S.D. Admin. R. 20:06:60:07
Current through Register Vol. 50, page 159, June 17, 2024
Section 20:06:60:07 - Description of Board Oversight The insurer or insurance group shall describe the processes by which the Board, its committees, and Senior Management ensure an appropriate amount of oversight to the critical risk areas impacting the insurers business activities, including a discussion of:
(1) How oversight and management responsibilities are delegated between the Board, its committees and Senior Management;(2) How the Board is kept informed of the insurers strategic plans, the associated risks, and steps that Senior Management is taking to monitor and manage those risks; and(3) How reporting responsibilities are organized for each critical risk area. The description should allow the Commissioner to understand the frequency at which information on each critical risk area is reported to and reviewed by Senior Management and the Board. This description may include, for example, the following critical risk areas of the insurer:
(a) Risk management processes, which may refer to an Own Risk and Solvency Assessment (ORSA) Summary Report if filed pursuant to SDCL Ch. 58-5A;(c) Investment decision-making processes;(d) Reinsurance decision-making processes;(e) Business strategy/finance decision-making processes;(g) Financial reporting/internal auditing; and (h) Market conduct decision-making processes.S.D. Admin. R. 20:06:60:07
46 SDR 146, effective 7/2/2020General Authority: SDCL 58-5-166
Law Implemented: SDCL 58-5-166