ARSD 20:06:38:34. Expenses

Each year, the insurer shall choose the method used to allocate overhead expenses for all illustrations and the method of determining assumed expenses for all policy forms from the following: (1) Fully allocated expenses; (2) Marginal expenses; (3) The generally recognized expense table in Appendix A at the end of this chapter; or (4) Another generally recognized expense table based on fully allocated expenses representing a significant portion of insurance companies and approved by the director pursuant to § 20:06:38:35. For the purpose of determining assumed expenses, marginal expenses may be used only if greater than a generally recognized expense table. If no generally recognized expense table is approved, fully allocated expenses must be used.