S.D. Admin. R. 20:06:09:51

Current through Register Vol. 51, page 57, November 12, 2024

Section 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 accordance with the National Association of Insurance Commissioners Group Capital Calculation Instructions, 2022 edition, if any of the following criteria are met:

(1) Any insurer within the insurance holding company system is in a Risk-Based Capital action level event as set forth in §§ 20:06:36:07, 20:06:36:13, 20:06:36:17, and 20:06:36:19, inclusive, or a similar standard for a non-U.S. insurer;

(2) Any insurer within the insurance holding company system meets one or more of the standards of an insurer deemed to be in hazardous financial condition as set forth in § 20:06:23:02; or

(3) Any insurer within the insurance holding company system otherwise exhibits qualities of a troubled insurer as determined by the lead state director or commissioner based on unique circumstances.

S.D. Admin. R. 20:06:09:51

50 SDR 157, effective 7/1/2024

General Authority: SDCL 58-5A-94, 58-5A-95.

Law Implemented: SDCL SDCL 58-5A-94, 58-5A-95.

Example: (3) The "unique circumstances" referenced include the type and volume of business written, ownership and organizational structure, federal agency requests, and international supervisor requests.

Group Capital Calculation Instructions, 2022 edition, National Association of Insurance Commissioners (NAIC). Copies may be obtained from the NAIC, 1100 Walnut Street, Ste. 1500, Kansas City, MO 64106-2197, (816) 783-8300; http://www.naic.org. Cost: $0.