South Dakota § 58-5A-34 - Adequacy of insurer's surplus--Factors considered.
Full text of South Dakota South Dakota Codified Laws § 58-5A-34 — Adequacy of insurer's surplus--Factors considered., with citation guidance and answers to common questions.
§ 58-5A-34. Adequacy of insurer's surplus--Factors considered.
For purposes of this chapter in determining whether an insurer's surplus to policyholders is reasonable in relation to the insurer's outstanding liabilities and adequate to its financial needs, the following factors, among others, shall be considered:
(1) The size of the insurer as measured by its assets, capital and surplus, reserves, premium writings, insurance in force, and other appropriate criteria;
(2) The extent to which the insurer's business is diversified among the several lines of insurance;
(3) The number and size of risks insured in each line of business;
(4) The extent of the geographical dispersion of the insurer's insured risks;
(5) The nature and extent of the insurer's reinsurance program;
(6) The quality, diversification, and liquidity of the insurer's investment portfolio;
(7) The recent past and projected future trend in the size of the insurer's surplus to policyholders;
(8) The surplus to policyholders maintained by other comparable insurers;
(9) The adequacy of the insurer's reserves;
(10) The quality and liquidity of investments in affiliates made pursuant to this chapter and chapters 58-26 and 58-27. The director may treat any investment under this subdivision as a disallowed asset; and
(11) The quality of the company's earnings and the extent to which the reported earnings include extraordinary items.
Source: SL 1972, ch 267, § 28; SL 1992, ch 341, § 26; SL 1993, ch 359, § 4.
Source: official South Dakota text · Last verified 2026-08-27
Frequently Asked Questions About South Dakota § 58-5A-34
What does South Dakota Codified Laws § 58-5A-34 cover?
Section 58-5A-34 ("Adequacy of insurer's surplus--Factors considered.") is part of the South Dakota Codified Laws, the codified statutory law of South Dakota. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite South Dakota § 58-5A-34?
A common citation format is "South Dakota Codified Laws § 58-5A-34" (South Dakota). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of South Dakota law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the South Dakota official source linked on this page or consult a licensed South Dakota attorney.
How does South Dakota § 58-5A-34 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in South Dakota can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in South Dakota.