South Dakota Administrative Code

Rule 20:06:09:10 Repealed. 20:06:09:10. Adequacy of surplus.Repealed. Source: 4 SDR 6, effective August 9, 1977; 12 SDR 151, 12 SDR 155, effective July 1, 1986; repealed, 20 SDR 36, effective September 19, 1993.

Rule 20:06:09:11 Definitions. 20:06:09:11. Definitions. Terms used in this chapter mean: (1) "Executive officer," chief executive officer, chief operating officer, chief financial officer, treasurer, secretary, controller, and any other individual performing functions correspondi…

Rule 20:06:09:12 Form filings. 20:06:09:12. Form filings. All insurers or persons subject to SDCL chapter 58-5A, except as provided in SDCL 58-5A-20, shall file the following forms with the director: (1) Form A, statement regarding the acquisition of control of or merger with a d…

Rule 20:06:09:13 General requirements for Forms A, B, C, D, E, and F. 20:06:09:13. General requirements for Forms A, B, C, D, E, and F. Forms A, B, C, D, E, and F are intended to be guides in the preparation of the statements filed pursuant to SDCL chapter 58-5A and are not inten…

Rule 20:06:09:14 Filing forms with director. 20:06:09:14. Filing forms with director. One complete copy of each statement in § 20:06:09:13, including exhibits and all other papers and documents filed as a part of the statement, shall be filed with the director electronically, by …

Rule 20:06:09:15 Filing Form C or Form E with other states. 20:06:09:15. Filing Form C or Form E with other states. If the insurance department or agency of a state in which the insurer is authorized to do business requests in writing that the insurer file Form C or Form E, the i…

Rule 20:06:09:16 Preparation of statements and supporting documents. 20:06:09:16. Preparation of statements and supporting documents. Statements must be prepared electronically. Statements must be easily readable and suitable for review and reproduction. Debits in credit categori…

Rule 20:06:09:16.01 Filing with the National Association of Insurance Commissioners. 20:06:09:16.01. Filing with the National Association of Insurance Commissioners. If an applicant requests a hearing on a consolidated basis pursuant to SDCL 58-5A-10.1, in addition to filing the …

Rule 20:06:09:17 Incorporation by reference to Forms A, B, D, E, or F. 20:06:09:17. Incorporation by reference to Forms A, B, D, E, or F. Information required by any item of Forms A, B, D, E, or F may be incorporated by reference in answer or partial answer to any other item. Inf…

Rule 20:06:09:18 Repealed. 20:06:09:18. Information unknown or unavailable. Repealed. Source: 20 SDR 36, effective September 19, 1993; 42 SDR 83, effective December 3, 2015.

Rule 20:06:09:19 Impracticality of furnishing information. 20:06:09:19. Impracticality of furnishing information. If the person making the filing finds it impractical to furnish the required information, document, or report at the time it is to be filed, the person shall file a s…

Rule 20:06:09:20 Additional information and exhibits. 20:06:09:20. Additional information and exhibits. In addition to the information expressly required to be included in Forms, A, B, C, D, E, and F, the person filing the form shall add any information that is necessary to make …

Rule 20:06:09:21 Reference to domestic insurer in acquisition. 20:06:09:21. Reference to domestic insurer in acquisition. If the person being acquired is considered a "domestic insurer" solely because of the provisions of SDCL 58-5A-2, the name of the domestic insurer on the cove…

Rule 20:06:09:22 Amendments to Form B. 20:06:09:22. Amendments to Form B. Amendments to Form B must be filed in the Form B format, reporting only those items which are being amended. Each amendment must include at the top of the cover page, "Amendment No. (insert number) to Form …

Rule 20:06:09:23 Consolidated registrations -- Authorized insurers. 20:06:09:23. Consolidated registrations -- Authorized insurers. Any authorized insurer may file Form B, the registration statement, on behalf of any affiliated insurer or insurers which are required to register u…

Rule 20:06:09:24 Consolidated registrations -- Unauthorized insurers. 20:06:09:24. Consolidated registrations -- Unauthorized insurers. With the prior approval of the director, an unauthorized insurer may follow the procedures which could be done by an authorized insurer under § …

Rule 20:06:09:25 Consolidation or alternative registration of statements without approval. 20:06:09:25. Consolidation or alternative registration of statements without approval. Any insurer may take advantage of the provisions of SDCL 58-5A-26, consolidation, and SDCL 58-5A-27, r…

Rule 20:06:09:26 Disclaimers and termination of registration. 20:06:09:26. Disclaimer and termination of registration. A person may file a disclaimer of affiliation or a request for termination of registration claiming that it does not, or will not upon the taking of some propose…

Rule 20:06:09:27 Information required for extraordinary dividends or other distributions. 20:06:09:27. Information required of extraordinary dividends or other distributions. Requests for approval of extraordinary dividends or any other extraordinary distribution to shareholders …

Rule 20:06:09:28 Determining adequacy of surplus. 20:06:09:28. Determining adequacy of surplus. In applying the factors in SDCL 58-5A-34, adequacy of surplus, the director shall consider the net effect of all of those factors plus other factors bearing on the financial condition …

Rule 20:06:09:29 Form A filing. 20:06:09:29. Form A filing. A Form A must be certified. The information required for a Form A filing includes the following: (1) That set forth in SDCL 58-5A-4, 58-5A-5, and 58-5A-6; (2) A brief description of how control is to be acquired; (3) A c…

Rule 20:06:09:29.01 Amendments to Form A. 20:06:09:29.01. Amendments to Form A. The applicant must promptly advise the director of any changes in the information furnished on the Form A arising subsequent to the date upon which the information was furnished but prior to the direc…

Rule 20:06:09:30 Disclosure of background of applicant or persons associated with applicant. 20:06:09:30. Disclosure of background of applicant or persons associated with applicant. The Form A filing must disclose background information on the applicant or persons associated with…

Rule 20:06:09:31 Filing of financial statements with Form A. 20:06:09:31. Filing of financial statements with Form A. The financial statement when filed with Form A must include, if available, information similar to SDCL 58-5A-4. Financial statements, exhibits, and three-year fin…

Rule 20:06:09:32 Form B filing. 20:06:09:32. Form B filing. A Form B must be certified. Information which is not material for purposes of SDCL 58-5A-21 need not be disclosed. The information required for a Form B filing includes the following: (1) That set forth in SDCL 58-5A-21;…

Rule 20:06:09:33 Description of transactions and agreements. 20:06:09:33. Description of transactions and agreements. In submitting the materials for SDCL 58-5A-21 and § 20:06:09:32, the person filing must include the following: (1) The nature and purpose of the transaction; (2) …

Rule 20:06:09:34 Information on ultimate controlling person. 20:06:09:34. Information on ultimate controlling person. The following information on the ultimate controlling person in the insurance holding company system must be filed with Form B: (1) If the ultimate controlling pe…

Rule 20:06:09:35 Financial statements and exhibits for Form B filing. 20:06:09:35. Financial statements and exhibits for Form B filing. Financial statements and exhibits must be attached to a Form B filing as an appendix. The financial statements and exhibits so attached must be …

Rule 20:06:09:36 Form C filing. 20:06:09:36. Form C filing. A Form C filing, summary of changes to registration statement, must be certified and must accompany the annual registration statement. The Form C must include the following information: (1) A brief description of all ite…

Rule 20:06:09:37 Form D filing. 20:06:09:37. Form D filing. An insurer required to give notice of a proposed transaction pursuant to SDCL 58-5A-56 shall furnish the required information on Form D. A Form D filing must be certified and must include the following information: (1) T…

Rule 20:06:09:37.01 Cost sharing services and management services reported on Form D. 20:06:09:37.01. Cost sharing services and management services reported on Form D. Agreements for cost sharing services and management services shall at a minimum and as applicable: (1) Identify …

Rule 20:06:09:38 Description of transactions for Form D filing. 20:06:09:38. Description of transactions for Form D filing. The person filing the Form D must furnish the following information for each transaction for which notice is being given: (1) A statement as to whether noti…

20:06:09:39. Form D -- Loans or extensions of credit to a nonaffiliate. If the transaction involves a loan or extension of credit to any person who is not an affiliate, the person making the Form D filing must furnish a brief description of the agreement or understanding whereby …

Rule 20:06:09:40 Form D -- Reinsurance transactions. 20:06:09:40. Form D -- Reinsurance transactions. If the transaction is a reinsurance agreement or a modification to a reinsurance agreement, as described by SDCL 58-5A-56(3)(b) or a reinsurance pooling agreement or modification…

Rule 20:06:09:41 Form D -- Management agreements, service agreements, and cost-sharing agreements. 20:06:09:41. Form D -- Management agreements, service agreements, and cost-sharing agreements. The person making the Form D filing must provide the following information for managem…

Rule 20:06:09:42 Pre-acquisition notification. 20:06:09:42. Pre-acquisition notification. If a domestic insurer, including any person controlling a domestic insurer, is proposing a merger or acquisition pursuant to SDCL 58-5A-3, that person shall file a pre-acquisition notificati…

Rule 20:06:09:43 Form E filing. 20:06:09:43. Form E filing. The pre-acquisition notification form, Form E, shall state the names and addresses of the persons who are providing notice of their involvement in a pending acquisition or change in corporate control. The Form E shall st…

Rule 20:06:09:44 Enterprise risk report. 20:06:09:44. Enterprise risk report. The ultimate controlling person of an insurer required to file an enterprise risk report pursuant to SDCL 58-5A-29.1 shall furnish the required information on Form F by July 1st of each year. Source: 42…

20:06:09:45. Form F filing. The registrant or applicant, to the best of the registrant's or applicant's knowledge and belief, must provide information regarding the following areas that could produce enterprise risk as defined in SDCL subdivision 58-5A-1(3), unless the informatio…

Rule 20:06:09:46 Obligation to report. 20:06:09:46. Obligation to report. If the registrant has not disclosed any information pursuant to § 20:06:09:45, a statement shall be included affirming that, to the best of the registrant's knowledge and belief, the registrant has not iden…

Rule 20:06:09:47 Confidentiality. 20:06:09:47. Confidentiality. All materials submitted pursuant to this chapter are subject to the confidentiality provisions of SDCL chapter 58-5A. Source: 42 SDR 83, effective December 3, 2015. General Authority: SDCL 58-5A-70. Law Implemented: …

20:06:09:48. ORSA guidance manual. The own risk and solvency assessment (ORSA) shall be conducted in accordance with the standards and requirements set forth in the National Association of Insurance Commissioners Own Risk and Solvency Assessment (ORSA) Guidance Manual, 2022 editi…

20:06:09:49. Exemptions for filing the group capital calculation. The lead state director or commissioner may exempt the ultimate controlling person from filing the annual group capital calculation if the lead state director or commissioner determines, based upon that filing, tha…

20:06:09:50. Limited group capital calculation filings. The lead state director or commissioner may accept a limited group capital filing, in lieu of the group capital calculation, if: (1) The insurance holding company system has annual direct written and unaffiliated assumed pre…

20:06:09:51. Criteria for requiring the group capital calculation. Notwithstanding an exemption granted under § 20:06:09:49, the lead state director or commissioner may require at any time the ultimate controlling person to file an annual group capital calculation, completed in a…

20:06:09:52. Non-U.S. jurisdictions recognized for group capital calculation. A non-U.S. jurisdiction is considered to recognize and accept the group capital calculation if the non-U.S. jurisdiction satisfies the following criteria: (1) With respect to SDCL 58-5A-95: (a) The non-…

20:06:09:53. List of non-U.S. jurisdictions determinations. A list of non-U.S. jurisdictions that recognize and accept the group capital calculation will be published as follows: (1) A list of jurisdictions that recognize and accept the group capital calculation, pursuant to SDCL…

Rule 20:06:10:01 Definitions. 20:06:10:01. Definitions. Terms used in this chapter are defined as follows: (1) "Advertisement," as defined in SDCL 58-33A-3; (2) "Buyer's guide," an explanation which accompanies a policy; (3) "Cash dividend," the current illustrated dividend which…

Rule 20:06:10:02 Advertisements and solicitations subject to regulations. 20:06:10:02. Advertisements and solicitations subject to regulations. This chapter applies to any health or life insurance advertisement or solicitation, unless otherwise indicated, intended for presentatio…

Rule 20:06:10:02.01 General requirements. 20:06:10:02.01. General requirements. The following are general requirements for health and life insurance advertisements and solicitations: (1) Each insurer must maintain at its home office or principal office a complete file containing …