Section 58-14-11 - Credit for reinsurance ceded to insurer maintaining trust fund for payment of validclaims--Annual report of assuming insurer. - South Dakota Statutes

58-14-11. Credit for reinsurance ceded to insurer maintaining trust fund for payment of valid claims--Annual report of assuming insurer. Credit shall also be allowed if the reinsurance is ceded to an assuming insurer which maintains a trust fund in a qualified United States financial institution for the payment of the valid claims of its United States policyholders and ceding insurers, their assigns and successors in interest. The assuming insurer shall report annually to the director information substantially the same as that required to be reported on the national association of insurance commissioners annual statement form by licensed insurers to enable the director to determine the sufficiency of the trust fund.
In the case of a single assuming insurer, the trust shall consist of a trust account equal to the assuming insurer's liabilities attributable to business written in the United States and, in addition, the assuming insurer shall maintain a trust surplus of not less than twenty million dollars.
In the case of a group including incorporated and individual unincorporated underwriters, the trust shall consist of a trust account representing the group's liabilities attributable to business written in the United States and, in addition, the group shall maintain a trust surplus of which one hundred million dollars shall be held jointly for the benefit of United States ceding insurers of any member of the group. The incorporated members of the group may not engage in any business other than underwriting as a member of the group and are subject to the same level of solvency regulation and control by the group's domiciliary regulator as are the unincorporated members. The group shall make available to the director an annual certification of the solvency of each underwriter by the group's domiciliary regulator and its independent public accountants.

Source: SL 1992, ch 344, § 5; SL 1994, ch 378.