South Dakota

Unauthorized insurers must meet the criteria stated in South Dakota 58-32-22 – to be eligible for surplus lines placements.

58-32-22 — Eligibility of insurers for placement of surplus lines insurance

Surplus lines insurance may be placed by a surplus lines licensee if the insurer is authorized to write the type of insurance in its domiciliary jurisdiction and meets one of the following criteria:

(1) The insurer is a U.S.-domiciled nonadmitted insurer that has capital and surplus equal to the greater of the minimum capital and surplus required under SDCL 58-6-23 or fifteen million dollars. The Director of Insurance may approve an insurer with less than the required amount, but not below four million five hundred thousand dollars, if the insurer is otherwise acceptable based on factors such as management quality, parent company financial strength, underwriting and investment trends, market availability, and industry reputation.

(2) The insurer is a non-U.S. (alien) insurer that is listed on the NAIC Quarterly Listing of Alien Insurers.

The Director may not approve any non admitted insurer with capital and surplus below four million five hundred thousand dollars.