58-4-40. Authority of director in determining insurer's financial condition.
In making a determination of an insurer's financial condition, the director may:
(1)Disregard any credit or amount receivable resulting from transactions with a reinsurer which is insolvent, impaired, or subject to a delinquency proceeding;
(2)Make appropriate adjustments to asset values attributable to investments in or transactions with parents, subsidiaries, or affiliates;
(3)Refuse to recognize the stated value of accounts receivable if the ability to collect receivables is highly speculative in view of the age of the account or the financial condition of the debtor;
(4)Increase the insurer's liability in an amount equal to any contingent liability, pledge, or guarantee not otherwise included if there is a substantial risk that the insurer will be called upon to meet the obligation undertaken within the next twelve-month period; or
(5)Consider the harm to policyholders, creditors, the public, and the company itself.
Source: SL 1992, ch 339, ยง2.
Structure South Dakota Codified Laws
Chapter 04 - Enforcement Powers And Proceedings
Section 58-4-5 - Enforcement proceedings instituted by director.
Section 58-4-6 - Proceedings instituted by director--Legal representation.
Section 58-4-7 - Cease and desist order to prevent violations of title--Injunction.
Section 58-4-9 - Hearings by director--Purpose.
Section 58-4-15 - Orders and notices of director required to be in writing--Signature.
Section 58-4-16 - Order of director--Effective date--Contents.
Section 58-4-17 - Service of orders and notices of director.
Section 58-4-18 - Prosecution of action for enforcement of director's order.
Section 58-4-25 - Formal rules of pleading or evidence not observed at director's hearing.
Section 58-4-28.1 - Money penalty in lieu of license suspension or other action--Hearing.
Section 58-4-39 - Standards for determining hazardous financial condition.
Section 58-4-40 - Authority of director in determining insurer's financial condition.
Section 58-4-41 - Director's order to hazardous insurer.
Section 58-4-42 - Hearings on director's orders.
Section 58-4-43 - Application of hazardous insurer provisions.
Section 58-4-45 - Confidentiality of certain documents.
Section 58-4-46 - Liability for release of information.
Section 58-4-48 - Minimum levels of risk-based capital required--Administrative rules.
Section 58-4-49 - Disclosure of status, existence, or outcome of investigation or examination.
Section 58-4-50 - Definitions.
Section 58-4-51 - Confidentiality of list of premium taxpayers--Violation as misdemeanor.
Section 58-4-53 - Disclosure of premium tax return and information to taxpayer.