South Dakota Codified Laws 58-27-102. Investment in company owned life insurance contracts
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An insurer may invest in company owned life insurance contracts if:
(1) The life insurance is whole life;
Terms Used In South Dakota Codified Laws 58-27-102
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Contract: A legal written agreement that becomes binding when signed.
(2) The life insurance contract does not vest in any employee of the insurer; and
(3) The company is the beneficiary and has an insurable interest.
All cash values of life insurance contracts owned by the insurers under this section may not at any one time exceed five percent of the insurers’ admitted assets.
Source: SL 1992, ch 350, § 25.