Criteria for proportion of audit committee members

The proportion of independent audit committee members shall meet or exceed the following criteria: Prior Calendar Year Direct Written and Assumed Premiums $0--$300,000,000 Over $300,000,000-- Over $500,000,000 $500,000,000 No minimum requirements. See also Note A and B. Majority (50% or more) of members shall be Supermajority of members (75% or more) shall be independent. See also Note independent. See also Note A and B. A. Note A: The director has authority afforded by state law to require the entity's board to enact improvements to the independence of the audit committee membership if the insurer is in a risk based capital (RBC) action level event, meets one or more of the standards of an insurer deemed to be in hazardous financial condition, or otherwise exhibits qualities of a troubled insurer. Note B: Any insurer with less than five hundred million in prior year direct written and assumed premiums is encouraged to structure an audit committee with at least a supermajority of independent audit committee members. Note C: Prior calendar year direct written and assumed premiums shall be the combined total of direct premiums and assumed premiums from nonaffiliates for the reporting entities. Source: SL 2009, ch 271 , § 24, eff. Jan. 1, 2010. 58-43-16.10 . Hardship waiver of requirements of §§ 58-43-16.2 to 58-43-16.9 , inclusive. An insurer with direct written and assumed premiums, excluding premiums reinsured with the Federal Crop Insurance Corporation and Federal Flood Program, of less than five hundred million dollars may make application to the director for a waiver from the requirements of §§ 58-43-16.2 to 58-43-16.9 , inclusive, based upon hardship. The insurer shall file, with the insurer's annual statement filing, the approval for relief from §§ 58-43-16.2 to 58-43-16.9 , inclusive, with the states that the insurer is licensed in or doing business in and with the National Association of Insurance Commissioners. If the nondomestic state accepts electronic filing with the National Association of Insurance Commissioners, the insurer shall file the approval in an electronic format acceptable to the National Association of Insurance Commissioners. Source: SL 2009, ch 271 , § 25, eff. Jan. 1, 2010.