58-43-16.9. Criteria for proportion of audit committee members.
The proportion of independent audit committee members shall meet or exceed the following criteria:
| Prior Calendar Year Direct Written and Assumed Premiums |
| |||
$0--$300,000,000 | Over $300,000,000-- | Over $500,000,000 | ||
| $500,000,000 | |||
No minimum requirements. See also Note A and B. | Majority (50% or more) of members shall be | Supermajority of members (75% or more) shall be | ||
| independent. See also Note | independent. See also Note | ||
| A and B. | A. | ||
Note A: The director has authority afforded by state law to require the entity's board to enact improvements to the independence of the audit committee membership if the insurer is in a risk based capital (RBC) action level event, meets one or more of the standards of an insurer deemed to be in hazardous financial condition, or otherwise exhibits qualities of a troubled insurer.
Note B: Any insurer with less than five hundred million in prior year direct written and assumed premiums is encouraged to structure an audit committee with at least a supermajority of independent audit committee members.
Note C: Prior calendar year direct written and assumed premiums shall be the combined total of direct premiums and assumed premiums from nonaffiliates for the reporting entities.
Source: SL 2009, ch 271, §24, eff. Jan. 1, 2010.