S.D. Admin. R. 20:06:31:33
If an applicant for certification has been certified as a reinsurer in an National Association of Insurance Commissioners accredited jurisdiction, the director has the discretion to defer to that jurisdictions certification, and to defer to the rating assigned by that jurisdiction, if the assuming insurer submits a properly executed Form CR-1, provided by the director, and such additional information as the director requires. The assuming insurer shall be considered to be a certified reinsurer in this state.
Any change in the certified reinsurers status or rating in the other jurisdiction shall apply automatically in this state as of the date it takes effect in the other jurisdiction. The certified reinsurer shall notify the director of any change in its status or rating within ten days after receiving notice of the change.
The director may withdraw recognition of the other jurisdictions rating at any time and assign a new rating in accordance with § 20:06:31:31.
The director may withdraw recognition of the other jurisdictions certification at any time, with written notice to the certified reinsurer. Unless the director suspends or revokes the certified reinsurers certification in accordance with § 20:06:31:31, the certified reinsurers certification shall remain in good standing in this state for a period of three months, which shall be extended if additional time is necessary to consider the assuming insurers application for certification in this state.
In addition to the clauses required in § 20:06:31:24, reinsurance contracts entered into or renewed under this section shall include a proper funding clause, which requires the certified reinsurer to provide and maintain security in an amount sufficient to avoid the imposition of any financial statement penalty on the ceding insurer under this section for reinsurance ceded to the certified reinsurer.
S.D. Admin. R. 20:06:31:33
General Authority: SDCL 58-14-17.
Law Implemented: SDCL 58-14-16.1, 58-14-17.