58-6A-3.5. Written policy in plan of operation.
165 words·~1 min read·
/sd/title-58/chapter-58-6/58-6a-3-5·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The risk retention group's board of directors shall adopt a written policy in the plan of operation as approved by the board that requires the board to:
(1)Assure that all owners and insureds of the risk retention group receive evidence of ownership interest;
(2)Develop a set of governance standards applicable to the risk retention group;
(3)Oversee the evaluation of the risk retention group's management including the performance of the managing general underwriter or any other party responsible for underwriting, determination of rates, collection of premiums, adjusting or settling a claim, or the preparation of a financial statement;
(4)Review and approve the amount to be paid for each material service provider; and
(5)Review and approve, at least annually:
(a)The risk retention group's goals and objectives relevant to the compensation of officers and service providers;
(b)The officers' and service providers' performance in light of those goals and objectives; and
(c)The continued engagement of the officers and material service providers.