S.D. Admin. R. 20:06:30:15

Current through Register Vol. 50, page 159, June 17, 2024

Section 20:06:30:15 - Valuation used for purposes of calculations

For the purposes of both calculating the required level of primary security pursuant to the actuarial method and determining the amount of primary security and other security, as applicable, held by or on behalf of the ceding insurer, the following shall apply:

(1) For assets, including any assets held in trust, that would be admitted under the Accounting Practices and Procedures Manual, as adopted by the director under SDCL 58-6-75 and § 20:06:25:01, if the assets are held by the ceding insurer, the valuations are to be determined according to statutory accounting procedures as if the assets were held in the ceding insurer's general account and without taking into consideration the effect of any prescribed or permitted practices; and

(2) For all other assets, the valuations are to be those that are assigned to the assets for the purpose of determining the amount of reserve credit taken. In addition, the asset spread tables and asset default cost tables required by VM-20 shall be included in the actuarial method if adopted by the NAIC Life Actuarial (A) Task Force no later than the December thirty-first on or immediately preceding the valuation date for which the required level of primary security is being calculated and adopted by the director pursuant to SDCL 58-26-45.1 and § 20:06:59:01. The tables of asset spreads and asset default costs shall be incorporated into the actuarial method in the manner specified in VM-20.

S.D. Admin. R. 20:06:30:15

49 SDR 009, effective 8/9/2022

General Authority: SDCL 58-14-17.

Law Implemented: SDCL 58-14-17.