The registrant or applicant, to the best of the registrant's or applicant's knowledge and belief, must provide information regarding the following areas that could produce enterprise risk as defined in SDCL subdivision 58-5A-1(3), unless the information is disclosed in the insurance holding company system annual registration statement filed on behalf of itself or another insurer for which it is the ultimate controlling person:

1. (1) Any material developments regarding strategy, internal audit findings, compliance, or risk management affecting the insurance holding company system;
2. (2) Acquisition or disposal of insurance entities and reallocating of existing financial or insurance entities within the insurance holding company system;
3. (3) Any changes of shareholders of the insurance holding company system exceeding ten percent or more of voting securities;
4. (4) Developments in various investigations, regulatory activities, or litigation that may have a significant bearing or impact on the insurance holding company system;
5. (5) The business plan of the insurance holding company system and summarized strategies for next twelve months;
6. (6) Identification of material concerns of the insurance holding company system raised by supervisory college, if any, in the last year;
7. (7) Identification of insurance holding company system capital resources and material distribution patterns;
8. (8) Identification of any negative movement, or discussions with rating agencies which may have caused, or may cause, potential negative movement in the credit ratings and individual insurer financial strength ratings assessment of the insurance holding company system, including both the rating score and outlook;
9. (9) Information on corporate or parental guarantees throughout the holding company and the expected source of liquidity should the guarantees be called upon; and

10. (10) Identification of any material activity or development of the insurance holding company system that, in the opinion of senior management, could adversely affect the insurance holding company system.

    The registrant or applicant may attach the appropriate form most recently filed with the U.S. Securities and Exchange Commission, provided the registrant or applicant includes specific references to those areas listed above for which the form provides responsive information. If the registrant or applicant is not domiciled in the U.S., it may attach its most recent public audited financial statement filed in its country of domicile, provided the registrant or applicant includes specific references to those areas listed above for which the financial statement provides responsive information.

Source: 42 SDR 83, effective December 3, 2015 ; 50 SDR 157, effective July 1, 2024 .

General Authority: SDCL 5 8-5A-29.1 , 8-5A-70.

Law Implemented: SDCL 58-5A-29.1 .

Prior versions effective: 2015-12-03.