58-6A-3.2. Criteria of material relationship.
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/sd/title-58/chapter-58-6/58-6a-3-2·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A material relationship includes:
(1)The receipt in any one twelve-month period of compensation or payment of any other item of value greater than or equal to five percent of the risk retention group's gross written premium for the twelve-month period or two percent of the risk retention group's surplus, whichever is greater, as measured at the end of any fiscal quarter falling in the twelve-month period by a person with the risk retention group or:
(a)The person's immediate family member;
(b)A business with which the person is affiliated from the risk retention group; or
(c)A consultant or service provider to the risk retention group.
A person with the risk retention group or an immediate family member of the person is not independent until one year after the person's compensation from the risk retention group falls below the threshold;
(2)A relationship with an auditor where a director of the risk retention group or an immediate family member of a director of the risk retention group who is affiliated with or employed in a professional capacity by a present or former internal or external auditor of the risk retention group is not independent until one year after the end of the affiliation, employment, or auditing relationship; and
(3)A relationship with a related entity where a director of the risk retention group or an immediate family member of a director of the risk retention group who is employed as an executive officer of another company where any of the risk retention group's present executives serve on that other company's board of directors is not independent until one year after the end of the service or the employment relationship.