58-26-44.1. Definition of terms in §§58-26-45 to 58-26-105.
Terms used in §§58-26-45 to 58-26-105, inclusive, apply on or after the operative date of the valuation manual and mean:
(1)"Accident and health insurance," a contract that incorporates morbidity risk and provides protection against economic loss resulting from accident, sickness, or medical conditions and as may be specified in the valuation manual;
(2)"Appointed actuary," a qualified actuary who is appointed in accordance with the valuation manual to prepare the actuarial opinion required pursuant to §58-26-55.1;
(3)"Company," an entity, which:
(a)Has written, issued, or reinsured life insurance contracts, accident and health insurance contracts, or deposit-type contracts in this state and has at least one policy in force or on claim; or
(b)Has written, issued, or reinsured life insurance contracts, accident and health insurance contracts, or deposit-type contracts in any state and is required to hold a certificate of authority to write life insurance, accident and health insurance, or deposit-type contracts in this state;
(4)"Deposit-type contract," a contract that does not incorporate mortality or morbidity risks and as may be specified in the valuation manual;
(5)"Life insurance," a contract that incorporates mortality risk, including annuity and pure endowment contracts, and as may be specified in the valuation manual;
(6)"NAIC," the National Association of Insurance Commissioners;
(7)"Policyholder behavior," any action a policyholder, contract holder, or any other person with the right to elect options, such as a certificate holder, may take under a policy or contract subject to this chapter including, lapse, withdrawal, transfer, deposit, premium payment, loan, annuitization, or benefit elections prescribed by the policy or contract but excluding events of mortality or morbidity that result in benefits prescribed in their essential aspects by the terms of the policy or contract;
(8)"Principle-based valuation," a reserve valuation that uses one or more methods or one or more assumptions determined by the insurer and is required to comply with §§58-26-98 to 58-26-100, inclusive, as specified in the valuation manual;
(9)"Qualified actuary," an individual who is qualified to sign the applicable statement of actuarial opinion in accordance with the American Academy of Actuaries qualification standards for actuaries signing such statements and who meets the requirements specified in the valuation manual;
(10)"Tail risk," a risk that occurs either where the frequency of low probability events is higher than expected under a normal probability distribution or where there are observed events of very significant size or magnitude;
(11)"Valuation manual," the manual of valuation instructions adopted by the NAIC as specified in this chapter and as approved by the director pursuant to rules promulgated pursuant to chapter 1-26.
Source: SL 2015, ch 254, §1.
Structure South Dakota Codified Laws
Chapter 26 - Valuation Of Assets, Liabilities And Reserves
Section 58-26-1 - Assets allowed in determination of financial condition.
Section 58-26-2 - Valuation of bonds or other evidences of debt--Method of calculation.
Section 58-26-3 - Valuation of securities other than evidences of debt.
Section 58-26-4 - Preferred or guaranteed stocks--Method of computing value approved by director.
Section 58-26-6 - Purchase money mortgage on real property--Restriction as to valuation.
Section 58-26-7 - Appraisal for valuation of other real property.
Section 58-26-9 - Valuation not to be inconsistent with approved method.
Section 58-26-10 - Assets not allowed in determining financial condition.
Section 58-26-10.1 - Radio and television facilities allowable as assets.
Section 58-26-11 - Capital stock and liabilities chargeable against assets.
Section 58-26-12 - Assets allowed as deductions from corresponding liabilities.
Section 58-26-13.1 - Actuarial opinion of property, casualty, and health insurers.
Section 58-26-13.2 - Time limit for compliance with actuary opinion requirements.
Section 58-26-30 - Reserve requirements for health insurance.
Section 58-26-34 - Reserve for liability policies written during three years preceding.
Section 58-26-35 - Maintaining a reserve for outstanding losses under credit insurance policies.
Section 58-26-36 - Unearned premium reserve--Insurers required to maintain.
Section 58-26-37 - Unearned premium reserve--Computation--Use of table.
Section 58-26-38 - Unearned premium reserve--Computation on a prorata basis.
Section 58-26-40 - Unearned premium reserve provisions inapplicable to title insurance.
Section 58-26-41 - Unearned premium reserve on marine and transportation insurance.
Section 58-26-43 - Increase of inadequate reserves.
Section 58-26-44 - Application of chapter.
Section 58-26-44.1 - Definition of terms in §§ 58-26-45 to 58-26-105.
Section 58-26-46 - Annual opinion of qualified actuary required--Promulgation of rules.
Section 58-26-47 - Opinion required as to adequacy of reserves to provide for company's obligations.
Section 58-26-48 - Promulgation of rules for establishing higher reserves.
Section 58-26-49 - Form and substance of actuary's opinion.
Section 58-26-50 - Provisions governing submission of actuary's opinion.
Section 58-26-51 - Opinion submitted by foreign or alien company.
Section 58-26-52 - Qualified actuary defined.
Section 58-26-53 - Liability of qualified actuary.
Section 58-26-55 - Confidentiality of material supporting opinion of qualified actuary.
Section 58-26-56 - Minimum standard for valuation of policies and contracts.
Section 58-26-57 - Mortality tables used for ordinary life insurance policies.
Section 58-26-58 - Mortality tables used for industrial life insurance policies.
Section 58-26-59 - Mortality tables used for individual annuity and pure endowment contracts.
Section 58-26-60 - Mortality tables used for group annuity and pure endowment contracts.
Section 58-26-61 - Disability tables used for total and permanent disability.
Section 58-26-62 - Tables used for accidental death benefits.
Section 58-26-63 - Tables to be approved by director.
Section 58-26-71 - Calendar year statutory valuation interest rates defined.
Section 58-26-72 - Weighting factors.
Section 58-26-73 - Reference interest rate defined.
Section 58-26-74 - Alternative method for determination of reference interest rate.
Section 58-26-76 - Valuation of reserves for certain annuity or pure endowment contracts.
Section 58-26-77 - Minimum aggregate reserves for life insurance policies.
Section 58-26-80 - Company's greater standard of valuation may be lowered with director approval.
Section 58-26-87 - Actuarial report and workpapers to support actuarial opinion.
Section 58-26-92 - Prerequisites for adoption of NAIC valuation manual of instruction.
Section 58-26-93 - Adoption of change to valuation manual.
Section 58-26-94 - Specifications required for adoption of valuation manual.
Section 58-26-95 - Exceptions to valuation manual requirements.
Section 58-26-96 - Qualified actuary engaged by director or by official of another state.
Section 58-26-97 - Required change in assumption or method and adjustment of reserves.
Section 58-26-98 - Reserves to be established using principle-based valuation--Conditions.
Section 58-26-99 - Procedures, controls and report regarding principle-based valuation.
Section 58-26-100 - Prescribed formulaic reserve component.
Section 58-26-101 - Data to be submitted as prescribed in valuation manual.
Section 58-26-102 - Confidential information defined.
Section 58-26-103 - Confidential information privileged--Use and sharing.
Section 58-26-104 - Exceptions to confidentiality of information.
Section 58-26-105 - Exemption of certain forms or product lines of domestic insurer.