South Dakota Codified Laws 58-20-16. Reinsurance reserve–Amount required
Any insurer engaging in the business of writing workers’ compensation insurance in this state shall maintain a reinsurance reserve for outstanding losses under such insurance, for which the insured is liable as follows:
(1) For all liability suits being defended under policies written more than ten years prior to the date as of which the statement is made, one thousand five hundred dollars for each suit; five and less than ten years prior to the date as of which the statement is made, one thousand dollars for each suit; three and less than five years prior to the date as of which the statement is made, eight hundred fifty dollars for each suit.
Terms Used In South Dakota Codified Laws 58-20-16
- loss expense payments: shall include payments to claimants, including payments for medical or surgical attendants, legal expenses, salaries and expenses of investigators, adjusters and field men, rents, stationery, telegraph and telephone charges, postage, salaries and expenses of office employees, home office expenses, and all other payments made on account of claims, whether such payments shall be allocated to specific claims or unallocated. See South Dakota Codified Laws 58-20-1
- State: when used in context signifying a jurisdiction other than the State of South Dakota, a state, the District of Columbia, a territory, commonwealth, or possession of the United States of America, or a province of the Dominion of Canada. See South Dakota Codified Laws 58-1-2
- written: include typewriting and typewritten, printing and printed, except in the case of signatures, and where the words are used by way of contrast to typewriting and printing. See South Dakota Codified Laws 2-14-2
(2) For all liability policies written during the three years immediately preceding the date as of which the statement is made, such reserve shall be sixty percent of the earned liability premiums of each of such years, less all loss and loss expense payments made under liability policies written in the corresponding years; but in any event, such reserve shall, for the first of such three years, be not less than seven hundred fifty dollars for each outstanding liability suit on said year’s policies.
(3) For all compensation claims under policies written more than three years prior to the date as of which the statement is made, the present values at four percent interest of the determined and the estimated future payments.
(4) For all compensation claims under policies written in the three years immediately preceding the date as of which the statement is made, such reserve shall be sixty–five percent of the earned compensation premiums of each of such three years, less all loss and loss expense payments made in connection with such claims under policies written in the corresponding years; but in any event, in the case of the first year of any such three–year period, such reserve shall be not less than the present value at four percent interest of the determined and the estimated unpaid compensation claims under policies written during such year.
Source: SL 1966, ch 111, ch 29, § 2.