S.D. Codified Laws § 58-29B-8 — SD Code / Title 58 / Chapter 29B / Section 58-29B-8
Receiver authorized to grant certain orders
Status: in_force

Any receiver appointed in a proceeding under this chapter, may at any time apply for and the court may grant, such restraining orders, preliminary and permanent injunctions, and other orders as may be deemed necessary and proper to prevent:

(1) The transaction of further business;

(2) The transfer of property;

(3) Interference with the receiver or with a proceeding under this chapter;

(4) Waste of the insurer's assets;

(5) Dissipation and transfer of bank accounts;

(6) The institution or further prosecution of any actions or proceedings;

(7) The obtaining of preferences, judgments, attachments, garnishments, or liens against the insurer, its assets or its policyholders;

(8) The levying of execution against the insurer, its assets or its policyholders;

(9) The making of any sale or deed for nonpayment of taxes or assessments that would lessen the value of the assets of the insurer;

(10) The withholding from the receiver of books, accounts, documents, or other records relating to the business of the insurer; or

(11) Any other threatened or contemplated action that might lessen the value of the insurer's assets or prejudice the rights of policyholders, creditors, or shareholders, or the administration of any proceeding under this chapter.

The receiver may apply to any court outside of the state for the relief described in this section.

Source: SL 1989, ch 436, § 8.
S.D. Codified Laws § 58-30-188 — SD Code / Title 58 / Chapter 30 / Section 58-30-188
Testimony in private civil action prohibited
Status: in_force

Neither the director nor any person who received documents, materials, or other information while acting under the authority of the director may testify in any private civil action concerning any confidential documents, materials, or information subject to § 58-30-187 .

Source: SL 2001, ch 286, § 48.
S.D. Codified Laws § 58-17-10.1 — SD Code / Title 58 / Chapter 17 / Section 58-17-10.1
Reduction of benefits because of increase in statutory disability benefits prohibited
Status: in_force

No individual insurance policy for loss of time or disability benefits issued, amended, renewed, or delivered in this state shall contain any provision offsetting, or in any other manner reducing, any benefit under the policy by the amount of, or in proportion to, any increase in disability benefits received or receivable under the federal Social Security Act, the Railroad Retirement Act, any veteran's disability compensation and survivor benefits act, workers' compensation, or any similar federal or state law, as amended subsequent to the date of commencement of such benefit.

Source: SL 1976, ch 312.
S.D. Codified Laws § 58-5A-12 — SD Code / Title 58 / Chapter 5A / Section 58-5A-12
Time for director's determination after hearing
Status: in_force

The director shall make a determination within thirty days after the conclusion of the public hearing required by § 58-5A-9 .

Source: SL 1972, ch 267, § 9.
S.D. Codified Laws § 58-1-35 — SD Code / Title 58 / Chapter 1 / Section 58-1-35
Documents delivered electronically before July 1, 2014
Status: in_force

The provisions of §§ 58-1-27 to 58-1-39 , inclusive, do not apply to a notice or document delivered by an insurer in an electronic form before July 1, 2014 to a party who, before that date, consented to receive notice or document in an electronic form otherwise allowed by law.

Source: SL 2014, ch 230, § 9.
S.D. Codified Laws § 58-26-69 — SD Code / Title 58 / Chapter 26 / Section 58-26-69
Tables used for annuities and pure endowments purchased under group contracts after July 1, 1978--Interest
Status: in_force

The tables that shall be used for all annuities and pure endowments purchased on or after July 1, 1978, under group annuity and pure endowment contracts, excluding any disability and accidental death benefits purchased under the contracts are: the 1971 Group Annuity Mortality Table, or any group annuity mortality table adopted after 1980 by the NAIC, that is approved by rules promulgated pursuant to chapter 1-26 by the director for use in determining the minimum standard of valuation for annuities and pure endowments, or any modification of these tables approved by the director, and seven and one-half percent interest.

Source: SL 1995, ch 284, § 25; SL 2015, ch 254, § 14.
S.D. Codified Laws § 58-18A-55 — SD Code / Title 58 / Chapter 18A / Section 58-18A-55
Expenses that are not allowable
Status: in_force

The following are examples of expenses that are not allowable expenses:

(1) If a person is confined in a private hospital room, the difference between the cost of a semi-private room in the hospital and the private room is not an allowable expense, unless one of the plans provides coverage for private hospital room expenses;

(2) If a person is covered by two or more plans that compute their benefit payments on the basis of usual and customary fees or relative value schedule reimbursement or other similar reimbursement methodology, any amount charged by the provider in excess of the highest reimbursement amount for a specified benefit is not an allowable expense;

(3) If a person is covered by two or more plans that provide benefits or services on the basis of negotiated fees, any amount in excess of the highest of the negotiated fees is not an allowable expense; and

(4) If a person is covered by one plan that calculates its benefits or services on the basis of usual and customary fees or relative value schedule reimbursement or other similar reimbursement methodology and another plan that provides its benefits or services on the basis of negotiated fees, the primary plan's payment arrangement shall be the allowable expense for all plans. However, if the provider has contracted with the secondary plan to provide the benefit or service for a specific negotiated fee or payment amount that is different than the primary plan's payment arrangement and if the provider's contract permits, that negotiated fee or payment shall be the allowable expense used by the secondary plan to determine its benefits.

Source: SL 2006, ch 259, § 3.
S.D. Codified Laws § 58-6-25 — SD Code / Title 58 / Chapter 6 / Section 58-6-25
Additional types of insurance--Request for authority to transact within three years after issuance of initial certificate--Basic surplus or additional surplus required
Status: in_force

If within three years after date of its initial certificate of authority in this state such an insurer requests authority to transact an additional kind or kinds of insurance, it shall not be so authorized unless it then possesses basic surplus or additional surplus in such an amount as would be required under § 58-6-23 for an original certificate of authority covering all the kinds of insurance the insurer then proposes to transact.

Source: SL 1966, ch 111, ch 3, § 10 (3).
S.D. Codified Laws § 58-17-67 — SD Code / Title 58 / Chapter 17 / Section 58-17-67
Professional association defined
Status: in_force

For purposes of §§ 58-17-66 to 58-17-87 , inclusive, the term, professional association, means any association that meets all of the following criteria:

(1) Serves a single profession that requires a significant amount of education, training, or experience or a license or certificate from a state authority to practice the profession;

(2) Has been actively in existence for five years;

(3) Has a constitution and by - laws or other analogous governing documents;

(4) Has been formed and maintained in good faith for purposes other than obtaining insurance;

(5) Is not owned or controlled by a carrier or affiliated with a carrier;

(6) Does not condition membership in the association on health status of claims experience;

(7) Has at least one thousand members if it is a national association; five hundred members if it is a state association; or two hundred members if it is a local association;

(8) All members and dependents of members are eligible for coverage regardless of health status or claims experience;

(9) Is governed by a board of directors and sponsors annual meetings of its members; and

(10) Does not allow producers to market association memberships, accept applications for memberships, or sign up members.

Source: SL 1996, ch 286, § 2.
S.D. Codified Laws § 58-14-31 — SD Code / Title 58 / Chapter 14 / Section 58-14-31
Insurer or reinsurer to employ only licensed agent or broker
Status: in_force

No insurer or reinsurer may engage the services of any person to act as an agent or broker on its behalf unless the person is licensed as required by §§ 58-14-24 to 58-14-42 , inclusive, nor employ an individual who is employed by an agent or broker with which it transacts business, unless an agent or broker is under common control with the insurer and subject to chapter 58-5A .

Source: SL 1992, ch 345, § 8.
S.D. Codified Laws § 58-4-53 — SD Code / Title 58 / Chapter 4 / Section 58-4-53
Disclosure of premium tax return and information to taxpayer
Status: in_force

A premium tax return and premium tax return information may be disclosed to the following:

(1) The taxpayer who is required to submit the information to the division, or his designee appointed in writing; or

(2) As otherwise authorized by Title 58.

Source: SL 2012, ch 242, § 5.
S.D. Codified Laws § 58-46-27 — SD Code / Title 58 / Chapter 46 / Section 58-46-27
Sponsored captive insurance may establish protected cells--Conditions
Status: in_force

A sponsored captive insurance company may establish and maintain one or more protected cells to insure risks of one or more participants, subject to the following conditions:

(1) The owner of a sponsored captive insurance company is limited to its participants and sponsors;

(2) The assets of each protected cell shall be held in a separate account or fund and accounted for separately on the books and records of the sponsored captive insurance company to reflect the financial condition and results of operations of such protected cell, net income or loss of such protected cell, dividends or other distributions to participants of such protected cell, and such other factors regarding such protected cell as may be provided in the applicable participant contract or required by the director;

(3) The assets of a protected cell are not chargeable or accessible for the liabilities of any other protected cell, unless that cell is specifically reinsuring the risk or a portion of the risk in another cell or, unless otherwise agreed in the applicable participant contract, of the sponsored captive insurance company generally;

(4) No sale, exchange, transfer of assets, dividend or other distribution, may be made with respect to a protected cell by such sponsored captive insurance company without the consent of the participants of each affected protected cell;

(5) No sale, exchange, or transfer of assets, or other distribution (other than a payment or dividend to a participant or sponsor in accordance with the applicable participant contract, resulting in no less than one hundred five percent of capital to expected losses in any particular plan year), may be made with respect to a protected cell to a sponsor or a participant without the director's approval;

(6) Each sponsored captive insurance company shall annually file with the director such financial reports as the director may require, which shall include accounting statements detailing the financial experience of each protected cell;

(7) Each sponsored captive insurance company shall notify the director in writing promptly and in any event within ten business days of any protected cell that is insolvent or otherwise unable to meet its claim or expense obligations. The director may suspend or revoke the certificate of authority of the sponsored captive insurance company for failure to comply with this subdivision, and may suspend or revoke the sponsored captive insurance company's ability to maintain the protected cell if the cell is insolvent or otherwise unable to meet its claim or expense obligations;

(8) No participant contract may take effect without the director's prior written approval, and the addition of each new protected cell and withdrawal of any participant or termination of any existing protected cell shall constitute a change in the plan of operation of the sponsored captive insurance company requiring the director's prior written approval; and

(9) The business written by a sponsored captive insurance company, with respect to each protected cell, shall be:

(a) Fronted by an insurance company licensed under the laws of this state or any other state;

(b) Reinsured by a reinsurer authorized or approved by this state or any other state;

(c) Secured by a trust fund in this state for the benefit of policyholders and claimants or funded by an irrevocable letter of credit or other arrangement that is acceptable to the director. The amount of security provided may be no less than the reserves associated with those liabilities which are neither fronted nor reinsured, including reserves for losses, allocated loss adjustment expenses, incurred but not reported losses and unearned premiums for business written through such protected cell. The director may require the sponsored captive insurance company to increase the funding of any security arrangement established under this subdivision. If the form of security is a letter of credit, the letter of credit shall be established, issued, or confirmed by a financial institution chartered by or licensed or otherwise authorized to do banking business in this state, or by any other financial institution approved by the director. A trust fund maintained pursuant to this subdivision shall be established in a form and upon such terms approved by the director; or

(d) Any combination of these.

Source: SL 2013, ch 257, § 23.
S.D. Codified Laws § 58-14-16.12 — SD Code / Title 58 / Chapter 14 / Section 58-14-16.12
Reduction in allowable credit for insufficient security
Status: in_force

With respect to obligations incurred by a certified reinsurer under §§ 58-14-16.8 to 58-14-16.13 , inclusive, if the security is insufficient, the director shall reduce the allowable credit by an amount proportionate to the deficiency and has the discretion to impose further reductions in allowable credit upon finding that there is a material risk the certified reinsurer' s obligations may not be paid in full when due.

Source: SL 2017, ch 211, § 23.
S.D. Codified Laws § 58-6-2 — SD Code / Title 58 / Chapter 6 / Section 58-6-2
Solicitation of insurance or transacting business in another state by insurer in this state without certificate of authority prohibited--Misdemeanor
Status: in_force

No insurer shall from offices or by personnel or facilities located in this state solicit insurance applications or otherwise transact insurance in another state or country unless it holds a subsisting certificate of authority issued to it by the director authorizing it to transact the same kinds of insurance in this state. Violation of this section is a Class 2 misdemeanor.

Source: SL 1966, ch 111, ch 3, § 1 (2); SL 1978, ch 359, § 2.
S.D. Codified Laws § 58-34-23 — SD Code / Title 58 / Chapter 34 / Section 58-34-23
Service of legal process upon domestic insurer
Status: in_force

Legal process shall be served upon a domestic reciprocal insurer by serving the insurer's attorney at his principal offices or by serving the director as the insurer's process agent under § 58-6-39 .

Source: SL 1966, ch 111, ch 19, § 15 (1).
S.D. Codified Laws § 58-17-22 — SD Code / Title 58 / Chapter 17 / Section 58-17-22
Notice of claim--Loss of time benefit--Optional provision, insertion by insurer
Status: in_force

In a policy providing a loss - of - time benefit which may be payable for at least two years, an insurer may at its option insert the following between the first and second sentences of the provision in § 58-17-21 : "Subject to the qualifications set forth below, if the insured suffers loss of time on account of disability for which indemnity may be payable for at least two years, he shall, at least once in every six months after having given notice of the claim, give to the insurer notice of continuance of the disability, except in the event of legal incapacity. The period of six months following any filing of proof by the insured or any payment by the insurer on account of such claim or any denial of liability in whole or in part by the insurer shall be excluded in applying this provision. Delay in the giving of such notice shall not impair the insured's right to any indemnity which would otherwise have accrued during the period of six months preceding the date on which such notice is actually given."

Source: SL 1966, ch 111, ch 25, § 8.
S.D. Codified Laws § 58-5-114 — SD Code / Title 58 / Chapter 5 / Section 58-5-114
Impairment of capital or surplus of domestic stock or mutual insurer--Determination of amount of deficiency by director--Notice to insurer
Status: in_force

If a domestic stock insurer's basic paid - in capital as required by §§ 58-6-23 to 58-6-26 , inclusive, or the minimum basic surplus of a domestic mutual insurer as required by §§ 58-5-21 and 58-5-22 becomes impaired, the director of the Division of Insurance shall at once determine the amount of deficiency and serve notice upon the insurer to cure the deficiency and file proof thereof with him within the period specified in the notice, which period shall be not less than thirty nor more than ninety days from the date of the notice.

Source: SL 1966, ch 111, ch 16, § 35 (1).
S.D. Codified Laws § 58-17-164 — SD Code / Title 58 / Chapter 17 / Section 58-17-164
Revocation of assignment of dental insurance benefits
Status: in_force

A person may revoke an assignment made pursuant to § 58-17-163 with or without the consent of the dentist or dental corporation. The revocation shall be in writing. The person shall provide notice of the revocation to the insurer. The insurer shall send a copy of the revocation notice to the dentist or dental corporation subject to the assignment. The revocation is effective when both the insurer and the dentist or dental corporation have received a copy of the revocation notice. The revocation is only effective for any charges incurred after both parties have received the revocation notice.

Source: SL 2017, ch 213, § 2.
S.D. Codified Laws § 58-15-8.2 — SD Code / Title 58 / Chapter 15 / Section 58-15-8.2
Issuance of policies by insurance company or fraternal benefit society--Delivery receipts--Certificates of mailing--Term of retention
Status: in_force

An insurance company or fraternal benefit society shall issue policies in this state for which an examination period is required in accordance with one of the following methods:

(1) If the policy is delivered by an insurance producer, a receipt shall be signed by the policyowner acknowledging delivery of the policy. The receipt shall include the policy number and the date of the delivery;

(2) If the policy is delivered by mail, it shall be sent by registered or certified mail, return receipt requested, or a certificate of mailing shall be obtained showing the date the policy was mailed to the policyowner. For policy issuances verified by a certificate of mailing, it is presumed that the policy is received by the policyowner ten days from the date of mailing.

The receipts and the certificates of mailing described in this section shall be retained by the insurer for five years. If a producer obtains the delivery receipt, the producer shall forward the signed delivery receipt to the insurer.

Source: SL 1982, ch 28, § 18; SL 1987, ch 374, § 1; SL 2001, ch 286, § 107; SL 2002, ch 232, § 1.
S.D. Codified Laws § 58-5A-48 — SD Code / Title 58 / Chapter 5A / Section 58-5A-48
Pre-acquisition notification--Contents--Waiting period
Status: in_force

An acquisition covered pursuant to the provisions of § 58-5A-47 may be subject to an order pursuant to § 58-5A-69 unless the acquiring or acquired person files a pre-acquisition notification and the waiting period has expired. The director shall give confidential treatment to information submitted under this section in the same manner as provided in § 58-5A-41 .

The notification shall be as follows:

(1) The pre-acquisition notification of this chapter shall be in a form and contain information as prescribed by the National Association of Insurance Commissioners relating to those markets which, under subdivision 58-5A-47(4), cause the acquisition not to be exempted from the provisions of this section. The director may require additional material and information to determine whether the proposed acquisition, if consummated, would violate the competitive standard of §§ 58-5A-49 and 58-5A-50 . The required information may include an opinion of an economist as to the competitive impact of the acquisition in this state accompanied by a summary of the education and experience of the person indicating his ability to render an informed opinion;

(2) The waiting period required shall begin on the date of receipt of the director of a pre-acquisition notification and shall end on the earlier of the thirtieth day after the date of the receipt, or termination of the waiting period by the director. Prior to the end of the waiting period, the director on a one-time basis may require the submission of additional needed information relevant to the proposed acquisition, in which event the waiting period shall end on the earlier of the thirtieth day after receipt of the additional information by the director or termination of the waiting period by the director.

Source: SL 1992, ch 341, § 10; SL 2015, ch 246, § 24.
S.D. Codified Laws § 58-33A-12 — SD Code / Title 58 / Chapter 33A / Section 58-33A-12
Director's prior approval may be required--Other remedies not precluded
Status: in_force

If the director has reason to believe that an advertisement has the capacity and tendency to mislead or deceive the public or otherwise does not comply with this chapter or the rules promulgated pursuant to this chapter, the director may require an insurer or insurance producer to submit all or any part of the advertising material for review or approval prior to use, in addition to any other remedies allowed by law.

Source: SL 1999, ch 240, § 12; SL 2000, ch 251, § 8.
S.D. Codified Laws § 58-20-6 — SD Code / Title 58 / Chapter 20 / Section 58-20-6
Agreement of insurer as to prompt payment--Obligation not affected by any default of insured after injury--Direct obligation of insurer
Status: in_force

No such policy of insurance shall be issued unless it contains the agreement of the insurer that it will promptly pay to the person entitled to compensation all installments of the compensation that may be awarded or agreed upon, and that the obligation shall not be affected by any default of the insured after the injury, or by any default in the giving of any notice required by such policy, or otherwise. Such agreement shall be construed to be a direct obligation by the insurer to the person entitled to compensation, enforceable in his name.

Source: SL 1966, ch 111, ch 29, § 10.
S.D. Codified Laws § 58-22-28 — SD Code / Title 58 / Chapter 22 / Section 58-22-28
Termination of appointment of runner--Notice filed with director--Notice to runner--Information privileged
Status: in_force

A bail bondsman terminating the appointment of a runner shall file written notice thereof with the director, together with a statement that he has given or mailed notice to the runner. Such notice filed with the director shall state the reasons, if any, for such termination. Information so furnished the director shall be privileged and shall not be used as evidence in any action against the bail bondsman.

Source: SL 1966, ch 111, ch 31, § 21.
S.D. Codified Laws § 58-16-40 — SD Code / Title 58 / Chapter 16 / Section 58-16-40
Termination of group policy--Issuance of individual policy to insured person, amount of policy
Status: in_force

Except as provided in § 58-16-31 , a group life insurance policy shall contain a provision that if the group policy terminates or is amended to terminate the insurance of any class of insured persons, any person insured at the termination date whose insurance terminates and who has been so insured for at least five years prior to that termination date may have an individual life insurance policy issued to him by the insurer. That policy is subject to the conditions and limitations provided in § 58-16-39 . However, the group policy may provide that the total amount of the individual policy may not exceed the difference between the amount of the person's group life insurance protection that ended because of the group policy termination or amendment and the amount of any life insurance for which he is eligible under any group policy issued or reinstated by any insurer within thirty - one days after that termination date.

Source: SL 1966, ch 111, ch 24, § 3 (9); SL 1983, ch 374, § 1.
S.D. Codified Laws § 58-5-108 — SD Code / Title 58 / Chapter 5 / Section 58-5-108
Borrowed surplus of domestic stock or mutual insurer--Agreement to repay, interest
Status: in_force

A domestic stock or mutual insurer may borrow money to defray the expenses of its organization, provide it with surplus funds, or for any purpose of its business, upon a written agreement that such money shall be repaid only out of the insurer's surplus in excess of that stipulated in such agreement. The agreement may provide for the interest rate to be negotiated between the borrower and the lender, which interest shall or shall not constitute a liability of the insurer as to its funds other than such excess of surplus, as stipulated in the agreement. No commission or promotion expense shall be paid in connection with any such loan.

Source: SL 1966, ch 111, ch 16, § 34 (1); SL 1980, ch 351.
S.D. Codified Laws § 58-14-16.20 — SD Code / Title 58 / Chapter 14 / Section 58-14-16.20
Suspension or revocation of reinsurer' s accreditation or certification
Status: in_force

If an accredited or certified reinsurer ceases to meet the requirements for accreditation or certification, the director may suspend or revoke the reinsurer' s accreditation or certification. The director shall give the reinsurer notice and opportunity for hearing. The suspension or revocation may not take effect until after the director's order on hearing, unless:

(1) The reinsurer waives the reinsurer's right to hearing;

(2) The director's order is based on regulatory action by the reinsurer's domiciliary jurisdiction or the volunteer surrender or termination of the reinsurer' s eligibility to transact insurance or reinsurance business in the reinsurer's domiciliary jurisdiction or in the primary certifying state of the reinsurer under § 58-14-16.14 ; or

(3) The director finds that an emergency requires immediate action and a court of competent jurisdiction has not stayed the director's action.

Source: SL 2017, ch 211, § 31.
S.D. Codified Laws § 58-17K-8 — SD Code / Title 58 / Chapter 17K / Section 58-17K-8
Compliance with applicable laws required
Status: in_force

Nothing in this chapter alters or affects a health insurer's duty to comply with requirements under applicable state and federal laws, including those governing accessibility, privacy, or security of information required to be disclosed under this chapter, or those governing the ability of properly authorized representatives to access enrollee information held by a health insurer.

Source: SL 2021, ch 213, § 8.
S.D. Codified Laws § 58-11-15 — SD Code / Title 58 / Chapter 11 / Section 58-11-15
Order of director exempting insurance documents from requirements as to form
Status: in_force

The director may, by order, exempt from the requirements of § 58-11-12 for so long as he deems proper, any insurance document or form or type thereof as specified in such order, to which, in his opinion, said section may not practically be applied, or the filing and approval of which are, in his opinion, not desirable or necessary for the protection of the public.

Source: SL 1966, ch 111, ch 22, § 13 (4).
S.D. Codified Laws § 58-5A-3.1 — SD Code / Title 58 / Chapter 5A / Section 58-5A-3.1
Divestiture of controlling interest in domestic insurer--Notice to director and insurer
Status: in_force

For purposes of this chapter, any controlling person of a domestic insurer seeking to divest the controlling interest in the domestic insurer, in any manner, shall file with the director, with a copy to the insurer, confidential notice of its proposed divestiture at least thirty days prior to the cessation of control. The director shall determine any instance in which a party seeking to divest or to acquire a controlling interest in an insurer is required to file for and obtain approval of the transaction.

The information shall remain confidential until the conclusion of the transaction unless the director determines that confidential treatment interferes with enforcement of this section. If the statement referred to in § 58-5A-3 is otherwise filed, the provisions of this section do not apply.

Source: SL 2015, ch 246, § 2.
S.D. Codified Laws § 58-6-26 — SD Code / Title 58 / Chapter 6 / Section 58-6-26
Surplus to qualify to transact one or more kinds of insurance by domestic mutual and reciprocal insurers--Laws governing
Status: in_force

As to surplus required for qualification to transact one or more kinds of insurance and thereafter to be maintained, domestic mutual insurers formed after June 30, 1966, are governed by chapters 58-5 and 58-35 and domestic reciprocal insurers formed after June 30, 1966, are governed by chapter 58-34 .

Source: SL 1966, ch 111, ch 3, § 10 (4).
S.D. Codified Laws § 58-40-30 — SD Code / Title 58 / Chapter 40 / Section 58-40-30
Reasonable participation requirements for group members of purchasing organizations
Status: in_force

An insurer may as a condition of offering coverage or continuing coverage require reasonable participation requirements of groups who become members of an organization.

Source: SL 1994, ch 382, § 9.
S.D. Codified Laws § 58-17-3 — SD Code / Title 58 / Chapter 17 / Section 58-17-3
Time of commencement and termination to be set out in policy
Status: in_force

The time when the insurance takes effect and terminates shall be expressed in a policy of health insurance.

Source: SL 1966, ch 111, ch 25, § 2 (2).
S.D. Codified Laws § 58-11-75 — SD Code / Title 58 / Chapter 11 / Section 58-11-75
Application to existing approved policy forms
Status: in_force

The provisions of §§ 58-11-64 to 58-11-76 , inclusive, do not apply to existing approved or deemed-approved policy forms except upon policy renewal or anniversary date.

Source: SL 2008, ch 261, § 12.
S.D. Codified Laws § 58-35-68 — SD Code / Title 58 / Chapter 35 / Section 58-35-68
Merger effective upon issuance of certificate
Status: in_force

Upon the issuance of the certificate of merger by the secretary of state, the merger is effective.

Source: SL 1995, ch 293, § 9.
S.D. Codified Laws § 58-5A-100 — SD Code / Title 58 / Chapter 5A / Section 58-5A-100
Deposit or bond required for insurer in hazardous financial condition
Status: in_force

If an insurer subject to this chapter is deemed by the director to be in a hazardous financial condition, as defined by chapters 58-4 and 58-29B , or a condition that would be grounds for supervision, conservation, or a delinquency proceeding, then the director may require the insurer to secure and maintain either a deposit held by the director, or a bond, for the protection of the insurer for the duration of contracts or agreements or the existence of the condition for which the director required the deposit or the bond. In determining whether a deposit or a bond is required, the director may consider whether concerns exist with respect to the affiliated person’s ability to fulfill the contracts or agreements if the insurer were to be put into liquidation. Once the insurer is deemed to be in a hazardous financial condition or a condition that would be grounds for supervision, conservation, or a delinquency proceeding and a deposit or bond is necessary, the director has discretion to determine the amount of the deposit or bond, not to exceed the value of the contracts or agreements in any one year, and whether the deposit or bond is required for a single contract, multiple contracts, or a contract only with a specific person or persons.

Source: SL 2024, ch 201, § 13.
S.D. Codified Laws § 58-17H-9 — SD Code / Title 58 / Chapter 17H / Section 58-17H-9
Exceptions for payments by capitated and other plans without negotiated fees
Status: in_force

For capitated or other health benefit plans that do not have a negotiated per-service amount for in-network providers, subdivision 58-17H-8 (1) does not apply.

Source: SL 2011, ch 219, § 34.
S.D. Codified Laws § 58-29B-34 — SD Code / Title 58 / Chapter 29B / Section 58-29B-34
Authority to pursue legal remedies on insurer's behalf
Status: in_force

If it appears to the rehabilitator that there has been criminal or tortious conduct, or breach of any contractual or fiduciary obligation detrimental to the insurer by any officer, manager, representative, insurance producer, employee, or other person, the rehabilitator may pursue all appropriate legal remedies on behalf of the insurer.

Source: SL 1989, ch 436, § 34; SL 2001, ch 286, § 142.
S.D. Codified Laws § 58-17H-57 — SD Code / Title 58 / Chapter 17H / Section 58-17H-57
Utilization review organization or health carrier--Annual review--Report--Contents--Publication
Status: in_force

A utilization review organization or health carrier shall conduct an annual review and submit the findings in a report to the Division of Insurance, at the time and in the manner directed by the division.

The report must contain the following information for the previous calendar year, aggregated for all health care services or items:

(1) The number and percentage of urgent prior authorization requests that the utilization review organization or health carrier approved;

(2) The number and percentage of urgent prior authorization requests that the utilization review organization or health carrier denied;

(3) The number and percentage of nonurgent prior authorization requests that the utilization review organization or health carrier approved;

(4) The number and percentage of nonurgent prior authorization requests that the utilization review organization or health carrier denied;

(5) The average and median time that elapsed between the submission of a prior authorization request and a determination by the utilization review organization or health carrier; and

(6) The average and median time that elapsed between the submission of an urgent prior authorization request and a determination by the utilization review organization or health carrier.

The division shall publish the report required by this section, on the division's website, within sixty days after receiving the report.

Source: SL 2026, ch 201, § 1.
S.D. Codified Laws § 58-29B-131 — SD Code / Title 58 / Chapter 29B / Section 58-29B-131
Petition to reopen proceedings for good cause
Status: in_force

After the liquidation proceeding has been terminated and liquidator discharged, the director or other interested party may at any time petition the court to reopen the proceedings for good cause, including the discovery of additional assets. If the court is satisfied that there is justification for reopening, it shall so order.

Source: SL 1989, ch 436, § 131.
S.D. Codified Laws § 58-40-3 — SD Code / Title 58 / Chapter 40 / Section 58-40-3
Members and directors
Status: in_force

A hospital plan corporation shall consist of a board of directors and of such members, grouped in such classes, as the bylaws of the corporation shall provide.

Source: SL 1966, ch 111, ch 21, § 16.
S.D. Codified Laws § 58-15-93 — SD Code / Title 58 / Chapter 15 / Section 58-15-93
Election to apply provisions of §§58-15-83to58-15-93to annuity contracts--Application of provisions after second anniversary
Status: in_force

After July 1, 2004, a company may elect to apply its provisions to annuity contracts on a contract form - by - contract form basis before the second anniversary of the effective date of §§ 58-15-83 to 58-15-93 , inclusive. In all other instances, §§ 58-15-83 to 58-15-93 , inclusive, shall become operative with respect to annuity contracts issued by the company after the second anniversary of the effective date of §§ 58-15-83 to 58-15-93 , inclusive.

Source: SL 2004, ch 299, § 12.
S.D. Codified Laws § 58-18-32 — SD Code / Title 58 / Chapter 18 / Section 58-18-32
Family coverage to include newborn and newly adopted children
Status: in_force

Any group health insurance policy and group service or indemnity type contract issued by a nonprofit corporation which offers coverage for a family member of an insured or subscriber shall provide that the health insurance benefits applicable for children are payable with respect to a newly born child of the insured or subscriber from the moment of birth or to a newly adopted child of the insured or subscriber from the beginning of the six - month adoption bonding period. The newly born or newly adopted child shall be added to the policy without underwriting and without the imposition of any preexisting waiting period. Any policy or contract issued before July 1, 1984, shall, upon its next anniversary date, also provide that the health insurance benefits applicable for children shall be payable with respect to a newly born child of the insured or subscriber from the moment of birth or to a newly adopted child of the insured or subscriber from the beginning of the six - month adoption bonding period.

Source: SL 1974, ch 322; SDCL Supp, § 58-17-30.2 ; SL 1976, ch 313, § 1; SL 1977, ch 408; SL 1984, ch 327, § 1; SL 1994, ch 387, § 7.
S.D. Codified Laws § 58-41-66 — SD Code / Title 58 / Chapter 41 / Section 58-41-66
Annual summary for enrollees required--Contents
Status: in_force

Every health maintenance organization or its representative shall annually, before April first, provide to its enrollees a summary of:

(1) Its most recent annual financial statement, including a balance sheet and statement of receipts and disbursements;

(2) A description of the health maintenance organization, its health care plan or plans, its facilities and personnel, and any material changes therein since the last report;

(3) The current evidence of coverage; and

(4) The health maintenance organization's method for resolving enrollee complaints.

Source: SL 1974, ch 321, § 25.
S.D. Codified Laws § 58-33A-25.3 — SD Code / Title 58 / Chapter 33A / Section 58-33A-25.3
Insurer to verify producer has completed annuity training course
Status: in_force

An insurer shall verify that a producer has completed the annuity training course required pursuant to § 58-33A-25.1 before allowing the producer to sell an annuity product for that insurer. An insurer may satisfy its responsibility under this section by obtaining certificates of completion of the training course or obtaining reports provided by a director-sponsored database system or vendor or from a reasonably reliable commercial database vendor that has a reporting arrangement with an approved insurance education provider.

Source: SL 2012, ch 250, § 13; SL 2022, ch 186, § 27, eff. Jan. 1, 2023.
S.D. Codified Laws § 58-7-1 — SD Code / Title 58 / Chapter 7 / Section 58-7-1
Amounts required to be deposited by domestic insurers--Financial institutions to report to director
Status: in_force

All deposits required by this title shall be kept in a financial institution approved by the director. A domestic property and casualty or health insurer shall deposit an amount not less than fifty percent of the required unearned premium reserves on their outstanding policies. Domestic life insurers shall deposit an amount not less than the required reserves on their outstanding policies, including annuity and supplementary contracts, but excluding premium notes, policy loans, and other policy liens referred to in subdivision 58-26-1(3) and the net amount of uncollected and deferred premiums and annuity considerations referred to in subdivision 58-26-1(4). The financial institution shall report quarterly to the director the insurers that have deposits with it and the amounts and kinds of assets and securities. Withdrawal of securities and assets on deposit shall be pursuant to the custodial agreement.

Source: SL 1966, ch 111, ch 7, § 1 (1); SL 1977, ch 406; SL 1991, ch 398, § 1.
S.D. Codified Laws § 58-11-55.2 — SD Code / Title 58 / Chapter 11 / Section 58-11-55.2
Applicability of §58-11-55
Status: in_force

Except as provided by §§ 58-15-45 and 58-11-55.1 , § 58-11-55 applies to all types of insurance issued by all insurers under Title 58. However, nothing in § 58-11-55 may be construed as applying to or affecting the right of any fraternal benefit society subject to chapter 58-37A to determine its eligibility requirements for membership or be construed as applying to or affecting the offering of benefits exclusively to members or persons eligible for membership in the society by a subsidiary corporation or an affiliated organization of the society.

Source: SL 1997, ch 287, § 3.
S.D. Codified Laws § 58-18A-78 — SD Code / Title 58 / Chapter 18A / Section 58-18A-78
Noncomplying secondary plan to advance difference covered person would have received if complying plan had been secondary plan
Status: in_force

If the noncomplying plan reduces its benefits so that the covered person receives less in benefits than the covered person would have received had the complying plan paid or provided its benefits as the secondary plan and the noncomplying plan paid or provided its benefits as the primary plan, then the complying plan shall advance to the covered person or on behalf of the covered person an amount equal to the difference.

In no event may the complying plan advance more than the complying plan would have paid had it been the primary plan less any amount it previously paid for the same expense or service. In consideration of the advance, the complying plan shall be subrogated to all rights of the covered person against the noncomplying plan. The advance by the complying plan shall also be without prejudice to any claim it may have against a noncomplying plan in the absence of subrogation.

Source: SL 2006, ch 259, § 26.
S.D. Codified Laws § 58-18-59 — SD Code / Title 58 / Chapter 18 / Section 58-18-59
Rates for group health insurance issued to purchasing organizations
Status: in_force

Any insurer issuing group health insurance pursuant to §§ 58-18-52 to 58-18-62 , inclusive, is subject to all of the provisions of chapter 58-18B relating to rates.

Source: SL 1994, ch 382, § 8.
S.D. Codified Laws § 58-30-23.6 — SD Code / Title 58 / Chapter 30 / Section 58-30-23.6
Criminal files check
Status: in_force

For the purposes of § 58-30-23.7 and §§ 58-30-170 and 58-30-180 , the division may access the criminal files of any licensee convicted of a felony or crime of moral turpitude without any authorization from the licensee. Any law enforcement agency that possesses criminal records shall provide reasonable access by the division to the records. The provisions of this section do not affect the division's ability to otherwise exchange information or cooperate with any law enforcement agency or other authorized agency.

Source: SL 1998, ch 297, § 5; SL 2001, ch 286, § 164.
S.D. Codified Laws § 58-29B-125 — SD Code / Title 58 / Chapter 29B / Section 58-29B-125
Review, investigation and negotiation of claims by liquidator--Exception--Report to court
Status: in_force

The liquidator shall review all claims duly filed in the liquidation and shall make such further investigation as he shall deem necessary. He may compound, compromise, or in any other manner negotiate the amount for which claims will be recommended to the court except where the liquidator is required by law to accept claims as settled by any person or organization, including any guaranty association or foreign guaranty association. Unresolved disputes shall be determined under § 58-29B-119 or 58-29B-120 . As soon as practicable, he shall present to the court a report of the claims against the insurer with his recommendations. The report shall include the name and address of each claimant and the amount of the claim finally recommended, if any. If the insurer has issued annuities or life insurance policies, the liquidator shall report the persons to whom, according to the records of the insurer, amounts are owed as cash surrender values or other investment value and the amounts owed.

Source: SL 1989, ch 436, § 125.
S.D. Codified Laws § 58-37A-36 — SD Code / Title 58 / Chapter 37A / Section 58-37A-36
Fraudulent statements, and soliciting membership in unlicensed societies as crimes
Status: in_force

No person may knowingly make any false or fraudulent statement or representation in or with reference to any application for membership or for the purpose of obtaining money from or a benefit in any society. A violation of this provision is a Class 2 misdemeanor.

Any person who willfully makes a false or fraudulent statement in any verified report or declaration under oath required or authorized by this chapter or of any material fact or thing contained in a sworn statement concerning the death or disability of an insured for the purpose of procuring payment of a benefit named in the certificate is guilty of perjury.

No person may solicit membership for, or in any manner assist in procuring membership in, any society not licensed to do business in this state. A violation of this provision is a Class 2 misdemeanor.

Source: SL 1990, ch 410, § 36.
S.D. Codified Laws § 58-7-23 — SD Code / Title 58 / Chapter 7 / Section 58-7-23
Nonliability of director and state for safekeeping by custodian
Status: in_force

The director and the State of South Dakota shall have no liability as to the safekeeping of any such deposit by the depository or custodian thereof.

Source: SL 1966, ch 111, ch 7, § 7.
S.D. Codified Laws § 58-46-8 — SD Code / Title 58 / Chapter 46 / Section 58-46-8
Capital and surplus requirements
Status: in_force

No captive insurance company, other than a trust captive insurance company, may be issued a certificate of authority unless it possesses and maintains unimpaired paid-in capital and surplus of two hundred fifty thousand dollars. A sponsored captive may include the capital and surplus of its protected cells in calculating its capital and surplus. No trust captive insurance company may be issued a certificate of authority unless it possesses and maintains unimpaired paid-in capital and surplus of one hundred thousand dollars or a greater amount of which shall be determined at the discretion of the director.

The initial capital and surplus may be in the form of cash or an irrevocable letter of credit issued by a bank chartered by the State of South Dakota or a member bank of the Federal Reserve System and approved by the director. The director may prescribe additional capital and surplus for any captive insurance company based upon the type, volume, and nature of insurance business transacted.

Source: SL 1996, ch 287, § 8; SL 2009, ch 272, § 4; SL 2013, ch 257, § 7.
S.D. Codified Laws § 58-24-49 — SD Code / Title 58 / Chapter 24 / Section 58-24-49
Application of insurer to file deviation--Basis for modification--Copy to rating organization
Status: in_force

Every member of or subscriber to a rating organization shall adhere to the filings made on its behalf by such organization except that any such insurer may make written application to the director to file a deviation from the class rates, schedules, rating plans, or rules respecting any kind of insurance, or class of risk within a kind of insurance, or combination thereof. Such application shall specify the basis for the modification and a copy shall also be sent simultaneously to such rating organization.

Source: SL 1966, ch 111, ch 15, § 7.
S.D. Codified Laws § 58-29E-5 — SD Code / Title 58 / Chapter 29E / Section 58-29E-5
Permission to contact covered individual
Status: in_force

A pharmacy benefit manager, unless authorized pursuant to the terms of its contract with a third-party payor, may not contact any covered individual, without the express written permission of the third-party payor.

Source: SL 2004, ch 311, § 5; SL 2023, ch 166, § 5.
S.D. Codified Laws § 58-29B-135 — SD Code / Title 58 / Chapter 29B / Section 58-29B-135
Issuance of order allowing director to act as conservator--Filing--Notice imparted
Status: in_force

The court may issue the order in whatever terms it deems appropriate. The filing or recording of the order with the clerk of the circuit court of Hughes County or the register of deeds of the county in which the principal business of the company is located or the county in which its principal office or place of business is located, shall impart the same notice as a deed, bill of sale, or other evidence of title duly filed or recorded with that register of deeds would have imparted.

Source: SL 1989, ch 436, § 135.
S.D. Codified Laws § 58-1-22 — SD Code / Title 58 / Chapter 1 / Section 58-1-22
Applicability of §§58-1-19to58-1-23
Status: in_force

Sections 58-1-19 to 58-1-23 , inclusive, applies to health benefit plans that are delivered, issued for delivery, or renewed on and after July 1, 2002. For purposes of §§ 58-1-19 to 58-1-23 , inclusive, renewal of a health benefit policy, contract, or plan is presumed to occur on each anniversary of the date on which coverage was first effective on the person or persons covered by the health benefit plan.

Source: SL 2001, ch 266, § 4.
S.D. Codified Laws § 58-46-20 — SD Code / Title 58 / Chapter 46 / Section 58-46-20
Loan to parent or affiliated entity
Status: in_force

A pure, agency, or trust captive insurance company may make a loan to its parent or affiliated entities. No loan to its parent or affiliated entities may be made without prior written approval of the director. A group, sponsored, or special purpose captive insurance company may make a loan to an affiliated entity if prior written approval by the director has been provided. The approval shall be evidenced by a note in a form approved by the director.

Source: SL 1996, ch 287, § 20; SL 2009, ch 272, § 10; SL 2013, ch 257, § 17; SL 2015, ch 257, § 6.
S.D. Codified Laws § 58-17-146 — SD Code / Title 58 / Chapter 17 / Section 58-17-146
Dental insurers prohibited from setting fees for noncovered service
Status: in_force

No contract between an insurer and a dentist may require a dentist to provide services for an insured at a fee set by the contract unless the services are covered services under the terms of the insured's plan or policy. For the purposes of this section, the term, covered services, means services reimbursable under the plan, policy, or contract, subject to such contractual limitations on benefits as may apply, including deductibles, waiting periods, frequency limitations, or charges over the benefit maximum.

Source: SL 2010, ch 239, § 1.
S.D. Codified Laws § 58-5-140 — SD Code / Title 58 / Chapter 5 / Section 58-5-140
Distributive share of each member on liquidation of mutual insurer--Classification of policies
Status: in_force

The distributive share of each such member shall be in the proportion that the aggregate premiums earned by the insurer on the policies of the member during the combined periods of his membership bear to the aggregate of all premiums so earned on the policies of all such members. The insurer may, and if a life insurer shall, make a reasonable classification of its policies so held by such member and a formula based upon such classification, for determining the equitable distributive share of each such member. Such classification and formula shall be subject to the approval of the director of the Division of Insurance.

Source: SL 1966, ch 111, ch 16, § 42 (2).
S.D. Codified Laws § 58-6-56 — SD Code / Title 58 / Chapter 6 / Section 58-6-56
Suspension, revocation, or refusal to renew certificate because of deficiency of assets or impairment of capital or surplus--Cessation of business in state
Status: in_force

Upon suspension, revocation, or refusal to renew the certificate of authority of an insurer on account of deficiency of assets, if a foreign insurer, or failure to cure an impairment of the capital of a domestic stock insurer, or surplus of a reciprocal or domestic mutual insurer, as provided under subdivision 58-6-44(2), every officer and director of the insurer must, either separately or jointly with one or more of the others and within four days after notice of such suspension, revocation, or refusal was given to the insurer by the director, notify by registered or certified mail every person authorized by the insurer, as of immediately prior to such suspension, revocation, or refusal, to write business for the insurer in South Dakota, immediately to cease such writing; and each such person so notified shall immediately cease to write any further business for the insurer in South Dakota.

Source: SL 1966, ch 111, ch 3, § 22 (1); SL 1982, ch 28, § 18.
S.D. Codified Laws § 58-33-5.1 — SD Code / Title 58 / Chapter 33 / Section 58-33-5.1
Rules to promote proper disclosure of terms and conditions of life insurance policies
Status: in_force

The director of insurance shall promulgate rules pursuant to chapter 1-26 to promote the proper disclosure of the terms and conditions of life insurance policies and to prohibit the misrepresentation of life insurance policies through the establishment of minimum standards for the advertisement and solicitation of life insurance. The rules shall provide for illustration formats, prescribe standards to be followed when illustrations are used, and specify the disclosures that are required in connection with illustrations. In setting the standards, the director shall consider the models adopted by the National Association of Insurance Commissioners, including the Life Insurance Illustrations Model Regulation.

Source: SL 1997, ch 296, § 1.
S.D. Codified Laws § 58-6-47 — SD Code / Title 58 / Chapter 6 / Section 58-6-47
Suspension or revocation of certificate after hearing, grounds
Status: in_force

The director shall suspend or revoke an insurer's certificate of authority on any of the following grounds if he finds after a hearing thereon that the insurer:

(1) Is in unsound condition, or in such condition or using such methods and practices in the conduct of its business, as to render its further transaction of business in this state hazardous or injurious to its policyholders or to the public;

(2) Has failed, after written request therefor by the director, to remove or discharge an officer or director who has been convicted of any crime involving fraud, dishonesty, or moral turpitude;

(3) With such frequency as to indicate its general business practice in this state, has without just cause refused to pay claims arising under coverages provided by its policies, whether the claim is in favor of an insured or is in favor of a third person with respect to the liability of an insured to such third person, or, with like frequency, without just cause compels insureds or claimants to accept less than the amount due them or to employ attorneys or to bring suit against the insurer or such an insured to obtain full payment or settlement of such claims;

(4) Is affiliated with and under the same general management, or interlocking directorate, or ownership as another insurer which transacts direct insurance in this state without having a certificate of authority therefor, except as permitted under this title.

(5) Refuses to be examined, or if its directors, officers, employees, or representatives refuse to submit to examination relative to its affairs, or to produce its accounts, records, and files for examination by the director when required, or refuse to perform any legal obligation relative to the examination;

(6) Has failed to pay any final judgment rendered against it in this state upon any policy, bond, recognizance, or undertaking issued or guaranteed by it, within thirty days after the judgment became final, or within thirty days after time for taking an appeal has expired, or within thirty days after dismissal of an appeal before final determination, whichever date is the later.

Source: SL 1966, ch 111, ch 3, § 19 (2).
S.D. Codified Laws § 58-17F-12 — SD Code / Title 58 / Chapter 17F / Section 58-17F-12
Provisions governing contractual arrangements between health carriers and intermediaries
Status: in_force

In any contractual arrangement between a health carrier and an intermediary, the following shall apply:

(1) The health carrier's ultimate statutory responsibility to monitor the offering of covered benefits to covered persons shall be maintained whether or not any functions or duties are contractually delegated or assigned to the intermediary;

(2) The health carrier may approve or disapprove participation status of a subcontracted provider in its own or a contracted network for the purpose of delivering covered benefits to the carrier's covered persons;

(3) The health carrier shall maintain copies of all intermediary health care subcontracts at its principal place of business in the state, or ensure that it has access to all intermediary subcontracts, including the right to make copies to facilitate regulatory review, upon twenty days prior written notice from the health carrier;

(4) If applicable, an intermediary shall transmit utilization documentation and claims paid documentation to the health carrier. The carrier shall monitor the timeliness and appropriateness of payments made to providers and health care services received by covered persons;

(5) An intermediary shall maintain the books, records, financial information, and documentation of services provided to covered persons and preserve them for examination pursuant to chapter 58-3 ;

(6) An intermediary shall allow the director access to the intermediary's books, records, financial information, and any documentation of services provided to covered persons, as necessary to determine compliance with this chapter; and

(7) The health carrier may, in the event of the intermediary's insolvency, require the assignment to the health carrier of the provisions of a provider's contract addressing the provider's obligation to furnish covered services.

Source: SL 2011, ch 219, § 12.
S.D. Codified Laws § 58-19-46 — SD Code / Title 58 / Chapter 19 / Section 58-19-46
Review of insurance company's actuarial data--Reimbursement of cost
Status: in_force

In approving or establishing the premium rates for credit unemployment insurance, the division shall review the insurance company's actuarial data to assure that the rates are fair and reasonable. The insurance director may hire or contract with a qualified actuary to review the data. The insurance division shall obtain reimbursement from the insurance company for the cost of the actuarial review of rates.

Source: SL 1987, ch 380, § 8; SL 2002, ch 238, § 1.
S.D. Codified Laws § 58-26-13.2 — SD Code / Title 58 / Chapter 26 / Section 58-26-13.2
Time limit for compliance with actuary opinion requirements
Status: in_force

Each domestic insurer shall comply with §§ 58-26-13.1 and 58-26-44 for the year ending December 31, 1993, and each year thereafter, unless the director permits otherwise.

Each foreign insurer shall comply with §§ 58-26-13.1 and 58-26-44 for the year ending December 31, 1994, and each year thereafter, unless the director permits otherwise.

Source: SL 1992, ch 349, § 4.
S.D. Codified Laws § 58-22-9 — SD Code / Title 58 / Chapter 22 / Section 58-22-9
Termination of appointment of surety bondsman by insurer--Notice to director--Information privileged
Status: in_force

An insurer terminating the appointment of a surety bondsman shall file written notice thereof with the director, together with a statement that it has given or mailed notice to the surety bondsman. Such notice filed with the director shall state the reasons, if any, for such termination. Information so furnished the director shall be privileged and shall not be used as evidence in or basis for any action against the insurer or any of its representatives.

Source: SL 1966, ch 111, ch 31, § 19.
S.D. Codified Laws § 58-17-7 — SD Code / Title 58 / Chapter 17 / Section 58-17-7
Documents forming part of policy--Setting forth in full, rates and classifications excepted
Status: in_force

A policy of health insurance shall contain no provision purporting to make any portion of the charter, rules, Constitution, or bylaws of the insurer a part of the policy unless such portion is set forth in full in the policy, except in the case of the incorporation of, or reference to, a statement of rates or classification of risks, or short - rate table filed with the director.

Source: SL 1966, ch 111, ch 25, § 2 (7).
S.D. Codified Laws § 58-6A-14 — SD Code / Title 58 / Chapter 6A / Section 58-6A-14
Countersignature on policy not required
Status: in_force

A policy of insurance issued to a risk retention group or any member of that group is not required to be countersigned.

Source: SL 1987, ch 372, § 14; SL 2021, ch 210, § 3.
S.D. Codified Laws § 58-29B-146 — SD Code / Title 58 / Chapter 29B / Section 58-29B-146
Resident claimants--With whom and when to file
Status: in_force

Claimants residing in this state may file claims with the liquidator or ancillary receiver, if any, in this state or with the domiciliary receiver, conservator, or liquidator, if the domiciliary law permits. The claims shall be filed on or before the last date fixed for the filing of claims in the domiciliary receivership, conservator, or liquidation proceedings.

Source: SL 1989, ch 436, § 146; SL 2008, ch 271, § 3.
S.D. Codified Laws § 58-2-23 — SD Code / Title 58 / Chapter 2 / Section 58-2-23
Additional powers and duties of director provided by other laws
Status: in_force

The director shall have such additional powers and duties as may be provided by other laws of this state.

Source: SL 1966, ch 111, ch 2, § 7.
S.D. Codified Laws § 58-5A-38.2 — SD Code / Title 58 / Chapter 5A / Section 58-5A-38.2
Examination of registered insurer's affiliates to obtain information
Status: in_force

If the insurer fails to comply with an order made pursuant to § 58-5A-38.1 , the director may examine the registered insurer's affiliates to obtain the information. The director may issue subpoenas, administer oaths, and examine under oath any person for purposes of determining compliance with the provisions of §§ 58-5A-37 to 58-5A-40 , inclusive. Each person is obliged to attend as a witness at the place specified in the subpoena, if the witness is subpoenaed within this state. The witness is entitled to the same fees and mileage, if claimed, as a witness in appearing in any state court and the fees shall be itemized and paid by the insurer being examined.

Source: SL 2015, ch 246, § 14.
S.D. Codified Laws § 58-17-104 — SD Code / Title 58 / Chapter 17 / Section 58-17-104
Deductibles, copayments, and managed care review not affected
Status: in_force

Nothing in §§ 58-17-100 to 58-17-106 , inclusive, may be construed to prevent the application of contractual deductibles or copayment provisions or managed care review.

Source: SL 2000, ch 242, § 5.
S.D. Codified Laws § 58-11-44 — SD Code / Title 58 / Chapter 11 / Section 58-11-44
Application for insurance or annuity--Statements by insured deemed representations--Omissions, concealment, and incorrect statements preventing recovery
Status: in_force

All statements and descriptions in any application for an insurance policy, certificate, or annuity contract, by or on behalf of the insured or annuitant, shall be deemed to be representations and not warranties. No misrepresentation, omission, concealment of fact, or incorrect statement prevents a recovery under the policy or contract unless:

(1) Fraudulent or an intentional misrepresentation of a material fact; or

(2) Material either to the acceptance of the risk, or to the hazard assumed by the insurer; or

(3) The insurer in good faith would either not have issued the policy or contract, or would not have issued it at the same premium rate, or would not have issued a policy or contract in as large an amount, or would not have provided coverage with respect to the hazard resulting in the loss, if the true facts had been made known to the insurer as required either by the application for the policy or contract or otherwise.

With respect to any health insurance policy or certificate, subdivisions (2) and (3) of this section only apply to excepted benefits.

No applicant, insured, or annuitant may be asked to warranty or certify whether or not the applicant, insured, or annuitant is insurable.

Source: SL 1966, ch 111, ch 22, § 12; SL 2011, ch 214, § 1.
S.D. Codified Laws § 58-6-16 — SD Code / Title 58 / Chapter 6 / Section 58-6-16
Use of name deceptively similar to name of foreign insurer prohibited
Status: in_force

No insurer shall hereafter be formed or newly authorized to transact insurance in this state which has or uses a name the same as or deceptively similar to the name of any foreign insurer doing business elsewhere than in this state if such foreign insurer has within the last preceding twelve months signified its intention to secure incorporation in this state under such name, or do business as a foreign insurer in this state under such name by filing notice of such intention with the director unless the written consent to the use of such name or deceptively similar name has been given by such foreign insurer.

Source: SL 1966, ch 111, ch 3, § 8 (3).
S.D. Codified Laws § 58-3-12.3 — SD Code / Title 58 / Chapter 3 / Section 58-3-12.3
Draft examination report not governed by §§58-3-10to58-3-18
Status: in_force

The provisions of §§ 58-3-10 to 58-3-18 , inclusive, do not apply to the draft examination report.

Source: SL 2014, ch 232, § 2.
S.D. Codified Laws § 58-33A-11 — SD Code / Title 58 / Chapter 33A / Section 58-33A-11
Insurer to maintain file of advertisements--Division may inspect files--Period for which files must be maintained
Status: in_force

Each insurer shall maintain at its home or principal office a complete file containing a specimen copy of every printed, published, or prepared advertisement of its policies and specimen copies of typical printed, published, or prepared advertisements of its blanket, franchise, and group policies where the content of advertisements vary dependent upon coverage options, hereafter disseminated in this state, with a notation indicating the manner and extent of distribution and the form number of any policy advertised. The file may be kept electronically. The division may inspect the file. All advertisements shall be maintained in the file for a period of either five years or until the filing of the next regular report on the examination of the insurer pursuant to chapter 58-3 , whichever is the longer period of time.

Source: SL 1999, ch 240, § 11.
S.D. Codified Laws § 58-38-11.4 — SD Code / Title 58 / Chapter 38 / Section 58-38-11.4
Individual accident or health policy required for covered spouse of insured--Eligibility--Coverage--Waiting periods
Status: in_force

No accident or health insurance policy providing coverage of hospital or medical expense which in addition to covering the insured also provides coverage to the spouse of the insured shall be issued without a provision that provides that upon eligibility for medicare or social security disability benefits by one spouse the other spouse shall be entitled to have issued to him or her, without evidence of insurability, upon application to the company within sixty days following the eligibility, and upon payment of the appropriate premium, an individual policy of accident or health insurance. Such policy shall provide the coverage then being issued by the insurer which is most nearly similar to the existing coverages. This obligation can be met by continuation of coverage for spouse under existing policy at the appropriate premium. Any and all probationary or waiting periods set forth in such policy shall be considered as being met to the extent coverage was in force under the prior policy.

Source: SL 1979, ch 343.
S.D. Codified Laws § 58-17B-4 — SD Code / Title 58 / Chapter 17B / Section 58-17B-4
Adoption of rules--Standards for disclosure
Status: in_force

The director may adopt rules, pursuant to chapter 1-26 , that include standards for full and fair disclosure setting forth the manner, content, and required disclosures for the sale of long - term care insurance policies, terms of renewability, initial and subsequent conditions of eligibility, nonduplication of coverage provisions, coverage of dependents, preexisting conditions, termination of insurance, continuation or conversion, probationary periods, limitations, exceptions, reductions, elimination periods, requirements for replacement, recurrent conditions, marketing, and definitions of terms.

The director shall develop minimum standards for benefits contained in the marketing and sale of long - term care coverage or other coverages containing long - term care benefits which do not provide institutional care benefits. The standards shall be established by rules promulgated pursuant to chapter 1-26 . The standards shall take into consideration the special status of persons in the long - term care insurance market and be designed to afford protection of the public through disclosure and other informational requirements, minimum requirements for coverages and exclusions contained in such policies or certificates, prohibition or prescription of marketing or sales practices, financial and solvency requirements, disclosure and requirements relating to incontestability, and requirements for the continuity of coverage through continuation, conversion, or reinstatement. The director shall design standards to prohibit unjust, unfair, or discriminatory treatment of any person insured or proposed for coverage under this chapter. The director may adopt nationally developed standards to the extent that those standards are appropriate for the state considering the impact on the availability and cost of the insurance and the health care delivery system existing in South Dakota. The standards may include minimum amounts of coverage not otherwise specified in this chapter; the definitions; type, number, and use of benefit triggers such as activities of daily living, the types of facilities, and criteria for reimbursement for assisted living centers; requirements for home health care and home health agencies; the content and use of application forms; when and how coverage must be extended; and reports from insurers and others engaged in the business of long - term care insurance relating to how insureds have been treated and how compliance with this chapter has been achieved.

Source: SL 1989, ch 440, § 4; SL 1996, ch 294.
S.D. Codified Laws § 58-29B-140 — SD Code / Title 58 / Chapter 29B / Section 58-29B-140
Order to liquidate in whatever terms court deems appropriate--Filing--Notice imparted
Status: in_force

If it appears to the court that the best interests of creditors, policyholders, and the public require, the court may issue an order to liquidate in whatever terms it deems appropriate. The filing or recording of the order with the clerk of the circuit court of Hughes County or the register of deeds of the county in which the principal business of the company is located or the county in which its principal office or place of business is located, shall impart the same notice as a deed, bill of sale, or other evidence of title duly filed or recorded with that register of deeds would have imparted.

Source: SL 1989, ch 436, § 140.
S.D. Codified Laws § 58-18-7.17 — SD Code / Title 58 / Chapter 18 / Section 58-18-7.17
Exclusion of benefits for injury while under the influence of alcohol or drugs prohibited--Exception for sickness or injury caused in commission of felony
Status: in_force

A group health insurance policy or certificate that is delivered, issued for delivery, or renewed in this state may not exclude the payment of benefits for injuries sustained by an insured person because the insured was under the influence of alcohol or drugs, as defined by § 32-23-1 .

Nothing in this section precludes a health insurer from excluding coverage for an insured for any sickness or injury caused in the commission of a felony.

Source: SL 1997, ch 290, §§ 2, 7.
S.D. Codified Laws § 58-26-98 — SD Code / Title 58 / Chapter 26 / Section 58-26-98
Reserves to be established using principle-based valuation--Conditions
Status: in_force

A company must establish reserves using a principle-based valuation that meets the following conditions for policies or contracts as specified in the valuation manual:

(1) Quantify the benefits and guarantees, and the funding, associated with the contracts and their risks at a level of conservatism that reflects conditions that include unfavorable events that have a reasonable probability of occurring during the lifetime of the contracts. For polices or contracts with significant tail risk, reflects conditions appropriately adverse to quantify the tail risk;

(2) Incorporate assumptions, risk analysis methods, financial models, and management techniques that are consistent with, but not necessarily identical to, those utilized within the company's overall risk assessment process, while recognizing potential differences in financial reporting structures and any prescribed assumption or method;

(3) Incorporate assumptions that are derived in one of the following manners:

(a) The assumption is prescribed in the valuation manual;

(b) For an assumption that is not prescribed, the assumption shall be established utilizing the company's available experience, to the extent it is relevant and statistically credible; or to the extent that company data is not available, relevant, or statistically credible, be established utilizing other relevant, statistically credible experience;

(4) Provide margins for uncertainty including adverse deviation and estimation error, such that the greater the uncertainty the larger the margin and resulting reserve.

Source: SL 2015, ch 254, § 32.
S.D. Codified Laws § 58-33-13.3 — SD Code / Title 58 / Chapter 33 / Section 58-33-13.3
Domestic violence victim discrimination prohibited
Status: in_force

No insurer may ask any questions about an individual's status as a victim of domestic violence for the purposes of offering, selling, or renewing coverage; limiting coverage; or charging a rate different from that normally charged for the same coverage under any life or health insurance policy.

Source: SL 2010, ch 243, § 1.
S.D. Codified Laws § 58-5A-89 — SD Code / Title 58 / Chapter 5A / Section 58-5A-89
Conditions under which director may require maintenance of risk management framework, conduct of ORSA, and filing of ORSA summary report
Status: in_force

Notwithstanding the exemptions from the requirements of §§ 58-5A-81 to 58-5A-93 , inclusive, the director may require that an insurer maintain a risk management framework, conduct an ORSA, and file an ORSA summary report:

(1) Based on unique circumstances including the type and volume of business written, ownership and organizational structure, federal agency requests, and international supervisor requests; or

(2) If the insurer has risk-based capital levels requiring company action, meets one or more of the standards of an insurer deemed to be in hazardous financial condition, or otherwise exhibits qualities of a troubled insurer as determined by the director.

Source: SL 2017, ch 210, § 10.
S.D. Codified Laws § 58-43-16 — SD Code / Title 58 / Chapter 43 / Section 58-43-16
Written communication as to unremediated material weaknesses in internal controls over financial reporting
Status: in_force

In addition to the annual audited financial report, each insurer shall furnish the director with a written communication as to any unremediated material weaknesses in the insurer's internal controls over financial reporting noted during the audit. The communication shall be prepared by the accountant within sixty days after the filing of the annual audited financial report. The communication shall contain a description of any unremediated material weakness as of December thirty-first for the immediately preceding year in the insurer's internal control over financial reporting noted by the accountant during the course of the accountant's audit of the financial statements. If no unremediated material weaknesses were noted, the communication shall so state.

The insurer shall provide a description of remedial actions taken or proposed to correct unremediated material weaknesses, if the actions are not described in the accountant's communication.

The insurer shall maintain information about significant deficiencies communicated by the independent certified public accountant. The information shall be made available to the examiner conducting a financial condition examination for review and kept confidential pursuant to § 58-3-22 .

Source: SL 1992, ch 357, § 16; SL 2009, ch 271, § 15.
S.D. Codified Laws § 58-11-19 — SD Code / Title 58 / Chapter 11 / Section 58-11-19
Withdrawal of approval of form by director--Notice
Status: in_force

The director may at any time, after notice and for cause shown, withdraw any such approval.

Source: SL 1966, ch 111, ch 22, § 13 (2).
S.D. Codified Laws § 58-17F-4 — SD Code / Title 58 / Chapter 17F / Section 58-17F-4
Health carrier to provide written information to prospective enrollees--Specific information required
Status: in_force

Any health carrier shall provide to any prospective enrollee written information describing the terms and conditions of the plan. If the plan is described orally, easily understood, truthful, objective terms shall be used. The written information need not be provided to any prospective enrollee who makes inquiries of a general nature directly to a carrier. In the solicitation of group coverage to an employer, a carrier is not required to provide the written information required by this section to individual employees or their dependents and if no solicitation is made directly to the employees or dependents and if no request to provide the written information to the employees or dependents is made by the employer. All written plan descriptions shall be readable, easily understood, truthful, and in an objective format. The format shall be standardized among each plan that a health carrier offers so that comparison of the attributes of the plans is facilitated. The following specific information shall be communicated:

(1) Coverage provisions, benefits, and any exclusions by category of service, provider, and if applicable, by specific service, including prescription drugs and drugs administered in a physician office or clinic;

(2) Any and all authorization or other review requirements, including preauthorization review, and any procedures that may lead the patient to be denied coverage for or not be provided a particular service;

(3) The existence of any financial arrangements or contractual provisions with review companies or providers of health care services that would directly or indirectly limit the services offered, restrict referral, or treatment options;

(4) Explanation of how plan limitations impact enrollees, including information on enrollee financial responsibility for payment of coinsurance or other non-covered or out-of-plan services;

(5) A description of the accessibility and availability of services and an easily accessible online list of providers and facilities, including a list of providers participating in the managed care network and of the providers in the network who are accepting new patients, the addresses of primary care physicians and participating hospitals, and the specialty of each provider in the network. The list of providers and facilities must be updated at least once every six months;

(6) A description of any drug formulary provisions in the plan and the process for obtaining a copy of the current formulary upon request and the method by which an enrollee or prospective enrollee may determine whether a specific drug is available on the current formulary. There shall be a process for requesting an exception to the formulary and instructions as to how to request an exception to the formulary and a description of an easily accessible method to obtain a prior authorization or step edit requirement for each specific drug included on the formulary; and

(7) The description of the drug formularies in subdivision (6) shall be promptly updated with any adverse change.

The provisions of this section do not apply to plans that are not actively marketed by a carrier.

Source: SL 2011, ch 219, § 4; SL 2015, ch 251, § 1, eff. Jan. 1, 2016.
S.D. Codified Laws § 58-17A-6 — SD Code / Title 58 / Chapter 17A / Section 58-17A-6
Informational brochures
Status: in_force

The director may prescribe by regulation a standard form and the contents of an informational brochure for persons eligible for medicare which is intended to improve the buyer's ability to select the most appropriate coverage and improve the buyer's understanding of medicare. Except in the case of direct response insurance policies or certificates, the director may require by regulation that the information brochure be provided to any prospective insureds eligible for medicare concurrently with delivery of the outline of coverage. With respect to direct response insurance policies or certificates, the director may require by regulation that the prescribed brochure be provided upon request to any prospective insureds eligible for medicare but in no event later than the time of policy delivery.

Source: SL 1982, ch 360, § 6; SL 1992, ch 347, § 7.
S.D. Codified Laws § 58-15-94 — SD Code / Title 58 / Chapter 15 / Section 58-15-94
Applicability of §§58-15-94to58-15-108
Status: in_force

The requirements of §§ 58-15-94 to 58-15-108 , inclusive, apply to any in-force and future policy, annuity contract, and retained asset account as of July 1, 2018.

Sections 58-15-94 to 58-15-108 , inclusive, do not apply to a policy, annuity contract, or retained asset account of an insurer unless the policy, annuity contract, or retained asset account was issued or delivered in this state.

The requirements of §§ 58-15-94 to 58-15-108 , inclusive, do not apply to an annuity used to fund an employment-based retirement plan or program where the insurer does not perform the record-keeping services or the insurer is not committed by the terms of the annuity contract to pay death benefits to the beneficiaries of specific plan participants.

Source: SL 2018, ch 280, § 1.
S.D. Codified Laws § 58-28-27 — SD Code / Title 58 / Chapter 28 / Section 58-28-27
Affiliated insurer measured by factors applicable to parent
Status: in_force

If the insurer is a subsidiary of an admitted life insurer, or affiliated with such insurer through common management or ownership, it may be deemed by the director to have met the provisions of §§ 58-28-25 and 58-28-26 if either it or the parent or the affiliated insurer meets the requirements hereof.

Source: SL 1971, ch 266, § 3.
S.D. Codified Laws § 58-33-18 — SD Code / Title 58 / Chapter 33 / Section 58-33-18
Allowance to industrial policyholder for making payments to office of insurer permitted
Status: in_force

Nothing in §§ 58-33-14 and 58-33-15 shall be construed as including within the definition of discrimination or rebates, in the case of life insurance and health insurance policies issued on the industrial debit, preauthorized check, bank draft, or similar plans, making allowance to policyholders who have continuously for a specified period made premium payments directly to an office of the insurer or by preauthorized check, bank draft, or similar plans, in an amount which fairly represents the saving in collection expense.

Source: SL 1966, ch 111, ch 13, § 15 (2).
S.D. Codified Laws § 58-19-49 — SD Code / Title 58 / Chapter 19 / Section 58-19-49
All group property insurance policies, certificates, and documentation to be filed with the director
Status: in_force

All group property insurance authorized by credit card insurance policies, certificates of insurance, notices of proposed insurance, applications for insurance, endorsements and riders delivered or issued for delivery in this state and the schedules of premium rates pertaining thereto shall be filed with the director.

Source: SL 2001, ch 281, § 5.
S.D. Codified Laws § 58-17H-45 — SD Code / Title 58 / Chapter 17H / Section 58-17H-45
Urgent care requests--Notice of determination--Failure to submit necessary information as grounds for denial of certification
Status: in_force

The health carrier shall notify the covered person or, if applicable, the covered person's authorized representative, of its determination with respect to the urgent care request as soon as possible, but in no event more than forty-eight hours after the earlier of:

(1) The health carrier's receipt of the requested specified information; or

(2) The end of the period provided for the covered person or, if applicable, the covered person's authorized representative, to submit the requested specified information.

If the covered person or the covered person's authorized representative fails to submit the information before the end of the period of the extension, as specified in § 58-17H-44 , the health carrier may deny the certification of the requested benefit. If the health carrier's determination is an adverse determination, the health carrier shall provide notice of the adverse determination in accordance with § 58-17H-32 .

Source: SL 2011, ch 219, § 70.
S.D. Codified Laws § 58-34-60 — SD Code / Title 58 / Chapter 34 / Section 58-34-60
Surplus deposits of subscribers not a liability
Status: in_force

The surplus deposits of subscribers shall not be charged as a liability.

Source: SL 1966, ch 111, ch 19, § 18 (3).
S.D. Codified Laws § 58-5-7 — SD Code / Title 58 / Chapter 5 / Section 58-5-7
Articles of incorporation--Execution and acknowledgment--Contents
Status: in_force

The incorporators shall execute and acknowledge articles of incorporation in triplicate. The articles of incorporation must state:

(1) The name of the corporation; if a mutual, the word "mutual" must be a part of the name. An alternative name or names may be specified for use in other jurisdictions;

(2) The purpose for which the corporation was formed;

(3) The duration of its existence, which may be perpetual;

(4) The kinds of insurance, as defined in this title, which the corporation is formed to transact;

(5) If a stock corporation, its authorized capital, the number of shares of common stock and the par value of each share, which shall be at least one dollar. Only one class of voting common stock shall be authorized;

(6) If a mutual corporation, the maximum contingent liability of its members, other than as to nonassessable policies, shall be stated in the articles of incorporation, but shall not be less than one nor more than six times the premium for the member's policy at the annual premium rate for a term of one year;

(7) The number of directors, which shall be not less than five nor more than twenty - one, the names and addresses of the members of the initial board of directors, who shall serve until the first meeting of stockholders or until their successors are elected and qualify;

(8) The post office address of its principal place of business in this state; and

(9) The name and residence address of each incorporator.

Source: SL 1966, ch 111, ch 16, § 6 (3).
S.D. Codified Laws § 58-29B-13 — SD Code / Title 58 / Chapter 29B / Section 58-29B-13
Proceedings commenced prior to enactment of chapter
Status: in_force

Every proceeding heretofore commenced under the laws in effect before the enactment of this chapter shall be deemed to have commenced under this chapter for the purpose of conducting the proceeding henceforth, except that in the discretion of the director the proceeding may be continued, in whole or in part, as it would have been continued had this chapter not been enacted.

Source: SL 1989, ch 436, § 13.
S.D. Codified Laws § 58-18-77 — SD Code / Title 58 / Chapter 18 / Section 58-18-77
Shorter hospital stay permitted--Follow-up within forty-eight hours required
Status: in_force

If the treating physician determines that the mother and the newborn meet medical criteria contained in Guidelines for Perinatal Care, Third Edition, of the American Academy of Pediatrics and the American College of Obstetricians and Gynecologists as in effect on January 1, 1996, a group health insurance policy may provide coverage for a shorter length of hospital inpatient stay for services related to maternity and newborn care than is required in § 58-18-76 if the coverage includes one follow - up visit in the first forty - eight hours after discharge to verify the condition of the mother and newborn.

Source: SL 1996, ch 292, § 5.
S.D. Codified Laws § 58-11-38 — SD Code / Title 58 / Chapter 11 / Section 58-11-38
Policy, rider, or endorsement containing condition, omission or provision not in compliance with requirements--Validity--Construction
Status: in_force

Any insurance policy, rider, or endorsement issued after June 30, 1966, and otherwise valid which contains any condition, omission or provision not in compliance with the requirements of this title, shall not be thereby rendered invalid but shall be construed and applied in accordance with such conditions and provisions as would have applied had such policy, rider, or endorsement been in full compliance with this title.

Source: SL 1966, ch 111, ch 22, § 22 (2).
S.D. Codified Laws § 58-9-32 — SD Code / Title 58 / Chapter 9 / Section 58-9-32
Surety insurance including indemnification of banks, brokers, and financial institutions
Status: in_force

"Surety insurance" includes insurance indemnifying banks, bankers, brokers, financial or moneyed corporations or associations against loss, resulting from any cause, of bills of exchange, notes, bonds, securities, evidences of debt, deeds, mortgages, warehouse receipts, or other valuable papers, documents, money, precious metals, and articles made therefrom, jewelry, watches, necklaces, bracelets, gems, precious and semiprecious stones, including any loss while the same are being transported in armored motor vehicles, or by messenger, but not including any other risks of transportation or navigation; also insurance against loss or damage to insured's premises, furniture, furnishings, fixtures, equipment, safes, and vaults therein, caused by burglary, robbery, theft, vandalism, malicious mischief, or any attempt thereat.

Source: SL 1966, ch 111, ch 4, § 7 (4).
S.D. Codified Laws § 58-7-31 — SD Code / Title 58 / Chapter 7 / Section 58-7-31
Levy upon deposited assets and securities
Status: in_force

No judgment creditor or other claimant of an insurer shall have the right to levy or to proceed by any remedies, provisional or otherwise, upon any of the assets or securities of the insurer held on deposit in this state. As to deposits pursuant to the retaliatory law, §§ 58-6-70 to 58-6-73 , inclusive, levy thereupon shall be permitted if so provided in the director's order under which the deposit is made.

Source: SL 1966, ch 111, ch 7, § 12.
S.D. Codified Laws § 58-5-51 — SD Code / Title 58 / Chapter 5 / Section 58-5-51
Special meetings of stockholders or members--Calling by board of directors--Notice
Status: in_force

Except as otherwise provided in § 58-5-56 , special meetings of the stockholders or members may be called at any time for any purpose by the board of directors, upon not less than ten days' notice or as provided in the bylaws. The notice shall state the purpose of the meeting, and no business shall be transacted at such meeting other than that given in the notice.

Source: SL 1966, ch 111, ch 16, § 18 (4).
S.D. Codified Laws § 58-7-12 — SD Code / Title 58 / Chapter 7 / Section 58-7-12
Deposits of foreign insurers--Assets comprising--Holding for purposes required by law and as specified by director
Status: in_force

Deposits of foreign insurers made under this title shall consist of such assets as are required by the director. Deposits required pursuant to this title shall be held for such purposes as is required by such law, and as specified by the director's order requiring such deposit to be made.

Source: SL 1966, ch 111, ch 7, §§ 3 (4), 4 (4); SL 1991, ch 398, § 5.
S.D. Codified Laws § 58-11-44.1 — SD Code / Title 58 / Chapter 11 / Section 58-11-44.1
Unanswered questions no basis for denial of recovery unless insurer demanded answers
Status: in_force

Questions on an application for a life or health insurance policy or annuity contract which are not answered shall not serve as a basis for denying recovery pursuant to subdivisions 58-11-44(1) to (3), inclusive, unless the insurer challenges the same and demands an answer within ninety days from receipt of the application.

Source: SL 1974, ch 310.
S.D. Codified Laws § 58-14-16.13 — SD Code / Title 58 / Chapter 14 / Section 58-14-16.13
Terminated or suspended certification--Inactive status
Status: in_force

A certified reinsurer whose certification has been terminated for any reason shall be treated as a certified reinsurer required to secure one hundred percent of the certified reinsurer's obligations. For the purposes of this section, the term, terminated, means revocation, suspension, voluntary surrender, and inactive status. If the director continues to assign a higher rating as permitted by other provisions regarding certification, this requirement does not apply to a certified reinsurer in inactive status or to a reinsurer whose certification has been suspended.

Source: SL 2017, ch 211, § 24.
S.D. Codified Laws § 58-5A-30 — SD Code / Title 58 / Chapter 5A / Section 58-5A-30
Failure to file registration statement or enterprise risk report--Penalty--Waiver
Status: in_force

Failure to file a registration statement, enterprise risk report, or keep the registration statement current within the time specified in this chapter is a violation of this title. Any insurer failing, without just cause, to file any registration statement or amendment as required in this chapter shall pay a penalty of not less than one hundred dollars for each day's delay, but not to exceed twenty-five thousand dollars. The director may reduce or waive the penalty if the insurer demonstrates to the director that the imposition of the penalty constitutes a financial hardship to the insurer.

Source: SL 1972, ch 267, §§ 24, 36; SDCL Supp, § 58-5A-42 ; SL 1978, ch 359, § 2; SL 1992, ch 341, § 19; SL 2015, ch 246, § 10.
S.D. Codified Laws § 58-35-49 — SD Code / Title 58 / Chapter 35 / Section 58-35-49
Claim for loss--Notice in writing--Arbitration
Status: in_force

Every member who shall sustain loss or damage for which the company is liable, shall immediately notify in writing the secretary, or in his absence the president, of the company specifying the property destroyed or damaged and the time and cause thereof. The secretary, or in his absence the president, of the company shall forthwith inspect and adjust the loss or cause it to be inspected and adjusted in such manner as may be provided by the bylaws. In case of the inability of the parties to agree upon the amount of such loss or damage, the claimant and the company shall each choose a disinterested party who shall constitute a board of arbitration to settle such loss, and in case the arbitrators cannot agree they shall choose a third person to act with them and such board of arbitration shall have power to administer oaths, examine witnesses, and determine all matters in dispute and the decision of such board shall be final unless an interested party thereto appeals to a court within sixty days thereafter.

Source: SL 1966, ch 111, ch 17, § 30.
S.D. Codified Laws § 58-26-67 — SD Code / Title 58 / Chapter 26 / Section 58-26-67
Tables used for individual annuity and pure endowment contracts issued on or after July 1, 1978--Interest
Status: in_force

The tables that shall be used for individual annuity and pure endowment contracts issued on or after July 1, 1978, other than single premium immediate annuity contracts, excluding any disability and accidental death benefits in the contracts are: the 1971 Individual Annuity Mortality Table or any individual annuity mortality table adopted after 1980 by the NAIC, that is approved by rules promulgated pursuant to chapter 1-26 by the director for use in determining the minimum standard of valuation for the contracts, or any modification of these tables approved by the director, and five and one-half percent interest for single premium deferred annuity and pure endowment contracts and four and one-half percent interest for all other individual annuity and pure endowment contracts.

Source: SL 1995, ch 284, § 23; SL 2015, ch 254, § 13.
S.D. Codified Laws § 58-10-2 — SD Code / Title 58 / Chapter 10 / Section 58-10-2
Policy defined
Status: in_force

"Policy" means the written contract of or written agreement for or effecting insurance, by whatever name called, and includes all clauses, riders, endorsements, and papers which are a part thereof.

Source: SL 1966, ch 111, ch 22, § 2.
S.D. Codified Laws § 58-1-30.1 — SD Code / Title 58 / Chapter 1 / Section 58-1-30.1
Transmission of electronic documents--Consent by sponsor or policyholder
Status: in_force

Notwithstanding § 58-1-30 , a sponsor or policyholder of a group health plan may consent to notices and documents delivered by electronic means, unless there is a federal requirement for a specific mode of delivery, on behalf of the sponsor or policyholder's covered employees and covered persons.

Source: SL 2023, ch 162, § 2.
S.D. Codified Laws § 58-3-7.3 — SD Code / Title 58 / Chapter 3 / Section 58-3-7.3
Examination under oath--Authority of director or examiner
Status: in_force

The director or any examiner authorized by the director may issue subpoenas, administer oaths, and examine under oath any person as to any matter pertinent to the examination. Subpoenas may be enforced pursuant to chapters 1-26 , 15-6 , and 21-34 .

Source: SL 1992, ch 338, § 7.
S.D. Codified Laws § 58-41-6 — SD Code / Title 58 / Chapter 41 / Section 58-41-6
Verification and form of application--Contents
Status: in_force

Each application for a certificate of authority shall be verified by an officer or authorized representative of the applicant, shall include an application fee, and shall be in a form prescribed by the director. Each application shall include the following:

(1) A copy of the basic organizational document, if any, of the applicant, such as the articles of incorporation, or other applicable documents, and all amendments thereto;

(2) A copy of the bylaws, rules, and regulations, or similar document, if any, and all amendments thereto which regulate the conduct of the affairs of the applicant;

(3) A list of the names, addresses, and official positions of all members of the board of directors, and the principal officers of the organization, which shall contain a full disclosure in the application of the extent and nature of any contract or financial arrangements between them and the health maintenance organization, including a full disclosure of any financial arrangements between them and any provider or other person concerning any financial relationship with the health maintenance organization;

(4) A statement generally describing the health maintenance organization, its health care plan or plans, facilities, and personnel, including a statement describing the manner in which the applicant proposes to provide enrollees with comprehensive health maintenance services or limited health services;

(5) A statement reasonably describing the geographic area or areas to be served and the type or types of enrollees to be served;

(6) A description of the complaint procedures to be utilized;

(7) A description of the procedures and programs to be implemented to meet the requirements of subdivisions 58-41-12(2) and (3) and chapters 58-17G and 58-17H and to monitor the quality of health care provided to enrollees;

(8) A description of the mechanism by which enrollees will be afforded an opportunity to participate in matters of policy and operation under §§ 58-41-23 and 58-41-24 ;

(9) Such other information as the director may reasonably require to be provided;

(10) A copy of the form of any contract made, or to be made, between the applicant and any providers regarding the provision of limited health services to enrollees;

(11) A copy of the form of any contract made, or to be made, between the applicant and any person listed in subdivision (3) of this section;

(12) A copy of the form of any contract made, or to be made, between the applicant and any person, corporation, partnership, or other entity for the performance on the applicant's behalf of any functions including marketing, administration, enrollment, investment management, and subcontracting for the provision of limited health services to enrollees;

(13) A copy of the form of any group contract that is to be issued to employers, unions, trustees, or other organizations and a copy of any form of evidence of coverage to be issued to subscribers;

(14) A copy of the applicant's financial plan, including a three-year projection of anticipated operating results, a statement of the sources of working capital, and any other sources of funding and provisions for contingencies;

(15) A schedule of rates and charges;

(16) A description of the proposed method of marketing;

(17) A copy of the applicant's financial statements showing the applicant's assets, liabilities, and sources of financial support, including a copy of the applicant's most recent audited financial statement and an unaudited current financial statement, or if the information is not applicable to the applicant, a list of the assets representing the initial net worth of the applicant;

(18) A financial plan that provides a three-year projection of operating results, including:

(a) A projection of balance sheets;

(b) Income and expense statements anticipated from the start of operations until the organization has had net income for at least one year;

(c) Cash flow statements showing any capital expenditures, purchase and sale of investments and deposits with the state;

(d) Detailed enrollment projections;

(e) The methodology for determining premium rates to be charged that has been certified by a qualified actuary; and

(f) A statement as to the sources of working capital as well as any other sources of funding;

(19) The names and addresses of the applicants's qualified actuary and external auditors;

(20) If the applicant has a parent company and the director determines that additional solvency guarantees are necessary, the parent company's guaranty, on a form acceptable to the director, that the applicant will maintain the minimum net worth required under this chapter. If no parent company exists, a statement regarding the availability of future funds, if needed;

(21) A description of the nature and extent of any reinsurance program to be implemented, including a detailed risk retention schedule indicating direct, assumed, ceded, and net maximum risk exposures on any one risk;

(22) A demonstration that errors and omission insurance or other arrangements satisfactory to the director will be in place upon the applicant's receipt of a certificate of authority;

(23) If the applicant is a foreign corporation, a statement from the appropriate regulatory agency of the applicant's state of domicile stating that:

(a) The applicant is authorized to operate as a health maintenance organization in the state of domicile;

(b) The regulatory agency has no objection to the applicant applying for a certificate of authority in this state;

(24) The name and address of the applicant's statutory agent for service of process, notice, or demand, or if not domiciled in this state, a power of attorney duly executed by the applicant, appointing the director and duly authorized deputies, as the true and lawful attorney of the applicant in and for this state upon whom all lawful process in any legal action or proceeding against the health maintenance organization on a cause of action arising in this state may be served;

(25) A description of the proposed policies, standards, and procedures for the management of health information, including proposed policies, standards, and procedures that guard against the unauthorized collection, use, or disclosure of protected health information, that complies with §§ 58-2-40 and 58-2-41 ;

(26) A description of the proposed quality assessment and improvement activities regarding the maintenance and improvement of the quality of health care services provided to covered persons;

(27) A description of the proposed health care provider credentialing program;

(28) If the health maintenance organization will provide or perform utilization review services, a description of the proposed utilization review procedures;

(29) A description of the proposed internal grievance procedures; and

(30) A description of the proposed external review procedures.

Source: SL 1974, ch 321, § 6 (1) to (4), (10) to (14); SL 2013, ch 256, § 3.
S.D. Codified Laws § 58-26-74 — SD Code / Title 58 / Chapter 26 / Section 58-26-74
Alternative method for determination of reference interest rate
Status: in_force

If the Monthly Average of the Composite Yield on Seasoned Corporate Bonds is no longer published by Moody's Investors Service, Inc., or if the NAIC determines that the Monthly Average of the Composite Yield on Seasoned Corporate Bonds as published by Moody's Investors Service, Inc., is no longer appropriate for the determination of the reference interest rate, then an alternative method for determination of the reference interest rate, which is adopted by the NAIC and approved by rules promulgated pursuant to chapter 1-26 by the director, may be substituted.

Source: SL 1995, ch 284, § 30; SL 2015, ch 254, § 16.
S.D. Codified Laws § 58-2-9 — SD Code / Title 58 / Chapter 2 / Section 58-2-9
Legal adviser to division--Employment--Duties
Status: in_force

The Department of Labor and Regulation shall appoint and employ an attorney to act as legal adviser to the division and to make investigations of violations or claimed violations of this title and to perform such other duties as directed by the department.

Source: SL 1966, ch 111, ch 2, § 4 (5); SL 2003, ch 272 (Ex. Ord. 03-1), § 20; SL 2011, ch 1 (Ex. Ord. 11-1 ), § 162, eff. Apr. 12, 2011.
S.D. Codified Laws § 58-41-87 — SD Code / Title 58 / Chapter 41 / Section 58-41-87
Notice of grounds for denial, suspension, or revocation of certificate--Time of hearing--Summary proceedings excepted
Status: in_force

If the director has cause to believe that grounds for the denial of an application for a certificate of authority exist, or that grounds for the suspension or revocation of a certificate of authority exist, the director shall notify the health maintenance organization in writing specifically stating the grounds for denial, suspension, or revocation and fixing a time of at least twenty days thereafter for a hearing on the matter, except in summary proceedings as provided in § 58-41-94 .

Source: SL 1974, ch 321, § 39; SL 2013, ch 256, § 31.
S.D. Codified Laws § 58-12-35 — SD Code / Title 58 / Chapter 12 / Section 58-12-35
Notice of hearing
Status: in_force

If the director has reasonable cause to believe that an insurer doing business in this state is engaging in an unfair claims practice and that a proceeding in respect thereto is in the public interest, the director may issue and serve upon the insurer a notice of hearing, which shall set a hearing date not less than thirty days from the date of the notice. The hearing shall be conducted pursuant to chapter 1-26 . Prior to conducting a public hearing pursuant to this section against an insurer regulated by chapter 58-35 , the director shall attempt to resolve the alleged unfair claims practice with the insurer.

Source: SL 2014, ch 235, § 5.
S.D. Codified Laws § 58-6A-19.6 — SD Code / Title 58 / Chapter 6A / Section 58-6A-19.6
Insurance producer or broker license required to solicit liability insurance for member of purchasing group
Status: in_force

No person, firm, association, or corporation may act or aid in any manner in soliciting, negotiating, or procuring liability insurance coverage in this state for any member of a purchasing group under a purchasing group's policy unless the person, firm, association, or corporation is licensed as an insurance producer in accordance with Title 58.

Source: SL 1988, ch 392, § 14; SL 2001, ch 286, § 95.
S.D. Codified Laws § 58-15-26.3 — SD Code / Title 58 / Chapter 15 / Section 58-15-26.3
Interest not required where beneficiary elects to receive other than lump sum payment
Status: in_force

The provisions of § 58-15-26.1 do not require the payment of interest in any case in which the beneficiary elects in writing delivered to the insurer to receive the proceeds of or payments under a life insurance policy by any means other than a lump sum payment.

Source: SL 1987, ch 375, § 3.
S.D. Codified Laws § 58-21-5 — SD Code / Title 58 / Chapter 21 / Section 58-21-5
Release from liability on official bonds
Status: in_force

A surety insurer may be released from its liability on a bond referred to in § 58-21-1 upon the same terms and conditions as are by law prescribed for the release of individual sureties.

Source: SL 1966, ch 111, ch 28, § 2.
S.D. Codified Laws § 58-17I-15 — SD Code / Title 58 / Chapter 17I / Section 58-17I-15
Expedited review decision--Notification--Required contents
Status: in_force

A notification of a decision under §§ 58-17I-12 to 58-17I-15 , inclusive, shall, in a manner calculated to be understood by the covered person or, if applicable, the covered person's authorized representative, set forth the following:

(1) The titles and qualifying credentials of any person participating in the expedited review process (the reviewer);

(2) Information sufficient to identify the claim involved with respect to the grievance, including the date of service, the health care provider, if applicable, the claim amount, the diagnosis code and its corresponding meaning, and the treatment code and its corresponding meaning;

(3) A statement of the reviewer's understanding of the covered person's grievance;

(4) The reviewer's decision in clear terms and the contract basis or medical rationale in sufficient detail for the covered person to respond further to the health carrier's position;

(5) A reference to the evidence or documentation used as the basis for the decision;

(6) If the decision involves a final adverse determination, the notice shall provide:

(a) The specific reason or reasons for the final adverse determination, including the denial code and its corresponding meaning, as well as a description of the health carrier's standard, if any, that was used in reaching the denial;

(b) A reference to the specific plan provisions on which the determination is based;

(c) A description of any additional material or information necessary for the covered person to complete the request, including an explanation of why the material or information is necessary to complete the request;

(d) If the health carrier relied upon an internal rule, guideline, protocol, or other similar criterion to make the adverse determination, either the specific rule, guideline, protocol, or other similar criterion or a statement that a specific rule, guideline, protocol, or other similar criterion was relied upon to make the adverse determination and that a copy of the rule, guideline, protocol, or other similar criterion will be provided free of charge to the covered person upon request;

(e) If the final adverse determination is based on a medical necessity or experimental or investigational treatment or similar exclusion or limit, either an explanation of the scientific or clinical judgment for making the determination, applying the terms of the health benefit plan to the covered person's medical circumstances or a statement that an explanation will be provided to the covered person free of charge upon request;

(f) If applicable, instructions for requesting:

(i) A copy of the rule, guideline, protocol, or other similar criterion relied upon in making the adverse determination as provided in subsection (d) of this section; or

(ii) The written statement of the scientific or clinical rationale for the adverse determination as provided in subsection (e) of this section;

(g) A statement describing the procedures for obtaining an independent external review of the adverse determination pursuant to rules promulgated by the director;

(h) A statement indicating the covered person's right to bring a civil action in a court of competent jurisdiction;

(i) The following statement: "You and your plan may have other voluntary alternative dispute resolution options, such as mediation. One way to find out what may be available is to contact your state insurance director."; and

(j) A notice of the covered person's right to contact the Division of Insurance for assistance at any time, including the telephone number and address of the Division of Insurance.

A health carrier may provide the notice required under this section orally, in writing, or electronically. If notice of the adverse determination is provided orally, the health carrier shall provide written or electronic notice of the adverse determination within three days following the date of the oral notification.

Source: SL 2011, ch 219, § 87.
S.D. Codified Laws § 58-29B-38 — SD Code / Title 58 / Chapter 29B / Section 58-29B-38
Guaranty associations--Standing to appear in rehabilitation proceedings
Status: in_force

Any guaranty association or foreign guaranty association covering life or health insurance or annuities shall have standing to appear in any court proceeding concerning the rehabilitation of a life or health insurer if such association is or may become liable to act as a result of the rehabilitation.

Source: SL 1989, ch 436, § 38.
S.D. Codified Laws § 58-38-27 — SD Code / Title 58 / Chapter 38 / Section 58-38-27
Purchasing organization's responsibility for negotiating terms and conditions
Status: in_force

The organization shall be responsible for negotiating the terms and conditions of insurance contracts, collection of premiums, and providing notice to members.

Source: SL 1994, ch 382, § 3.
S.D. Codified Laws § 58-17K-1 — SD Code / Title 58 / Chapter 17K / Section 58-17K-1
Definitions
Status: in_force

Terms used in this chapter mean:

(1) "Accumulated amount," the amount of financial responsibility an enrollee has incurred at the time a request for cost-sharing information is made, with respect to a deductible or out-of-pocket limit as calculated under rules promulgated by the director;

(2) "Billed charge," the total charges for an item or service billed to a health insurer by a provider;

(3) "Billing code," the code used by a health insurer or provider to identify a health care item or service for purposes of billing, adjudicating, and paying a claim for a covered item or service, including current procedural terminology (CPT) code, health care common procedure coding system (HCPCS) code, diagnosis-related group (DRG) code, national drug code (NDC), or other common payer identifier;

(4) "Bundled payment arrangement," a payment model under which a provider is paid a single payment for all covered items and services provided to an enrollee for a specific treatment or procedure;

(5) "Cost-sharing liability," the amount an enrollee is responsible for paying for a covered item or service under the terms of the health insurance coverage;

(6) "Cost-sharing information," information related to any expenditure required by or on behalf of an enrollee with respect to health care benefits that are relevant to a determination of the enrollee's cost-sharing liability for a particular covered item or service;

(7) "Covered item or service," an item or service, including a prescription drug, the cost for which is payable, in whole or in part, under the terms of the health insurance coverage;

(8) "Derived amount," the price that a health insurer assigns to an item or service for the purpose of internal accounting, reconciliation with providers, or submitting data;

(9) "Enrollee," an individual receiving health insurance coverage from a health insurer;

(10) "Historical net price," the retrospective average amount a health insurer paid for a prescription drug, inclusive of any reasonably allocated rebates, discounts, chargebacks, fees, and any additional price concessions received by the health insurer with respect to the prescription drug as calculated under rules promulgated by the director;

(11) "In-network provider," any provider of any item or service with which a health insurer or a third party for the insurer has a contract setting forth the terms and conditions on which a relevant item or service is provided to an enrollee;

(12) "Item or service," any encounters, procedures, medical tests, supplies, prescription drugs, durable medical equipment, and fees, including facility fees, provided or assessed in connection with the provision of health care;

(13) "Machine-readable file," a digital representation of data or information in a file that can be imported or read by a computer system for further processing without human intervention, while ensuring no semantic meaning is lost;

(14) "Negotiated rate," the amount a health insurer has contractually agreed to pay an in-network provider, including an in-network pharmacy or other prescription drug dispenser, for covered items and services, whether directly or indirectly, including through a third-party administrator or pharmacy benefit manager;

(15) "Out-of-network allowed amount," the maximum amount a health insurer will pay for a covered item or service furnished by an out-of-network provider;

(16) "Out-of-network provider," a provider of any item or service that does not have a contract under an enrollee's health insurance coverage to provide items or services;

(17) "Out-of-pocket limit," the maximum amount that an enrollee is required to pay during a coverage period for the enrollee's share of the costs of covered items and services under the enrollee's health insurance coverage, including for self-only and other than self-only coverage, as applicable;

(18) "Prerequisite," concurrent review, prior authorization, and step-therapy or fail-first protocols related to a covered item or service that must be satisfied before a health insurer will cover the item or service. The term does not include a medical necessity determination generally or other forms of medical management techniques; and

(19) "Underlying fee schedule rate," the rate for a covered item or service from a particular in-network provider, or a provider that a health insurer uses to determine an enrollee's cost-sharing liability for the item or service, if that rate is different from the negotiated rate or derived amount.

Source: SL 2021, ch 213, § 1.
S.D. Codified Laws § 58-10-4 — SD Code / Title 58 / Chapter 10 / Section 58-10-4
Insurable interest in personal insurance defined
Status: in_force

Insurable interest with reference to personal insurance includes only interests as follows:

(1) Interests in individuals related closely by blood, marriage, or by law, a substantial interest engendered by love and affection;

(2) For other persons, a lawful and substantial economic interest in having the life, health, or bodily safety of the individual insured continue, as distinguished from an interest which would arise only by, or would be enhanced in value by, the death, disablement, or injury of the individual insured;

(3) A person who is a party to a contract or option for the purchase or sale of an interest in a business partnership or firm, or of shares of stock of a closed corporation or of an interest in the shares, has an insurable interest in the life of each individual party to the contract and for the purpose of the contract only, in addition to any insurable interest which may otherwise exist as to the life of the individual;

(4) A charitable organization that meets the requirements of section 501(c)3 of the Internal Revenue Code of 1986, as amended to January 1, 1992, and owns or purchases life insurance on an insured who consents to the ownership or purchase of the insurance has an insurable interest in the life of the insured;

(5) A financial institution, as defined in subdivision 10-43-1(4), to whom a debt is owed has an insurable interest in the life of the insured to the extent of the debt owed by the insured, irrespective of any statute of limitation regarding the enforceability of the debt;

(6) The trustee of a trust established by an individual settlor has an insurable interest in the life of that individual settlor, and has the same insurable interest in the life of any other individual as does such individual settlor. However, the settlor must be the insured or have an insurable interest as required by subdivisions (1) to (5), inclusive, of this section. The trustee of a trust has the same insurable interest in the life of any other individual as does any beneficiary of the trust with respect to proceeds of insurance on the life of such individual or any portion of such proceeds that are allocable to such beneficiary's interest in such trust. If multiple beneficiaries of a trust have an insurable interest in the life of the same individual, the trustee of such trust has the same aggregate insurable interest in such individual's life as such beneficiaries with respect to proceeds of insurance on the life of such individual or any portion of such proceeds that are allocable in the aggregate to such beneficiaries' interest in the trust. A trustee of a business trust has the same insurable interest in the life of any individual as does any beneficial owner in any individual or any beneficial owners in the aggregate in any individual.

Source: SL 1966, ch 111, ch 22, § 4 (3); SL 1989, ch 423, § 1; SL 1992, ch 343; SL 2000, ch 237, § 1; SL 2006, ch 251, § 1.
S.D. Codified Laws § 58-30-190 — SD Code / Title 58 / Chapter 30 / Section 58-30-190
Waiver of privilege or claim of confidentiality
Status: in_force

No waiver of any applicable privilege or claim of confidentiality in the documents, materials, or information occurs as a result of disclosure to the director under §§ 58-30-180 to 58-30-192 , inclusive, or as a result of sharing as authorized in § 58-30-187 .

Source: SL 2001, ch 286, § 50; SL 2021, ch 210, § 20.
S.D. Codified Laws § 58-18-7 — SD Code / Title 58 / Chapter 18 / Section 58-18-7
Continuation without evidence of insurability--Application
Status: in_force

Any group health policy which contains provisions for the payment by the insurer of benefits for expenses incurred on account of hospital, nursing, medical, or surgical services shall provide for the continuation of benefit provisions, or any part or parts thereof, without evidence of insurability. The provisions of §§ 58-18-7.4 to 58-18-7.15 , inclusive, apply to employers that have fewer than twenty employees employed.

Source: SL 1966, ch 111, ch 26, § 1 (6); SL 1989, ch 433, § 2; SL 2005, ch 270, § 1.
S.D. Codified Laws § 58-29B-56 — SD Code / Title 58 / Chapter 29B / Section 58-29B-56
Time periods in which liquidator may act for or institute action on behalf of insurer
Status: in_force

The liquidator may, upon or after an order for liquidation, within two years or such time in addition to two years as applicable law may permit, institute an action or proceeding on behalf of the estate of the insurer upon any cause of action against which the statute of limitations has not expired at the time of the filing of the petition upon which such order is entered. If, by any agreement, a period of limitation is fixed for instituting a suit or proceeding upon any claim, or for filing any claim, proof of claim, proof of loss, demand, notice, or the like, or where in any proceeding, judicial or otherwise, a period of limitation is fixed, either in the proceeding or by applicable law, for taking any action, filing any claim or pleading, or doing any act, and where in any such case the period had not expired at the date of the filing of the petition, the liquidator may, for the benefit of the estate, take any such action or do any such act, required of or permitted to the insurer, within a period of one hundred eighty days subsequent to the entry of an order for liquidation, or within such further period as is shown to the satisfaction of the court not to be unfairly prejudicial to the other party.

Source: SL 1989, ch 436, § 56.
S.D. Codified Laws § 58-48-7 — SD Code / Title 58 / Chapter 48 / Section 58-48-7
Grant or denial of waiver--Duration of waiver--Waiver deemed authority to act
Status: in_force

The director shall grant or deny a waiver within ninety days after the director determines the applicant's waiver application to be complete. The director and the applicant may mutually agree to extend the ninety-day period. The director may deny a waiver application at the director's discretion based on the division's analysis of the application. The director's discretionary decision to grant or deny a waiver is not appealable and not subject to chapter 1-26 . The director may grant a waiver for a period that may not exceed twenty-four months. A participant receiving a waiver has appropriate authority under the laws of this state to act for the purposes of any provision of federal law requiring state licensure or authorization and is not subject to chapter 58-8 for acts taken in compliance with a waiver.

Source: SL 2021, ch 214, § 7.
S.D. Codified Laws § 58-22-55 — SD Code / Title 58 / Chapter 22 / Section 58-22-55
Report of felony criminal prosecution
Status: in_force

A person licensed under this chapter shall report any felony criminal prosecution of the person taken in any jurisdiction to the director within thirty days of the initial pretrial hearing date. The report shall include a copy of the initial complaint filed, the order resulting from the hearing, and any other relevant legal documents.

For purposes of this section, initial pretrial hearing means either a defendant's arraignment or the first time that a defendant who is accused of a crime, or the defendant's attorney, appears before a court in a criminal action in any jurisdiction, whichever occurs first.

Source: SL 2016, ch 233, § 3.
S.D. Codified Laws § 58-5A-60 — SD Code / Title 58 / Chapter 5A / Section 58-5A-60
Certain securities not to be voted at shareholder's meeting--Application for injunction
Status: in_force

No security, which is the subject of any acquisition, agreement, or arrangement, or which is acquired or to be acquired, in contravention of the provisions of this chapter or order issued by the director, may be voted at any shareholder's meeting, or may be counted for quorum purposes. Any action of shareholders requiring the affirmative vote of a percentage of shares may be taken as though those securities were not issued and outstanding; but no action taken at any meeting may be invalidated by the voting of those securities, unless the action would materially affect control of the insurer or unless the circuit court of Hughes County has so ordered. If an insurer or the director has reason to believe that any security of the insurer has been or is about to be acquired in contravention of the provisions of this chapter, an order issued by the director, the insurer or the director may apply to the circuit court in Hughes County to enjoin any offer, request, invitation, agreement, or acquisition made in contravention of this chapter or order issued by the director, to enjoin the voting of any security so acquired, or to void any vote of a security already cast at any meeting of shareholders.

Source: SL 1992, ch 341, § 27.
S.D. Codified Laws § 58-29C-49 — SD Code / Title 58 / Chapter 29C / Section 58-29C-49
Continuation of association--Membership--Function and organization--Accounts--Supervision--Meetings
Status: in_force

A. There is hereby continued the nonprofit legal entity known as the South Dakota Life and Health Insurance Guaranty Association as created by former § 58-29C-1 . All member insurers shall be and remain members of the association as a condition of their authority to transact insurance in this state. The association shall perform its functions under the plan of operation established and approved under § 58-29C-53 and shall exercise its powers through a board of directors established under § 58-29C-50 . For purposes of administration and assessment, the association shall maintain two accounts:

(1) The life insurance and annuity account which includes the following subaccounts:

(a) Life insurance account; and

(b) Annuity account; and

(2) The health insurance account.

B. The association shall come under the immediate supervision of the director and shall be subject to the applicable provisions of the insurance laws of this state. Meetings or records of the association may be opened to the public upon majority vote of the board of directors of the association.

Source: SL 2003, ch 252, § 6; SL 2013, ch 252, § 3.
S.D. Codified Laws § 58-17E-30 — SD Code / Title 58 / Chapter 17E / Section 58-17E-30
Copies of agreements to be maintained
Status: in_force

The discount medical plan organization shall maintain a copy of each active provider agreement into which it has entered.

Source: SL 2006, ch 257, § 30.
S.D. Codified Laws § 58-24-67 — SD Code / Title 58 / Chapter 24 / Section 58-24-67
Notice to workers' compensation purchaser organizations
Status: in_force

Within thirty days of receipt of a notice pursuant to § 58-24-66 , the director of the Division of Insurance shall schedule an informal hearing and send notice of the intent to conduct the informal hearing to organizations of purchasers of workers' compensation insurance and insurers who have registered with the director to receive such notices.

Source: SL 1990, ch 401, § 2; SL 1993, ch 362, § 5.
S.D. Codified Laws § 58-34-57 — SD Code / Title 58 / Chapter 34 / Section 58-34-57
Contingent liability of subscribers not allowed as asset
Status: in_force

The contingent liability of subscribers shall not be allowed as an asset.

Source: SL 1966, ch 111, ch 19, § 18 (6).
S.D. Codified Laws § 58-33-53 — SD Code / Title 58 / Chapter 33 / Section 58-33-53
Service of process on agent of insurer
Status: in_force

Service of statement of charges, notices, and process in any such proceeding, action, or suit shall in addition to the manner provided in § 58-33-52 be valid if served upon any person within this state who on behalf of such insurer is:

(1) Soliciting insurance; or

(2) Making, issuing, or delivering any contract of insurance; or

(3) Collecting or receiving in this state any premium for insurance;

Source: SL 1966, ch 111, ch 13, § 30 (3); SL 1982, ch 28, § 18.
S.D. Codified Laws § 58-30-195 — SD Code / Title 58 / Chapter 30 / Section 58-30-195
Promulgation of licensure rules
Status: in_force

The director may promulgate rules pursuant to chapter 1-26 to provide for:

(1) Qualifications for licensure;

(2) Exceptions to licensure;

(3) Application for licensure;

(4) Rights and obligations of licensure;

(5) Temporary licenses;

(6) Nonresident licensing;

(7) Denial, nonrenewal, or revocation of license;

(8) Application for examination and examination procedures;

(9) Exemption from examination;

(10) Commissions;

(11) Appointments and termination thereof;

(12) Reciprocity;

(13) Reporting of actions;

(14) Definition of terms; and

(15) Required forms or procedures.

Source: SL 2001, ch 286, § 55.
S.D. Codified Laws § 58-5-48 — SD Code / Title 58 / Chapter 5 / Section 58-5-48
Bylaws of domestic stock insurer subject to approval of director
Status: in_force

The bylaws of a domestic stock insurer shall be subject to the approval of the director as provided in § 58-5-46 .

Source: SL 1966, ch 111, ch 16, § 17 (2).
S.D. Codified Laws § 58-35-38 — SD Code / Title 58 / Chapter 35 / Section 58-35-38
Cash premium plan--Collection of premiums
Status: in_force

If transacting business on the cash premium plan, the insurer shall collect from each member before or at the effective date of the member's insurance the premium in such amount as the insurer deems will be adequate to cover losses and expenses incurred during the term of such insurance, or for a period of one year from the inception date of the policy, if same be written for a longer period than one year.

Source: SL 1966, ch 111, ch 17, § 6 (2).
S.D. Codified Laws § 58-19-44 — SD Code / Title 58 / Chapter 19 / Section 58-19-44
Disapproval by director if premium rates excessive or provisions unjust
Status: in_force

Within thirty days after the filing of any credit unemployment insurance policy, certificate of insurance, notice of proposed insurance, application for insurance, endorsement, or rider, the director shall disapprove any such form if the premium rates charged or to be charged are excessive in relation to benefits, or if such form contains provisions which are unjust, unfair, inequitable, misleading, deceptive, or encourage misrepresentation of the coverage, or are contrary to any provision of this title.

Source: SL 1987, ch 380, § 6.
S.D. Codified Laws § 58-32-8 — SD Code / Title 58 / Chapter 32 / Section 58-32-8
Application for surplus line license--Fee
Status: in_force

Application for license as a surplus lines broker shall be made to the director on forms furnished by the director. The license fee shall be as specified in § 58-2-29 .

Source: SL 1966, ch 111, ch 11, § 12 (2), (3).
S.D. Codified Laws § 58-33-124 — SD Code / Title 58 / Chapter 33 / Section 58-33-124
Additional practices using personnel, services, or programs of the armed forces or depository institutions considered false, misleading, deceptive, or unfair
Status: in_force

The following acts or practices by an insurer or insurance producer constitute corrupt practices or improper influences or inducements and are declared to be false, misleading, deceptive, or unfair:

(1) Submitting, processing, or assisting in the submission or processing of any allotment form or similar device used by the armed forces of the United States to direct a service member's pay to a third party for the purchase of life insurance. The foregoing includes using or assisting in using a service member's MyPay account or other similar internet or electronic medium for such purposes. This subdivision does not prohibit assisting a service member by providing insurer or premium information necessary to complete any allotment form;

(2) Knowingly receiving funds from a service member for the payment of premium from a depository institution with which the service member has no formal banking relationship. For purposes of this section, a formal banking relationship is established when the depository institution:

(a) Provides the service member a deposit agreement and periodic statements and makes the disclosures required by the Truth in Savings Act, 12 U.S.C. § 4301 et seq., as of January 1, 2008, and the regulations promulgated thereunder as of January 1, 2008; and

(b) Permits the service member to make deposits and withdrawals unrelated to the payment or processing of insurance premiums;

(3) Employing any device or method or entering into any agreement whereby funds received from a service member by allotment for the payment of insurance premiums are identified on the service member's leave and earnings statement or equivalent or successor form as, savings, or, checking, and where the service member has no formal banking relationship;

(4) Entering into any agreement with a depository institution for the purpose of receiving funds from a service member whereby the depository institution, with or without compensation, agrees to accept direct deposits from a service member with whom it has no formal banking relationship;

(5) Using Department of Defense personnel, directly or indirectly, as a representative or agent in any official or unofficial capacity with or without compensation with respect to the solicitation or sale of life insurance to service members who are junior in rank or grade, or to the family members of such personnel;

(6) Offering or giving anything of value, directly or indirectly, to Department of Defense personnel to procure their assistance in encouraging, assisting or facilitating the solicitation or sale of life insurance to another service member;

(7) Knowingly offering or giving anything of value to a service member with a pay grade of E-4 or below for his or her attendance to any event where an application for life insurance is solicited; or

(8) Advising a service member with a pay grade of E-4 or below to change his or her income tax withholding or state of legal residence for the sole purpose of increasing disposable income to purchase life insurance.

Source: SL 2008, ch 272, § 8.
S.D. Codified Laws § 58-35-27 — SD Code / Title 58 / Chapter 35 / Section 58-35-27
Officers--Election--Term of office
Status: in_force

The board of directors of an insurer shall elect from their number a president and vice - president. The board shall also elect a secretary and treasurer or a secretary - treasurer of the insurer. Officers shall hold their offices for one year, and until their successors are elected and qualified.

Source: SL 1966, ch 111, ch 17, § 19.
S.D. Codified Laws § 58-17-42 — SD Code / Title 58 / Chapter 17 / Section 58-17-42
Age limit in policy--Effect of acceptance of premiums or misstatement of age
Status: in_force

If any policy of health insurance contains a provision establishing, as an age limit or otherwise, a date after which the coverage provided by the policy will not be effective, and if such date falls within a period for which premium is accepted by the insurer or if the insurer accepts a premium after such date, the coverage provided by the policy will continue in force until the end of the period for which premium has been accepted. In the event the age of the insured has been misstated and if, according to the correct age of the insured, the coverage provided by the policy would not have become effective, or would have ceased prior to the acceptance of such premium or premiums, then the liability of the insurer shall be limited to the refund, upon request, of all premiums paid for the period not covered by the policy.

Source: SL 1966, ch 111, ch 25, § 28.
S.D. Codified Laws § 58-11-9.1 — SD Code / Title 58 / Chapter 11 / Section 58-11-9.1
Motor vehicle insured by insolvent liability insurer defined as uninsured--Rights of insurer making payment under uninsured motorist coverage
Status: in_force

For the purpose of uninsured motorist coverage the term "uninsured motor vehicle" shall be deemed to include an insured motor vehicle where the liability insurer thereof is unable to make payment with respect to the legal liability of its insured within the limits specified therein because of insolvency. In the event of payment by an insurer to any person under the uninsured motorist coverage, the insurer making such payment shall, to the extent thereof, be entitled to the proceeds of any settlement or judgment resulting from the exercise of any rights of recovery of such person against any person or organization legally responsible for the damage for which such payment is made, including the proceeds recoverable from the assets of the insolvent insurer.

Source: SL 1966, ch 111, ch 22, § 16 (5) as added by SL 1968, ch 136.
S.D. Codified Laws § 58-29B-6 — SD Code / Title 58 / Chapter 29B / Section 58-29B-6
Grounds for personal jurisdiction
Status: in_force

In addition to other grounds for jurisdiction provided by the law of this state, a court of this state having jurisdiction of the subject matter has jurisdiction over a person served pursuant to chapter 15-6 or other applicable provisions of law in an action brought by the receiver of a domestic insurer or an alien insurer domiciled in this state:

(1) If the person served is obligated to the insurer in any way as an incident to any agency or brokerage or other arrangement that may exist or has existed between the insurer and the insurance producer or representative of the insurer, in any action on or incident to the obligation;

(2) If the person served is a reinsurer who has at any time written a policy of reinsurance for an insurer against which a rehabilitation or liquidation order is in effect when the action is commenced, or is an insurance producer or representative of or for the reinsurer, in any action on or incident to the reinsurance contract;

(3) If the person served is or has been an officer, manager, trustee, organizer, promoter, or person in a position of comparable authority or influence in an insurer against which a rehabilitation or liquidation order is in effect when the action is commenced, in any action resulting from such a relationship with the insurer;

(4) If the person served is an insurance producer or representative of the insurer or other person who has at any time written policies of insurance for or has acted in any manner on behalf of an insurer against which a delinquency proceeding has been instituted, in any action resulting from or incident to such a relationship with the insurer;

(5) If the person served is or was at the time of the institution of the delinquency proceeding against the insurer holding assets in which the receiver claims an interest on behalf of the insurer, in any action concerning the assets; or

(6) If the person served is obligated to the insurer in any way whatsoever, in any action or incident to the obligation.

Source: SL 1989, ch 436, § 6; SL 1992, ch 351, § 1; SL 2001, ch 286, § 139.
S.D. Codified Laws § 58-29A-69 — SD Code / Title 58 / Chapter 29A / Section 58-29A-69
Association deemed insurer to extent of obligations on covered claims
Status: in_force

The association shall be deemed the insurer to the extent of its obligation on the covered claims and to such extent, subject to the limitations provided in this chapter, shall have all rights, duties, and obligations of the insolvent insurer as if the insurer had not become insolvent, including the right to pursue and retain salvage and subrogation recoverable on paid covered claim obligations. The association may not be deemed the insolvent insurer for any purpose relating to the issue of whether the association is amenable to the personal jurisdiction of the courts of any state.

Source: SL 2000, ch 247, § 16.
S.D. Codified Laws § 58-8-4 — SD Code / Title 58 / Chapter 8 / Section 58-8-4
Acceptance of advertising without proof of authority to do business in state as misdemeanor
Status: in_force

No person may accept for publication or printing any newspaper, magazine, or other periodical, or for radio or television broadcasting in this state, any advertisement or other notice, either directly or indirectly setting forth the advantages of or soliciting business for any insurer, insurance producer, or other person, unless the publisher holds a certificate to the effect that the insurer, insurance producer, or other person named therein is authorized to transact insurance business in this state for the current license year. The certificate shall be issued by the director without cost to any person applying therefor.

Any violation of this section is a Class 2 misdemeanor.

Source: SL 1966, ch 111, ch 12, § 1 (3); SL 1978, ch 359, § 2; SL 2001, ch 286, § 100.
S.D. Codified Laws § 58-12-33 — SD Code / Title 58 / Chapter 12 / Section 58-12-33
Flagrant or frequent violations--Notice and opportunity to correct inadvertent violations
Status: in_force

Any act by an insurer, if committed in violation of this section, is an unfair claims practice if:

(1) It is committed flagrantly and in conscious disregard of the provisions of §§ 58-12-31 to 58-12-37 , inclusive, or any rule promulgated pursuant to §§ 58-12-31 to 58-12-37 , inclusive; or

(2) It is committed with such frequency to indicate a general business practice to engage in that type of conduct.

For any act defined in § 58-12-34 , the director shall provide notice and an opportunity to correct the violation pursuant to § 58-33-68 if the act was inadvertent. Any act that is committed flagrantly or in conscious disregard of the provisions of §§ 58-12-31 to 58-12-37 , inclusive, are not subject to the procedures required under § 58-33-68 .

Source: SL 2014, ch 235, § 3.
S.D. Codified Laws § 58-34-20 — SD Code / Title 58 / Chapter 34 / Section 58-34-20
Rights and powers of attorney provided by subscribers' agreement
Status: in_force

The rights and powers of the attorney of a reciprocal insurer shall be as provided in the power of attorney given it by the subscribers.

Source: SL 1966, ch 111, ch 19, § 10 (1).
S.D. Codified Laws § 58-17J-2 — SD Code / Title 58 / Chapter 17J / Section 58-17J-2
Patient choice--Health care provider participation
Status: in_force

No health insurer, including the South Dakota Medicaid program, may obstruct patient choice by excluding a health care provider licensed under the laws of this state from participating on the health insurer's panel of providers if the provider is located within the geographic coverage area of the health benefit plan and is willing and fully qualified to meet the terms and conditions of participation as established by the health insurer.

Source: SL 2015, ch 278 (Initiated Measure 17), § 1, eff. Nov. 13, 2014.
S.D. Codified Laws § 58-41-90 — SD Code / Title 58 / Chapter 41 / Section 58-41-90
Action of director after hearing--Written findings
Status: in_force

After hearing pursuant to §§ 58-41-87 and 58-41-88 , or upon the failure of the health maintenance organization to appear at such hearing, the director shall take action as is deemed advisable on written findings which shall be mailed to the health maintenance organization.

Source: SL 1974, ch 321, § 39 (2); SL 2013, ch 256, § 33.
S.D. Codified Laws § 58-15-57 — SD Code / Title 58 / Chapter 15 / Section 58-15-57
Annuity and endowment contracts--Standard provisions required, exceptions
Status: in_force

No annuity or pure endowment contract, other than reversionary, survivorship, or group annuities and except as stated herein or in § 58-15-58 , shall be delivered or issued for delivery in this state unless it contains in substance each of the provisions specified in §§ 58-15-59 to 58-15-64 , inclusive. Any of such provisions not applicable to single premium annuities or single premium pure endowment contracts shall not, to that extent, be incorporated therein.

Source: SL 1966, ch 111, ch 23, § 18 (1).
S.D. Codified Laws § 58-10-16 — SD Code / Title 58 / Chapter 10 / Section 58-10-16
Retroactive effect of statutory provisions regarding trusts
Status: in_force

The provisions of subdivision 58-10-4(6) and §§ 58-10-13 to 58-10-15 , inclusive, are effective retroactively to November 2, 1889.

Source: SL 2006, ch 251, § 5.
S.D. Codified Laws § 58-18B-52 — SD Code / Title 58 / Chapter 18B / Section 58-18B-52
Notice to employees--Disclosures
Status: in_force

The small employer carrier shall provide notice to employees regarding the coverage required by §§ 58-18B-50 and 58-18B-51 in accordance with rules adopted by the director of the Division of Insurance pursuant to chapter 1-26 . The notice shall be in writing and prominently positioned in any literature or correspondence. The notice shall be transmitted to employees in the next mailing to employees, in the yearly informational packet sent to employees, or by January 1, 1997, whichever is earliest.

Source: SL 1996, ch 292, § 9.
S.D. Codified Laws § 58-14-16.24 — SD Code / Title 58 / Chapter 14 / Section 58-14-16.24
Credit for reinsurance for reinsurers in reciprocal jurisdictions--Capital and surplus requirements
Status: in_force

An assuming insurer under § 58-14-16.23 shall have and maintain, on an ongoing basis:

(1) A license to transact reinsurance by, and have its head office or be domiciled in, a reciprocal jurisdiction;

(2) Minimum capital and surplus, or its equivalent, calculated on at least an annual basis as of the preceding December thirty-first or at the annual date otherwise statutorily reported to the reciprocal jurisdiction, and confirmed pursuant to subdivision 58-14-16.25(6) according to the methodology of its domiciliary jurisdiction, in the following amounts:

(a) No less than two hundred fifty million dollars; or

(b) If the assuming insurer is an association, including incorporated and individual unincorporated underwriters, minimum capital and surplus equivalents net of liabilities or own funds of the equivalent of at least two hundred fifty million dollars and a central fund containing a balance of the equivalent of at least two hundred fifty million dollars; and

(3) Minimum solvency or capital ratio as follows:

(a) If the assuming insurer has its head office or is domiciled in a reciprocal jurisdiction as defined in subdivision 58-14-16.23 (1), the ratio specified in the applicable covered agreement;

(b) If the assuming insurer is domiciled in a reciprocal jurisdiction as defined in subdivision 58-14-16.23 (2), a risk-based capital ratio of three hundred percent of the authorized control level calculated in accordance with a formula developed by the NAIC and prescribed by the director; or

(c) If the assuming insurer is domiciled in a reciprocal jurisdiction as defined in subdivision 58-14-16.23 (3), after consultation with the reciprocal jurisdiction and considering any recommendations published through the NAIC, such solvency or capital ratio as the director determines to be an effective measure of solvency.

Source: SL 2021, ch 211, § 2.
S.D. Codified Laws § 58-17-27 — SD Code / Title 58 / Chapter 17 / Section 58-17-27
Payment of claims--Optional provisions, insertion by insurer
Status: in_force

The following provisions, or either of them, may be included with the provision in § 58-17-26 at the option of the insurer: "If any indemnity of this policy shall be payable to the estate of the insured, or to an insured or beneficiary who is a minor or otherwise not competent to give a valid release, the insurer may pay such indemnity, up to an amount not exceeding $__________ (insert an amount which shall not exceed one thousand dollars), to any relative by blood or connection by marriage of the insured or beneficiary who is deemed by the insurer to be equitably entitled thereto. Any payment made by the insurer in good faith pursuant to this provision shall fully discharge the insurer to the extent of such payment."

"Subject to any written direction of the insured in the application or otherwise all or a portion of any indemnities provided by this policy on account of hospital, nursing, medical, or surgical services may, at the insurer's option and unless the insured requests otherwise in writing not later than the time of filing proof of such loss, be paid directly to the hospital or person rendering such services; but it is not required that the service be rendered by a particular hospital or person."

Source: SL 1966, ch 111, ch 25, § 12.
S.D. Codified Laws § 58-29B-14 — SD Code / Title 58 / Chapter 29B / Section 58-29B-14
Director's determination of continuation of business hazardous--Notification of insurer
Status: in_force

If upon examination or at any other time the director has reasonable cause to believe or determines that any domestic insurer is in such condition as to render the continuance of its business hazardous to the public or to holders of its policies or certificates of insurance, or if such domestic insurer gives its consent, then the director shall upon his determination:

(1) Notify the insurer of his determination; and

(2) Furnish to the insurer a written list of the director's requirements to abate his determination.

Source: SL 1989, ch 436, § 14.
S.D. Codified Laws § 58-6-68 — SD Code / Title 58 / Chapter 6 / Section 58-6-68
Insurers subject to taxation--Filing of returns and reports--Exemption of qualified pension, annuity, or profit-sharing plans
Status: in_force

Insurers shall be subject to taxation according to the provisions of Title 10 and shall file such tax returns and reports as may be directed by the director, provided, however, that no tax shall be due or payable as to premiums or considerations received from policies or contracts issued in connection with a pension, annuity, or profit - sharing plan exempt or qualified under section 401, 403(b), 404, 408, 457, or 501(a) of the United States Internal Revenue Code with respect to the tax payable in 1973 and annually thereafter.

Source: SL 1966, ch 111, ch 3, § 28 (1); SL 1972, ch 260, § 1; SL 1975, ch 306; SL 1989, ch 422.
S.D. Codified Laws § 58-6A-3.9 — SD Code / Title 58 / Chapter 6A / Section 58-6A-3.9
Governance standards
Status: in_force

The board of directors shall adopt and disclose governance standards and make the information available electronically through the risk retention group's website or by other means. The risk retention group shall provide the governance standards to members or insureds on request. The adopted governance standards shall include the following:

(1) Concerning the directors of the risk retention group:

(a) A process by which the directors are elected by the owners or insureds;

(b) Qualification standards;

(c) Responsibilities;

(d) Access to management and, as necessary and appropriate, independent advisors;

(e) Compensation; and

(f) Orientation and continuing education;

(2) The policies and procedures that are followed for management succession; and

(3) The policies and procedures that are followed for annual performance evaluation of the board.

Source: SL 2016, ch 232, § 11.
S.D. Codified Laws § 58-2-39 — SD Code / Title 58 / Chapter 2 / Section 58-2-39
Promulgation of rules regarding definitions, enrollment, disclosure, notice, claims, and records
Status: in_force

The Division of Insurance may promulgate rules pursuant to chapter 1-26 in the following areas:

(1) Definition of terms used in §§ 58-17-30.2 , 58-17-30.4 , 58-18-32 , 58-18-34 , and 58-33-85 to 58-33-88 , inclusive;

(2) Insurer enrollment procedures;

(3) Disclosure and notice requirements;

(4) Claim processing procedures; and

(5) Record-keeping requirements for insurers and producers.

Source: SL 1994, ch 387, § 19; SL 2014, ch 231, § 1; SL 2021, ch 210, § 1.
S.D. Codified Laws § 58-17B-9 — SD Code / Title 58 / Chapter 17B / Section 58-17B-9
Policyholder's right to return--Notice
Status: in_force

Long - term care insurance policyholders shall have the right to return the policy within thirty days of its delivery and to have the premium refunded if, after examination of the policy, the policyholder is not satisfied for any reason. Long - term care insurance policies shall have a notice prominently printed on the first page of the policy or attached thereto stating in substance that the policyholder shall have the right to return the policy within thirty days of its delivery and to have the premium refunded if, after examination of the policy, the policyholder is not satisfied for any reason.

Source: SL 1989, ch 440, § 10.
S.D. Codified Laws § 58-29C-59 — SD Code / Title 58 / Chapter 29C / Section 58-29C-59
Association's tax exemption status
Status: in_force

The association shall be exempt from payment of all fees and all taxes levied by this state or any of its subdivisions, except taxes levied on real property.

Source: SL 2003, ch 252, § 16.
S.D. Codified Laws § 58-1-17 — SD Code / Title 58 / Chapter 1 / Section 58-1-17
Disclosure statement for issuance of charitable gift annuity
Status: in_force

Any qualified organization which issues a charitable gift annuity shall include on its promotional literature and the charitable gift annuity the following disclosure statement in ten point bold type or larger: "Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance."

Source: SL 1994, ch 370, § 2.
S.D. Codified Laws § 58-18B-58 — SD Code / Title 58 / Chapter 18B / Section 58-18B-58
Health benefit plans to provide coverage for prostate cancer screening
Status: in_force

Every health benefit plan of a small employer carrier that covers a male and that is delivered, issued for delivery, or renewed in this state shall provide the following coverage for diagnostic screening for prostate cancer:

(1) An annual medically recognized diagnostic examination, including a digital rectal examination and a prostate - specific antigen test, as follows:

(a) For asymptomatic men aged fifty and over; and

(b) For men aged forty - five and over at high risk for prostate cancer; and

(2) For males of any age who have a prior history of prostate cancer, medically indicated diagnostic testing at intervals recommended by a physician, including the digital rectal examination, prostate - specific antigen test, and bone scan.

Source: SL 2001, ch 277, § 3.
S.D. Codified Laws § 58-20-9 — SD Code / Title 58 / Chapter 20 / Section 58-20-9
Lien of worker upon amount due under policy--Inability of insured, direct payment by insurer to worker, agents, and dependents
Status: in_force

Every policy shall provide that the worker shall have a first lien upon any amount becoming due on account of such policy to the insured from the insurer, and that in case of the legal incapacity, inability, or disability of the insured to receive the amount due and pay it over to the insured worker, or his dependents, such insurer shall pay the same directly to such worker, his agent, or to a trustee for him or his dependents, to the extent of discharging any obligation of the insured and to such worker or his dependents.

Source: SL 1966, ch 111, ch 29, § 9.
S.D. Codified Laws § 58-32-36 — SD Code / Title 58 / Chapter 32 / Section 58-32-36
Venue of action against unauthorized insurer
Status: in_force

Any cause of action against an unauthorized insurer arising in this state on a surplus line contract shall be brought in the circuit court for the county in which the cause of action arose.

Source: SL 1966, ch 111, ch 11, § 20 (1).
S.D. Codified Laws § 58-18-46 — SD Code / Title 58 / Chapter 18 / Section 58-18-46
Renewability of health benefit plans--Employer's election--Exceptions
Status: in_force

Except as provided in §§ 58-18-42 to 58-18-49 , inclusive, a health benefit plan subject to this chapter is renewable to all eligible employees and dependents at the option of the employer, except for the following reasons:

(1) The employer has failed to pay premiums or contributions in accordance with the terms of the health insurance coverage or the insurer has not received timely premium payments;

(2) Fraud or intentional misrepresentation of material fact by the employer;

(3) Noncompliance with the carrier's employer contribution or participation requirements;

(4) The number of individuals covered under the plan is less than the number or percentage of eligible individuals required under the plan;

(5) In the case of a health insurance issuer that offers health insurance coverage in the market through a network plan, there is no longer any enrollees in connection with the plan who live, reside, or work in the service area of the issuer or in the area for which the issuer is authorized to do business and the issuer would deny enrollment with respect to the plan as provided for in § 58-18B-37 ;

(6) The employer carrier elects to nonrenew all of its health benefit plans delivered or issued for delivery to employers in this state;

(7) In the case of health insurance coverage that is made available only through one or more bona fide associations, the membership of an employer in the association (on the basis of which the coverage is provided) ceases but only if the coverage is terminated uniformly without regard to any health status - related factor relating to any covered individual; or

(8) If the issuer decides to discontinue offering a particular type of group health insurance offered in the group market, coverage of such type may be discontinued if:

(a) The issuer provides notice to each employer provided coverage of this type in such market (and any participant and beneficiary covered under such coverage) of the discontinuation at least ninety days prior to the date of the discontinuation of the coverage;

(b) The issuer offers to each employer provided coverage of this type in such market, the option to purchase all other health insurance coverage currently being offered by the issuer to a group health plan in such market;

(c) In exercising the option to discontinue coverage of this type and in offering the option of coverage under subsection (b), the issuer acts uniformly without regard to the claims experience of those employers or any health status - related factor relating to any participant or beneficiary covered or any new participant or beneficiary who may become eligible for such coverage.

If a carrier nonrenews a health benefit plan pursuant to this section, the director shall assist affected employers in finding replacement coverage.

Source: SL 1994, ch 383, § 5; SL 1997, ch 289, § 10; SL 2001, ch 275, § 5.
S.D. Codified Laws § 58-5A-41.2 — SD Code / Title 58 / Chapter 5A / Section 58-5A-41.2
Certain sharing of confidential information permitted
Status: in_force

To assist in the performance of the duties assigned to the director pursuant to the provisions of this chapter:

(1) The director may, upon request, share documents, materials, or other information, including the confidential and privileged documents, materials, or information, including proprietary materials, trade secrets, documents, and materials disclosed pursuant to this chapter with a state, federal, and international regulatory agency, the NAIC, any third-party consultant designated by the director, and a state, federal, and international law enforcement authority, including a member of any supervisory college described in §§ 58-5A-78 to 58-5A-80 , inclusive, if the recipient agrees in writing to maintain the confidentiality and privileged status of the document, material, or other information, and verifies in writing the legal authority to maintain confidentiality;

(2) Notwithstanding the provisions of subdivision (1), the director may only share information reported pursuant to § 58-5A-29.1 , with a director of a state that has laws substantially similar to the provisions of § 58-5A-41 , and who agrees in writing not to disclose such information; and

(3) The director may receive documents, materials, or information, including otherwise confidential and privileged documents, materials, or information, including proprietary materials and trade secret information from the NAIC and from regulatory and law enforcement officials of other foreign or domestic jurisdictions, and shall maintain as confidential or privileged any document, material, or information received with notice or the understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the document, material, or information.

The sharing of information by the director pursuant to this chapter is not a delegation of regulatory authority or rule-making authority, and the director is solely responsible for the administration, execution, and enforcement of the provisions of this chapter.

Source: SL 2015, ch 246, § 16; SL 2024, ch 201, § 4.
S.D. Codified Laws § 58-27-60 — SD Code / Title 58 / Chapter 27 / Section 58-27-60
Limits of investments in real estate--Law governing
Status: in_force

Limits as to investments in the category of real estate shall be as provided in § 58-27-50 .

Source: SL 1966, ch 111, ch 6, § 5 (8).
S.D. Codified Laws § 58-22-10 — SD Code / Title 58 / Chapter 22 / Section 58-22-10
Professional bondsman--Annual financial statement furnished by applicant
Status: in_force

In addition to the requirements prescribed in § 58-22-6 , an applicant for a professional bondsman license shall furnish annually a detailed financial statement under oath, and such statement shall be subject to the same examination as is prescribed by law for domestic insurers.

Source: SL 1966, ch 111, ch 31, § 9.
S.D. Codified Laws § 58-5A-73 — SD Code / Title 58 / Chapter 5A / Section 58-5A-73
Additional investments by domestic insurer
Status: in_force

In addition to investments in common stock, preferred stock, debt obligations, and other securities permitted, a domestic insurer under this chapter may also:

(1) Invest, in common stock, preferred stock, debt obligations, and other securities of one or more subsidiaries, amounts which do not exceed the lesser of ten percent of the insurer's assets or fifty percent of the insurer's surplus as regards policyholders, provided that after investing, the insurer's surplus as regards policyholders will be reasonable in relation to the insurer's outstanding liabilities and adequate to its financial needs. In calculating the amount of the investments, investments in domestic or foreign insurance subsidiaries shall be excluded, and there shall be included:

(a) Total net moneys or other consideration expended and obligations assumed in the acquisition or formation of a subsidiary, including all organizational expenses and contributions to capital and surplus of the subsidiary whether or not represented by the purchase of capital stock or issuance of other securities; and

(b) All amounts expended in acquiring additional common stock, preferred stock, debt obligations, and other securities and all contributions to the capital or surplus, of a subsidiary subsequent to its acquisition or formation;

(2) Invest any amount in common stock, preferred stock, debt obligations, and other securities of one or more subsidiaries engaged or organized to engage exclusively in the ownership and management of assets authorized as investments for the insurer provided that each subsidiary agrees to limit its investments in any asset so that the investments will not cause the amount of the total investment of the insurer to exceed any of the investment limitations specified. For the purpose of this clause, the term, the total investment of the insurer, includes:

(a) Any direct investment by the insurer in an asset; and

(b) The insurer's proportionate share of any investment in an asset by any subsidiary of the insurer, which shall be calculated by multiplying the amount of the subsidiary's investment by the percentage of the ownership of the subsidiary;

(3) With the approval of the director, invest any greater amount in common stock, preferred stock, debt obligations, or other securities of one or more subsidiaries, provided that after the investment the insurer's surplus as regards policyholders will be reasonable in relation to the insurer's outstanding liabilities and adequate to its financial needs.

Source: SL 1992, ch 341, § 40.
S.D. Codified Laws § 58-5-29 — SD Code / Title 58 / Chapter 5 / Section 58-5-29
Contingent liability of members of mutual insurer--Exception
Status: in_force

Every member of a domestic mutual insurer shall, except as otherwise provided with respect to nonassessable policies, have only a prorata contingent liability for the discharge of its obligations, which contingent liability shall be expressed in the policy and be in such maximum amount as is specified in the insurer's articles of incorporation.

Source: SL 1966, ch 111, ch 16, § 29 (1).
S.D. Codified Laws § 58-29B-80 — SD Code / Title 58 / Chapter 29B / Section 58-29B-80
Extent of surety discharge under releasing bond or similar obligation
Status: in_force

The liability of a surety under a releasing bond or other like obligation shall be discharged to the extent of the value of the indemnifying property recovered or the indemnifying lien nullified and avoided by the liquidator or, if the property is retained under § 58-29B-79 , to the extent of the amount paid to the liquidator.

Source: SL 1989, ch 436, § 80.
S.D. Codified Laws § 58-8-14 — SD Code / Title 58 / Chapter 8 / Section 58-8-14
Motion of unauthorized foreign or alien insurer to quash or set aside service of process--Deposit or bond not required--Grounds for motion
Status: in_force

Nothing in § 58-8-13 is to be construed to prevent an unauthorized foreign or alien insurer from filing a motion to quash any process or to set aside service thereof made in the manner provided in §§ 58-8-8 to 58-8-10 , inclusive, on the ground either:

(1) That such unauthorized insurer has not done any of the acts enumerated in § 58-8-7 ; or

(2) That the person on whom service was made pursuant to § 58-8-10 was not doing any of the acts therein enumerated.

Source: SL 1966, ch 111, ch 12, § 9 (3).
S.D. Codified Laws § 58-17-62 — SD Code / Title 58 / Chapter 17 / Section 58-17-62
Coverage for phenylketonuria
Status: in_force

Every policy of health insurance that is delivered, issued for delivery or renewed in this state, except for policies that provide coverage for specified disease or other limited benefit coverage, shall offer coverage for testing, diagnosis, and treatment of phenylketonuria including dietary management, formulas, case management, intake and screening, assessment, comprehensive care planning, and service referral.

Source: SL 1992, ch 348, § 1.
S.D. Codified Laws § 58-29B-97 — SD Code / Title 58 / Chapter 29B / Section 58-29B-97
Notice and hearings required before impositions of penalties
Status: in_force

Before the director shall take any action as set forth in § 58-29B-96 , he shall give written notice to the person, company, association, or exchange accused of violating the law, stating specifically the nature of the alleged violation, and fixing a time and place, at least ten days thereafter, when a hearing on the matter shall be held. After such hearing, or upon failure of the accused to appear at such hearing, the director, if he shall find such violation, shall impose such of the penalties under § 58-29B-96 , as he deems advisable. If the director shall take action in any or all of the ways set out in § 58-29B-96 , the party aggrieved may appeal as provided by chapter 1-26 .

Source: SL 1989, ch 436, § 97.
S.D. Codified Laws § 58-30-113 — SD Code / Title 58 / Chapter 30 / Section 58-30-113
Affidavit as to lost, stolen, or destroyed license
Status: in_force

As to any license lost, stolen, or destroyed while in the possession of any such licensee, the director may accept in lieu of return of the license the affidavits of the licensee or other person responsible for or involved in the safekeeping of such license, concerning the facts of such loss, theft, or destruction.

Source: SL 1966, ch 111, ch 9, § 35 (2).
S.D. Codified Laws § 58-24-22 — SD Code / Title 58 / Chapter 24 / Section 58-24-22
Request by aggrieved party for hearing on filing--Grounds for application
Status: in_force

Any person or organization aggrieved with respect to any filing which is in effect may make written application to the director for a hearing thereon, provided, however, that the insurer or rating organization that made the filing shall not be authorized to proceed under this section. Such application shall specify the grounds to be relied upon by the applicant and such application must show that the person or organization making such application has a specific economic interest affected by the filing. No rating or advisory organization shall have any status under this chapter to make application for a hearing on any filing made by an insurer with the director.

Source: SL 1966, ch 111, ch 15, § 5 (4).
S.D. Codified Laws § 58-3-1.1 — SD Code / Title 58 / Chapter 3 / Section 58-3-1.1
Company defined
Status: in_force

As used in this chapter, the term, company, means any person engaging in or proposing or attempting to engage in any insurance business and any person or group of persons who may otherwise be subject to the administrative, regulatory, or taxing authority of the director.

Source: SL 1992, ch 338, § 1.
S.D. Codified Laws § 58-17H-26 — SD Code / Title 58 / Chapter 17H / Section 58-17H-26
Independence and impartiality required for utilization review
Status: in_force

In conducting utilization review, the health carrier shall ensure that the review is conducted in a manner to ensure the independence and impartiality of the individuals involved in making the utilization review or benefit determination.

In ensuring the independence and impartially of individuals involved in making the utilization review or benefit determination, no health carrier may make decisions regarding hiring, compensation, termination, promotion, or other similar matters based upon the likelihood that the individual will support the denial of benefits.

Source: SL 2011, ch 219, § 51.
S.D. Codified Laws § 58-30-149 — SD Code / Title 58 / Chapter 30 / Section 58-30-149
Application by business entity for insurance producer license--Requirements
Status: in_force

A business entity acting as an insurance producer is required to obtain an insurance producer license. Application shall be made using a form or format prescribed by the director. The director shall consider the use of a uniform form or format. Before approving the application, the insurance director shall find that the business entity has paid the fees set forth in § 58-2-29 .

Source: SL 2001, ch 286, § 9; SL 2007, ch 291, § 1.
S.D. Codified Laws § 58-32-32 — SD Code / Title 58 / Chapter 32 / Section 58-32-32
Endorsement of contract--Violation as misdemeanor
Status: in_force

Every insurance contract procured and delivered as a surplus line coverage pursuant to this chapter shall have stamped upon it, and be initialed by or bear the name of the surplus line broker who procured it in ten point or larger, boldface type, the following:

"THIS INSURANCE CONTRACT IS ISSUED BY A NONADMITTED INSURER WHICH IS NOT LICENSED BY NOR UNDER THE JURISDICTION OF THE SOUTH DAKOTA INSURANCE DIRECTOR."

Violation of this section is a Class 2 misdemeanor.

Source: SL 1966, ch 111, ch 11, § 9; SL 1978, ch 359, § 2.
S.D. Codified Laws § 58-34-40 — SD Code / Title 58 / Chapter 34 / Section 58-34-40
Earned premiums, computation for purpose of assessments
Status: in_force

In computing the earned premiums for the purposes of § 58-34-39 , the gross premium received by the insurer for the policy shall be used as a base, deducting therefrom solely charges not recurring upon the renewal or extension of the policy.

Source: SL 1966, ch 111, ch 19, § 23 (3).
S.D. Codified Laws § 58-33A-6 — SD Code / Title 58 / Chapter 33A / Section 58-33A-6
Format and content of outline of coverage--"Format" defined--Outline of coverage requirements
Status: in_force

The director shall prescribe the general format and content of the outline of coverage required by § 58-33A-5 . The term, format, means style, arrangement, and overall appearance, including such items as the size, color, prominence of type, and the arrangement of text and captions. The term, outline of coverage, includes:

(1) A statement identifying the applicable category or categories of coverage provided by the policy or contract as prescribed by the director;

(2) A description of the principal benefits and coverage provided in the policy or contract;

(3) A statement of the exceptions, reductions, and limitations contained in the policy or contract;

(4) A statement of the renewal provisions including any reservation by the insurer of nonprofit hospital, medical, or dental service association of a right to change premiums; and

(5) A statement that the outline is a summary of the policy or contract issued or applied for and that the policy or contract should be consulted to determine governing contractual provisions.

Nothing in this section prohibits an insurer from incorporating an outline of coverage into other solicitation and policy information documents if the required information is contained in the documents.

Source: SL 1999, ch 240, § 6.
S.D. Codified Laws § 58-17G-4 — SD Code / Title 58 / Chapter 17G / Section 58-17G-4
Health carrier issuing closed plan to develop quality improvement activities--Minimum requirements of quality improvement activities
Status: in_force

Any health carrier that issues a closed plan, or a combination plan having a closed component, shall, in addition to complying with the requirements of § 58-17G-3 , develop and maintain the internal structures and activities necessary to improve the quality of care being provided. Quality improvement activities for a health carrier subject to the requirements of this section shall involve:

(1) Developing a written quality improvement plan designed to analyze both the processes and outcomes of the health care delivered to covered persons;

(2) Establishing an internal system to implement the quality improvement plan and to specifically identify opportunities to improve care and using the findings of the system to improve the health care delivered to covered persons; and

(3) Assuring that participating providers have the opportunity to participate in developing, implementing, and evaluating the quality improvement system.

The health carrier shall provide a copy of the quality improvement plan to the director or secretary, if requested.

Source: SL 2011, ch 219, § 24.
S.D. Codified Laws § 58-43-3 — SD Code / Title 58 / Chapter 43 / Section 58-43-3
Foreign or alien insurers--Exemption
Status: in_force

Foreign or alien insurers, filing audited financial reports in another state which report has been found by the director to be substantially similar to the requirements of § 58-43-4 , are exempt if:

(1) A copy of the audited financial report, communication of internal control related matters noted in an audit, and the accountant's letter of qualifications which are filed with the other state are filed with the director in accordance with the filing dates specified in §§ 58-43-2 , 58-43-14 , and 58-43-15 . Canadian insurers may submit accountants' reports as filed with the Office of the Superintendent of Financial Institutions, Canada;

(2) A copy of any notification of adverse financial condition report filed with that other state is filed with the director within the time specified in § 58-43-14 .

This section does not prohibit, preclude or in any way limit the director of insurance from ordering or conducting or performing examinations of insurers under this title.

Source: SL 1992, ch 357, § 3; SL 2009, ch 271, § 4.
S.D. Codified Laws § 58-17H-30.1 — SD Code / Title 58 / Chapter 17H / Section 58-17H-30.1
Retroactive denial of paid claim--Restriction--Requirement--Exclusions--Enforcement
Status: in_force

Except as otherwise provided in this section, a previously paid claim may be recouped, recovered, or retroactively denied by the health carrier only within eighteen months from the date the claim payment was made, if the health carrier has provided written notice of the reason to the provider. This limitation does not apply to a previously paid claim that:

(1) Was determined by the health carrier to have been submitted fraudulently or to involve waste or abuse;

(2) Is the subject of an adjustment with a different health carrier, administrator, or payor, and the adjustment is not affected by a contractual relationship, association, or affiliation involving claims payment, processing, or pricing;

(3) Was for medical services covered by casualty insurance, as defined by §§ 58-9-11 to 58-9-27 , inclusive;

(4) Was for medical services covered by a self-insured health plan governed by the Employee Retirement Income Security Act of 1974 (ERISA), 29 U.S.C. §§ 1001 to 1461, inclusive (July 6, 2012);

(5) Was for medical services covered under medicare, 42 U.S.C. §§ 1395-1395lll, inclusive (March 15, 2025), medicaid, 42 U.S.C. §§ 1396 to 1396w-6, inclusive (July 4, 2025), or any other federal law;

(6) Was for medical services covered by workers' compensation, as provided for in title 62; or

(7) Was incorrect because the provider or the member was already paid for the medical services identified in the claim.

A violation of this section is subject to enforcement by the Division of Insurance under title 58.

For purposes of this section, "medical services," do not include dental services, pharmaceutical services, or the provision of prescription drug products or supplies.

For purposes of this section, "retroactively deny a previously paid claim" means to retroactively collect claim payments made to a provider by requiring repayment of the payments, reducing other payments currently owed to the provider, withholding or setting off against future payments, or reducing or affecting the future claim payments to the provider in any other manner.

Source: SL 2026, ch 200, § 1.
S.D. Codified Laws § 58-35-1 — SD Code / Title 58 / Chapter 35 / Section 58-35-1
Application of chapter
Status: in_force

This chapter applies to:

(1) All domestic mutual hail, fire, and other casualty insurers of farm property and stock and rural buildings formed before July 1, 1966, and immediately prior to said date lawfully transacting business under sections 31.2701 through 31.2812, 31.2918, 31.3001 through 31.3010, and amendments thereto, of the South Dakota Code of 1939; and

(2) All insurers formed after June 30, 1966, under this chapter.

Source: SL 1966, ch 111, ch 17, § 1 (1).
S.D. Codified Laws § 58-17I-10 — SD Code / Title 58 / Chapter 17I / Section 58-17I-10
Procedures for providing new or additional evidence
Status: in_force

Prior to issuing a decision in accordance with the timeframes provided in § 58-17I-9 , the health carrier shall provide free of charge to covered person, or the covered person's authorized representative, any new or additional evidence, relied upon or generated by the health carrier, or at the direction of the health carrier, in connection with the grievance sufficiently in advance of the date the decision is required to be provided to permit the covered person, or the covered person's authorized representative, a reasonable opportunity to respond prior to that date.

Before the health carrier issues or provides notice of a final adverse determination in accordance with the timeframes provided in § 58-17I-9 that is based on new or additional rationale, the health carrier shall provide the new or additional rationale to the covered person, or the covered person's authorized representative, free of charge as soon as possible and sufficiently in advance of the date the notice of final adverse determination is to be provided to permit the covered person, or the covered person's authorized representative a reasonable opportunity to respond prior to that date.

Source: SL 2011, ch 219, § 82.
S.D. Codified Laws § 58-15-50 — SD Code / Title 58 / Chapter 15 / Section 58-15-50
Prohibited policy provisions--Depriving courts of jurisdiction of action against insurer
Status: in_force

No policy of life insurance shall be delivered or issued for delivery in this state if it contains any provision depriving the courts of this state of the jurisdiction of any action at law or in equity against the insurer.

Source: SL 1966, ch 111, ch 23, § 26 (1) (e).
S.D. Codified Laws § 58-18A-74 — SD Code / Title 58 / Chapter 18A / Section 58-18A-74
Sharing of allowable expenses equally
Status: in_force

If the preceding provisions of §§ 58-18A-69 to 58-18A-73 , inclusive, do not determine the order of benefits, the allowable expenses shall be shared equally between the plans.

Source: SL 2006, ch 259, § 22.
S.D. Codified Laws § 58-37A-22 — SD Code / Title 58 / Chapter 37A / Section 58-37A-22
Permissible use of assets and special funds--Establishing separate accounts and issuing contracts
Status: in_force

All assets shall be held, invested, and disbursed for the use and benefit of the society and no member or beneficiary has individual rights in the assets or is entitled to any apportionment on the surrender of any part of the assets, except as provided in the benefit contract.

A society may create, maintain, invest, disburse, and apply any special fund or funds necessary to carry out any purpose permitted by the laws of the society.

A society may, pursuant to resolution of its supreme governing body, establish and operate separate accounts and issue contracts on a variable basis, subject to the provisions of law regulating life and health insurers establishing the accounts and issuing the contracts. To the extent the society considers it necessary in order to comply with any applicable federal or state laws, or any rules issued under those federal or state laws, the society may adopt special procedures for the conduct of the business and affairs of a separate account, may, for persons having beneficial interests in a separate account, provide special voting and other rights, including special rights and procedures relating to investment policy, investment advisory services, selection of certified public accountants, and selection of a committee to manage the business and affairs of the account, and may issue contracts on a variable basis to which the provisions of the second and third paragraphs in § 58-37A-19 do not apply.

Source: SL 1990, ch 410, § 22.
S.D. Codified Laws § 58-27-41 — SD Code / Title 58 / Chapter 27 / Section 58-27-41
Maximum loan on security of real property--Misdemeanor
Status: in_force

An insurer shall not make or acquire a loan or loans upon the security of any one parcel of real property in aggregate amount in excess of ten thousand dollars or more than the amount permissible under § 58-27-53 , whichever is the greater. Violation of this section is a Class 2 misdemeanor.

Source: SL 1966, ch 111, ch 6, § 26 (2); SL 1978, ch 359, § 2.
S.D. Codified Laws § 58-40-4 — SD Code / Title 58 / Chapter 40 / Section 58-40-4
Board of directors--Minimum number--Qualifications--Selection--Term of office
Status: in_force

The business of a hospital service plan corporation shall be managed by a board of directors of at least five persons possessing the same general qualifications as the incorporators and they shall be selected, and their number fixed, in the manner set out in the bylaws for three - year terms. The directors of such corporation must at all times include representatives of the following groups: administrators, directors, trustees, or members of the clinical staff of hospitals which have contracted or may contract with such corporation to render to its subscribers hospital service; physicians and surgeons regularly licensed to practice in this state; and the general public exclusive of hospital representatives and physicians.

Source: SL 1966, ch 111, ch 21, § 16.
S.D. Codified Laws § 58-29D-22 — SD Code / Title 58 / Chapter 29D / Section 58-29D-22
Application by administrator--Contents--Fee
Status: in_force

An administrator shall apply to the director upon a form to be furnished by the director. The application shall include or be accompanied by the following information and documents:

(1) All basic organizational documents of the administrator, including any articles of incorporation, articles of association, partnership agreement, trade name certificate, trust agreement, shareholder agreement, and other applicable documents, and all amendments to such documents;

(2) The bylaws, rules, regulations, or similar documents regulating the internal affairs of the administrator;

(3) The names, addresses, official positions, and professional qualifications of the individuals who are responsible for the conduct of affairs of the administrator; including all members of the board of directors, board of trustees, executive committee, or other governing board or committee; the principal officers in the case of a corporation or the partners or members in the case of a partnership or association; shareholders holding directly or indirectly ten percent or more of the voting securities of the administrator; and any other person who exercises control or influence over the affairs of the administrator;

(4) Annual financial statements or reports for the two most recent years which prove that the applicant is solvent and such information as the director may require in order to review the current financial condition of the applicant;

(5) A statement describing the business plan including information on staffing levels and activities proposed in this state and nationwide. The plan shall provide details setting forth the administrator's capability for providing a sufficient number of experienced and qualified personnel in the areas of claims processing, record keeping, and underwriting;

(6) If the applicant will be managing the solicitation of new or renewal business, proof that it employs or has contracted with an insurance producer licensed by this state for solicitation and taking of applications. Any applicant shall provide proof that it has a license as a life and health insurance producer in this state; and

(7) Information regarding administrative actions, criminal convictions, or guilty pleas.

The director may request additional information if the information provided pursuant to this section is inaccurate, incomplete, or unclear. If an applicant fails to provide the requested information within thirty days of the receipt of the any written request pursuant to subdivisions (1) to (7), inclusive, it is grounds for denial of an application.

Any material change in the above information shall be filed with the director within thirty days. A filing fee of five hundred dollars shall accompany the application.

Source: SL 1992, ch 352, § 22; SL 2001, ch 286, § 153; SL 2013, ch 253, § 2.
S.D. Codified Laws § 58-2-41 — SD Code / Title 58 / Chapter 2 / Section 58-2-41
Promulgation of rules to protect privacy of personal nonpublic financial information--Applicability--Construction
Status: in_force

The director shall promulgate rules pursuant to chapter 1-26 relating to the privacy of personal nonpublic financial information. The rules must be designed to provide privacy to the public of the personal nonpublic financial information that is shared or obtained in connection with insurance transactions. The director shall design the rules to protect the public's personal nonpublic financial information but also consider the impact of any rules on the cost and availability of insurance in this state. In promulgating the rules required by this section the director shall give substantial consideration to the privacy standards contained in the NAIC Privacy of Consumer Financial and Health Information Regulation as in effect as of January 1, 2001, and otherwise design the rules to achieve uniformity, to the degree reasonably possible, in the standards for personal nonpublic financial information. The rules may include the following as they relate to financial privacy:

(1) Definition of terms;

(2) Permitting the disclosure and use of personal nonpublic financial information between affiliates;

(3) Opt out procedures for the disclosure and use of personal nonpublic financial information with nonaffiliates;

(4) Notice and disclosure requirements and formats;

(5) Limits on disclosure of personal nonpublic financial information;

(6) Limits on redisclosure and reuse of personal nonpublic financial information;

(7) Limits on sharing account number information for marketing purposes;

(8) Exceptions for opt out and notice requirements; and

(9) Nondiscrimination requirements as they relate to persons who opt out or who do not grant an authorization.

Nothing in this section applies to any rules that may be promulgated pursuant to § 58-2-40 . Nothing in this section may be construed to impair or conflict with the Fair Credit Reporting Act.

Source: SL 2001, ch 268, § 1.
S.D. Codified Laws § 58-29B-91 — SD Code / Title 58 / Chapter 29B / Section 58-29B-91
Notice of show cause order
Status: in_force

The liquidator shall give notice of the order to show cause by legal publication in the county of the principal place of business of the insurer and by first class mail to each member liable thereunder mailed to his last known address as it appears on the insurer's records, at least twenty days before the return day of the order to show cause.

Source: SL 1989, ch 436, § 91.
S.D. Codified Laws § 58-18B-60 — SD Code / Title 58 / Chapter 18B / Section 58-18B-60
Coverage for treatment of hearing impairment for persons under age nineteen
Status: in_force

Any qualified health plan issued on or after January 1, 2015, that offers coverage for professional audiology services shall include coverage for medically necessary physician services appropriate for the treatment of hearing impairment to a person under the age of nineteen. This shall include professional services rendered by an audiologist licensed pursuant to chapter 36-24 .

The benefits provided shall be subject to the same dollar limits, deductibles, coinsurance and other limitations provided for other covered benefits in the policy.

Nothing in this section requires the payment by the health plan of hearing aids, devices, or equipment to correct hearing impairment or loss.

Source: SL 2014, ch 237, § 3.
S.D. Codified Laws § 58-43-16.26 — SD Code / Title 58 / Chapter 43 / Section 58-43-16.26
Internal audit function to be organizationally independent
Status: in_force

In order to ensure that an internal auditor remains objective, the internal audit function shall be organizationally independent. The internal audit function may not defer ultimate judgment on audit matters to others and shall appoint an individual to head the internal audit function who has direct and unrestricted access to the board of directors. Organizational independence does not preclude dual-reporting relationships.

Source: SL 2018, ch 283, § 4.
S.D. Codified Laws § 58-14-16.11 — SD Code / Title 58 / Chapter 14 / Section 58-14-16.11
Minimum trusteed surplus requirements
Status: in_force

The minimum trusteed surplus requirements are not applicable with respect to a multibeneficiary trust maintained by a certified reinsurer for the purpose of securing obligations incurred under §§ 58-14-16.8 to 58-14-16.13 , inclusive, except that the trust shall maintain a minimum trusteed surplus of ten million dollars.

Source: SL 2017, ch 211, § 22.
S.D. Codified Laws § 58-29E-19 — SD Code / Title 58 / Chapter 29E / Section 58-29E-19
Reimbursement
Status: in_force

A pharmacy benefit manager may not reimburse any pharmacy located in this state an amount that is less than that which the pharmacy benefit manager reimburses a pharmacy benefit manager affiliate for dispensing the same prescription drug as that dispensed by the pharmacy.

The reimbursement amount must be calculated on a per unit basis, using the same generic product identifier or generic code number.

Source: SL 2023, ch 166, § 17.
S.D. Codified Laws § 58-17F-14 — SD Code / Title 58 / Chapter 17F / Section 58-17F-14
Contract does not relieve health carrier of liability
Status: in_force

The execution of a contract by a health carrier does not relieve the health carrier of its liability to any person with whom it has contracted for the provision of services, nor of its responsibility for compliance with the law or applicable regulations. Any contract shall be in writing and subject to review by the director, if requested.

Source: SL 2011, ch 219, § 14.
S.D. Codified Laws § 58-4A-11 — SD Code / Title 58 / Chapter 4A / Section 58-4A-11
Unit governed by chapter
Status: in_force

For purposes of investigating and prosecuting insurance fraud, the insurance fraud prevention unit is subject to the provisions of this chapter and the procedures set forth in Title 15 or Title 23A if applicable and if not in conflict with this chapter.

Source: SL 1999, ch 241, § 11.
S.D. Codified Laws § 58-23-2 — SD Code / Title 58 / Chapter 23 / Section 58-23-2
Bankruptcy or insolvency of assured--Insurer not released from liability
Status: in_force

No liability insurance policy issued in this state shall contain any requirement for the payment of liability or loss under the policy, by the assured, but all such policies shall provide in substance that the bankruptcy or insolvency of the assured shall not release the insurer from liability.

Source: SL 1966, ch 111, ch 32, § 2.
S.D. Codified Laws § 58-5A-9.1 — SD Code / Title 58 / Chapter 5A / Section 58-5A-9.1
Disapproval of dividends or distributions for violation--Order of supervision
Status: in_force

If the director determines that any person fails to comply with the provisions of § 58-5A-3 , 58-5A-3.1 , 58-5A-4 , 58-5A-8 , 58-5A-9 , or 58-5A-45 preventing the full understanding of the enterprise risk to the insurer by the affiliates or by the insurance holding company system, the violation may serve as an independent basis for disapproving dividends or distributions. The director may place the insurer under an order of supervision pursuant to the provisions of chapter 58-29B .

Source: SL 2015, ch 246, § 26.
S.D. Codified Laws § 58-29A-87 — SD Code / Title 58 / Chapter 29A / Section 58-29A-87
Director's rules promulgated in lieu of amendments to plan of operation
Status: in_force

If at any time the association fails to submit suitable amendments to the plan of operation, the director shall, after notice and hearing, promulgate such reasonable rules as are necessary or advisable to effectuate the provisions of this chapter. The rules shall continue in force until modified by the director or superseded by a plan submitted by the association and approved by the director.

Source: SL 2000, ch 247, § 34.
S.D. Codified Laws § 58-9-10 — SD Code / Title 58 / Chapter 9 / Section 58-9-10
Marine protection and indemnity insurance included
Status: in_force

"Marine and transportation insurance" includes "marine protection and indemnity insurance," meaning insurance against, or against legal liability of the insured for, loss, damage, or expense arising out of, or incident to, the ownership, operation, chartering, maintenance, use, repair, or construction of any vessel, craft, or instrumentality in use in ocean or inland waterways, including liability of the insured for personal injury, illness, or death or for loss of or damage to the property of another person.

Source: SL 1966, ch 111, ch 4, § 5 (2).