58-43-16.9. Criteria for proportion of audit committee members.
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/sd/title-58/chapter-58-43/58-43-16-9·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The proportion of independent audit committee members shall meet or exceed the following criteria:
Prior Calendar Year Direct Written and Assumed Premiums
$0--$300,000,000
Over $300,000,000--
Over $500,000,000
$500,000,000
No minimum requirements. See also Note A and B.
Majority (50% or more) of members shall be
Supermajority of members (75% or more) shall be
independent. See also Note
independent. See also Note
A and B.
A.
Note A: The director has authority afforded by state law to require the entity's board to enact improvements to the independence of the audit committee membership if the insurer is in a risk based capital
(RBC)action level event, meets one or more of the standards of an insurer deemed to be in hazardous financial condition, or otherwise exhibits qualities of a troubled insurer.
Note B: Any insurer with less than five hundred million in prior year direct written and assumed premiums is encouraged to structure an audit committee with at least a supermajority of independent audit committee members.
Note C: Prior calendar year direct written and assumed premiums shall be the combined total of direct premiums and assumed premiums from nonaffiliates for the reporting entities.