Rule 20:06:29:05 Definitions.
20:06:29:05. Definitions. Terms used in this chapter
(1) "Pro rata
method," the pro rata unearned gross premium method produces the minimum
refund amount to be used for insurance under which premiums are collected from
the insured on a basis other than a minimum premium or fully earned basis as
allowed pursuant to § 20:06:29:01, where the refund amount is to be
determined by multiplying the original gross single premium times the quotient
arrived at by dividing the number of remaining days by the number of days in
(2) "Short rate
method," the pro rata method of unearned premium reduced by an
administrative expense factor not to exceed 10%;
premium," the premium that has been used during the policy term. It is the
premium that is payable to the insurer for the time period for which insurance
premium," that portion of the written premium applicable to the unexpired
or unused part of the period for which the premium has been calculated.
27 SDR 118, effective May 17, 2001.
Authority: SDCL 58-11-63(1).
Implemented: SDCL 58-11-63(1).
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