S.D. Admin. R. 20:06:19:08
An insurance company must establish policies and procedures prior to engaging in call or put option transactions. These policies must be approved by the board of directors and reviewed annually. These policies shall address but are not limited to investment strategies and objectives, record keeping, and accounting for these transactions.
The record keeping and accounting systems governing the purchase and sale of options must be sufficiently detailed so that the insurance examiners and internal auditors can police the insurer's policies and procedures for these transactions.
Every call or put option transaction must be authorized pursuant to SDCL 58-27-69.
S.D. Admin. R. 20:06:19:08
General Authority: SDCL 58-4-1, 58-27-7.
Law Implemented: SDCL 58-27-7.