S.D. Admin. R. 20:06:31:13

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

Section 20:06:31:13 - Use of trust agreement to reduce liability for reinsurance

A trust agreement may be used to reduce any liability for reinsurance ceded to an unauthorized assuming insurer in financial statements required to be filed with this division in compliance with the provisions of this chapter if it is established by the date of filing of the financial statement of the ceding insurer. The reduction for the existence of an acceptable trust account may be up to the current fair market value of acceptable assets available to be withdrawn from the trust account at that time, but the reduction may be no greater than the specific obligations under the reinsurance agreement that the trust account was established to secure.

22 SDR 52, effective 10/25/1995.

General Authority: SDCL 58-14-17.

Law Implemented: SDCL 58-14-17.