South Dakota Codified Laws 58-26-44.1. Definition of terms in §§ 58-26-45 to 58-26-105
Terms used in §§ 58-26-45 to 58-26-105, inclusive, apply on or after the operative date of the valuation manual and mean:
(1) “Accident and health insurance,” a contract that incorporates morbidity risk and provides protection against economic loss resulting from accident, sickness, or medical conditions and as may be specified in the valuation manual;
Terms Used In South Dakota Codified Laws 58-26-44.1
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Contract: A legal written agreement that becomes binding when signed.
- Person: includes natural persons, partnerships, associations, cooperative corporations, limited liability companies, and corporations. See South Dakota Codified Laws 2-14-2
- State: when used in context signifying a jurisdiction other than the State of South Dakota, a state, the District of Columbia, a territory, commonwealth, or possession of the United States of America, or a province of the Dominion of Canada. See South Dakota Codified Laws 58-1-2
- written: include typewriting and typewritten, printing and printed, except in the case of signatures, and where the words are used by way of contrast to typewriting and printing. See South Dakota Codified Laws 2-14-2
(2) “Appointed actuary,” a qualified actuary who is appointed in accordance with the valuation manual to prepare the actuarial opinion required pursuant to § 58-26-55.1;
(3) “Company,” an entity, which:
(a) Has written, issued, or reinsured life insurance contracts, accident and health insurance contracts, or deposit-type contracts in this state and has at least one policy in force or on claim; or
(b) Has written, issued, or reinsured life insurance contracts, accident and health insurance contracts, or deposit-type contracts in any state and is required to hold a certificate of authority to write life insurance, accident and health insurance, or deposit-type contracts in this state;
(4) “Deposit-type contract,” a contract that does not incorporate mortality or morbidity risks and as may be specified in the valuation manual;
(5) “Life insurance,” a contract that incorporates mortality risk, including annuity and pure endowment contracts, and as may be specified in the valuation manual;
(6) “NAIC,” the National Association of Insurance Commissioners;
(7) “Policyholder behavior,” any action a policyholder, contract holder, or any other person with the right to elect options, such as a certificate holder, may take under a policy or contract subject to this chapter including, lapse, withdrawal, transfer, deposit, premium payment, loan, annuitization, or benefit elections prescribed by the policy or contract but excluding events of mortality or morbidity that result in benefits prescribed in their essential aspects by the terms of the policy or contract;
(8) “Principle-based valuation,” a reserve valuation that uses one or more methods or one or more assumptions determined by the insurer and is required to comply with §§ 58-26-98 to 58-26-100, inclusive, as specified in the valuation manual;
(9) “Qualified actuary,” an individual who is qualified to sign the applicable statement of actuarial opinion in accordance with the American Academy of Actuaries qualification standards for actuaries signing such statements and who meets the requirements specified in the valuation manual;
(10) “Tail risk,” a risk that occurs either where the frequency of low probability events is higher than expected under a normal probability distribution or where there are observed events of very significant size or magnitude;
(11) “Valuation manual,” the manual of valuation instructions adopted by the NAIC as specified in this chapter and as approved by the director pursuant to rules promulgated pursuant to chapter 1-26.
Source: SL 2015, ch 254, § 1.