ARSD 20:06:19:03. Sale and assignment of exchange-traded call and put options

An insurance company that sells or writes exchange-traded call options on securities it owns shall establish and maintain custodial agreements that require its escrowed securities to be kept segregated by the bank or other custodial agent from other securities owned by the insurance company deposited with the same bank or custodial agent and shall maintain in its possession documentation as required by § 20:06:19:08 for all transactions relating to the escrowed securities. An insurance company that sells or writes exchange-traded put options guaranteed by its funds shall establish and maintain custodial agreements for its guaranteed funds as required for call options and shall maintain in its possession a copy of a guarantee letter identifying in detail its escrowed guaranteed funds as required in § 20:06:19:08. An insurance company may not write or sell put options for the purchase of an underlying security in an amount which, when combined with its current securities holdings, would exceed the limits in SDCL 58-27-15, 58-27-27, 58-27-29, 58-27-53, 58-27-54, and 58-27-57 to 58-27-60, inclusive.