S.D. Admin. R. 20:06:36:08

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

Section 20:06:36:08 - Company action level event - Filing of RBC plan

If a company action level event occurs, the insurer or health organization shall prepare and submit to the director an RBC plan which does the following:

(1) Identifies the conditions which contribute to the company action level event;

(2) Contains proposals of corrective actions which the insurer or health organization intends to take and which would be expected to result in the elimination of the company action level event;

(3) Provide projections of the insurer's or health organization's financial results in the current year and at least the four succeeding years, both in the absence and presence of proposed corrective actions, including projections of statutory operating income, net income, capital, and surplus. The projections for both new and renewal business must include separate projections for each major line of business and separately identify each significant income, expense, and benefit component;

(4) Identifies the key assumptions affecting the insurer's or health organization's projections and the sensitivity of the projections to the assumptions; and

(5) Identifies the quality of, and problems associated with, the insurer's or health organization's business, including its assets, anticipated business growth and associated surplus strain, extraordinary exposure to risk, mix of business, and use of reinsurance, if any, in each case.

S.D. Admin. R. 20:06:36:08

23 SDR 228, effective 7/3/1997; 41 SDR 93, effective 12/3/2014.

General Authority: SDCL 58-4-48.

Law Implemented: SDCL 58-4-48.