20 : 06 : 60 : 05 . Description of policies and practices. The corporate governance annual disclosure of an insurer or insurance group must describe the policies and practices of the insurer ' s or insurance group ' s board and committees, or, if governed by another entity, the board and committees of the insurer ' s or insurance group ' s most senior governing entity. The description must include:

1. (1) How the qualifications, expertise, and experience of each board member meet the needs of the insurer or insurance group;
2. (2) How an appropriate amount of independence is maintained on the board and its committees;
3. (3) The number of meetings held by the board and its committees over the reporting period as well as information on director attendance;

4. (4) How members of the board and its committees are identified, nominated, and elected, including:

   1. (a) Whether a nomination committee is in place to identify and select individuals for consideration;
   2. (b) Whether term limits are placed on directors;
   3. (c) How the election and re-election processes function; and
   4. (d) Whether a board diversity policy is in place and, if so, how it functions;
5. (5) The processes in place for the board to evaluate its performance and the performance of its committees; and
6. (6) Any recent measures taken by the board to improve performance, including any board or committee training programs that have been put in place.

Source: 46 SDR 147, effective July 2, 2020.

General Authority: SDCL 58-5-166.

Law Implemented: SDCL 58-5-166 .