S.D. Admin. R. 20:06:23:03

Current through Register Vol. 51, page 51, October 21, 2024

Section 20:06:23:03 - Criteria for dividends

In determining whether any dividend should be paid, disallowed, or limited by an insurer, the director may consider the following:

(1) If the insurer is in a hazardous financial condition under § 20:06:23:02;

(2) If the insurer would become impaired, financially distressed or troubled, or insolvent after the payment;

(3) If the insurer could not meet its obligations;

(4) If the insurer cannot meet the requirements of SDCL 58-5A-34;

(5) If the insurer's surplus as regards policyholders is not reasonable in relation to the company's outstanding liabilities and adequate to its financial needs; or

(6) If the dividends paid are reasonable based on the adequacy of the level of surplus remaining after the dividend payment or the quality of the company's earnings and the extent to which the reported earnings include extraordinary items, such as surplus relief reinsurance transactions and reserve destrengthening.

S.D. Admin. R. 20:06:23:03

19 SDR 160, effective 4/27/1993.

General Authority: SDCL 58-5A-70.

Law Implemented: SDCL 58-5A-70.