South Dakota Codified Laws 58-29C-55. Detection and prevention of insurer insolvencies or impairments–Reports by board
To aid in the detection and prevention of member insurer insolvencies or impairments,
A. It is the duty of the director:
Terms Used In South Dakota Codified Laws 58-29C-55
- Contract: A legal written agreement that becomes binding when signed.
- Germane: On the subject of the pending bill or other business; a strict standard of relevance.
- Insurance business: includes the transaction of all matters pertaining to a contract of insurance, both before and after the effectuation of that contract, and all matters arising out of that contract or any claim thereunder. See South Dakota Codified Laws 58-1-2
- 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
(1) To notify the directors of all the other states, territories of the United States and the District of Columbia within thirty days following the action taken or the date the action occurs, when the director takes any of the following actions against a member insurer:
(a) Revocation of license;
(b) Suspension of license; or
(c) Makes a formal order that the member insurer restrict its premium writing, obtain additional contributions to surplus, withdraw from the state, reinsure all or any part of the member insurer’s business, or increase capital, surplus, or any other account for the security of policy owners, contract owners, certificate holders, or creditors.
(2) To report to the board of directors when the director has taken any of the actions set forth in subdivision (1) or has received a report from any other director indicating that any action has been taken in another state. The report to the board of directors shall contain all significant details of the action taken or the report received from another director.
(3) To report to the board of directors when the director has reasonable cause to believe from an examination, whether completed or in process, of any member insurer that the insurer may be an impaired or insolvent insurer.
(4) To furnish to the board of directors the National Association of Insurance Commissioners Insurance Regulatory Information System (IRIS) ratios and listings of companies not included in the ratios developed by the National Association of Insurance Commissioners, and the board may use the information contained therein in carrying out the board’s duties and responsibilities under this section. The report and the information contained therein shall be kept confidential by the board of directors until the report is made public by the director or other lawful authority.
B. The director may seek the advice and recommendations of the board of directors concerning any matter affecting the duties and responsibilities of the director regarding the financial condition of member insurers and companies seeking admission to transact insurance business in this state.
C. The board of directors may, upon majority vote, make reports and recommendations to the director upon any matter germane to the solvency, liquidation, rehabilitation, or conservation of any member insurer or germane to the solvency of any company seeking to do insurance business in this state. The reports and recommendations are not public documents.
D. The board of directors may, upon majority vote, notify the director of any information indicating a member insurer may be an impaired or insolvent insurer.
E. The board of directors may, upon majority vote, make recommendations to the director for the detection and prevention of member insurer insolvencies.
Source: SL 2003, ch 252, § 12; SL 2020, ch 210, § 7.