S.D. Admin. R. 20:06:09:35
Financial statements and exhibits must be attached to a Form B filing as an appendix. The financial statements and exhibits so attached must be listed on Form B.
If the ultimate controlling person is a corporation, an organization, a limited liability company, or other legal entity, the financial statements must include the annual financial statement of the ultimate controlling person in the insurance holding company system as of the end of the person's latest fiscal year as well as the holding companys most recent financial statement.
If at the time of the initial registration the annual financial statements for the latest fiscal year are not available, annual statements for the previous fiscal year may be filed. Similar financial information must be filed for the subsequent period to the extent that such information is available. The financial statements may be prepared individually or may be consolidated if the consolidated statements are prepared in the usual course of business, unless the director requires otherwise.
Financial statements shall be filed in a standard form and format adopted by the National Association of Insurance Commissioners, unless an alternative form is accepted by the director.
Documentation and financial statements filed with the Securities and Exchange Commission or audited GAAP financial statements shall be deemed to be an appropriate form and format.
Unless the director permits otherwise, the annual financial statements must be accompanied by the certificate of an independent public accountant to the effect that the statements present fairly the financial position of the ultimate controlling person and the results of its operations for the year then ended and are in conformity with generally accepted accounting principles or with requirements of insurance or other accounting principles prescribed or permitted under law. If the ultimate controlling person is an insurer which is actively engaged in the business of insurance, the annual financial statements need not be certified, if they are based on the annual statement of the insurer's domiciliary state and are in accordance with requirements of insurance or other accounting principles prescribed or permitted under the law and regulations of such state.
Any ultimate controlling person who is an individual may file personal financial statements that are reviewed rather than audited by an independent public accountant. The review shall be conducted in accordance with the standards set by the American Institute of Certified Public Accountants for the review of personal financial statements. Personal financial statements must be accompanied by the independent public accountants Standard Review Report stating that the accountant is not aware of any material modifications that should be made to the financial statements in order for the statements to be in conformity with generally accepted accounting principles.
Exhibits must include copies of the latest annual reports to shareholders of the ultimate controlling person and proxy material used by the ultimate controlling person and any additional documentation or papers required by Form B or §§ 20:06:09:13 to 20:06:09:16, inclusive, and §§ 20:06:09:18 and 20:06:09:19.
S.D. Admin. R. 20:06:09:35
General Authority: SDCL 58-5A-70.
Law Implemented: SDCL 58-5A-21, 58-5A-70.
Valuation of assets, liabilities, and reserves, SDCL chapter 58-26; Annual statement of financial conditions of insurer, filing with director, form and contents, timeliness of filing, SDCL 58-6-75; Accounting principles, § 20:37:11:08.