S.D. Admin. R. 20:07:18:02
Banks may purchase and hold an interest in cash value life insurance policies on the life of its key persons and borrowers and may purchase cash value life insurance in connection with benefit plans on employees, officers, and directors, subject to the limitations in this chapter. The bank may not purchase cash value life insurance if the insurable interest is primarily based on a key person's status as a shareholder of the bank or bank holding company. Funding for the life insurance premium payment of an employee, officer, or director as a part of a benefit plan may be split jointly between the bank and the employee, officer, or director. Banks may purchase individual or group life insurance in connection with deferred compensation agreements entered into with its officers, employees, and directors.
S.D. Admin. R. 20:07:18:02
General Authority: SDCL 51A-2-13, 51A-4-42.
Law Implemented: SDCL 51A-4-42.