20 : 06 : 60 : 07 . Description of board oversight. The insurer or insurance group shall describe the processes in its corporate governance annual disclosure by which the board, its committees, and senior management ensure an appropriate amount of oversight of the critical risk areas impacting the insurer’s business activities, including:

1. (1) How oversight and management responsibilities are delegated between the board, its committees, and senior management;
2. (2) How the board is kept informed of the insurer's strategic plans, the associated risks, and steps that senior management is taking to monitor and manage those risks; and

3. (3) The process and frequency by which information on each critical risk area is reported to and reviewed by senior management and the board, which may include:

   1. (a) Risk management processes, which may refer to an Own Risk and Solvency Assessment Summary Report if filed pursuant to SDCL chapter 58-5A;
   2. (b) Actuarial function;
   3. (c) Investment decision-making processes;
   4. (d) Reinsurance decision-making processes;
   5. (e) Business strategy or finance decision-making processes;
   6. (f) Compliance function;
   7. (g) Financial reporting or internal auditing; and
   8. (h) Market conduct decision-making processes.

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

General Authority: SDCL 58-5-166.

Law Implemented: SDCL 58-5-166 .