The director shall allow credit for reinsurance ceded by a domestic insurer to an assuming insurer that is accredited as a reinsurer in this state as of the date on which statutory financial statement credit for reinsurance is claimed. An accredited reinsurer shall:

1. (1) File a completed Form AR-1 provided by the director as evidence of its submission to this state's jurisdiction and to this state's authority to examine its books and records;
2. (2) File with the director a certified copy of a letter or a certificate of authority or other acceptable evidence that it is licensed to transact insurance or reinsurance in at least one state, or, in the case of a United States branch of an alien assuming insurer, is entered through and licensed to transact insurance or reinsurance in at least one state;
3. (3) File annually with the director a copy of its annual statement filed with the insurance department of its state of domicile or, in the case of an alien assuming insurer, a copy of its annual statement filed with the state through which it is entered and in which it is licensed to transact insurance or reinsurance, and a copy of its most recent audited financial statement; and

4. (4) Maintain a surplus as regards policyholders in an amount not less than $20,000,000, or obtain the affirmative approval of the director upon a finding that it has adequate financial capacity to meet its reinsurance obligations and is otherwise qualified to assume reinsurance from domestic insurers.

   Credit shall not be allowed a domestic ceding insurer under this section if the assuming insurer's accreditation has been revoked by the director or if the reinsurance was ceded while the assuming insurer's accreditation was under suspension by the director.

Source: 22 SDR 52, effective October 25, 1995; 44 SDR 71, effective October 23, 2017.

General Authority: SDCL 58-14-17.

Law Implemented: SDCL 58-14-9 , 58-14-17.

Prior versions effective: 1995-10-25.