S.D. Admin. R. 20:06:04:28

Current through Register Vol. 51, page 67, December 16, 2024

Section 20:06:04:28 - Participation of officers who are not directors

Discretion shall be exercised with respect to the participation of officers who are not directors:

(1) By the board of directors of the insurer or a committee of three or more directors; or

(2) By, or only in accordance with the recommendations of, a committee of three or more persons having full authority to act in the matter, all of the members of which committee are disinterested persons.

For the purpose of this section, a director or committee member shall be deemed to be a disinterested person only if such person is not at the time such discretion is exercised eligible and has not at any time within one year prior thereto been eligible for selection as a person to whom stock may be allocated or to whom qualified, restricted or employee stock purchase plan stock options may be granted pursuant to the plan or any other plan of the insurer or any of its affiliates entitling the participants therein to acquire stock or qualified, restricted or employee stock purchase plan stock options of the insurer or any of its affiliates.

S.D. Admin. R. 20:06:04:28

4 SDR 6, effective 8/9/1977; 12 SDR 151, 12 SDR 155, effective 7/1/1986.

General Authority: SDCL 58-5-73, 58-5-77.

Law Implemented: SDCL 58-5-71 to 58-5-73.