S.D. Admin. R. 20:06:09:41

Current through Register Vol. 51, page 57, November 12, 2024

Section 20:06:09:41 - Form D - Management agreements, service agreements, and cost-sharing agreements

The person making the Form D filing must provide the following information for management and service agreements and for cost-sharing arrangements:

(1) For management and service agreements:

(a) A brief description of the managerial responsibilities or the services to be performed;

(b) A brief description of the agreement, including a statement of its duration, together with brief descriptions of the basis for compensation and the terms under which payment or compensation is to be made;

(2) For cost-sharing arrangements:

(a) A brief description of the purpose of the agreement;

(b) A description of the period of time during which the agreement is to be in effect;

(c) A brief description of each party's expenses or costs covered by the agreement;

(d) A brief description of the accounting basis to be used in calculating each party's costs under the agreement;

(e) A brief statement as to the effect of the transaction upon the insurers policyholder surplus;

(f) A statement regarding the cost allocation methods that specifies whether proposed charges are based on cost or market. If market based, rationale for using market instead of cost, including justification for the companys determination that amounts to fair and reasonable; and

(g) A statement regarding compliance with the National Association of Insurance Commissioner Accounting Practices and Procedure Manual regarding expense allocation as adopted by § 20:06:25:01.

S.D. Admin. R. 20:06:09:41

20 SDR 36, effective 9/19/1993.

42 SDR 83, effective 12/3/2015

General Authority: SDCL 58-5A-70.

Law Implemented: SDCL 58-5A-56, 58-5A-70.