§ 58-5A-1 — Definitions.

South Dakota § 58-5A-1

• Jurisdiction: South Dakota
• Title 58: INSURANCE
• Ch. 58-4A: INSURANCE HOLDING COMPANIES

Text

Terms used in this chapter mean: (1) "Affiliate of, or a person affiliated with, a specific person," any person who directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the person specified; (2) "Control," including "controlling," "controlled by," and "under common control with," the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract other than a commercial contract for goods or nonmanagement services, or otherwise, unless the power is solely the result of an official position with, or a corporate office held by, the person. Control is presumed to exist if any person, directly or indirectly, owns, controls, holds with the power to vote, or holds proxies representing, ten percent or more of the voting securities of any other person. This presumption may be rebutted by a showing made in the manner provided by § 58-5A-29 that control does not exist in fact; (3) "Enterprise risk," any activity, circumstance, event, or series of events involving one or more affiliates of an insurer that, if not remedied promptly, is likely to have a material adverse effect upon the financial condition or liquidity of the insurer or its insurance holding company system as a whole, including anything that may cause the insurer's risk-based capital to fall into company action level or may cause the insurer to be in hazardous financial condition pursuant to chapter 58-4 ; (4) "Group-wide supervisor," the regulatory official authorized to engage in conducting and coordinating group-wide supervision activities who is determined or acknowledged by the director under the provisions of §§ 58-5A-80.1 to 58-5A-80.8 , inclusive, to have sufficient significant contacts with the internationally active insurance group; (5) "Insurance group," for the purposes of conducting an ORSA, those insurers and affiliates included within an insurance holding company system; (6) "Insurance holding company system," any two or more affiliated persons, one or more of which is an insurer; (7) "Insurer," a company qualified and licensed by the director of the Division of Insurance to transact the business of insurance in this state. For ORSA purposes, the term, insurer, does not include agencies, authorities or instrumentalities of the United States, its possessions or territories, the Commonwealth of Puerto Rico, the District of Columbia, or a state or political subdivision of a state; (8) "Internationally active insurance group," an insurance holding company system that includes an insurer registered under chapter 58-5A and that: (a) Writes premiums in at least three countries; (b) Writes at least ten percent of its total gross premium outside the United States; and (c) Based on a three-year rolling average, has total assets in the insurance holding company system of at least fifty billion dollars or the total gross written premiums of the insurance holding company system are at least ten billion dollars; (9) "NAIC," the National Association of Insurance Commissioners; (10) "NAIC liquidity stress test framework," the NAIC publication that includes a history of the NAIC's development of regulatory liquidity stress testing, the scope criteria applicable for a specific data year, the liquidity stress test instructions, and reporting templates for a specific data year as approved by the NAIC and adopted by the director pursuant to rules promulgated under chapter 1-26 ; (11) "ORSA guidance manual," the version of the NAIC own risk and solvency assessment guidance manual as adopted by the director for use in South Dakota by administrative rule; (12) "ORSA summary report," a confidential high-level summary of an insurer or insurance group's ORSA; (13) "Own risk and solvency assessment" or "ORSA," a confidential internal assessment, appropriate to the nature, scale, and complexity of an insurer or insurance group, conducted by that insurer or insurance group of the material and relevant risks associated with the insurer or insurance group's current business plan and the sufficiency of capital resources to support those risks; (14) "Security holder" of a specified person is one who owns any security of the person, including common stock, preferred stock, debt obligations, and any other security convertible into or evidencing the right to acquire any of the foregoing; (15) "Scope criteria," the designated exposure bases along with minimum magnitudes thereof for the specified data year, used to establish a preliminary list of insurers considered scoped into the NAIC liquidity stress test framework for that data year as detailed in the NAIC liquidity stress test framework; (16) "Subsidiary of a specified person," any affiliate controlled by a person directly, or indirectly, through one or more intermediaries; (17) "Voting security," any security convertible into or evidencing a right to acquire a voting security.

Legislative History

SL 1972, ch 267, § 1; SL 1992, ch 341, § 1; SL 2015, ch 246, § 1; SL 2017, ch 210, § 1; SL 2020, ch 213, § 1; SL 2024, ch 201, § 1.