58-43-16.9. Criteria for proportion of audit committee members.
The proportion of independent audit committee members shall meet or exceed the following criteria:
$0--$300,000,000
No minimum requirements. See also Note A and B.
Note A: The director has authority afforded by state law to require the entity's board to enact improvements to the independence of the audit committee membership if the insurer is in a risk based capital (RBC) action level event, meets one or more of the standards of an insurer deemed to be in hazardous financial condition, or otherwise exhibits qualities of a troubled insurer.
Note B: Any insurer with less than five hundred million in prior year direct written and assumed premiums is encouraged to structure an audit committee with at least a supermajority of independent audit committee members.
Note C: Prior calendar year direct written and assumed premiums shall be the combined total of direct premiums and assumed premiums from nonaffiliates for the reporting entities.
Source: SL 2009, ch 271, §24, eff. Jan. 1, 2010.
Structure South Dakota Codified Laws
Chapter 43 - Independent Audit Of Insurers
Section 58-43-1 - Definition of terms.
Section 58-43-3 - Foreign or alien insurers--Exemption.
Section 58-43-4 - Annual audited financial report--Contents.
Section 58-43-5 - Financial statements.
Section 58-43-5.1 - Examination of financial statements by accountant.
Section 58-43-6 - Registration of retained accountant--Letter of acknowledgment from accountant.
Section 58-43-9 - Qualifications of accountant.
Section 58-43-9.1 - Disqualification of accountant.
Section 58-43-9.3 - Exemption from disqualification provisions of § 58-43-9.2.
Section 58-43-9.4 - Services which do not disqualify accountant--Audit committee preapproval.
Section 58-43-9.6 - Delegation of preapproval duties.
Section 58-43-10 - Rotation of accountant--Application for relief from rotation requirement.
Section 58-43-11 - Rejection of accountant or audited financial report--Grounds.
Section 58-43-12 - Disqualification hearing.
Section 58-43-16.1 - Applicability of §§ 58-43-16.2 to 58-43-16.9.
Section 58-43-16.2 - Responsibilities of audit committee.
Section 58-43-16.3 - Membership of audit committee.
Section 58-43-16.4 - Independence of audit committee members.
Section 58-43-16.6 - Election of controlling person to designate audit committee.
Section 58-43-16.7 - Report of accountant to audit committee.
Section 58-43-16.8 - Report of accountant where insurer is member of holding company system.
Section 58-43-16.9 - Criteria for proportion of audit committee members.
Section 58-43-16.10 - Hardship waiver of requirements of §§ 58-43-16.2 to 58-43-16.9, inclusive.
Section 58-43-16.12 - Coercion, manipulation, or fraudulent influence of accountant prohibited.
Section 58-43-16.15 - Certain insurers required to file Section 404 report and addendum.
Section 58-43-16.16 - Contents of Management's Report of Internal Control over Financial Reporting.
Section 58-43-16.18 - Discretion of management as to internal control framework and documentation.
Section 58-43-16.20 - Compliance of insurers retaining independent accountant on July 1, 2009.
Section 58-43-16.22 - Compliance of foreign insurers.
Section 58-43-16.23 - Applicability of §§ 58-43-10 and 58-43-16.2 to 58-43-16.10 .
Section 58-43-16.24 - Applicability of §§ 58-43-16.13 to 58-43-16.19.
Section 58-43-16.25 - Internal audit function requirements.
Section 58-43-16.26 - Internal audit function to be organizationally independent.
Section 58-43-16.27 - Report of head of internal audit function to audit committee.
Section 58-43-16.28 - Member of insurance holding company system or group of insurers.
Section 58-43-16.29 - Exemption from internal audit function requirements.
Section 58-43-18 - Workpapers.
Section 58-43-20 - Hardship exemption--Hearing.
Section 58-43-22 - Application to Canadian and British insurers.
Section 58-43-23 - Fine, suspension, or revocation of license for violation.
Section 58-43-24 - Promulgation of rules by director.
Section 58-43-25 - Application of chapter.
Section 58-43-26 - Dispute resolution by mediation or arbitration.