<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 58-27-51 - Maximum investments in other assets--Exceptions. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2075955Normal { 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.s2075955SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2075955CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2075955Normal-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.s2075955DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2075955000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2075955SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2075955SCL-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="s2075955Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-27-51"><span class="s2075955SENU">58-27-51</span></a><span xml:space="preserve" class="s2075955SENU">. </span><span class="s2075955CL">Maximum investments in other assets--Exceptions.</span></p><p dir="ltr" class="s2075955Normal-000000"><span xml:space="preserve" class="s2075955DefaultParagraphFont">Notwithstanding the aggregate limitations set forth in chapter </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-27"><span class="s2075955DefaultParagraphFont">58-27</span></a><span xml:space="preserve" class="s2075955DefaultParagraphFont">, an insurer may exceed such limitations if it does not invest, in the aggregate, an amount in excess of fifty percent of its capital and surplus in excess of four hundred thousand dollars, if such investment otherwise complies with chapter </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-27"><span class="s2075955DefaultParagraphFont">58-27</span></a><span xml:space="preserve" class="s2075955DefaultParagraphFont">. The provisions of this section do not apply to the exceptions set forth in § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-27-53"><span class="s2075955DefaultParagraphFont">58-27-53</span></a><span xml:space="preserve" class="s2075955DefaultParagraphFont"> or </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-27-57"><span class="s2075955DefaultParagraphFont">58-27-57</span></a><span class="s2075955DefaultParagraphFont">.</span></p><p dir="ltr" class="s2075955Normal"><span xml:space="preserve" class="s2075955000001"> </span></p><p dir="ltr" class="s2075955Normal"><span class="s2075955SCL">Source:</span><span xml:space="preserve" class="s2075955SCL-000002"> SL 1966, ch 111, ch 6, § 23; SL 1974, ch 317; SL 1983, ch 376, § 5; SL 1985, ch 390; SL 1997, ch 294, § 10; SL 2000, ch 245, § 2; SL 2001, ch 284, § 2.</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 58-27-51 - Maximum investments in other assets--Exceptions. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2075956Normal { 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.s2075956SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2075956CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2075956Normal-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.s2075956DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2075956DefaultParagraphFont-000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2075956Normal-000002 { 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; } p.s2075956Normal-000003 { text-indent: 0.25in; 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.s2075956000004 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2075956SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2075956SCL-000005 { 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="s2075956Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-27-51.1"><span class="s2075956SENU">58-27-51.1</span></a><span xml:space="preserve" class="s2075956SENU">. </span><span class="s2075956CL">Additional investment authority--Life and health insurers.</span></p><p dir="ltr" class="s2075956Normal-000000"><span xml:space="preserve" class="s2075956DefaultParagraphFont">In addition to the authority provided under § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-27-51"><span class="s2075956DefaultParagraphFont">58-27-51</span></a><span class="s2075956DefaultParagraphFont">, an insurer authorized to write life or health insurance, or both, may invest a percentage of the amount by which the insurer's total adjusted capital equals or exceeds two hundred percent of its company action level risk</span><span class="s2075956DefaultParagraphFont-000001">-</span><span xml:space="preserve" class="s2075956DefaultParagraphFont">based capital in investments of any kind, in the discretion of the insurer, without regard to any condition of, restriction in, or exclusion prescribed in chapter </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-27"><span class="s2075956DefaultParagraphFont">58-27</span></a><span class="s2075956DefaultParagraphFont">, and regardless of whether the same or a similar type of investment has been included in, or omitted from, any such section, subject to an aggregate limitation equal to the greatest of:</span></p><p dir="ltr" class="s2075956Normal-000002"><span class="s2075956DefaultParagraphFont">(1)    Fifty percent of the excess of total adjusted capital over the risk</span><span class="s2075956DefaultParagraphFont-000001">-</span><span class="s2075956DefaultParagraphFont">based capital threshold if the insurer has total adjusted capital that equals or exceeds two hundred percent of its company action level risk</span><span class="s2075956DefaultParagraphFont-000001">-</span><span class="s2075956DefaultParagraphFont">based capital;</span></p><p dir="ltr" class="s2075956Normal-000002"><span class="s2075956DefaultParagraphFont">(2)    Seventy-five percent of the excess of total adjusted capital over the risk</span><span class="s2075956DefaultParagraphFont-000001">-</span><span class="s2075956DefaultParagraphFont">based capital threshold if the insurer has total adjusted capital that equals or exceeds two hundred twenty</span><span class="s2075956DefaultParagraphFont-000001">-</span><span class="s2075956DefaultParagraphFont">five percent of its company action level risk</span><span class="s2075956DefaultParagraphFont-000001">-</span><span class="s2075956DefaultParagraphFont">based capital; or</span></p><p dir="ltr" class="s2075956Normal-000002"><span class="s2075956DefaultParagraphFont">(3)    One hundred percent of the excess of total adjusted capital over the risk</span><span class="s2075956DefaultParagraphFont-000001">-</span><span class="s2075956DefaultParagraphFont">based capital threshold if the insurer has total adjusted capital that equals or exceeds two hundred fifty percent of its company action level risk</span><span class="s2075956DefaultParagraphFont-000001">-</span><span class="s2075956DefaultParagraphFont">based capital.</span></p><p dir="ltr" class="s2075956Normal-000003"><span class="s2075956DefaultParagraphFont">For the purpose of this section, risk</span><span class="s2075956DefaultParagraphFont-000001">-</span><span class="s2075956DefaultParagraphFont">based capital threshold means two hundred percent of an insurer's company action level risk</span><span class="s2075956DefaultParagraphFont-000001">-</span><span xml:space="preserve" class="s2075956DefaultParagraphFont">based capital. The director shall promulgate rules pursuant to chapter </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=1-26"><span class="s2075956DefaultParagraphFont">1-26</span></a><span xml:space="preserve" class="s2075956DefaultParagraphFont"> to define company action level risk</span><span class="s2075956DefaultParagraphFont-000001">-</span><span class="s2075956DefaultParagraphFont">based capital and total adjusted capital.</span></p><p dir="ltr" class="s2075956Normal"><span xml:space="preserve" class="s2075956000004"> </span></p><p dir="ltr" class="s2075956Normal"><span class="s2075956SCL">Source:</span><span xml:space="preserve" class="s2075956SCL-000005"> SL 1997, ch 294, § 11.</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 58-27-51 - Maximum investments in other assets--Exceptions. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2075957Normal { 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.s2075957SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2075957CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2075957Normal-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.s2075957DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2075957DefaultParagraphFont-000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2075957Normal-000002 { 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; } p.s2075957Normal-000003 { text-indent: 0.25in; 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.s2075957000004 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2075957SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2075957SCL-000005 { 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="s2075957Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-27-51.2"><span class="s2075957SENU">58-27-51.2</span></a><span xml:space="preserve" class="s2075957SENU">. </span><span class="s2075957CL">Additional investment authority--Property and casualty insurers.</span></p><p dir="ltr" class="s2075957Normal-000000"><span xml:space="preserve" class="s2075957DefaultParagraphFont">In addition to the authority provided under § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-27-51"><span class="s2075957DefaultParagraphFont">58-27-51</span></a><span class="s2075957DefaultParagraphFont">, an insurer authorized to write property and casualty insurance may invest a percentage of the amount by which the insurer's total adjusted capital equals or exceeds two hundred percent of its company action level risk</span><span class="s2075957DefaultParagraphFont-000001">-</span><span xml:space="preserve" class="s2075957DefaultParagraphFont">based capital in investments of any kind, in the discretion of the insurer, without regard to any condition of, restriction in, or exclusion prescribed in chapter </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-27"><span class="s2075957DefaultParagraphFont">58-27</span></a><span class="s2075957DefaultParagraphFont">, and regardless of whether the same or a similar type of investment has been included in, or omitted from, any such section, subject to an aggregate limitation equal to the greatest of:</span></p><p dir="ltr" class="s2075957Normal-000002"><span class="s2075957DefaultParagraphFont">(1)    Fifty percent of the excess of total adjusted capital over the risk</span><span class="s2075957DefaultParagraphFont-000001">-</span><span class="s2075957DefaultParagraphFont">based capital threshold if the insurer has total adjusted capital that equals or exceeds two hundred twenty five percent of its company action level risk</span><span class="s2075957DefaultParagraphFont-000001">-</span><span class="s2075957DefaultParagraphFont">based capital;</span></p><p dir="ltr" class="s2075957Normal-000002"><span class="s2075957DefaultParagraphFont">(2)    Seventy-five percent of the excess of total adjusted capital over the risk</span><span class="s2075957DefaultParagraphFont-000001">-</span><span class="s2075957DefaultParagraphFont">based capital threshold if the insurer has total adjusted capital that equals or exceeds two hundred fifty percent of its company action level risk</span><span class="s2075957DefaultParagraphFont-000001">-</span><span class="s2075957DefaultParagraphFont">based capital; or</span></p><p dir="ltr" class="s2075957Normal-000002"><span class="s2075957DefaultParagraphFont">(3)    One hundred percent of the excess of total adjusted capital over the risk</span><span class="s2075957DefaultParagraphFont-000001">-</span><span class="s2075957DefaultParagraphFont">based capital threshold if the insurer has total adjusted capital that equals or exceeds two hundred seventy</span><span class="s2075957DefaultParagraphFont-000001">-</span><span class="s2075957DefaultParagraphFont">five percent of its company action level risk</span><span class="s2075957DefaultParagraphFont-000001">-</span><span class="s2075957DefaultParagraphFont">based capital.</span></p><p dir="ltr" class="s2075957Normal-000003"><span class="s2075957DefaultParagraphFont">For the purpose of this section, risk</span><span class="s2075957DefaultParagraphFont-000001">-</span><span class="s2075957DefaultParagraphFont">based capital threshold means two hundred percent of an insurer's company action level risk</span><span class="s2075957DefaultParagraphFont-000001">-</span><span xml:space="preserve" class="s2075957DefaultParagraphFont">based capital. The director shall promulgate rules pursuant to chapter </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=1-26"><span class="s2075957DefaultParagraphFont">1-26</span></a><span xml:space="preserve" class="s2075957DefaultParagraphFont"> to define company action level risk</span><span class="s2075957DefaultParagraphFont-000001">-</span><span class="s2075957DefaultParagraphFont">based capital and total adjusted capital.</span></p><p dir="ltr" class="s2075957Normal"><span xml:space="preserve" class="s2075957000004"> </span></p><p dir="ltr" class="s2075957Normal"><span class="s2075957SCL">Source:</span><span xml:space="preserve" class="s2075957SCL-000005"> SL 1997, ch 294, § 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 58-27-51 - Maximum investments in other assets--Exceptions. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2075958Normal { 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.s2075958SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2075958CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2075958Normal-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.s2075958DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2075958000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2075958SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2075958SCL-000002 { 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></head><body><div><p dir="ltr" class="s2075958Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-27-51.3"><span class="s2075958SENU">58-27-51.3</span></a><span xml:space="preserve" class="s2075958SENU">. </span><span class="s2075958CL">Additional investment authority--Valuation of investments.</span></p><p dir="ltr" class="s2075958Normal-000000"><span xml:space="preserve" class="s2075958DefaultParagraphFont">Any investment purchased and held pursuant to § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-27-51.1"><span class="s2075958DefaultParagraphFont">58-27-51.1</span></a><span xml:space="preserve" class="s2075958DefaultParagraphFont"> or </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-27-51.2"><span class="s2075958DefaultParagraphFont">58-27-51.2</span></a><span xml:space="preserve" class="s2075958DefaultParagraphFont"> shall be valued in accordance with chapters </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-26"><span class="s2075958DefaultParagraphFont">58-26</span></a><span xml:space="preserve" class="s2075958DefaultParagraphFont"> and </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-27"><span class="s2075958DefaultParagraphFont">58-27</span></a><span xml:space="preserve" class="s2075958DefaultParagraphFont"> or in accordance with the methods established by the National Association of Insurance Commissioners. If valuation methods are not prescribed by chapter </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-26"><span class="s2075958DefaultParagraphFont">58-26</span></a><span xml:space="preserve" class="s2075958DefaultParagraphFont"> or </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-27"><span class="s2075958DefaultParagraphFont">58-27</span></a><span class="s2075958DefaultParagraphFont">, or the National Association of Insurance Commissioners has not established a valuation method for any investment, the investment must be valued at the lower of cost or market.</span></p><p dir="ltr" class="s2075958Normal"><span xml:space="preserve" class="s2075958000001"> </span></p><p dir="ltr" class="s2075958Normal"><span class="s2075958SCL">Source:</span><span xml:space="preserve" class="s2075958SCL-000002"> SL 1997, ch 294, § 13.</span></p></div></body></html>