S.D. Admin. R. 20:06:30:04
The associated formula for determining the reserve interest rate adjustment must reflect the ceding company's investment earnings and incorporate all realized and unrealized gains and losses reflected in the statutory statement. The following is an acceptable formula:
Rate = 2 (I + CG) / X + Y - I - CG
Where: I is the net investment income in Exhibit 2, line 16, column 7, page 10 of the Annual Statement for the year ended December 31, 1994;
CG is capital gains less capital losses in Exhibit 4, line 10, column 4, page 11 of the Annual Statement for the year ended December 31, 1994;
X is the current year cash and invested assets, page 2, line 10A, column 1, plus investment income due and accrued, page 2, line 16, column 1, less borrowed money, page 3, line 22, column 1, all in the Annual Statement for the year ended December 31, 1994; and
Y is the same as X but for the prior year.
S.D. Admin. R. 20:06:30:04
General Authority: SDCL 58-14-17.
Law Implemented: SDCL 58-14-17.
Life, Accident & Health Annual Statement for the Year Ended December 31, 1994, pages 2, 3, 10 and 11. National Association of Insurance Commissioners. Copies may be obtained from the South Dakota Division of Insurance, 124 South Euclid Avenue, 2nd Floor, Pierre, SD 57501-2000, (605) 773-3563. Cost: $.75 a page.