does not appear on the list of reciprocal jurisdictions in accordance with criteria provided in this chapter.</span></p><p dir="ltr" class="s2082935Statute"><span xml:space="preserve" class="s2082935DefaultParagraphFont">The director may remove a jurisdiction from the list of reciprocal jurisdictions upon a determination that the jurisdiction no longer meets one or more of the requirements of a reciprocal jurisdiction in accordance with § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.23" rel="noopener"><span class="s2082935DefaultParagraphFont">58-14-16.23</span></a><span xml:space="preserve" class="s2082935DefaultParagraphFont">. However, the director may not remove from the list a reciprocal jurisdiction as under subdivisions </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.23" rel="noopener"><span class="s2082935DefaultParagraphFont">58-14-16.23</span></a><span class="s2082935DefaultParagraphFont">(1) and (2). Upon removal of a reciprocal jurisdiction from this list, credit for reinsurance ceded to an assuming insurer that has its home office or is domiciled in that jurisdiction is allowed if otherwise allowed pursuant to this chapter.</span></p><p dir="ltr" class="s2082935Normal"><span xml:space="preserve" class="s2082935000000"> </span></p><p dir="ltr" class="s2082935NoIndent"><span xml:space="preserve" class="s2082935DefaultParagraphFont-000001">Source: </span><span class="s2082935SCL">SL 2021, ch 211, § 6.</span></p></div></body></html><br /><hr><br /><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 - Asset or reduction from liability for reinsurance ceded to insurer not meeting requirements of § 58-14-7--Security. </title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.s2082936Normal { 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.s2082936SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2082936CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2082936Statute { 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.s2082936DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2082936000000 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2082936NoIndent { text-indent: 0.00in; 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.s2082936DefaultParagraphFont-000001 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2082936SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style><meta name="viewport" content="width=device-width, initial-scale=1"><meta name="twitter:card" content="summary"><meta property="og:title" content="SD 58-14-16.29 - List of assuming insurers."><meta property="og:description" content="SDLRC Codified Law 58-14-16.29 - List of assuming insurers."><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes?Statute=58-14-16.29"><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="s2082936Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.29" rel="noopener"><span class="s2082936SENU">58-14-16.29</span></a><span xml:space="preserve" class="s2082936SENU">. </span><span xml:space="preserve" class="s2082936CL">List of assuming insurers. </span></p><p dir="ltr" class="s2082936Statute"><span xml:space="preserve" class="s2082936DefaultParagraphFont">The director shall timely create and publish a list of assuming insurers that have satisfied the conditions set forth in §§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.23" rel="noopener"><span class="s2082936DefaultParagraphFont">58-14-16.23</span></a><span xml:space="preserve" class="s2082936DefaultParagraphFont"> to 58-14-16.34, inclusive, and to which cessions must be granted credit. The director may add an assuming insurer to the list if an NAIC-accredited jurisdiction has added the assuming insurer to its list of assuming insurers or if, upon initial eligibility, the assuming insurer submits the information to the director as required under § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.25" rel="noopener"><span class="s2082936DefaultParagraphFont">58-14-16.25</span></a><span xml:space="preserve" class="s2082936DefaultParagraphFont">, except to the extent that submissions conflict with an applicable covered agreement. If an NAIC-accredited jurisdiction has determined that the conditions set forth in §§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.24" rel="noopener"><span class="s2082936DefaultParagraphFont">58-14-16.24</span></a><span xml:space="preserve" class="s2082936DefaultParagraphFont"> to </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.27" rel="noopener"><span class="s2082936DefaultParagraphFont">58-14-16.27</span></a><span xml:space="preserve" class="s2082936DefaultParagraphFont">, inclusive, have been met, the director has the discretion to defer to that jurisdiction's determination and add such assuming insurer to the list of assuming insurers. The director may accept financial documentation filed with another NAIC-accredited jurisdiction or with the NAIC in satisfaction of the requirements of §§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.24" rel="noopener"><span class="s2082936DefaultParagraphFont">58-14-16.24</span></a><span xml:space="preserve" class="s2082936DefaultParagraphFont"> to </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.27" rel="noopener"><span class="s2082936DefaultParagraphFont">58-14-16.27</span></a><span class="s2082936DefaultParagraphFont">, inclusive.</span></p><p dir="ltr" class="s2082936Statute"><span class="s2082936DefaultParagraphFont">When requesting that the director defer to another NAIC-accredited jurisdiction's determination, an assuming insurer shall submit a properly executed form prescribed by the director and other additional information as the director may require. A state that has received such a request will notify other states through the NAIC and provide relevant information with respect to the determination of eligibility.</span></p><p dir="ltr" class="s2082936Normal"><span xml:space="preserve" class="s2082936000000"> </span></p><p dir="ltr" class="s2082936NoIndent"><span xml:space="preserve" class="s2082936DefaultParagraphFont-000001">Source: </span><span class="s2082936SCL">SL 2021, ch 211, § 7.</span></p></div></body></html><br /><hr><br /><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 - Asset or reduction from liability for reinsurance ceded to insurer not meeting requirements of § 58-14-7--Security. </title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.s2082937Normal { 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.s2082937SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2082937CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2082937Statute { 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.s2082937DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2082937000000 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2082937NoIndent { text-indent: 0.00in; 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.s2082937DefaultParagraphFont-000001 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2082937SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style><meta name="viewport" content="width=device-width, initial-scale=1"><meta name="twitter:card" content="summary"><meta property="og:title" content="SD 58-14-16.30 - Assuming insurers that no longer meet one or more requirements."><meta property="og:description" content="SDLRC Codified Law 58-14-16.30 - Assuming insurers that no longer meet one or more requirements."><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes?Statute=58-14-16.30"><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="s2082937Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.30" rel="noopener"><span class="s2082937SENU">58-14-16.30</span></a><span xml:space="preserve" class="s2082937SENU">. </span><span xml:space="preserve" class="s2082937CL">Assuming insurers that no longer meet one or more requirements. </span></p><p dir="ltr" class="s2082937Statute"><span xml:space="preserve" class="s2082937DefaultParagraphFont">If the director determines that an assuming insurer no longer meets a requirement under §§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.23" rel="noopener"><span class="s2082937DefaultParagraphFont">58-14-16.23</span></a><span xml:space="preserve" class="s2082937DefaultParagraphFont"> to 58-14-16.34, inclusive, the director may revoke or suspend the eligibility of the assuming insurer.</span></p><p dir="ltr" class="s2082937Statute"><span xml:space="preserve" class="s2082937DefaultParagraphFont">While an assuming insurer's eligibility is suspended, no reinsurance agreement issued, amended, or renewed after the effective date of the suspension qualifies for credit except to the extent that the assuming insurer's obligations under the contract are secured in accordance with § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16" rel="noopener"><span class="s2082937DefaultParagraphFont">58-14-16</span></a><span class="s2082937DefaultParagraphFont">.</span></p><p dir="ltr" class="s2082937Statute"><span xml:space="preserve" class="s2082937DefaultParagraphFont">If an assuming insurer's eligibility is revoked, no credit for reinsurance may be granted after the effective date of the revocation with respect to any reinsurance agreements entered into by the assuming insurer, including reinsurance agreements entered into prior to the date of revocation, except to the extent that the assuming insurer's obligations under the contract are secured in a form acceptable to the director and consistent with the provisions of § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16" rel="noopener"><span class="s2082937DefaultParagraphFont">58-14-16</span></a><span class="s2082937DefaultParagraphFont">.</span></p><p dir="ltr" class="s2082937Normal"><span xml:space="preserve" class="s2082937000000"> </span></p><p dir="ltr" class="s2082937NoIndent"><span xml:space="preserve" class="s2082937DefaultParagraphFont-000001">Source: </span><span class="s2082937SCL">SL 2021, ch 211, § 8.</span></p></div></body></html><br /><hr><br /><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 - Asset or reduction from liability for reinsurance ceded to insurer not meeting requirements of § 58-14-7--Security. </title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.s2082938Normal { 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.s2082938SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2082938CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2082938Statute { 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.s2082938DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2082938StatuteNumber1 { margin-left: 0.75in; text-indent: -0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } span.s2082938000000 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2082938NoIndent { text-indent: 0.00in; 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.s2082938DefaultParagraphFont-000001 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2082938SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style><meta name="viewport" content="width=device-width, initial-scale=1"><meta name="twitter:card" content="summary"><meta property="og:title" content="SD 58-14-16.31 - Procedure for denying statement credit."><meta property="og:description" content="SDLRC Codified Law 58-14-16.31 - Procedure for denying statement credit."><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes?Statute=58-14-16.31"><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="s2082938Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.31" rel="noopener"><span class="s2082938SENU">58-14-16.31</span></a><span xml:space="preserve" class="s2082938SENU">. </span><span xml:space="preserve" class="s2082938CL">Procedure for denying statement credit. </span></p><p dir="ltr" class="s2082938Statute"><span xml:space="preserve" class="s2082938DefaultParagraphFont">Before denying statement credit or imposing a requirement to post security under § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.30" rel="noopener"><span class="s2082938DefaultParagraphFont">58-14-16.30</span></a><span xml:space="preserve" class="s2082938DefaultParagraphFont"> or adopting any similar requirement that will have substantially the same regulatory impact as security, the director shall:</span></p><p dir="ltr" class="s2082938StatuteNumber1"><span xml:space="preserve" class="s2082938DefaultParagraphFont">(1)    Communicate with the ceding insurer, the assuming insurer, and the assuming insurer's supervisory authority that the assuming insurer no longer satisfies one of the conditions listed in §§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.24" rel="noopener"><span class="s2082938DefaultParagraphFont">58-14-16.24</span></a><span xml:space="preserve" class="s2082938DefaultParagraphFont"> to </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.27" rel="noopener"><span class="s2082938DefaultParagraphFont">58-14-16.27</span></a><span class="s2082938DefaultParagraphFont">, inclusive;</span></p><p dir="ltr" class="s2082938StatuteNumber1"><span class="s2082938DefaultParagraphFont">(2)    Provide the assuming insurer with thirty days from the initial communication to submit a plan to remedy the defect and ninety days from the initial communication to remedy the defect, except in exceptional circumstances in which a shorter period is necessary for policyholder and other consumer protection;</span></p><p dir="ltr" class="s2082938StatuteNumber1"><span xml:space="preserve" class="s2082938DefaultParagraphFont">(3)    After the expiration of ninety days or less, as set out in subdivision (2) of this section, if the director determines that no or insufficient action was taken by the assuming insurer, the director may impose any of the requirements under §§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.23" rel="noopener"><span class="s2082938DefaultParagraphFont">58-14-16.23</span></a><span xml:space="preserve" class="s2082938DefaultParagraphFont"> to 58-14-16.34, inclusive; and</span></p><p dir="ltr" class="s2082938StatuteNumber1"><span xml:space="preserve" class="s2082938DefaultParagraphFont">(4)    Provide a written explanation to the assuming insurer of any of the requirements under §§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.23" rel="noopener"><span class="s2082938DefaultParagraphFont">58-14-16.23</span></a><span xml:space="preserve" class="s2082938DefaultParagraphFont"> to 58-14-16.34, inclusive.</span></p><p dir="ltr" class="s2082938Normal"><span xml:space="preserve" class="s2082938000000"> </span></p><p dir="ltr" class="s2082938NoIndent"><span xml:space="preserve" class="s2082938DefaultParagraphFont-000001">Source: </span><span class="s2082938SCL">SL 2021, ch 211, § 9.</span></p></div></body></html><br /><hr><br /><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 - Asset or reduction from liability for reinsurance ceded to insurer not meeting requirements of § 58-14-7--Security. </title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.s2082939Normal { 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.s2082939SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2082939CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2082939Statute { 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.s2082939DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2082939000000 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2082939NoIndent { text-indent: 0.00in; 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.s2082939DefaultParagraphFont-000001 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2082939SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style><meta name="viewport" content="width=device-width, initial-scale=1"><meta name="twitter:card" content="summary"><meta property="og:title" content="SD 58-14-16.32 - Assuming insurers in receivership."><meta property="og:description" content="SDLRC Codified Law 58-14-16.32 - Assuming insurers in receivership."><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes?Statute=58-14-16.32"><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="s2082939Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.32" rel="noopener"><span class="s2082939SENU">58-14-16.32</span></a><span xml:space="preserve" class="s2082939SENU">. </span><span xml:space="preserve" class="s2082939CL">Assuming insurers in receivership. </span></p><p dir="ltr" class="s2082939Statute"><span class="s2082939DefaultParagraphFont">If subject to a legal process of rehabilitation, liquidation, or conservation, the ceding insurer or its representative may seek and, if determined appropriate by the court in which the proceedings are pending, obtain an order requiring that the assuming insurer post security for all outstanding ceded liabilities.</span></p><p dir="ltr" class="s2082939Normal"><span xml:space="preserve" class="s2082939000000"> </span></p><p dir="ltr" class="s2082939NoIndent"><span xml:space="preserve" class="s2082939DefaultParagraphFont-000001">Source: </span><span class="s2082939SCL">SL 2021, ch 211, § 10.</span></p></div></body></html><br /><hr><br /><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 - Asset or reduction from liability for reinsurance ceded to insurer not meeting requirements of § 58-14-7--Security. </title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.s2082940Normal { 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.s2082940SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2082940CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2082940Statute { 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.s2082940DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2082940000000 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2082940NoIndent { text-indent: 0.00in; 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.s2082940DefaultParagraphFont-000001 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2082940SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style><meta name="viewport" content="width=device-width, initial-scale=1"><meta name="twitter:card" content="summary"><meta property="og:title" content="SD 58-14-16.33 - Effective date for reinsurers in reciprocal jurisdictions."><meta property="og:description" content="SDLRC Codified Law 58-14-16.33 - Effective date for reinsurers in reciprocal jurisdictions."><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes?Statute=58-14-16.33"><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="s2082940Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.33" rel="noopener"><span class="s2082940SENU">58-14-16.33</span></a><span xml:space="preserve" class="s2082940SENU">. </span><span xml:space="preserve" class="s2082940CL">Effective date for reinsurers in reciprocal jurisdictions. </span></p><p dir="ltr" class="s2082940Statute"><span xml:space="preserve" class="s2082940DefaultParagraphFont">Credit may be taken under §§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.23" rel="noopener"><span class="s2082940DefaultParagraphFont">58-14-16.23</span></a><span xml:space="preserve" class="s2082940DefaultParagraphFont"> to 58-14-16.34, inclusive, only for reinsurance agreements entered into, amended, or renewed on or after July 1, 2021, and only with respect to losses incurred and reserves reported on or after the later of the date on which the assuming insurer has met all eligibility requirements pursuant to §§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.23" rel="noopener"><span class="s2082940DefaultParagraphFont">58-14-16.23</span></a><span xml:space="preserve" class="s2082940DefaultParagraphFont"> to </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.27" rel="noopener"><span class="s2082940DefaultParagraphFont">58-14-16.27</span></a><span xml:space="preserve" class="s2082940DefaultParagraphFont">, inclusive, or the effective date of the new reinsurance agreement, amendment, or renewal. Nothing in this section alters or impairs a ceding insurer's right to take credit for reinsurance, to the extent that credit is not available under §§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.23" rel="noopener"><span class="s2082940DefaultParagraphFont">58-14-16.23</span></a><span xml:space="preserve" class="s2082940DefaultParagraphFont"> to 58-14-16.34, inclusive, as long as the reinsurance qualifies for credit under any other applicable provision of this chapter.</span></p><p dir="ltr" class="s2082940Normal"><span xml:space="preserve" class="s2082940000000"> </span></p><p dir="ltr" class="s2082940NoIndent"><span xml:space="preserve" class="s2082940DefaultParagraphFont-000001">Source: </span><span class="s2082940SCL">SL 2021, ch 211, § 11.</span></p></div></body></html><br /><hr><br /><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 - Asset or reduction from liability for reinsurance ceded to insurer not meeting requirements of § 58-14-7--Security. </title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.s2082941Normal { 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.s2082941SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2082941CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2082941Statute { 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.s2082941DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2082941StatuteNumber1 { margin-left: 0.75in; text-indent: -0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } span.s2082941000000 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2082941NoIndent { text-indent: 0.00in; 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.s2082941DefaultParagraphFont-000001 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2082941SCL { 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 58-14-16.34 - Application of reciprocal jurisdiction laws."><meta property="og:description" content="SDLRC Codified Law 58-14-16.34 - Application of reciprocal jurisdiction laws."><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes?Statute=58-14-16.34"><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="s2082941Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.34" rel="noopener"><span class="s2082941SENU">58-14-16.34</span></a><span xml:space="preserve" class="s2082941SENU">. </span><span xml:space="preserve" class="s2082941CL">Application of reciprocal jurisdiction laws. </span></p><p dir="ltr" class="s2082941Statute"><span xml:space="preserve" class="s2082941DefaultParagraphFont">Nothing in §§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.23" rel="noopener"><span class="s2082941DefaultParagraphFont">58-14-16.23</span></a><span xml:space="preserve" class="s2082941DefaultParagraphFont"> to </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-14-16.34" rel="noopener"><span class="s2082941DefaultParagraphFont">58-14-16.34</span></a><span class="s2082941DefaultParagraphFont">, inclusive:</span></p><p dir="ltr" class="s2082941StatuteNumber1"><span class="s2082941DefaultParagraphFont">(1)    Limits or in any way alters the capacity of parties to a reinsurance agreement to agree on requirements for security or other terms in that reinsurance agreement except as expressly prohibited by this chapter or other applicable law;</span></p><p dir="ltr" class="s2082941StatuteNumber1"><span class="s2082941DefaultParagraphFont">(2)    Authorizes an assuming insurer to withdraw or reduce the security provided under any reinsurance agreement except as permitted by the terms of the agreement; or</span></p><p dir="ltr" class="s2082941StatuteNumber1"><span class="s2082941DefaultParagraphFont">(3)    Limits or alters the capacity of parties to any reinsurance agreement to renegotiate the agreement.</span></p><p dir="ltr" class="s2082941Normal"><span xml:space="preserve" class="s2082941000000"> </span></p><p dir="ltr" class="s2082941NoIndent"><span xml:space="preserve" class="s2082941DefaultParagraphFont-000001">Source: </span><span class="s2082941SCL">SL 2021, ch 211, § 12.</span></p></div></body></html>