Title 58, INSURANCE

A title insurance company shall establish and maintain a statutory premium reserve of not less than an amount computed in accordance with this section. The statutory premium reserve shall consist of the aggregate of the statutory premium reserve on January 1, 2002, and: (1) A sum…

The aggregate of the amounts set aside in this reserve in any calendar year pursuant to § 58-25-22 shall be released from the reserve and restored to net profits over a period of twenty years at an amortization rate not to exceed the following formula: thirty - five percent of th…

The insurer shall calculate an adjusted statutory or unearned premium reserve as of the year of first application of § 58-25-22 . The adjusted reserve must be calculated as if § 58-25-22 had been in effect for each year beginning twenty years before the year of first application …

The aggregate of the amounts set aside in this reserve in any calendar year as adjustments to the insurer's statutory or unearned premium reserve pursuant to § 58-25-24 shall be released from the reserve and restored to net profits, or equity if the additions required by § 58-25-…

A title insurer shall establish and maintain a known claim reserve in an amount estimated to be sufficient to cover all unpaid losses, claims, and allocated loss adjustment expenses arising under title insurance policies, guaranteed certificates of title, guaranteed searches, and…

A supplemental reserve shall be established consisting of any other reserves necessary, when taken in combination with the reserves required by §§ 58-25-22 to 58-25-27 , inclusive, to cover the company's liabilities with respect to all losses, claims, and loss adjustment expenses…

Rates shall be reasonable and adequate for the class of risks to which they apply. Source: SL 1966, ch 111 , ch 14, § 2 (1).

Rates shall not discriminate unfairly between risks involving essentially the same hazards and expense elements. Source: SL 1966, ch 111 , ch 14, § 2 (2).

Guarantees may be grouped by classification for the establishment of rates and minimum premiums. A special or unusual guarantee, more hazardous to the insurer than ordinary title guarantees because of an alleged irregularity or a difference in interpretation or application of law…

Due consideration will be given to past and prospective loss experiences within and outside the state, reasonable margin for profit and contingencies, cost of participating insurance, percentage to be allocated to reserve, operating expenses and all other relevant factors fairly …

Every insurer must file with the director, any manual or schedule of rates or premiums which it proposes to use, together with any rules or regulations governing the setting or making of such rates or premiums, and indicate the character or extent of coverage contemplated under s…

Every insurer must file with the director, all forms of contracts, policies, or guarantees of insurance with any and all types of modifications thereof, except as to special or unusual risks, which it proposes to use. Source: SL 1966, ch 111 , ch 14, § 3 (2).

No change in rates or premiums or in the forms of contracts, policies, or guarantees of insurance shall be permitted to any insurer, unless and until a report indicating such change is filed and approved by the director. Source: SL 1966, ch 111 , ch 14, § 3 (3).

In any determination of the financial condition of an insurer, there shall be allowed as assets only such assets as are owned by the insurer and which consist of: (1) Cash in the possession of the insurer, or in transit under its control, and including the true balance of any dep…

In addition to assets impliedly excluded by other provisions of this title, the following expressly may not be allowed as assets in any determination of the financial condition of an insurer: (1) Goodwill, except goodwill permitted by § 58-26-1 , trade names, and other like intan…

If an investment pursuant to § 58-27-51 is in the assets of a separate business of ownership and operation of a radio station, television station, or community antenna television system, duly licensed by the federal communications commission and in which the insurer is authorized…

A principle-based valuation may include a prescribed formulaic reserve component. Source: SL 2015, ch 254 , § 34.

A company shall submit mortality, morbidity, policyholder behavior, or expense experience and other data as prescribed in the valuation manual. Source: SL 2015, ch 254 , § 35.

For purposes of this chapter, confidential information, means: (1) A memorandum in support of an opinion submitted pursuant to §§ 58-26-46 to 58-26-55.1 , inclusive, and any other document, material, and other information, including all working papers, and copies thereof, created…

(1) Except as provided in §§ 58-26-102 to 58-26-104 , inclusive, a company's confidential information is confidential by law and privileged, and is not subject to open records, freedom of information, sunshine or other appropriate phrase, is not subject to subpoena and is not sub…

Notwithstanding § 58-26-103 , any confidential information specified in subdivisions 58-26-102(1) and (4): (1) May be subject to subpoena for the purpose of defending an action seeking damages from the appointed actuary submitting the related memorandum in support of an opinion s…

58-26-45.1 Adoption of NAIC valuation manual of instruction--Valuation of reserve liabilities for contracts issued after operative date of valuation manual. 58-26-46 Annual opinion of qualified actuary required--Promulgation of rules. 58-26-47 Opinion required as to adequacy of r…

In any determination of the financial condition of an insurer, capital stock and liabilities to be charged against its assets shall include: (1) The amount of its capital stock outstanding, if any; (2) The amount, estimated consistently with the provisions of this title, necessar…

Assets may be allowed as deductions from corresponding liabilities, and liabilities may be charged as deductions from assets, and deductions from assets may be charged as liabilities, in accordance with the form of annual statement applicable to the insurer as prescribed by the d…

Every property and casualty and health insurer doing business in this state shall file with its annual statement an actuarial opinion which complies with the standards and procedures in the National Association of Insurance Commissioners Annual Statement Instructions: Property an…

Each domestic insurer shall comply with §§ 58-26-13.1 and 58-26-44 for the year ending December 31, 1993, and each year thereafter, unless the director permits otherwise. Each foreign insurer shall comply with §§ 58-26-13.1 and 58-26-44 for the year ending December 31, 1994, and …

All bonds or other evidences of debt having a fixed term and rate of interest held by an insurer may, if amply secured and not in default as to principal or interest, be valued as follows: (1) If purchased at par, at the par value; (2) If purchased above or below par, on the basi…

Securities, other than those referred to in § 58-26-2 , held by an insurer, shall be valued, in the discretion of the director, at their market value, or at their appraised value, or at prices determined by him as representing their fair market value. Source: SL 1966, ch 111 , ch…

For all health insurance policies the insurer shall maintain an active life reserve which shall place a sound value on its liabilities under such policies and be not less than the reserve according to appropriate standards set forth in regulations issued by the director and, in n…

An insurer shall maintain a reserve for outstanding losses under insurance against loss or damage from accident to or injuries suffered by an employee or other person and for which the insured is liable and which shall be computed as provided by §§ 58-26-32 to 58-26-35 , inclusiv…

For all workers' compensation claims under policies written in the three years immediately preceding the date as of which the statement is made, the reserve required by § 58-26-31 shall be calculated in accordance with the Annual Statement Instructions Manual prescribed by the Na…

For all workers' compensation claims under policies written more than three years prior to the date as of which the statement is made, the reserve required by § 58-26-31 shall be the present value at four per cent interest of the determined and the estimated future payments. Sour…

For all liability policies written during the three years immediately preceding the date as of which the statement is made, the reserve required by § 58-26-31 shall be calculated in accordance with the Annual Statement Instructions Manual prescribed by the National Association of…

An insurer shall maintain a reserve for outstanding losses under credit insurance policies in accordance with the Annual Statement Instructions Manual prescribed by the National Association of Insurance Commissioners as adopted by rule by the director pursuant to chapter 1-26 . B…

As to insurance against loss or damage to property, except as provided in § 58-26-41 , and as to all general casualty insurance and surety insurance, every insurer shall maintain an unearned premium reserve on all policies in force. Source: SL 1966, ch 111 , ch 5, § 5 (1).

The director may require that reserves required by § 58-26-36 shall be equal to the unearned portions of the gross premiums in force after deducting applicable reinsurance in solvent insurers as computed on each respective risk from the policy's date of issue. If the director doe…

In lieu of computation according to the table in § 58-26-37 , the insurer at its option may compute all of the reserves required by § 58-26-36 on a monthly or more frequent prorata basis. Source: SL 1966, ch 111 , ch 5, § 5 (3).

After adopting a method for computing the reserve required by § 58-26-36 , an insurer shall not change methods without approval of the director. Source: SL 1966, ch 111 , ch 5, § 5 (4).

Preferred or guaranteed stocks or shares while paying full dividends may be carried at a fixed value in lieu of market value, at the discretion of the director and in accordance with such method of computation as he may approve. Source: SL 1966, ch 111 , ch 5, § 13 (2).

Sections 58-26-36 to 58-26-39 , inclusive, do not apply to title insurance. Source: SL 1966, ch 111 , ch 5, § 5 (5).

As to marine and transportation insurance, the entire amount of premiums on trip risks not terminated shall be deemed unearned; and the director may require the insurer to carry a reserve equal to one hundred percent of premiums on trip risks written during the month ended as of …

If loss experience shows that an insurer's loss reserves, however computed or estimated, are inadequate, the director shall require the insurer to maintain loss reserves in such increased amount as is needed to make them adequate. Source: SL 1966, ch 111 , ch 5, § 9.

This chapter applies to all persons doing an insurance business notwithstanding any provision in this title exempting them from the insurance laws of this state. Source: SL 1992, ch 349 , § 3.

Terms used in §§ 58-26-45 to 58-26-105 , inclusive, apply on or after the operative date of the valuation manual and mean: (1) "Accident and health insurance," a contract that incorporates morbidity risk and provides protection against economic loss resulting from accident, sickn…

The director shall annually value the reserve liabilities for all outstanding life insurance policies and annuity and pure endowment contracts of every life insurance company doing business in this state issued on or after July 1, 1995, and prior to the operative date of the valu…

The director may, by rules promulgated pursuant to chapter 1-26 , adopt the manual of valuation instruction adopted by the NAIC after the NAIC notifies the director that the valuation manual is operative. After the director adopts the NAIC valuation manual of instruction, the dir…