58-14-9. Requirements for reinsurer to be accredited.
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/sd/title-58/chapter-58-14/58-14-9·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Credit shall be allowed if the reinsurance is ceded to an assuming insurer that is accredited as a reinsurer in this state. For a reinsurer to be accredited, the reinsurer shall:
(1)File with the director evidence of its submission to this state's jurisdiction;
(2)Submit to this state's authority to examine its books and records;
(3)Be licensed to transact insurance or reinsurance in at least one state or, in the case of a United States branch of an alien assuming insurer, be entered through and licensed to transact insurance or reinsurance in at least one state;
(4)File annually with the director a copy of its annual statement filed with the insurance department of its state of domicile and a copy of its most recent audited financial statement; and
(5)Demonstrate to the satisfaction of the director that the reinsurer has adequate financial capacity to meet reinsurance obligations and is otherwise qualified to assume reinsurance from domestic insurers. An assuming insurer is deemed to meet this requirement as of the time of the assuming insurer's application if the assuming insurer maintains a surplus as regards policyholders in an amount not less than twenty million dollars and the assuming insurer's accreditation has not been denied by the director within ninety days after submission of the assuming insurer's application.
The director, after reviewing the documents submitted, may approve or disapprove the reinsurer.
No credit may be allowed a domestic ceding insurer if the assuming insurer's accreditation has been revoked by the director after notice and hearing.
To qualify as an accredited reinsurer, an assuming insurer shall meet all of the requirements of this section.
The director may deny accreditation if the director determines that accreditation would not be in the best interest of the ceding insurer and policyholders.