S.D. Admin. R. 20:06:37:45
An appropriate allocation of assets in the amount of the interest maintenance reserve (IMR), whether positive or negative, must be used in any asset adequacy analysis. Analysis of risks regarding asset default may include an appropriate allocation of assets supporting the asset valuation reserve (AVR); these AVR assets may not be applied for any other risks related to reserve adequacy. Analysis of these and other risks may include assets supporting other mandatory or voluntary reserves available to the extent that these are not used for risk analysis and reserve support.
The amount of the assets used for the AVR must be disclosed in the table of reserves and liabilities of the opinion and in the memorandum. The method used for selecting particular assets or allocated portions of assets must be disclosed in the memorandum.
S.D. Admin. R. 20:06:37:45
General Authority: SDCL 58-26-46, 58-26-47, 58-26-50.
Law Implemented: SDCL 58-26-46, 58-26-47, 58-26-50.