South Dakota § 58-5A-34 Adequacy of insurer's surplus--Factors considered.

South Dakota Statutes

§ 58-5A-34 — Adequacy of insurer's surplus--Factors considered.

South Dakota § 58-5A-34

Title 58INSURANCE

Ch. 58-4AINSURANCE HOLDING COMPANIES

This text of South Dakota § 58-5A-34 (Adequacy of insurer's surplus--Factors considered.) is published on Counsel Stack Legal Research, covering South Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

S.D. Codified Laws § 58-5A-34 (2026).

Text

For purposes of this chapter in determining whether an insurer's surplus to policyholders is reasonable in relation to the insurer's outstanding liabilities and adequate to its financial needs, the following factors, among others, shall be considered:

(1)The size of the insurer as measured by its assets, capital and surplus, reserves, premium writings, insurance in force, and other appropriate criteria;

(2)The extent to which the insurer's business is diversified among the several lines of insurance;

(3)The number and size of risks insured in each line of business;

(4)The extent of the geographical dispersion of the insurer's insured risks;

(5)The nature and extent of the insurer's reinsurance program;

(6)The quality, diversification, and liquidity of the insurer's

Free access — add to your briefcase to read the full text and ask questions with AI

For purposes of this chapter in determining whether an insurer's surplus to policyholders is reasonable in relation to the insurer's outstanding liabilities and adequate to its financial needs, the following factors, among others, shall be considered: (1) The size of the insurer as measured by its assets, capital and surplus, reserves, premium writings, insurance in force, and other appropriate criteria; (2) The extent to which the insurer's business is diversified among the several lines of insurance; (3) The number and size of risks insured in each line of business; (4) The extent of the geographical dispersion of the insurer's insured risks; (5) The nature and extent of the insurer's reinsurance program; (6) The quality, diversification, and liquidity of the insurer's investment portfolio; (7) The recent past and projected future trend in the size of the insurer's surplus to policyholders; (8) The surplus to policyholders maintained by other comparable insurers; (9) The adequacy of the insurer's reserves; (10) The quality and liquidity of investments in affiliates made pursuant to this chapter and chapters 58-26 and 58-27 . The director may treat any investment under this subdivision as a disallowed asset; and (11) The quality of the company's earnings and the extent to which the reported earnings include extraordinary items.