S.D. Admin. R. 20:06:36:20
If a mandatory control level event occurs for a life or health insurer or health organization, the director shall take the actions necessary to place the insurer or health organization under regulatory control under SDCL chapter 58-29 B. The mandatory control level event is sufficient grounds for the director to take action under SDCL chapter 58-29 B, and the director has the rights, powers, and duties regarding the insurer or health organization set forth in SDCL chapter 58-29 B. If the director takes actions pursuant to an adjusted RBC report, the insurer or health organization is entitled to the protections of SDCL 58-29B-24 to 58-29B-30, inclusive. However, the director may forego action for up to 90 days after the mandatory control level event if the director finds a reasonable expectation that the mandatory control level event may be eliminated within that period.
If a mandatory control level event occurs for a property and casualty insurer, the director shall take the actions necessary to place the insurer under regulatory control under SDCL chapter 58-29B, or, if an insurer is writing no business and is running off its existing business, may allow the insurer to continue its run-off under the supervision of the director. The mandatory control level event is sufficient grounds for the director to take action under SDCL chapter 58-29B and the director has the rights, powers, and duties regarding the insurer set forth in SDCL chapter 58-29B. If the director takes actions pursuant to an adjusted RBC report, the insurer is entitled to the protections of provisions SDCL 58-29B-24 to 58-29B-30, inclusive. However, the director may forego action for up to 90 days after the mandatory control level event if the director finds a reasonable expectation that the mandatory control level event may be eliminated within that period.
S.D. Admin. R. 20:06:36:20
General Authority: SDCL 58-4-48.
Law Implemented: SDCL 58-4-48.