ARSD 20:06:25:01.01. Accounting methods for certain surety bonds

An insurer writing surety bonds guaranteeing to lending institutions the repayment of student loans made by lending institutions may, in lieu of compliance with SSAP No. 60 of the Accounting Practices and Procedures Manual, 2026 edition, develop premium earning patterns that are representative of the insurer's claims and expense patterns by loan and program and compute unearned premium reserves according to those premium earning patterns. In lieu of compliance with SSAP No. 3 of the Accounting Practices and Procedures Manual, 2026 edition, changes in accounting estimates, for this method of accounting only, may be amortized over the remaining life of the student loans utilizing pro-rated current premium earning patterns. In lieu of compliance with SSAP No. 53 of the Accounting Practices and Procedures Manual, 2026 edition, the insurer may recognize written premiums when due.