S.D. Admin. R. 20:06:31:12

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

Section 20:06:31:12 - Reinsurance agreements - Transfer of assets

The reinsurance agreement may also contain the following provisions:

(1) That give the assuming insurer the right to seek approval from the ceding insurer, which may not be unreasonably or arbitrarily withheld, to withdraw from the trust account all or any part of the trust assets and transfer those assets to the assuming insurer, if:

(a) The assuming insurer, at the time of withdrawal, replaces the withdrawn assets with other qualified assets having a current fair market value equal to the market value of the assets withdrawn so as to maintain at all times the deposit in the required amount; or

(b) After withdrawal and transfer, the current fair market value of the trust account is no less than 102 percent of the required amount;

(2) Provide for the return of any amount withdrawn in excess of the actual amounts required for subdivision 20:06:31:11(5) and for interest payments at a rate not in excess of the prime rate of interest on such amounts ;

(3) Permit the award by an arbitration panel or court of competent jurisdiction of the following:

(a) Interest at a rate different from that provided in subdivision (2) of this section;

(b) Court or arbitration costs;

(c) Attorneys' fees; and

S.D. Admin. R. 20:06:31:12

22 SDR 52, effective 10/25/1995; 44 SDR 71, effective 10/23/2017

General Authority: SDCL 58-14-17.

Law Implemented: SDCL 58-14-17.