<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 58-43-4 - Annual audited financial report--Contents. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2077254Normal { 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.s2077254SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2077254CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2077254Normal-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.s2077254DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2077254Normal-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; } p.s2077254Normal-000002 { 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.s2077254000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2077254SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2077254SCL-000004 { 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="s2077254Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-43-4"><span class="s2077254SENU">58-43-4</span></a><span xml:space="preserve" class="s2077254SENU">. </span><span class="s2077254CL">Annual audited financial report--Contents.</span></p><p dir="ltr" class="s2077254Normal-000000"><span class="s2077254DefaultParagraphFont">The annual audited financial report shall report the financial position of the insurer as of the end of the most recent calendar year and the results of its operations, cash flows, and changes in capital and surplus for the year then ended. The audit shall reflect the statutory accounting practices prescribed, or otherwise permitted, by the division. The report shall include the following:</span></p><p dir="ltr" class="s2077254Normal-000001"><span class="s2077254DefaultParagraphFont">(1)    Report of the accountant;</span></p><p dir="ltr" class="s2077254Normal-000001"><span class="s2077254DefaultParagraphFont">(2)    Balance sheet reporting admitted assets, liabilities, capital, and surplus;</span></p><p dir="ltr" class="s2077254Normal-000001"><span class="s2077254DefaultParagraphFont">(3)    Statement of operations;</span></p><p dir="ltr" class="s2077254Normal-000001"><span class="s2077254DefaultParagraphFont">(4)    Statement of cash flows;</span></p><p dir="ltr" class="s2077254Normal-000001"><span class="s2077254DefaultParagraphFont">(5)    Statement of changes in capital and surplus; and</span></p><p dir="ltr" class="s2077254Normal-000001"><span class="s2077254DefaultParagraphFont">(6)    Notes to financial statements.</span></p><p dir="ltr" class="s2077254Normal-000002"><span xml:space="preserve" class="s2077254DefaultParagraphFont">Any notes to financial statements shall be prepared in accordance with the Annual Statement Instructions Manual and the Accounting Practices and Procedures Manual prescribed by the National Association of Insurance Commissioners as promulgated by rules 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="s2077254DefaultParagraphFont">1-26</span></a><span xml:space="preserve" class="s2077254DefaultParagraphFont"> and shall also include a reconciliation of differences, if any, between the audited statutory financial statements and the annual statement filed pursuant to § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-6-75"><span class="s2077254DefaultParagraphFont">58-6-75</span></a><span xml:space="preserve" class="s2077254DefaultParagraphFont"> with a written description of the nature of these differences.</span></p><p dir="ltr" class="s2077254Normal"><span xml:space="preserve" class="s2077254000003"> </span></p><p dir="ltr" class="s2077254Normal"><span class="s2077254SCL">Source:</span><span xml:space="preserve" class="s2077254SCL-000004"> SL 1992, ch 357, § 4; SL 2003, ch 257, § 1; SL 2009, ch 271, § 5.</span></p></div></body></html>