South Dakota Codified Laws 58-27-104. Investment in a collateralized pool of assets other than mortgages–Requirements
An insurer may invest in an interest in a collateralized pool whose underlying assets are not addressed or may be prohibited by chapter 58-26 or 58-27. An insurer may invest in interest–bearing obligations entitled to receive both principal and interest, or both principal and implied interest, from a pool collateralized by one or more assets other than those authorized in § 58-27-103. The collateral for the investments shall have been sold to and be currently owned by a trust or corporation established solely for the purpose of holding the assets for the benefit of the obligee. Any investment authorized under this section shall have a minimum quality rating of two by the Securities Valuation Office of the National Association of Insurance Commissioners. If at any time thereafter the quality rating drops below a rating of two the insurer is subject to § 58-27-90.
An insurer’s investments authorized under this section may not exceed forty percent of its admitted assets.
Terms Used In South Dakota Codified Laws 58-27-104
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
If the underlying investment of the pool is an investment set forth in chapters 58-26 and 58-27, any requirement or limitation for that investment shall apply. This section is subject to the five percent limitation of § 58-27-53.
Source: SL 1993, ch 364, § 3; SL 1994, ch 384, § 7; SL 1997, ch 294, § 26.