ARSD 20:06:25:01.01 – Accounting methods for certain surety bonds.

An insurer writing surety bonds guaranteeing to lending institutions the repayment of student loans made by lending institutions may, in lieu of compliance with SSAP No. 60 of the Accounting Practices and Procedures Manual, 2026 edition, develop premium earning patterns that are representative of the insurer's claims and expense patterns by loan and program and compute unearned premium reserves according to those premium earning patterns. In lieu of compliance with SSAP No. 3 of the Accounting Practices and Procedures Manual, 2026 edition, changes in accounting estimates, for this method of accounting only, may be amortized over the remaining life of the student loans utilizing pro-rated current premium earning patterns. In lieu of compliance with SSAP No. 53 of the Accounting Practices and Procedures Manual, 2026 edition, the insurer may recognize written premiums when due.

Reference: Accounting Practices and Procedures Manual, 2026 edition. Copies may be obtained from the National Association of Insurance Commissioners, 1100 Walnut Street, Ste. 1500, Kansas City, MO 64106-2197; (816) 783-8300; http://www.naic.org. Cost: $0.

Source: 27 SDR 111, effective May 7, 2001; 29 SDR 5, effective July 10, 2002; 30 SDR 39, effective September 28, 2003; 31 SDR 21, effective August 23, 2004; 33 SDR 59, effective October 5, 2006; 34 SDR 271, effective May 6, 2008; 35 SDR 165, effective December 22, 2008; 36 SDR 209, effective July 1, 2010; 37 SDR 241, effective July 1, 2011; 38 SDR 219, effective June 25, 2012; 39 SDR 219, effective June 26, 2013; 41 SDR 41, effective September 17, 2014; 42 SDR 52, effective October 13, 2015 ; 42 SDR 177, effective June 28, 2016 ; 45 SDR 10, effective August 2, 2018; 46 SDR 26, effective September 4, 2019; 46 SDR 147, effective July 2, 2020; 47 SDR 137, effective June 28, 2021; 49 SDR 9, effective August 9, 2022; 50 SDR 13, effective August 10, 2023; 50 SDR 157, effective July 1, 2024; 51 SDR 142, effective July 3, 2025; 52 SDR 125, effective July 1, 2026 .

General Authority: SDCL 58-6-75 .

Law Implemented: SDCL 58-6-75 .

Prior versions effective: 2025-07-03, 2024-07-01, 2023-08-10, 2022-08-09, 2021-06-28, 2020-07-02, 2019-09-04, 2018-08-02, 2016-06-28, 2015-10-13, 2014-09-17, 2013-06-26.