58-37A-25. Standards of valuation for certificates--Maintenance of excess reserves.
Any standards of valuation for certificates issued before one year after January 1, 1991, shall be those provided by the laws applicable immediately before January 1, 1991.
The minimum standards of valuation for certificates issued on or after one year from January 1, 1991, shall be based on the following:
(1)For certificates of life insurance--the commissioner's standard ordinary mortality tables applicable to life and health insurers in this state; and
(2)For annuity and pure endowment certificates, for total and permanent disability benefits, for accidental death benefits and for noncancelable accident and health benefits--the tables that are authorized for use by life and health insurers in this state.
All of the above shall be under valuation methods and standards including interest assumptions in accordance with the laws of this state applicable to life and health insurers issuing policies containing like benefits.
The director may accept other standards for valuation if the director finds that the reserves produced by the other standards will not be less in the aggregate than reserves computed in accordance with the minimum valuation standard prescribed in this section. The director may vary the standards of mortality applicable to all benefit contracts on substandard lives or other extra hazardous lives by any society authorized to do business in this state.
Any society, with the consent of the insurance supervisory official of the state of domicile of the society and under such conditions, if any, which the director may impose, may establish and maintain reserves on its certificates in excess of the reserves required under this section, but no contractual rights of any benefit member may be affected by maintaining excess reserves.
Source: SL 1990, ch 410, ยง25.
Structure South Dakota Codified Laws
Chapter 37A - Fraternal Benefit Societies
Section 58-37A-1 - Fraternal benefit society defined.
Section 58-37A-2 - Lodge system--Regular meetings--Lodges for children.
Section 58-37A-3 - Representative form of government determined.
Section 58-37A-4 - Definition of terms.
Section 58-37A-6 - Specification of laws or rules--Membership rights.
Section 58-37A-9 - Provisions of laws may not be waived.
Section 58-37A-11 - Amendments to society laws--Adoption--Filing--Printing as prima facie evidence.
Section 58-37A-12 - Nonprofit organization created by society.
Section 58-37A-13 - Reinsurance agreement--Ceding risks.
Section 58-37A-14 - Consolidation or merger.
Section 58-37A-15 - Conversion into life insurance company--Plan--Approval.
Section 58-37A-16 - Contractual benefits allowed.
Section 58-37A-17 - Beneficiary designations--Funeral benefits.
Section 58-37A-18 - Money or other benefits not attachable for individual debts.
Section 58-37A-19 - Benefit certificates.
Section 58-37A-20 - Basis for computing value of nonforfeiture benefits.
Section 58-37A-21 - Authorized investments.
Section 58-37A-23 - Exemption from other insurance laws.
Section 58-37A-24 - Exemption from certain taxes.
Section 58-37A-25 - Standards of valuation for certificates--Maintenance of excess reserves.
Section 58-37A-26 - Annual statement of affairs--Valuation of certificates--Filing requirements.
Section 58-37A-33 - Insurance producers--When license is required.