S.D. Admin. R. 20:06:31:28

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

Section 20:06:31:28 - Certified reinsurers - prompt payment of claims

Based on the analysis conducted under subdivision 20:06:31:27(5) of a certified reinsurers reputation for prompt payment of claims, the director may make appropriate adjustments in the security the certified reinsurer is required to post to protect its liabilities to U.S. ceding insurers, provided that the director shall, at a minimum, increase the security the certified reinsurer is required to post by one rating level under subdivision 20:06:31:27(1), if the director finds:

(1) More than 15 percent of the certified reinsurers ceding insurance clients have overdue reinsurance recoverables on paid losses of 90 days or more which are not in dispute and which exceed $100,000 for each cedent; or

(2) The aggregate amount of reinsurance recoverables on paid losses which are not in dispute that are overdue by 90 days or more exceeds $50,000,000.

S.D. Admin. R. 20:06:31:28

44 SDR 71, effective 10/23/2017

General Authority: SDCL 58-14-17.

Law Implemented: SDCL 58-14-16.1, 58-14-17.