58-27-102. Investment in company owned life insurance contracts.
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/sd/title-58/chapter-58-27/58-27-102·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
An insurer may invest in company owned life insurance contracts if:
(1)The life insurance is whole life;
(2)The life insurance contract does not vest in any employee of the insurer; and
(3)The company is the beneficiary and has an insurable interest.
All cash values of life insurance contracts owned by the insurers under this section may not at any one time exceed five percent of the insurers' admitted assets.