20:06:11 :05. Application for exemptions. Any transaction or series of transactions not otherwise provided for under § 20:06:11:01 may be declared exempt from the application of SDCL 58-5-61 , solely to enable the payment of reasonable compensation to a director, officer or employee, upon application by the insurer and approval of the director. The fee, brokerage, commission or other consideration shall not exceed the usual or customary compensation for similar services by members, not directors, officers or employees of the same profession or business. Said application shall include:

1. (1) A specific description of the particular transaction or transactions for which approval is sought;
2. (2) Copies of all contracts and other legal documents involved or to be involved in the transaction;
3. (3) A description of all assets involved in the transaction;
4. (4) The names, titles, capacities and business relationships of all persons in any way involved in the transaction who are connected with the insurer or any of its affiliates, officers, directors, managers, or controlling persons or entities in any of the capacities described in SDCL 58-5-61;
5. (5) A description of any and all consideration on either or any side of the transaction;
6. (6) Evidence that its governing board has specifically authorized the filing of the application; and
7. (7) Such other information, opinions or matters as the director may require.

Source: 1 SDR 53, effective January 27, 1975; 4 SDR 6, effective August 9, 1977; 12 SDR 151, 12 SDR 155, effective July 1, 1986.

General Authority: SDCL 58-4-1 , 58-5-65.

Law Implemented: SDCL 58-5-61.