S.D. Admin. R. 20:07:18:07
In purchasing cash value life insurance for key persons, the bank's board of directors shall document in its minutes the basis for the insurable interest and the basis for the amount of the insurance. The bank's board of directors shall also document in its minutes the basis for determining how that person meets the definition of a key person. In purchasing cash value life insurance in connection with employee compensation and benefit plans and deferred director fees programs, the bank's board of directors must approve and document the plans or programs, including the reasonableness of the plans or programs. The board's basis for its determination shall be documented within its minutes and is subject to review by the division.
S.D. Admin. R. 20:07:18:07
General Authority: SDCL 51A-2-13, 51A-4-42.
Law Implemented: SDCL 51A-4-42.