# S.D. Admin. R. 20:06:23:03: ARSD 20:06:23:03. Criteria for dividends

> South Dakota · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_SD_ARSD_T20_A06_C23_S03

## Section

- **Citation:** S.D. Admin. R. 20:06:23:03
- **Heading:** ARSD 20:06:23:03. Criteria for dividends
- **Jurisdiction:** South Dakota
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Administrative Rules of South Dakota / Title 20 / Article 20:06 INSURANCE / Chapter 20:06:23 Financial condition of insurers / ARSD 20:06:23:03

## Text

In determining whether any dividend should be paid, disallowed, or limited by an insurer, the director may consider the following:
(1) If the insurer is in a hazardous financial condition under § 20:06:23:02;
(2) If the insurer would become impaired, financially distressed or troubled, or insolvent after the payment;
(3) If the insurer could not meet its obligations;
(4) If the insurer cannot meet the requirements of SDCL 58-5A-34;
(5) If the insurer's surplus as regards policyholders is not reasonable in relation to the company's outstanding liabilities and adequate to its financial needs; or
(6) If the dividends paid are reasonable based on the adequacy of the level of surplus remaining after the dividend payment or the quality of the company's earnings and the extent to which the reported earnings include extraordinary items, such as surplus relief reinsurance transactions and reserve destrengthening.

## Nearby sections

- [S.D. Admin. R. 20:06:23:01 ARSD 20:06:23:01. Increase in capital and surplus](https://www.frixlaw.com/law-library/statutes/STATE_SD_ARSD_T20_A06_C23_S01.md)
- [S.D. Admin. R. 20:06:23:02 ARSD 20:06:23:02. Standards for determining the hazardous financial condition of an insurer](https://www.frixlaw.com/law-library/statutes/STATE_SD_ARSD_T20_A06_C23_S02.md)
- [S.D. Admin. R. 20:06:23:03 ARSD 20:06:23:03. Criteria for dividends](https://www.frixlaw.com/law-library/statutes/STATE_SD_ARSD_T20_A06_C23_S03.md)
- [S.D. Admin. R. 20:06:23:04 ARSD 20:06:23:04. Criteria for targeted exams](https://www.frixlaw.com/law-library/statutes/STATE_SD_ARSD_T20_A06_C23_S04.md)
- [S.D. Admin. R. 20:06:23:05 ARSD 20:06:23:05. Farm mutual annual statement information](https://www.frixlaw.com/law-library/statutes/STATE_SD_ARSD_T20_A06_C23_S05.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_SD_ARSD_T20_A06_C23_S03. Check the current official text before relying on it. Not legal advice.