South Dakota Insurance Guaranty

“Edwin evans, the managing secretary, provides management duties on the day-to-day activities. The governing board is informed of activities on an ongoing basis. The management duties performed by mr. Evans are billed to evans haigh & hinton llp (law firm) directly for the services he provides. He received $66,067 in compensation for services provided to south dakota insurance guaranty association in 2024.”

“Insurers that are authorized to transact automobile liability, property, casualty, and workers' compensation insurance in the state of south dakota are required to be members.”

“The director of the south dakota division of insurance appoints board members and approves filling any vacancy during a board member's term.”

“The director of the south dakota division of insurance approves amendments to the plan of operation and approves the members of the board of directors.”

“The association has no committees with authority to act on its behalf.”

“The form 990 will be distributed to the governing body at least one week prior to filing and the form 990 will be reviewed in detail by the managing secretary and board president.”

“Officers and directors are covered by the conflict of interest policy and they are asked to review and execute annually the conflict of interest policy, and disclose any potential conflicts they may have to the board of directors. The full board is responsible for reviewing any conflicts that arise and taking the appropriate action. Any director or officer having a possible conflict of interest on a matter shall not vote, take action, engage in debate or discussion at meetings of the board of directors or use his or her personal influence on the matter although a director may be counted in determining whether a quorum exits for a meeting where action on the matter may be taken. The minutes of such meeting shall reflect that disclosure of the potential conflict of interest was made and the abstention from voting.”

“The association makes its governing documents, conflict of interest policy, and financial statements available upon request and copies of all such documents are provided to the south dakota division of insurance.”

“The financial statements have been prepared on the modified cash basis of accounting. Under that basis, receipts and the related assets are recognized when received rather than when earned, claims and expenses are recognized when paid rather than when the obligation is incurred, purchases of investments are recorded at cost as assets, and maturities and sales of investments are recorded as decreases in assets and as investment gains or losses when realized. That basis differs from accounting principles generally accepted in the united states of america primarily because the association has not recognized unpaid member assessments and unpaid liabilities for claims and expenses in the financial statements and changes in the fair value of investments are recognized when realized.”