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§ 58-43-16.9 Criteria for proportion of audit committee members.

SD Codified L § 58-43-16.9 (2019) (N/A)
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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:

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.

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