S.D. Admin. R. 20:06:31:26

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

Section 20:06:31:26 - Certified reinsurers certification procedure

The director shall post notice on the divisions website promptly upon receipt of any application for certification, including instructions on how members of the public may respond to the application. The director may not take final action on the application until at least 30 days after posting the notice required by this section.

The director shall issue written notice to an assuming insurer that has made application and been approved as a certified reinsurer. Included in such notice shall be the rating assigned the certified reinsurer in accordance with § 20:06:31:25. The director shall publish a list of all certified reinsurers and their ratings.

In order to be eligible for certification, the assuming insurer shall meet the following requirements:

(1) The assuming insurer must be domiciled and licensed to transact insurance or reinsurance in a Qualified Jurisdiction, as determined by the director pursuant to § 20:06:31:32.

(2) The assuming insurer must maintain capital and surplus, or its equivalent, of no less than $250,000,000 calculated in accordance with subdivision 20:06:31:27(8). This requirement may also be satisfied by an association including incorporated and individual unincorporated underwriters having minimum capital and surplus equivalents, net of liabilities, of at least $250,000,000 and a central fund containing a balance of at least $250,000,000.

(3) The assuming insurer must maintain financial strength ratings from two or more rating agencies deemed acceptable by the director. These ratings shall be based on interactive communication between the rating agency and the assuming insurer and may not be based solely on publicly available information. These financial strength ratings will be one factor used by the director in determining the rating that is assigned to the assuming insurer. Acceptable rating agencies including, Standard & Poors, Moodys Investors Service, Fitch Ratings, A.M. Best Company; or any other Nationally Recognized Statistical Rating Organization; and

(4) The certified reinsurer must comply with any other requirements reasonably imposed by the director.

S.D. Admin. R. 20:06:31:26

44 SDR 71, effective 10/23/2017

General Authority: SDCL 58-14-17.

Law Implemented: SDCL 58-14-16.1, 58-14-17.