South Dakota Codified Laws 58-6A-3.2. Criteria of material relationship
A material relationship includes:
(1) The receipt in any one twelve-month period of compensation or payment of any other item of value greater than or equal to five percent of the risk retention group’s gross written premium for the twelve-month period or two percent of the risk retention group’s surplus, whichever is greater, as measured at the end of any fiscal quarter falling in the twelve-month period by a person with the risk retention group or:
Terms Used In South Dakota Codified Laws 58-6A-3.2
- Person: includes natural persons, partnerships, associations, cooperative corporations, limited liability companies, and corporations. See South Dakota Codified Laws 2-14-2
- 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
(a) The person’s immediate family member;
(b) A business with which the person is affiliated from the risk retention group; or
(c) A consultant or service provider to the risk retention group.
A person with the risk retention group or an immediate family member of the person is not independent until one year after the person’s compensation from the risk retention group falls below the threshold;
(2) A relationship with an auditor where a director of the risk retention group or an immediate family member of a director of the risk retention group who is affiliated with or employed in a professional capacity by a present or former internal or external auditor of the risk retention group is not independent until one year after the end of the affiliation, employment, or auditing relationship; and
(3) A relationship with a related entity where a director of the risk retention group or an immediate family member of a director of the risk retention group who is employed as an executive officer of another company where any of the risk retention group’s present executives serve on that other company’s board of directors is not independent until one year after the end of the service or the employment relationship.
Source: SL 2016, ch 232, § 4.