The director shall allow credit for reinsurance ceded by a domestic insurer to an assuming insurer that as of any date on which statutory financial statement credit for reinsurance is claimed:

1. (1) Is domiciled in a state or, in the case of an alien assuming insurer with the state through which it is entered, that employs standards regarding credit for reinsurance substantially similar to this state;
2. (2) Maintains a surplus as regards policyholders in an amount not less than $20,000,000; and

3. (3) Has filed a properly executed Form AR-1 with the director as evidence of its submission to this state's authority to examine its books and records on a form to be provided by the director.

   The provisions of this section relating to surplus as regards policyholders may not apply to reinsurance ceded and assumed pursuant to pooling arrangements among insurers in the same holding company system. As used in this section, substantially similar standards means credit for reinsurance standards that the director determines are equal to or exceeding the standards of SDCL chapter 58-14 and this chapter.

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

General Authority: SDCL 58-14-17.

Law Implemented: SDCL 58-14-10 , 58-14-17.

Prior versions effective: 1995-10-25.