2006 South Dakota Code - 3-22-14 — Distribution of surplus--Eligibility--Funded reserve members--Agreements withsub-pools--Term for membership--Irrepealable levy.

     3-22-14.   Distribution of surplus--Eligibility--Funded reserve members--Agreements with sub-pools--Term for membership--Irrepealable levy. The bureau shall, from time to time, examine the claims reserves of the PEPL for each coverage year and, in the event the bureau determines that there is a surplus for such coverage year, the bureau may distribute such surplus to the current members on the basis of each member's contributions and loss experience for that coverage year. The amount of surplus to be distributed shall be established by the bureau after independent actuarial determination of the adequacy of reserves. No member whose contributions for the coverage year were insufficient to pay for its incurred liability losses and its proportional allocation of operating expenses may be eligible for a distribution. The bureau may establish a separate class of members whose funded reserve is established by bonds issued pursuant to this chapter. This class of members shall have premiums established to reflect both their risk exposure and the funding and repayment requirements for the bonds. In addition, the bureau may enter into agreements with sub-pools limited solely to funding reserves for the sub-pool. These agreements shall provide terms and penalties for payment of obligations. The term for membership of funded reserve members and funding only sub-pools shall be established by the bureau and may be any period of time in excess of three years not to exceed twenty years. Notwithstanding any other provision of law, a member seeking to join the class of members with fully funded reserves or a debt funded sub-pool may establish an irrepealable levy pursuant to chapter 6-8B for payment of premium and bond redemption obligations.

Source: SL 1986, ch 413, § 15; SL 1987, ch 40, § 9.