The terms used in this chapter as they apply to trust agreements qualified under SDCL 58-14-16 mean:

1. (1) "Beneficiary," the entity for whose sole benefit the trust has been established and any successor of the beneficiary by operation of law. If a court of law appoints a successor in interest to the named beneficiary, the named beneficiary is limited to the court-appointed domiciliary receiver, including the conservator, rehabilitator, or liquidator;
2. (2) "Grantor," the entity that has established a trust for the sole benefit of the beneficiary. When established in conjunction with a reinsurance agreement, the grantor is the unlicensed, unaccredited assuming insurer;

3. (3) "Obligations," as used in § 20:06:31:09 include:

   1. (a) Reinsured losses and allocated loss expenses paid by the ceding company, but not recovered from the assuming insurer;
   2. (b) Reserves for reinsured losses reported and outstanding;
   3. (c) Reserves for reinsured losses incurred but not reported; and
   4. (d) Reserves for allocated reinsured loss expenses and unearned premiums.

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

General Authority: SDCL 58-14-17.

Law Implemented: SDCL 58-14-17.

Prior versions effective: 1995-10-25.