20 : 06 : 31 : 09.02 . Assets deposited in trust account. The reinsurance agreement or the trust agreement must stipulate that assets deposited in the trust account shall be valued according to their current fair market value and shall consist only of cash in United States dollars, certificates of deposit issued by a United States bank and payable in United States dollars, investments permitted by the Insurance Code, or any combination of the above. However, investments in or issued by an entity controlling, controlled by, or under common control with either the grant o r or the beneficiary of the trust may not exceed five percent of total investments in the trust. The agreement may further specify the types of investments to be deposited. If the reinsurance agreement covers life, annuities or accident and health risks, then the provisions required by this section must be included in the reinsurance agreement.

Source: 44 SDR 71, effective October 23, 2017.

General Authority: SDCL 58-14-17.

Law Implemented: SDCL 58-14-16 , 58-14-17 , 58-14-20.