58-6A-3.7. Purpose of audit committee.
The audit committee of the risk retention group shall have a written charter that defines the committee's purpose, which, at a minimum, shall:
(1)Assist board oversight of the integrity of financial statements, the compliance with legal and regulatory requirements, and the qualifications, independence, and performance of the independent auditor and actuary;
(2)Discuss the annual audited financial statements and quarterly financial statements with management;
(3)Discuss the annual audited financial statements with the group's independent auditor and, if advisable, discuss the group's quarterly financial statements with the group's independent auditor;
(4)Discuss policies with respect to risk assessment and risk management;
(5)Meet separately and periodically, either directly or through a designated representative of the committee, with management and the independent auditor;
(6)Review with the independent auditor any audit problems or difficulties and management's response;
(7)Set clear hiring policies of the risk retention group as to the hiring of employees or former employees of the independent auditor;
(8)Require the external auditor to rotate the lead or coordinating audit partner having primary responsibility for the risk retention group's audit as well as the audit partner responsible for reviewing that audit so that neither individual performs audit services for more than five consecutive fiscal years; and
(9)Report regularly to the board of directors.
Source: SL 2016, ch 232, §9.
Structure South Dakota Codified Laws
Chapter 06A - Risk Retention Groups
Section 58-6A-1 - Definition of terms.
Section 58-6A-3 - Information submitted to director.
Section 58-6A-3.2 - Criteria of material relationship.
Section 58-6A-3.3 - Material service provider contracts.
Section 58-6A-3.5 - Written policy in plan of operation.
Section 58-6A-3.6 - Members of audit committee.
Section 58-6A-3.7 - Purpose of audit committee.
Section 58-6A-3.8 - Waiver of audit committee requirement.
Section 58-6A-3.9 - Governance standards.
Section 58-6A-3.10 - Code of business conduct and ethics.
Section 58-6A-3.11 - Notice to director of noncompliance with standards.
Section 58-6A-3.12 - Application of §§ 58-6A-1 to 58-6A-3.11.
Section 58-6A-4 - Financial information submitted to director.
Section 58-6A-5.1 - Rate of taxation on premiums--Interest, fines and penalties--Payment.
Section 58-6A-6 - Compliance with Unfair Trade Practices Act.
Section 58-6A-8 - Examination by director.
Section 58-6A-9 - Notice contained on policy--Contents.
Section 58-6A-10 - Prohibited acts by risk retention group.
Section 58-6A-11 - Insurance company as member or owner.
Section 58-6A-14 - Countersignature on policy not required.
Section 58-6A-15 - Prohibited insurance coverage.
Section 58-6A-17 - Notice to director--Contents.
Section 58-6A-17.1 - Notice to director of changes.
Section 58-6A-17.2 - Information required by director--Time for giving notice and information.
Section 58-6A-18 - Designation of director as agent for purchasing group--Exceptions.
Section 58-6A-20 - Director's use of enforcement powers--Injunctive authority.
Section 58-6A-21 - Penalty for violation.
Section 58-6A-22 - Broker license--Waiver of residency requirements.