S.D. Codified Laws § 58-29B-31 — SD Code / Title 58 / Chapter 29B / Section 58-29B-31
Application by director for rehabilitation of insurer--Grounds
Status: in_force

The director may apply by petition to the circuit court of Hughes County for an order authorizing him to rehabilitate a domestic insurer or an alien insurer domiciled in this state on any one or more of the following grounds:

(1) The insurer is in such condition that the further transaction of business would be hazardous, financially, to its policyholders, creditors, or the public;

(2) There is reasonable cause to believe that there has been embezzlement from the insurer, wrongful sequestration or diversion of the insurer's assets, forgery or fraud affecting the insurer, or other illegal conduct in, by, or with respect to the insurer that if established would endanger assets in an amount threatening the solvency of the insurer;

(3) The insurer has failed to remove any person who in fact has executive authority in the insurer, whether an officer, manager, general agent, employee, or other person, if the person has been found after notice and hearing by the director to be dishonest or untrustworthy in a way affecting the insurer's business;

(4) Control of the insurer, whether by stock ownership or otherwise, and whether direct or indirect, is in any person found after notice and hearing to be untrustworthy;

(5) Any person who in fact has executive authority in the insurer, whether an officer, manager, general agent, director or trustee, employee, or other person, has refused to be examined under oath by the director concerning its affairs, whether in this state or elsewhere, and after reasonable notice of the fact the insurer has failed promptly and effectively to terminate the employment and status of the person and all his influence on management;

(6) After demand by the director under this title, the insurer has failed to promptly make available for examination any of its own property, books, accounts, documents, or other records, or those of any subsidiary or related company within the control of the insurer, or those of any person having executive authority in the insurer so far as they pertain to the insurer;

(7) Without first obtaining the written consent of the director, the insurer has transferred, or attempted to transfer, in a manner contrary to chapter 58-5 or chapter 58-5A , substantially its entire property or business, or has entered into any transaction the effect of which is to merge, consolidate, or reinsure substantially its entire property or business in or with the property or business of any other person;

(8) The insurer or its property has been or is the subject of an application for the appointment of a receiver or trustee, custodian, conservator or sequestrator or similar fiduciary of the insurer or its property otherwise than as authorized under the insurance laws of this state, and such appointment has been made or is imminent, and such appointment might oust the courts of this state of jurisdiction or might prejudice orderly delinquency proceedings under this chapter;

(9) Within the previous four years the insurer has willfully violated its charter or articles of incorporation, its bylaws, any insurance law of this state, or any valid order of the director under the provisions of this chapter;

(10) The insurer has failed to pay within sixty days after due date any obligation to any state or any subdivision thereof or any judgment entered in any state, if the court in which such judgment was entered had jurisdiction over such subject matter except that such nonpayment is not a ground until sixty days after any good faith effort by the insurer to contest the obligation has been terminated, whether it is before the director or in the courts, or the insurer has systematically attempted to compromise or renegotiate previously agreed settlements with its creditors on the ground that it is financially unable to pay its obligation in full;

(11) The insurer has failed to file its annual report or other financial report required by statute within the time allowed by law and, after written demand by the director, has failed to give an adequate explanation immediately;

(12) The board of directors of the holders of a majority of the shares entitled to vote, or a majority of those individuals entitled to the control of the entities request, or consent to rehabilitation under this chapter.

Source: SL 1989, ch 436, § 31; SL 1991, ch 404, § 3.
S.D. Codified Laws § 58-17D-6 — SD Code / Title 58 / Chapter 17D / Section 58-17D-6
Insurer denying policyholder's claim to provide for reconsideration
Status: in_force

An insurer that denies, in whole or in part, a policyholder's claim after consideration of a utilization review shall provide the policyholder with an opportunity to request reconsideration and to submit additional information relating to the claim.

Source: SL 2002, ch 231, § 6.
S.D. Codified Laws § 58-18B-40 — SD Code / Title 58 / Chapter 18B / Section 58-18B-40
Agent compensation based on characteristics of small employer prohibited--Commission on sale of health insurance plan through exchange
Status: in_force

No small employer carrier may, directly or indirectly, enter into any contract, agreement, or arrangement with an insurance producer that provides for or results in the compensation paid to an agent for the sale of a health benefit plan to be varied because of the health status, claims experience, industry, occupation, or geographic location of the small employer.

Any qualified health plan sold in South Dakota through a health care exchange, as mandated by the Patient Protection and Affordable Care Act of 2010, shall provide for placement through a licensed insurance producer upon enrollment. Any commission paid by a health insurance carrier for the sale of a health insurance plan through a health exchange shall be the same as commission paid by the same health insurance carrier outside the exchange for a similar plan.

Source: SL 1995, ch 281, § 35; SL 2001, ch 286, § 125; SL 2013, ch 249, § 2.
S.D. Codified Laws § 58-11-55.3 — SD Code / Title 58 / Chapter 11 / Section 58-11-55.3
Promulgation of rules to prevent unfair discrimination
Status: in_force

The director may promulgate rules for the purpose of preventing unfair discrimination pursuant to § 58-11-55 . The rules may include definition of terms, identification of general practices or nonrenewal guidelines used by insurers which would violate or be in compliance with § 58-11-55 , and application practices which violate § 58-11-55 . In considering the adoption of any rule pursuant to this section, the director shall consider how the rule may serve to implement the purpose of preventing unfair discrimination as prohibited by § 58-11-55 and how the rule may impact the availability and price of insurance in this state.

Source: SL 1997, ch 287, § 4.
S.D. Codified Laws § 58-35-69 — SD Code / Title 58 / Chapter 35 / Section 58-35-69
Surviving corporation exists separate from parties to merger
Status: in_force

If a merger has been effected pursuant to §§ 58-35-60 to 58-35-74 , inclusive:

(1) The several corporations to the plan of merger are a single corporation which is that corporation designated in the plan of merger as the surviving corporation;

(2) The separate existence of all corporations parties to the plan of merger, except the surviving or new corporation shall cease; and

(3) The surviving or new corporation has all the rights, privileges, immunities, and powers and is subject to all the duties and liabilities of a corporation organized under §§ 58-35-60 to 58-35-74 , inclusive, and §§ 47-1A-101 to 47-1A-863.3 , inclusive, §§ 47-1A-1001 to 47-1A-1021 , inclusive, and §§ 47-1A-1201 to 47-1A-1202.6 , inclusive.

Source: SL 1995, ch 293, § 10; SL 2005, ch 202, § 27.
S.D. Codified Laws § 58-29D-12 — SD Code / Title 58 / Chapter 29D / Section 58-29D-12
Advertising--Approval of insurer
Status: in_force

An administrator may use only such advertising pertaining to the business underwritten by an insurer as has been approved in writing by the insurer in advance of its use.

Source: SL 1992, ch 352, § 12.
S.D. Codified Laws § 58-34-6 — SD Code / Title 58 / Chapter 34 / Section 58-34-6
Organization of insurer--Number of persons required
Status: in_force

Twenty - five or more persons domiciled in this state may organize a domestic reciprocal insurer and make application to the director for a certificate of authority.

Source: SL 1966, ch 111, ch 19, § 7 (1).
S.D. Codified Laws § 58-6A-4 — SD Code / Title 58 / Chapter 6A / Section 58-6A-4
Financial information submitted to director
Status: in_force

Any risk retention group doing business in this state shall submit to the director:

(1) A copy of the group's financial statement submitted to its state of domicile, which shall be certified by an independent public accountant and contain a statement of opinion on loss and loss adjustment expense reserves made by a member of the American Academy of Actuaries or a qualified loss reserve specialist under criteria established by the National Association of Insurance Commissioners;

(2) A copy of each examination of the risk retention group as certified by the director or public official conducting the examination;

(3) Upon request by the director, a copy of any audit performed with respect to the risk retention group; and

(4) Such information as may be required to verify its continuing qualification as a risk retention group under this chapter.

Source: SL 1987, ch 372, § 4.
S.D. Codified Laws § 58-26-10.1 — SD Code / Title 58 / Chapter 26 / Section 58-26-10.1
Radio and television facilities allowable as assets
Status: in_force

If an investment pursuant to § 58-27-51 is in the assets of a separate business of ownership and operation of a radio station, television station, or community antenna television system, duly licensed by the federal communications commission and in which the insurer is authorized to engage under the provisions of its articles of incorporation, whether such assets or property are real, personal, or mixed, then in determining the value of such investments the actual value, but not exceeding the cost thereof, reduced by reasonable depreciation allowances, of the towers, and transmission cables equipment, used exclusively in such separate business and accounts receivable not over thirty days old, generated therein, shall be counted notwithstanding the provisions of subdivision 58-26-10(4).

Source: SDCL, § 58-27-51 as added by SL 1974, ch 317.
S.D. Codified Laws § 58-29B-25 — SD Code / Title 58 / Chapter 29B / Section 58-29B-25
Ex parte issuance of seizure order--Costs
Status: in_force

Upon a filing under § 58-29B-24 , the court may issue forthwith, ex parte and without a hearing, the requested order which shall direct the director to take possession and control of all or a part of the property, books, accounts, documents, and other records of an insurer, and of the premises occupied by it for transaction of its business, and until further order of the court enjoin the insurer and its officers, managers, representatives, insurance producers, and employees from disposition of its property and from transaction of its business except with the written consent of the director. All costs and expenses incurred by the Division of Insurance, including attorney fees, associated with taking possession of the property, books, accounts, documents, and other records of the insurer and the business premises are the responsibility of the insurer and shall be paid from the insurer's funds and assets. The court may require an accounting of the costs and expenses.

Source: SL 1989, ch 436, § 25; SL 1991, ch 404, § 2; SL 2001, ch 286, § 141.
S.D. Codified Laws § 58-37A-3 — SD Code / Title 58 / Chapter 37A / Section 58-37A-3
Representative form of government determined
Status: in_force

A society has a representative form of government if:

(1) It has a supreme governing body constituted in one of the following ways:

(a) The supreme governing body is an assembly composed of delegates elected directly by the members or at intermediate assemblies or conventions of members or their representatives, together with other delegates as may be prescribed in the society's laws. A society may provide for election of delegates by mail. The elected delegates shall constitute a majority in number and may not have less than two - thirds of the votes and not less than the number of votes required to amend the society's laws. The assembly shall be elected and shall meet at least once every four years and shall elect a board of directors to conduct the business of the society between meetings of the assembly. Vacancies on the board of directors between elections may be filled in the manner prescribed by the society's laws;

(b) The supreme governing body is a board composed of persons elected by the members, either directly or by their representatives in intermediate assemblies, and any other persons prescribed in the society's laws. A society may provide for election of the board by mail. Each term of a board member may not exceed four years. Vacancies on the board between elections may be filled in the manner prescribed by the society's laws. Those persons elected to the board shall constitute a majority in number and not less than the number of votes required to amend the society's laws. A person filling the unexpired term of an elected board member shall be considered to be an elected member. The board shall meet at least quarterly to conduct the business of the society;

(2) The officers of the society are elected either by the supreme governing body or by the board of directors;

(3) Only benefit members are eligible for election to the supreme governing body and the board of directors; and

(4) Each voting member shall have one vote; no vote may be cast by proxy.

Source: SL 1990, ch 410, § 3.
S.D. Codified Laws § 58-11-62 — SD Code / Title 58 / Chapter 11 / Section 58-11-62
Notice of intent to cease marketing block of business--What constitutes cessation of marketing block of business
Status: in_force

No insurer may cease marketing a block of business in this state unless, at least ninety days prior to the cessation of marketing, the insurer submits to the director written notice of the intent to cease marketing, including a statement of the facts and causes for cessation. Cessation of marketing a block of business includes discontinuing selling insurance as defined in chapter 58-9 as follows:

(1) All lines or any one line;

(2) All policies under one policy form;

(3) All individual or group policies; or

(4) All commercial or personal policies.

The director may, upon request, waive any portion of the ninety - day notice period required by this section if the director determines that the insurer could not have reasonably complied with the notice requirement.

Source: SL 1991, ch 399.
S.D. Codified Laws § 58-30-169 — SD Code / Title 58 / Chapter 30 / Section 58-30-169
Unreported knowledge by partners, officers, or managers of violation as grounds for penalty
Status: in_force

The license of a business entity may be suspended, revoked, refused, or the director may accept a monetary penalty in accordance with § 58-4-28.1 , or any combination thereof, if the director finds, after hearing, that an individual licensee's violation was known or should have been known by one or more of the partners, officers, or managers acting on behalf of the partnership or corporation and the violation was neither reported to the director nor corrected.

Source: SL 2001, ch 286, § 29.
S.D. Codified Laws § 58-14-15 — SD Code / Title 58 / Chapter 14 / Section 58-14-15
Allowance of credit for certain insurers not licensed, certified, or accredited in state
Status: in_force

If the assuming insurer is not licensed, certified, or accredited to transact insurance or reinsurance in this state, the credit permitted by § 58-14-10 or 58-14-11 may not be allowed unless the assuming insurer agrees in the reinsurance agreements:

(1) That in the event of the failure of the assuming insurer to perform the assuming insurer's obligations under the terms of the reinsurance agreement, the assuming insurer, at the request of the ceding insurer, shall submit to the jurisdiction of any court of competent jurisdiction in any state of the United States, comply with all requirements necessary to give the court jurisdiction, and abide by the final decision of any court or of any appellate court in the event of an appeal; and

(2) To designate the director or a designated attorney as its true and lawful attorney upon whom may be served any lawful process in any action, suit or proceeding instituted by or on behalf of the ceding company.

This section is not intended to conflict with or override the obligation of the parties to a reinsurance agreement to arbitrate their disputes if arbitration is created in the agreement.

Source: SL 1992, ch 344, § 9; SL 2017, ch 211, § 9.
S.D. Codified Laws § 58-1-43 — SD Code / Title 58 / Chapter 1 / Section 58-1-43
Policy statement that dispute resolved by English version
Status: in_force

A policy offered in a language other than English must clearly state in the language of that policy being marketed, that if a dispute or complaint occurs regarding the meaning of the policy, the dispute shall be resolved by the English version interpretation.

Source: SL 2018, ch 277, § 4.
S.D. Codified Laws § 58-17-100 — SD Code / Title 58 / Chapter 17 / Section 58-17-100
Definitions
Status: in_force

Terms used in §§ 58-17-100 to 58-17-106 , inclusive, mean:

(1) "FDA," the federal Food and Drug Administration;

(2) "Health insurer," any person who provides health insurance in this state. The term includes a licensed insurance company, a prepaid hospital or medical service plan, a health maintenance organization, a multiple employer welfare arrangement, or any person providing a plan of health insurance subject to state insurance regulation;

(3) "Life threatening," either or both of the following:

(a) A disease or condition where the likelihood of death is high, unless the course of the disease is interrupted; or

(b) A disease or condition with potentially fatal outcomes where the end point of clinical intervention is survival;

(4) "Medical literature," a published scientific study in a journal or other publication in which original manuscripts have been published only after critical review for scientific accuracy, validity, and reliability by unbiased independent experts and a determination by the International Committee of Medical Journal Editors that it meets the Uniform Requirements for Manuscripts submitted to biomedical journals. The term, medical literature, does not include a publication or a supplement to a publication that is sponsored to a significant extent by a pharmaceutical manufacturing company or health carrier;

(5) "Standard reference compendia," one of the following:

(a) The United States Pharmacopeia Drug Information;

(b) DRUGDEX; or

(c) The American Hospital Formulary Service Drug Information;

(6) "Off - label," the use of an FDA approved drug for an indication that is not included in the approved labeling;

(7) "Drug," any substance prescribed by a licensed health care provider acting within the scope of the provider's license and that is intended for use in the diagnosis, mitigation, treatment, or prevention of disease and is taken by mouth; injected into a muscle, the skin, a blood vessel, or cavity of the body; applied to the skin; or otherwise assimilated by the body. The term, drug, includes only those substances that are approved by the FDA for at least one indication.

Source: SL 2000, ch 242, § 1.
S.D. Codified Laws § 58-32-38 — SD Code / Title 58 / Chapter 32 / Section 58-32-38
Director appointed process agent--Policy provision--Mailing of process to defendant
Status: in_force

An unauthorized insurer issuing such policy shall be deemed thereby to have authorized service of process against it in the manner and to the effect as provided in § 58-32-37 . Any such policy shall contain a provision stating the substance of §§ 58-32-36 to 58-32-38 , inclusive, and designating the person to whom the director shall mail process as provided in § 58-32-37 .

Source: SL 1966, ch 111, ch 11, § 20 (3).
S.D. Codified Laws § 58-30-217 — SD Code / Title 58 / Chapter 30 / Section 58-30-217
Compliance with chapters58-30and 58-33--Travel insurance sales practices
Status: in_force

The limited lines travel insurance producer and any travel retailer offering and disseminating travel insurance under the limited lines travel insurance producer license shall comply with chapter 58-30 and chapter 58-33 . In the event of a conflict between chapters 58-30 and 58-33 and the provisions of §§ 58-30 -209 to 58-30 -217.1, inclusive, regarding the sale and marketing of travel insurance and travel protection plans, the provisions of §§ 58-30 -209 to 58-30 -217.1, inclusive, shall control. The following acts constitute unfair trade practices under chapter 58-33 :

(1) Offering or selling illusory travel insurance, meaning a travel insurance policy that could never result in payment of any claims for any insured under the policy; and

(2) Marketing blanket travel insurance coverage as free.

Source: SL 2014, ch 241, § 13; SL 2022, ch 185, § 9.
S.D. Codified Laws § 58-17E-36 — SD Code / Title 58 / Chapter 17E / Section 58-17E-36
Approval of advertisements and marketing materials
Status: in_force

A discount medical plan organization shall approve in writing any advertisement, marketing material, brochure, or discount card used by marketers to market, promote, sell, or distribute the discount medical plan prior to their use.

Source: SL 2006, ch 257, § 36.
S.D. Codified Laws § 58-24-52 — SD Code / Title 58 / Chapter 24 / Section 58-24-52
Duration of permitted deviation
Status: in_force

Each deviation permitted to be filed shall remain in effect for a period of not less than one year from the effective date unless sooner withdrawn by the insurer with the approval of the director or until terminated in accordance with the provisions of §§ 58-24-21 to 58-24-24 , inclusive.

Source: SL 1966, ch 111, ch 15, § 7.
S.D. Codified Laws § 58-17-1.3 — SD Code / Title 58 / Chapter 17 / Section 58-17-1.3
Diabetes coverage not required of certain plans and policies
Status: in_force

The provisions of § 58-17-1.2 do not apply to any plan, policy, or contract that provides coverage only for:

(1) Specified disease;

(2) Hospital indemnity;

(3) Fixed indemnity;

(4) Accident - only;

(5) Credit;

(6) Dental;

(7) Vision;

(8) Prescription drug;

(9) Medicare supplement;

(10) Long - term care;

(11) Disability income insurance;

(12) Coverage issued as a supplement to liability insurance;

(13) Workers' compensation or similar insurance;

(14) Automobile medical payment insurance;

(15) Individual health benefit plans of six - months duration or less that are not renewable; or

(16) Individual nonmajor medical insurance.

Source: SL 1999, ch 252, § 2.
S.D. Codified Laws § 58-43-7 — SD Code / Title 58 / Chapter 43 / Section 58-43-7
Notification of dismissal or resignation of insurer's accountant--Reporting disagreements
Status: in_force

If an accountant who was the accountant for the immediately preceding filed audited financial report is dismissed or resigns, the insurer shall mail notification to the director within five business days of the dismissal or resignation. The insurer shall mail the director a separate letter within ten business days of the above notification stating whether in the twenty - four months preceding this dismissal or resignation there were any disagreements with the former accountant on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of the former accountant, would have caused him to make reference to the subject matter of the disagreement in connection with his opinion.

Source: SL 1992, ch 357, § 7.
S.D. Codified Laws § 58-6-8 — SD Code / Title 58 / Chapter 6 / Section 58-6-8
Denial of authority to engage in business when contrary to public interest--Denial when managed by unqualified personnel--Affiliates
Status: in_force

The director, after a hearing, shall not grant or continue authority to engage in the insurance business in this state of any insurer when contrary to public interest or when the principal management personnel of such insurer is found by him to be untrustworthy or not of good character, or so lacking in insurance company managerial experience as to make the proposed operation hazardous to the insurance - buying public or to its stockholders; or which he has good reason to believe is affiliated directly or indirectly through ownership, control, management, reinsurance transactions, or other insurance or business relations, with any person or persons whose business operations, to the detriment of insurers, stockholders, or creditors, are or have been marked by manipulation of assets, accounts, or reinsurance, or by bad faith.

Source: SL 1966, ch 111, ch 3, § 4 (2).
S.D. Codified Laws § 58-16-44 — SD Code / Title 58 / Chapter 16 / Section 58-16-44
Insurers to pay interest on life insurance proceeds
Status: in_force

Any insurer admitted to transact life insurance in this state shall pay interest on proceeds of, or payments under, any individual or group policy of life insurance which are payable to any beneficiary under a policy issued for delivery in this state.

Source: SL 1987, ch 375, § 1.
S.D. Codified Laws § 58-33-37.1 — SD Code / Title 58 / Chapter 33 / Section 58-33-37.1
Aggregation of false claims or applications committed pursuant to one course of conduct
Status: in_force

Amounts involved in false claims or applications for insurance committed pursuant to one scheme or course of conduct, whether from the same person or several persons, may be aggregated in determining the degree of the offense under § 58-33-37 .

Source: SL 1977, ch 416, § 1.
S.D. Codified Laws § 58-29B-107 — SD Code / Title 58 / Chapter 29B / Section 58-29B-107
Proof of claim--Contents
Status: in_force

Proof of claim shall consist of a verified statement signed by the claimant that includes all of the following that are applicable:

(1) The particulars of the claim including the consideration given for it;

(2) The identity and amount of the security on the claim;

(3) The payments made on the debt, if any;

(4) That the sum claimed is justly owing and that there is no setoff, counterclaim, or defense to the claim;

(5) Any right of priority of payment or other specific right asserted by the claimants;

(6) A copy of the written instrument which is the foundation of the claim;

(7) The name and address of the claimant and the attorney who represents him, if any.

Source: SL 1989, ch 436, § 107.
S.D. Codified Laws § 58-17H-44 — SD Code / Title 58 / Chapter 17H / Section 58-17H-44
Time within which to submit necessary information
Status: in_force

The health carrier shall provide the covered person or, if applicable, the covered person's authorized representative, a reasonable period of time to submit the necessary information, taking into account the circumstances, but in no event less than forty-eight hours after the date of notifying the covered person or the covered person's authorized representative of the failure to submit sufficient information, as provided in §§ 58-17H-41 and 58-17H-42 .

Source: SL 2011, ch 219, § 69.
S.D. Codified Laws § 58-5-6.1 — SD Code / Title 58 / Chapter 5 / Section 58-5-6.1
Domestication of foreign company--Requirements and procedure
Status: in_force

Any company organized under the laws of any other state or country, which might have been originally qualified and incorporated under the laws of this state, and which has been admitted to do business in this state may become a domestic corporation, and be entitled to certificates of its corporate existence and license to transact business in this state, and be subject in all respects to the authority and jurisdiction thereof upon completion with the following requirements:

(1) Execution, filing, and recording of original certificates;

(2) Payment of incorporation fees; and

(3) Designation of its principal place of business in this state.

Source: SL 1976, ch 310; SL 1987, ch 371.
S.D. Codified Laws § 58-5-14 — SD Code / Title 58 / Chapter 5 / Section 58-5-14
Duration of bond or deposit by mutual insurer
Status: in_force

Any such bond filed or deposit made shall remain in effect until released by the director upon compliance with §§ 58-5-12 and 58-5-13 or otherwise terminated by law.

Source: SL 1966, ch 111, ch 16, § 10 (3).
S.D. Codified Laws § 58-18-61 — SD Code / Title 58 / Chapter 18 / Section 58-18-61
Purchasing organizations exempt from antitrust provisions
Status: in_force

Any organization formed pursuant to §§ 58-18-52 to 58-18-62 , inclusive, is exempt from the antitrust provisions under chapter 37-1 .

Source: SL 1994, ch 382, § 10.
S.D. Codified Laws § 58-30-140 — SD Code / Title 58 / Chapter 30 / Section 58-30-140
Agents not to obtain loans from clients--Exceptions
Status: in_force

No insurance producer may obtain a loan from an existing or former client, other than a lending institution authorized by state or federal law, unless there is a written contract establishing the terms for repayment of the loan and the contract is filed with the division within thirty days of its effective date. This section does not apply to any loans transacted between an insurance producer and that insurance producer's spouse, parents, children, aunts, uncles, or grandparents.

Source: SL 1999, ch 257, § 1; SL 2001, ch 286, § 192.
S.D. Codified Laws § 58-6-6 — SD Code / Title 58 / Chapter 6 / Section 58-6-6
Eligibility of insurer for certificate of authority
Status: in_force

To qualify for and hold authority to transact insurance in this state, an insurer must be otherwise in compliance with this title and with its charter provisions, and must be an incorporated stock insurer, or an incorporated mutual insurer, or a reciprocal insurer, of the same general type as may be formed as a domestic insurer under this title.

Source: SL 1966, ch 111, ch 3, § 4.
S.D. Codified Laws § 58-11-53 — SD Code / Title 58 / Chapter 11 / Section 58-11-53
Notice of eligibility for assigned risk plan on cancellation or nonrenewal of automobile liability insurance
Status: in_force

When a policy of automobile liability insurance is canceled, other than for nonpayment of premium, or in the event of failure to renew a policy of automobile liability insurance to which § 58-11-51 applies, the insurer shall notify the named insured of his possible eligibility for automobile liability insurance through the automobile liability assigned risk plan. Such notice shall accompany or be included in the notice of cancellation or the notice of intent not to renew.

Source: SL 1968, ch 138, § 6.
S.D. Codified Laws § 58-19-41 — SD Code / Title 58 / Chapter 19 / Section 58-19-41
Coverage of credit unemployment insurance to begin first day of unemployment
Status: in_force

Credit unemployment insurance shall provide coverage beginning with the first day of unemployment. However, the policy may include a waiting period before the consumer may file a claim.

Source: SL 1987, ch 380, § 3.
S.D. Codified Laws § 58-33A-19 — SD Code / Title 58 / Chapter 33A / Section 58-33A-19
Reasonableness under circumstances known to insurer
Status: in_force

An insurer's issuance of an annuity subject to § 58-33A-18 shall be reasonable under all the circumstances actually known to the insurer at the time the annuity is issued.

Source: SL 2008, ch 273, § 7; SL 2012, ch 250, § 5; SL 2022, ch 186, § 17, eff. Jan. 1, 2023.
S.D. Codified Laws § 58-30-74.3 — SD Code / Title 58 / Chapter 30 / Section 58-30-74.3
Lapsing and reinstatement of license
Status: in_force

Failure to file a timely renewal application shall result in lapsing of the license. A business entity may reinstate its license in the same manner as an individual insurance producer as provided in § 58-30-154 .

Source: SL 2018, ch 282, § 2.
S.D. Codified Laws § 58-1-30.2 — SD Code / Title 58 / Chapter 1 / Section 58-1-30.2
Transmission of electronic documents--Requirements for effective consent
Status: in_force

For consent to be effective under § 58-1-30.1 , the sponsor or policyholder must:

(1) Assign each covered employee for whom consent is being given an electronic mail address for employment-related purposes at which the employee may receive or access notifications regarding posted notices and documents delivered by electronic means or require each employee for whom consent is being given to provide the sponsor or policyholder with an electronic mail address or a smart device number at which the employee may receive or access notifications regarding posted notices and documents delivered by electronic means;

(2) Require each covered person, or a covered employee on behalf of a covered person, to provide the sponsor or policyholder with an electronic mail address or a smart device number at which the person may receive or access notifications regarding notices and documents delivered by electronic means;

(3) Provide a notification in paper form, containing the elements described in § 58-1-30.3 , to each covered employee and covered person for whom consent is being given prior to delivery by electronic means of notices and documents; and

(4) Provide notice, in the manner described in § 58-1-30.4 , to each impacted covered employee and covered person, at the electronic mail address or smart device number designated pursuant to subdivision (2), prior to each time a notice or document is posted on an internet site.

Source: SL 2023, ch 162, § 3.
S.D. Codified Laws § 58-41-30 — SD Code / Title 58 / Chapter 41 / Section 58-41-30
Sources of payment for enrollee services--Application by medical assistance recipient
Status: in_force

Each health maintenance organization authorized to operate under this chapter or its representative, may accept from governmental agencies, private agencies, corporations, associations, groups, individuals, or other persons, payments covering all or part of the cost of health care service provided to enrollees. Any recipient of medical assistance, pursuant to Title 28, may make application to join a health maintenance organization which has been approved for medical assistance by the secretary of the Department of Social Services.

Source: SL 1974, ch 321, § 15.
S.D. Codified Laws § 58-17F-20 — SD Code / Title 58 / Chapter 17F / Section 58-17F-20
Registration fee for managed care contractor
Status: in_force

The director may require the payment of a fee in conjunction with the initial or annual registration of a managed care contractor not to exceed two hundred fifty dollars per registration. The fee shall be established by rules promulgated pursuant to chapter 1-26 .

Source: SL 2011, ch 219, § 20.
S.D. Codified Laws § 58-43-2 — SD Code / Title 58 / Chapter 43 / Section 58-43-2
Annual audit required--Filing audited financial report--Extension of filing date--Audit committee
Status: in_force

Each insurer having direct premiums written in this state of more than one million dollars in any calendar year and more than one thousand policyholders or certificate holders of directly written policies nationwide at the end of a calendar year is required to have an annual audit by an accountant of the financial statements reporting the financial position and the results of operations. This chapter also applies to insurers having assumed premiums pursuant to contracts or treaties of reinsurance of one million dollars or more. The director may require insurers with less than one million dollars in direct premiums and less than one thousand policyholders or certificate holders to have independent audits to determine the financial status of the insurer.

The insurer shall file an audited financial report with the director on or before June first for the immediately preceding year. The director may require an insurer to file an audited financial report earlier than June first with ninety days advance notice to the insurer.

Extensions of the June first filing date may be granted by the director for thirty-day periods upon showing by the insurer and its accountant to the director that there is good cause for an extension. The request for extension shall be submitted in writing to the director not less than ten days prior to the due date in sufficient detail to permit the director to make an informed decision.

If an extension is granted, a similar extension of thirty days is granted for the filing of the Management's Report of Internal Control over Financial Reporting.

Each insurer required to file an annual audited financial report pursuant to this chapter shall designate a group of individuals as constituting the insurer's audit committee. The audit committee of an entity that controls an insurer may be deemed to be the insurer's audit committee for purposes of this chapter at the election of the controlling person.

Source: SL 1992, ch 357, § 2; SL 2009, ch 271, § 3.
S.D. Codified Laws § 58-19-38 — SD Code / Title 58 / Chapter 19 / Section 58-19-38
Citation of chapter
Status: in_force

This chapter may be cited as "The Model Act for the Regulation of Credit Life Insurance and Credit Health Insurance."

Source: SL 1966, ch 111, ch 27, § 2 (1).
S.D. Codified Laws § 58-34-46 — SD Code / Title 58 / Chapter 34 / Section 58-34-46
Nonassessable policies--Authorization for issuance--Extinguishment of contingent liability
Status: in_force

If a reciprocal insurer has a surplus of assets over all liabilities at least equal to the minimum capital stock required of a domestic stock insurer authorized to transact like kinds of insurance, upon application of the attorney and as approved by the subscribers' advisory committee, the director shall issue his certificate authorizing the insurer to extinguish the contingent liability of subscribers under its policies then in force in this state, and to omit provisions imposing contingent liability in all policies delivered or issued for delivery in this state for so long as all such surplus remains unimpaired.

Source: SL 1966, ch 111, ch 19, § 26 (1).
S.D. Codified Laws § 58-30-174 — SD Code / Title 58 / Chapter 30 / Section 58-30-174
Payment, assignment, or sharing of commissions and fees--Limitations
Status: in_force

No insurer or insurance producer may pay or assign a commission, service fee, brokerage fee, or any other valuable consideration for a referral to any person not appropriately licensed pursuant to this chapter unless the payment or assignment is a fixed dollar amount that is not related to the amount of commission or premium for an insurance transaction and that is not dependent upon whether the referral results in a transaction. Nothing in this chapter prohibits a licensed and appointed producer upon receiving a commission from sharing this compensation with other insurance producers if those insurance producers are licensed in the line of business for which the original commission was received. However, no insurance producer who is not appointed may act as an agent of an insurer. An insurer who pays a commission to an appointed insurance producer is not responsible for any act, statement, or omission made by an insurance producer who is not appointed, but who receives compensation from an appointed insurance producer.

Source: SL 2001, ch 286, § 34; SL 2004, ch 295, § 2; SL 2005, ch 275, § 1; SL 2015, ch 255, § 1.
S.D. Codified Laws § 58-24-14 — SD Code / Title 58 / Chapter 24 / Section 58-24-14
Filing open to public inspection--Specially rated inland marine risks
Status: in_force

A filing and any supporting information shall be open to public inspection after the filing becomes effective. Specific inland marine rates on risks specially rated, made by a rating organization, shall be filed with the director.

Source: SL 1966, ch 111, ch 15, § 4 (1).
S.D. Codified Laws § 58-15-16 — SD Code / Title 58 / Chapter 15 / Section 58-15-16
Loans on policies issued prior to the adoption of standard policy provisions--Loan value--Deferment of application--Private placement policies
Status: in_force

In the case of those policies issued prior to the operative date specified in § 58-15-42 , the loan value referred to in § 58-15-15 is the reserve at the end of the current policy year on the policy and on any dividend additions thereto, computed according to a mortality table, interest rate, and method of valuation permitted by §§ 58-26-45 to 58-26-84 , inclusive, less a sum not more than two and one-half percent of the amount insured by the policy and of any dividend additions thereto. The policy may provide that such loan may be deferred for not exceeding six months after application therefor, and shall contain a table showing in figures the loan values during at least the first twenty years of the policy or during the term of the policy, whichever is the shorter. However, in the case of a private placement policy, the policy may provide that the loan, or portions thereof, may be deferred until the separate account assets, or portion thereof, comprising such loan can be, by their respective terms, converted to cash.

Source: SL 1966, ch 111, ch 23, § 30 (1); SL 2006, ch 252, § 3.
S.D. Codified Laws § 58-32-15 — SD Code / Title 58 / Chapter 32 / Section 58-32-15
Acceptance of business from licensed insurance producer
Status: in_force

A licensed surplus line broker may accept and place surplus line business for any insurance producer licensed in this state for the kind of insurance involved, and may compensate the insurance producer for it.

Source: SL 1966, ch 111, ch 11, § 15; SL 1982, ch 366; SL 2001, ch 286, § 198.
S.D. Codified Laws § 58-23A-3 — SD Code / Title 58 / Chapter 23A / Section 58-23A-3
Form and contents of report on claims
Status: in_force

Such reports shall be in writing on a form prescribed by the division and shall contain the following information:

(1) Name and address of physician, nurse, hospital, or other person or institution against which claim is made;

(2) Name, address, and age of the claimant or plaintiff;

(3) Nature and substance of the claim; and

(4) Date and place from which the claim arose.

Source: SL 1976, ch 316, § 2.
S.D. Codified Laws § 58-17I-3 — SD Code / Title 58 / Chapter 17I / Section 58-17I-3
Urgent care request defined
Status: in_force

For the purposes of this chapter, the term, urgent care request, means a request for a health care service or course of treatment with respect to which the time periods for making a nonurgent care request determination:

(1) Could seriously jeopardize the life or health of the covered person or the ability of the covered person to regain maximum function; or

(2) In the opinion of a physician with knowledge of the covered person's medical condition, would subject the covered person to severe pain that cannot be adequately managed without the health care service or treatment that is the subject of the request.

Except as provided in subdivision (1) of this section, in determining whether a request is to be treated as an urgent care request, an individual acting on behalf of the health carrier shall apply the judgment of a prudent layperson who possesses an average knowledge of health and medicine. Any request that a physician with knowledge of the covered person's medical condition determines is an urgent care request within the meaning of subdivisions (1) and (2) of this section shall be treated as an urgent care request.

Source: SL 2011, ch 219, § 94.
S.D. Codified Laws § 58-4-44 — SD Code / Title 58 / Chapter 4 / Section 58-4-44
Investigation of insurance business--Withholding report from public inspection--Timely completion--Notice of closing investigation or final action
Status: in_force

The director may investigate any person doing insurance business. The director may withhold from public inspection any examination or investigation report for so long as the director deems such withholding to be necessary for the protection of the person examined or investigated against unwarranted injury or to be in the public interest. The director shall complete any investigation in a timely manner. Any investigation not completed within twenty-four months shall be presented to the secretary of labor and regulation. If, after sixty days, the secretary has not completed the investigation, the secretary shall forward the matter to the attorney general who shall review the file and make recommendations to the secretary for the purpose of ensuring final action is taken concerning the investigation. If the Division of Insurance has given notice of a pending investigation to any person or legal entity, the division shall notify any such person or legal entity that the investigation is closed or final action has been taken.

Source: SL 1992, ch 340, § 1; SL 2006, ch 250, § 1; SL 2011, ch 1 (Ex. Ord. 11-1 ), § 162, eff. Apr. 12, 2011.
S.D. Codified Laws § 58-29F-10 — SD Code / Title 58 / Chapter 29F / Section 58-29F-10
Plan sponsor
Status: in_force

If contractually required, an auditing entity shall provide a copy of the claims included in the audit to the plan sponsor, and any recouped money shall be returned to the plan sponsor.

Source: SL 2013, ch 254, § 10.
S.D. Codified Laws § 58-38-33 — SD Code / Title 58 / Chapter 38 / Section 58-38-33
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 § 58-40-22 — SD Code / Title 58 / Chapter 40 / Section 58-40-22
Formation of voluntary health insurance purchasing organizations
Status: in_force

Notwithstanding the provisions of chapter 47-34A and §§ 47-15-2 and 47-22-4 , any organization may form for the purposes of purchasing group health insurance on a voluntary basis. For purposes of §§ 58-40-22 to 58-40-32 , inclusive, an organization means any nonprofit organization or nonprofit corporation formed under South Dakota law.

Source: SL 1994, ch 382, § 1; SL 2021, ch 210, § 23.
S.D. Codified Laws § 58-19-5 — SD Code / Title 58 / Chapter 19 / Section 58-19-5
Existing insurance--Choice of insurer
Status: in_force

When credit life insurance or credit health insurance is required as additional security for any indebtedness, the debtor shall, upon request to the creditor, have the option of furnishing the required amount of insurance through existing policies of insurance owned or controlled by him or of procuring and furnishing the required coverage through any insurer authorized to transact an insurance business within this state.

Source: SL 1966, ch 111, ch 27, § 11.
S.D. Codified Laws § 58-17A-7 — SD Code / Title 58 / Chapter 17A / Section 58-17A-7
Health insurance policies--Requirements for information regarding medicare coverage
Status: in_force

The director may promulgate rules pursuant to chapter 1-26 for captions or notice requirements determined to be in the public interest and designed to inform prospective insureds that particular insurance coverages are not medicare supplement coverages, for all health insurance policies sold to persons eligible for medicare other than medicare supplement policies and disability income policies.

The director may promulgate rules pursuant to chapter 1-26 to govern the full and fair disclosure of information, marketing, and conduct of insurance producers in connection with the replacement of health insurance policies, subscriber contracts, and certificates by persons eligible for medicare.

Source: SL 1982, ch 360, § 7; SL 1989, ch 431, § 7; SL 1992, ch 347, § 8; SL 1996, ch 293, § 2; SL 1997, ch 291, § 1; SL 2001, ch 286, § 119.
S.D. Codified Laws § 58-34-22 — SD Code / Title 58 / Chapter 34 / Section 58-34-22
Power of attorney--Terms--Approval by director
Status: in_force

The terms of any power of attorney or agreement collateral thereto shall be fair and equitable, and no such power or agreement shall be effective as to a domestic reciprocal insurer until approved by the director.

Source: SL 1966, ch 111, ch 19, § 10 (3).
S.D. Codified Laws § 58-29D-7 — SD Code / Title 58 / Chapter 29D / Section 58-29D-7
Status of payment of premiums and return premiums or claim payments to administrator
Status: in_force

If an insurer utilizes the services of an administrator, the payment to the administrator of any premiums or charges for insurance by or on behalf of the insured party shall be deemed to have been received by the insurer, and the payment of return premiums or claim payments forwarded by the insurer to the administrator may not be deemed to have been paid to the insured party or claimant until such payments are received by the insured party or claimant. Nothing in this section limits any right of the insurer against the administrator resulting from the failure of the administrator to make payments to the insurer, insured parties or claimants.

Source: SL 1992, ch 352, § 7.
S.D. Codified Laws § 58-18A-68 — SD Code / Title 58 / Chapter 18A / Section 58-18A-68
Order of benefits determined under §§58-18A-69to58-18A-74
Status: in_force

Each plan shall determine its order of benefits using the first section of §§ 58-18A-69 to 58-18A-74 , inclusive, that applies.

Source: SL 2006, ch 259, § 16.
S.D. Codified Laws § 58-18B-38 — SD Code / Title 58 / Chapter 18B / Section 58-18B-38
Prohibited activities of small employer carriers or insurance producers
Status: in_force

No small employer carrier or insurance producer may, directly or indirectly, engage in the following activities:

(1) Encouraging or directing small employers to refrain from filing an application for coverage with the small employer carrier because of the health status, claims experience, industry, occupation, or geographic location of the small employer; or

(2) Encouraging or directing small employers to seek coverage from another carrier because of the health status, claims experience, industry, occupation, or geographic location of the small employer.

Source: SL 1995, ch 281, § 33; SL 2001, ch 286, § 123.
S.D. Codified Laws § 58-29B-55 — SD Code / Title 58 / Chapter 29B / Section 58-29B-55
Appointment of liquidator--Effect upon actions and injunctions pending against insurer or liquidator--Liquidator's right to intervene
Status: in_force

Upon issuance of an order appointing a liquidator of a domestic insurer or of an alien insurer domiciled in this state, no action at law or equity may be brought against the insurer or liquidator, whether in this state or elsewhere, nor may any such existing action be maintained or further presented after issuance of such order. The courts of this state shall give full faith and credit to injunctions against the liquidator or the company or the continuation of existing actions against the liquidator or the company, if such injunctions are included in an order to liquidate an insurer issued pursuant to corresponding provisions in other states. If in the liquidator's judgment, protection of the estate of the insurer requires intervention in an action against the insurer that is pending outside this state, he may intervene in this action. The liquidator may defend any action in which he intervenes under this section at the expense of the estate of the insurer.

Source: SL 1989, ch 436, § 55.
S.D. Codified Laws § 58-16-36 — SD Code / Title 58 / Chapter 16 / Section 58-16-36
Grace period required
Status: in_force

A policy of group life insurance shall contain a provision that the policyholder is entitled to a grace period of thirty - one days for the payment of any premium due except the first, during which grace period the death benefit coverage shall continue in force, unless the policyholder shall have given the insurer written notice of discontinuance in advance of the date of discontinuance and in accordance with the terms of the policy. The policy may provide that the policyholder shall be liable to the insurer for the payment of a pro rata premium for the time the policy was in force during such grace period.

Source: SL 1966, ch 111, ch 24, § 3 (1).
S.D. Codified Laws § 58-17D-5 — SD Code / Title 58 / Chapter 17D / Section 58-17D-5
Certain basis for fees prohibited
Status: in_force

No utilization review organization may base its fees or charges on any recommendation for reduction in payment under an insurance contract or on a percentage of claim savings.

Source: SL 2002, ch 231, § 5.
S.D. Codified Laws § 58-14-16.3 — SD Code / Title 58 / Chapter 14 / Section 58-14-16.3
Eligibility for certification of association including incorporated and individual unincorporated underwriters
Status: in_force

An association including incorporated and individual unincorporated underwriters may be a certified reinsurer. In addition to satisfying the requirements of § 58-14-16.2 , to be eligible for certification:

(1) The association shall satisfy the association's minimum capital and surplus requirements through the capital and surplus equivalents, net of liabilities, of the association and the association's members, which shall include a joint central fund that may be applied to any unsatisfied obligation of the association or any of its members, in an amount determined by the director to provide adequate protection;

(2) The incorporated members of the association may not be engaged in any business other than underwriting as a member of the association and shall be subject to the same level of regulation and solvency control by the association's domiciliary regulator as are the unincorporated members; and

(3) Within ninety days after its financial statements are due to be filed with the association's domiciliary regulator, the association shall provide to the director an annual certification by the association's domiciliary regulator of the solvency of each underwriter member. If the annual certification is unavailable, the association shall file financial statements, prepared by independent public accountants, of each underwriter member of the association.

Source: SL 2017, ch 211, § 14.
S.D. Codified Laws § 58-29D-10 — SD Code / Title 58 / Chapter 29D / Section 58-29D-10
Insurer's ownership of administrator's records
Status: in_force

The insurer shall own the records generated by the administrator pertaining to the insurer. However, the administrator shall retain the right to continuing access to books and records to permit the administrator to fulfill all of its contractual obligations to insured parties, claimants, and the insurer.

Source: SL 1992, ch 352, § 10.
S.D. Codified Laws § 58-3-3.2 — SD Code / Title 58 / Chapter 3 / Section 58-3-3.2
Payments from insurance examination fund
Status: in_force

All money in the insurance examination fund is continuously appropriated for the purposes specified in this chapter. All costs of examinations, including travel expenses, living expense allowances, and per diem as compensation of examiners shall be paid from the fund. The fund shall also pay the costs of consultants, attorneys, actuaries, accountants, and other experts as shall be determined at the director's discretion to be reasonably necessary to assist in the conduct of the examination or analyses of the financial affairs of insurance companies. Any person so retained shall be under the direction and control of the director and shall act in a purely advisory capacity.

Source: SL 1997, ch 283, § 2.
S.D. Codified Laws § 58-38-26 — SD Code / Title 58 / Chapter 38 / Section 58-38-26
Membership of voluntary health insurance purchasing organizations
Status: in_force

Any organization may have a group health insurance policy issued to that organization on behalf of its members who would be insured under such policy. Members may join the organization, for the purpose of obtaining group health insurance, as individuals, employers, labor unions, associations, or substantially similar groups.

Source: SL 1994, ch 382, § 2.
S.D. Codified Laws § 58-5A-32 — SD Code / Title 58 / Chapter 5A / Section 58-5A-32
Standards for material transactions by registered insurers with affiliates--Nonconformity
Status: in_force

Any material transaction by a registered insurer with an affiliate is subject to the following standards:

(1) The terms shall be fair and reasonable;

(2) The books, accounts, and records of each party shall be maintained to clearly and accurately disclose the precise nature and details of the transaction including information necessary to support the reasonableness of the charges or fees to the respective parties;

(3) The insurer's surplus to policyholders following any dividends or distributions to shareholders or affiliates shall be reasonable in relation to the insurer's outstanding liabilities and adequate to its financial needs;

(4) Charges or fees for services performed shall be reasonable;

(5) Expenses incurred and payment received shall be allocated to the insurer in conformity with customary insurance accounting practices consistently applied; and

(6) Any agreement for cost sharing services and management shall include provisions as required by law or rule.

Any transaction which is not in conformity with this section is subject to the provisions of §§ 58-5A-64 , 58-5A-65 , and 58-5A-67 .

Source: SL 1972, ch 267, § 26; SL 1990, ch 158, § 25; SL 1992, ch 341, § 20; SL 2015, ch 246, § 11.
S.D. Codified Laws § 58-14-16 — SD Code / Title 58 / Chapter 14 / Section 58-14-16
Asset or reduction from liability for reinsurance ceded to insurer not meeting requirements of §58-14-7--Security
Status: in_force

An asset or a reduction from liability for the reinsurance ceded by a domestic insurer to an assuming insurer not meeting the requirements of § 58-14-7 shall be allowed in an amount not exceeding the liabilities carried by the ceding insurer. The reduction shall be in the amount of funds held by or on behalf of the ceding insurer, including funds held in trust for the ceding insurer, under a reinsurance contract with the assuming insurer as security for the payment of obligations. The security shall be held in the United States subject to withdrawal solely by, and under the exclusive control of, the ceding insurer; or, in the case of a trust, it shall be held in a qualified United States financial institution, as defined in § 58-14-23 . This security may be in the form of:

(1) Cash;

(2) Securities listed by the securities valuation office of the National Association of Insurance Commissioners (NAIC), including any security deemed exempt from filing as defined by the Purposes and Procedures Manual of the NAIC Investment Analysis Office as adopted by administrative rule, and qualifying as admitted assets;

(3) Clean, irrevocable, unconditional letters of credit, issued or confirmed by a qualified United States financial institution as defined in § 58-14-16.18 , effective no later than December thirty-first of the year for which the filing is being made, and in the possession of, or in the trust of, the ceding insurer on or before the filing date of the assuming insurer's annual statement. Letters of credit meeting applicable standards of issuer acceptability as of the dates of issuance or confirmation shall, notwithstanding the issuing or confirming institution's subsequent failure to meet applicable standards of issuer acceptability, continue to be acceptable as security until the security's expiration, extension, renewal, modification, or amendment, whichever occurs first; or

(4) Any other form of security acceptable to the director.

Source: SL 1992, ch 344, § 10; SL 2017, ch 211, § 10.
S.D. Codified Laws § 58-30-125 — SD Code / Title 58 / Chapter 30 / Section 58-30-125
Persons not managing general agents
Status: in_force

The following persons are not managing general agents for the purposes of §§ 58-30-124 to 58-30-139 , inclusive:

(1) Any employee of the insurer;

(2) Any United States manager of the United States branch of an alien insurer;

(3) Any underwriting manager who, pursuant to contract, manages all the insurance operations of the insurer, is under common control with the insurer, subject to the holding company regulatory act, and whose compensation is not based on the volume of premiums written; or

(4) Any attorney - in - fact authorized by and acting for the subscribers of a reciprocal insurer or interinsurance exchange under powers of attorney.

Source: SL 1992, ch 353, § 2.
S.D. Codified Laws § 58-27-30 — SD Code / Title 58 / Chapter 27 / Section 58-27-30
Collateral loans--Pledge of securities--Restricted amount
Status: in_force

An insurer may lend and thereby invest its funds upon the pledge of securities eligible for investment under this chapter. As of the date made, no such loan shall exceed in amount seventy - five percent of the market value of such collateral pledged. The amount so loaned shall be included pro rata in determining the maximum percentage of funds permitted under this chapter to be invested in the respective categories of securities so pledged.

Source: SL 1966, ch 111, ch 6, § 20.
S.D. Codified Laws § 58-17-13 — SD Code / Title 58 / Chapter 17 / Section 58-17-13
Omission from policy of inapplicable provision--Approval of director--Modification of inconsistent provision
Status: in_force

If any such provision is in whole or in part inapplicable to or inconsistent with the coverage provided by a particular form of policy, the insurer, with the approval of the director shall omit from such policy any inapplicable provision or part of a provision and shall modify any inconsistent provision or part of a provision in such manner as to make the provision as contained in the policy consistent with the coverage provided by the policy.

Source: SL 1966, ch 111, ch 25, § 3 (2).
S.D. Codified Laws § 58-41-116 — SD Code / Title 58 / Chapter 41 / Section 58-41-116
Application--Exemptions
Status: in_force

The provisions of § 58-41-115 do not apply to any plan, policy, or contract that provides coverage only for:

(1) Specified disease;

(2) Hospital indemnity;

(3) Fixed indemnity;

(4) Accident - only;

(5) Credit;

(6) Dental;

(7) Vision;

(8) Prescription drug;

(9) Medicare supplement;

(10) Long - term care;

(11) Disability income insurance;

(12) Coverage issued as a supplement to liability insurance;

(13) Workers' compensation or similar insurance;

(14) Automobile medical payment insurance; or

(15) Individual health benefit plans of six - months duration or less that are not renewable.

Source: SL 1998, ch 291, § 7.
S.D. Codified Laws § 58-17-14 — SD Code / Title 58 / Chapter 17 / Section 58-17-14
Entire contract and change clauses required--Signed acceptance required for endorsements
Status: in_force

There shall be a provision as follows: "Entire contract; changes: This policy, including the endorsements and the attached papers, if any, constitutes the entire contract of insurance. No change in this policy is valid until approved by an executive officer of the insurance company and unless such approval is endorsed or attached to this policy. No insurance producer has authority to change this policy or to waive any of its provisions."Any rider, endorsement, or application added to a policy, upon policy issuance, after the date of issue, or at reinstatement or renewal which reduces or eliminates benefits or coverage in the policy requires signed acceptance by the policyholder. After the date of policy issue, any rider or endorsement which increases benefits or coverage with an accompanying increase in premium during the policy term must be agreed to in writing signed by the insured, unless the increased benefits or coverage is required by law. Coverage as required by § 58-17-98 may be reduced or eliminated by a rider to, or an endorsement on, a new policy if the insurer would reject the application for the policy without the rider or endorsement based upon the applicant's preexisting condition of the type covered by § 58-17-98 and if there is signed acceptance by the policyholder.

Source: SL 1966, ch 111, ch 25, § 4; SL 1974, ch 315; SL 1982, ch 361; SL 2001, ch 286, § 116; SL 2002, ch 234, § 2; SL 2003, ch 247, § 1; SL 2010, ch 237, § 1.
S.D. Codified Laws § 58-18-88 — SD Code / Title 58 / Chapter 18 / Section 58-18-88
Authorization of self-funded multiple employer trust sponsored by association--Conditions
Status: in_force

A self-funded multiple employer trust, as defined in section 3 of the federal Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1002, paragraph 40, that is sponsored by an association, may be authorized by the director if the multiple employer trust meets all of the following conditions:

(1) The multiple employer trust is administered by an authorized insurer or a licensed or registered third-party administrator;

(2) The multiple employer trust is sponsored and maintained by a bona fide association of employers eligible to procure coverage under §§ 58-18-3 and 58-18-4 ;

(3) The association sponsoring the multiple employer trust is established by employers in a homogenous trade, industry, line of business, or profession with commonality of interest. The association has a constitution or bylaws, and is organized under the laws of South Dakota;

(4) The association sponsoring the multiple employer trust has a substantial business purpose other than sponsorship of an employer welfare benefit plan;

(5) The association sponsoring the multiple employer trust is a nonprofit entity organized under applicable South Dakota law;

(6) The multiple employer trust's board of trustees shall assess participating employers in an amount necessary to remedy deficiencies at any time the assets and stop loss insurance policies of the multiple employer trust are insufficient to:

(a) Pay claims made against the multiple employer trust;

(b) Discharge liabilities and obligations relating to health benefit plan claims; or

(c) Maintain adequate reserves and surpluses;

(7) The multiple employer trust:

(a) Meets the capital and surplus requirements of § 58-6-23 ;

(b) Meets the risk based capital requirements of § 58-4-48 ;

(c) Is subject to the hazardous financial condition requirements of §§ 58-4-39 to 58-4-42 , inclusive;

(d) Invests its assets pursuant to the requirements of chapters 58-26 and 58-27 ;

(e) Is subject to chapter 58-3 on the same basis as insurers;

(f) Is subject to the insurers supervision, rehabilitation, and liquidation provisions of chapter 58-29B ;

(g) Maintains a minimum loss ratio of eighty-five percent or be community rated; and

(h) Complies with all coverage mandates that are applicable to group health insurance under this title;

(8) Each sponsoring association is comprised of and controlled by employer members, consists of five hundred or more covered employees, and has been in existence for a period of three continuous years;

(9) Any solicitation or sales materials to prospective members discloses the provisions regarding fees and assessments for participation in the multiple employer trust; and

(10) The director, after consideration of the impact on the insurance-buying public, determines that the arrangement is in the best interests of the public.

Source: SL 2005, ch 272, § 2; SL 2014, ch 238, § 1; SL 2019, ch 212, § 6.
S.D. Codified Laws § 58-29A-106 — SD Code / Title 58 / Chapter 29A / Section 58-29A-106
Association to be recognized as claimant in liquidation of insolvent insurer--Priority of distribution
Status: in_force

The association and any similar organization in another state shall be recognized as claimants in the liquidation of an insolvent insurer for any amounts paid by them on covered claims obligations as determined under this chapter or similar laws in other states and shall receive dividends and any other distributions at the priority set forth in § 58-29B-124 .

Source: SL 2000, ch 247, § 53.
S.D. Codified Laws § 58-21-4 — SD Code / Title 58 / Chapter 21 / Section 58-21-4
Forfeitures for unauthorized business--Amount--Action to recover
Status: in_force

Any such insurer doing business in this state without a valid certificate of authority shall forfeit one hundred dollars for every day it neglects to procure such certificate. Any insurance producer making assurance or soliciting applications for any insurer having no such certificate shall forfeit the sum of three hundred dollars, and any person acting for an insurer authorized to transact business in this state without having the required insurance producer's certificate in the person's possession shall be liable to pay twenty - five dollars for each day's neglect to procure such certificate. Such penalties may be recovered in a civil action in the circuit court of any county in this state.

Source: SL 1966, ch 111, ch 28, § 4; SL 2001, ch 286, § 130.
S.D. Codified Laws § 58-37A-25 — SD Code / Title 58 / Chapter 37A / Section 58-37A-25
Standards of valuation for certificates--Maintenance of excess reserves
Status: in_force

Any standards of valuation for certificates issued before one year after January 1, 1991, shall be those provided by the laws applicable immediately before January 1, 1991.

The minimum standards of valuation for certificates issued on or after one year from January 1, 1991, shall be based on the following:

(1) For certificates of life insurance--the commissioner's standard ordinary mortality tables applicable to life and health insurers in this state; and

(2) For annuity and pure endowment certificates, for total and permanent disability benefits, for accidental death benefits and for noncancelable accident and health benefits--the tables that are authorized for use by life and health insurers in this state.

All of the above shall be under valuation methods and standards including interest assumptions in accordance with the laws of this state applicable to life and health insurers issuing policies containing like benefits.

The director may accept other standards for valuation if the director finds that the reserves produced by the other standards will not be less in the aggregate than reserves computed in accordance with the minimum valuation standard prescribed in this section. The director may vary the standards of mortality applicable to all benefit contracts on substandard lives or other extra hazardous lives by any society authorized to do business in this state.

Any society, with the consent of the insurance supervisory official of the state of domicile of the society and under such conditions, if any, which the director may impose, may establish and maintain reserves on its certificates in excess of the reserves required under this section, but no contractual rights of any benefit member may be affected by maintaining excess reserves.

Source: SL 1990, ch 410, § 25.
S.D. Codified Laws § 58-5-85 — SD Code / Title 58 / Chapter 5 / Section 58-5-85
Domestic insurers--Management and exclusive agency contracts, filing with and approval by director--Violation as misdemeanor
Status: in_force

No domestic insurer shall make or participate in any contract whereby any person is granted or is to enjoy in fact the management of the insurer to the substantial exclusion of its board of directors, or to have the controlling or preemptive right to produce substantially all insurance business for the insurer, unless the contract is filed with and approved by the director of the Division of Insurance. Violation of this section is a Class 2 misdemeanor.

Source: SL 1966, ch 111, ch 16, § 23 (1); SL 1978, ch 359, § 2.
S.D. Codified Laws § 58-14-4.1 — SD Code / Title 58 / Chapter 14 / Section 58-14-4.1
Association election to succeed to rights and obligations of insolvent insurer under reinsurance contract--Reinsurer's liability to pay claims
Status: in_force

Notwithstanding § 58-14-4 , if a life and health insurance guaranty association has made the election to succeed to the rights and obligations of the insolvent insurer under the contract of reinsurance, the reinsurer's liability to pay covered reinsured claims continues under the contract of reinsurance, subject to the payment to the reinsurer of the reinsurance premiums for such coverage. Payment for such reinsured claims may only be made by the reinsurer pursuant to the direction of the guaranty association or its designated successor. Any payment made at the direction of the guaranty association or its designated successor by the reinsurer discharges the reinsurer of any further liability to any other party for the claim payment.

Source: SL 2005, ch 274, § 4.
S.D. Codified Laws § 58-6A-22 — SD Code / Title 58 / Chapter 6A / Section 58-6A-22
Broker license--Waiver of residency requirements
Status: in_force

Any person acting, or offering to act, as an insurance producer for a risk retention group or purchasing group, which solicits members, sells insurance coverage, purchases coverage for its members located within this state, or otherwise does business in this state shall, before commencing any such activity, obtain a license from the Division of Insurance. The residency requirements shall be waived for any insurance producer license issued under this chapter.

Source: SL 1987, ch 372, § 22; SL 2001, ch 286, § 97.
S.D. Codified Laws § 58-41-25 — SD Code / Title 58 / Chapter 41 / Section 58-41-25
Fiduciary responsibilities to enrollees
Status: in_force

Any director, officer, or partner of a health maintenance organization who receives, collects, disburses, or invests funds in connection with the activities of such organization shall be responsible for such funds in a fiduciary relationship to the enrollees.

Source: SL 1974, ch 321, § 17.
S.D. Codified Laws § 58-17E-17 — SD Code / Title 58 / Chapter 17E / Section 58-17E-17
Duration of suspension--Conditions for reinstatement
Status: in_force

The director shall, in its order suspending the authority of the discount medical plan organization to enroll new members, specify the period during which the suspension is to be in effect and the conditions, if any, that shall be met by the discount medical plan organization prior to reinstatement of its registration to enroll members. The director may rescind or modify the order of suspension prior to the expiration of the suspension period. No registration of a discount medical plan organization may be reinstated unless requested by the discount medical plan organization. The director may not grant the request for reinstatement if the director finds that the circumstances for which the suspension occurred still exist or are likely to recur.

Source: SL 2006, ch 257, § 16.
S.D. Codified Laws § 58-17H-19 — SD Code / Title 58 / Chapter 17H / Section 58-17H-19
Determinations to be issued in timely manner--Process to ensure consistency
Status: in_force

A health carrier shall issue utilization review and benefit determinations in a timely manner pursuant to the requirements of §§ 58-17H-27 to 58-17H-32 , inclusive, and §§ 58-17H-40 to 58-17H-48 , inclusive. A health carrier shall have a process to ensure that utilization reviewers apply clinical review criteria in conducting utilization review consistently.

If a health carrier fails to strictly adhere to the requirements of §§ 58-17H-27 to 58-17H-32 , inclusive, and §§ 58-17H-40 to 58-17H-48 , inclusive, with respect to making utilization review and benefit determinations of a benefit request or claim, the covered person shall be deemed to have exhausted the provisions of chapters 58-17G and 58-17H , and may take action regardless of whether the health carrier asserts that the carrier substantially complied with the requirements of §§ 58-17H-27 to 58-17H-32 , inclusive, and §§ 58-17H-40 to 58-17H-48 , inclusive, as applicable, or that any error it committed was de minimus.

Any covered person may file a request for external review in accordance with rules promulgated by the director. In addition to the external review rights a covered person is entitled to pursue any available remedies under state or federal law on the basis that the health carrier failed to provide a reasonable internal claims and appeals process that would yield a decision on the merits of the claim.

Source: SL 2011, ch 219, § 44.
S.D. Codified Laws § 58-18-56 — SD Code / Title 58 / Chapter 18 / Section 58-18-56
Additional chapters applicable to purchasing organization
Status: in_force

Any organization is subject to all applicable provisions of chapter 58-3 and chapter 58-33 .

Source: SL 1994, ch 382, § 5.
S.D. Codified Laws § 58-17E-32 — SD Code / Title 58 / Chapter 17E / Section 58-17E-32
Application of provider agreement requirements
Status: in_force

The provisions of §§ 58-17E-26 to 58-17E-31 , inclusive, apply to those providers with which the discount medical plan organization has contracted with directly or indirectly as well as those providers that are members of a provider network with which the discount medical plan organization has contracted directly or indirectly.

Source: SL 2006, ch 257, § 32.
S.D. Codified Laws § 58-40-12.1 — SD Code / Title 58 / Chapter 40 / Section 58-40-12.1
Notice required for rate increase by hospital service plan corporation
Status: in_force

Forty - five days before a contract rate increase is effective, the hospital service plan corporation shall notify the group employer or association in writing that the contract rate for the hospital service plan operated by the corporation will be increased.

Source: SL 1989, ch 434, § 3.
S.D. Codified Laws § 58-4A-13 — SD Code / Title 58 / Chapter 4A / Section 58-4A-13
Immunity for persons furnishing information in good faith--Costs assessed against person acting not in good faith--Other privileges and immunities not abrogated
Status: in_force

Any person acting in good faith is immune from civil liability for filing a report with or for furnishing any information relating to suspected, anticipated, or completed fraudulent insurance acts to:

(1) The Department of Labor and Regulation and the director of insurance;

(2) Any governmental agency established to detect and prevent fraud;

(3) Law enforcement officials;

(4) Deleted by SL 2011, ch 1 (Ex. Ord. 11-1 ), § 162;

(5) Any insurer or insurance producer;

(6) The National Association of Insurance Commissioners; and

(7) Any nonprofit organization established to detect and prevent insurance fraud, if the organization is approved by the director pursuant to rules promulgated by the director under chapter 1-26 setting forth the standards, criteria, and procedures necessary to obtain approval.

If a civil action is commenced against a person for damages related to the filing of a report or the furnishing of information under this section and the court determines that the person acted in good faith in filing the report or furnishing the information, the person filing the report or furnishing the information may recover costs or disbursements under chapter 15-17 , including reasonable attorney's fees.

If the trier of fact concludes that the person filing the report or furnishing the information was not acting in good faith, the person filing a civil action may recover costs or disbursements under chapter 15-17 , including reasonable attorney's fees.

This section does not abrogate or modify in any way any common law or statutory privilege or immunity.

Source: SL 1999, ch 241, § 13; SL 2001, ch 286, § 68; 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 § 58-29B-139 — SD Code / Title 58 / Chapter 29B / Section 58-29B-139
Notice of orders sought under §58-29B-134or58-29B-138
Status: in_force

If an order is sought under § 58-29B-134 or 58-29B-138 , the court shall cause the insurer to be given such notice and time to respond thereto as is reasonable under the circumstances.

Source: SL 1989, ch 436, § 139.
S.D. Codified Laws § 58-35-22 — SD Code / Title 58 / Chapter 35 / Section 58-35-22
Contents of bylaws
Status: in_force

The bylaws of a farm mutual insurer shall provide:

(1) The extent of liability of each member for payment of the expenses and losses of the insurer;

(2) The time when obligations of members for losses and expenses become due;

(3) The terms of office of the directors; at least part of the directors shall be elected at each annual meeting of members, and the term of any director shall not be longer than three years;

(4) The date of the annual meeting of the members. Each member shall be permitted to cast at least one vote, either in person or, if authorized by the bylaws, by proxy, for each director to be elected and upon any other matter;

(5) The method of selecting directors in event of resignation, disability, or death; and

(6) The method of giving notice of annual and special meetings of members.

Source: SL 1966, ch 111, ch 17, § 14 (1).
S.D. Codified Laws § 58-6-35 — SD Code / Title 58 / Chapter 6 / Section 58-6-35
Deposits of foreign or alien insurers in another state--Quality of cash or securities
Status: in_force

Deposits of foreign insurers or deposits of alien insurers under subdivision 58-6-34(2) in another state shall be in cash or securities of a quality comparable to those eligible for deposit in this state by domestic insurers.

Source: SL 1966, ch 111, ch 3, § 13 (3).
S.D. Codified Laws § 58-38-22 — SD Code / Title 58 / Chapter 38 / Section 58-38-22
Grandfathered service and indemnity-type contracts required to cover low-dose mammography--Extent of coverage
Status: in_force

Each service or indemnity-type contract issued by a nonprofit medical and surgical service plan corporation that covers a female and that is delivered, issued for delivery, or renewed in this state, except for a contract that provides coverage for specified disease or other limited benefit coverage, shall provide coverage for screening by low-dose mammography for the presence of occult breast cancer that is subject to the same dollar limits, deductibles and coinsurance factors as for other radiological examinations. Coverage for the screening shall be provided as follows: ages thirty-five to thirty-nine, one baseline mammography; ages forty to forty-nine, a mammography every other year; and age fifty and older, a mammography every year.

As used in this section, "low-dose mammography" means the X ray examination of the breast using equipment dedicated specifically for mammography, including the X ray tube, filter, compression device, screens, films, and cassettes, with an average radiation exposure delivery of less than one rad midbreast, with two views for each breast and with interpretation by a qualified radiologist.

The provisions of this section apply only to grandfathered plans pursuant to 75 Fed. Reg. 116 (2010) to be codified at 26 C.F.R. §§ 54 and 602, 29 C.F.R. § 2590, and 45 C.F.R. § 147.

Source: SL 1990, ch 397, §§ 1, 5; SL 1991, ch 400, § 5; SL 2011, ch 216, § 7.
S.D. Codified Laws § 58-22-36 — SD Code / Title 58 / Chapter 22 / Section 58-22-36
Advising employment of particular attorney as misdemeanor
Status: in_force

No bail bondsperson or runner may suggest or advise the employment of or name for employment any particular attorney to represent the bondsperson's or runner's principal. Violation of this section is a Class 2 misdemeanor.

Source: SL 1966, ch 111, ch 31, §§ 15 (1), 27; SDCL, § 58-22-48 ; SL 1978, ch 359, § 2; SL 1998, ch 296, § 26.
S.D. Codified Laws § 58-18-40 — SD Code / Title 58 / Chapter 18 / Section 58-18-40
Enforcement of provisions permitting choice for pharmacy services
Status: in_force

The Division of Insurance shall enforce the provisions of §§ 58-18-37 to 58-18-39 , inclusive.

Source: SL 1990, ch 395, § 4.
S.D. Codified Laws § 58-41-78 — SD Code / Title 58 / Chapter 41 / Section 58-41-78
Cease and desist orders
Status: in_force

The director may issue an order directing a health maintenance organization or a representative of a health maintenance organization to cease and desist from engaging in any act or practice in violation of the provision of this chapter.

Source: SL 1974, ch 321, § 47.
S.D. Codified Laws § 58-17H-30 — SD Code / Title 58 / Chapter 17H / Section 58-17H-30
Retrospective review determinations--Timing--Notification requirements
Status: in_force

For retrospective review determinations, the health carrier shall make the determination within a reasonable period of time, but in no event later than thirty days after the date of receiving the benefit request.

In the case of a certification, the health carrier may notify in writing the covered person and the provider rendering the service.

If the determination is an adverse determination, the health carrier shall provide notice of the adverse determination to the covered person or, if applicable, the covered person's authorized representative, in accordance with § 58-17H-32 . The time period for making a determination and notifying the covered person or, if applicable, the covered person's authorized representative, of the determination pursuant to this section may be extended once by the health carrier for up to fifteen days, if the health carrier:

(1) Determines that an extension is necessary due to matters beyond the health carrier's control; and

(2) Notifies the covered person or, if applicable, the covered person's authorized representative, prior to the expiration of the initial thirty-day time period, of the circumstances requiring the extension of time and the date by which the health carrier expects to make a determination.

If the extension under this section is necessary due to the failure of the covered person or, if applicable, the covered person's authorized representative to submit information necessary to reach a determination on the request, the notice of extension shall specifically describe the required information necessary to complete the request and give the covered person or, if applicable, the covered person's authorized representative at least forty-five days from the date of receipt of the notice to provide the specified information.

Source: SL 2011, ch 219, § 55.
S.D. Codified Laws § 58-17-161 — SD Code / Title 58 / Chapter 17 / Section 58-17-161
Services under individualized service plan, family service plan, or education program
Status: in_force

Nothing in §§ 58-17-154 to 58-17-162 , inclusive, may be construed to affect any obligation to provide services to a person under an individualized family service plan, an individualized education program, or an individualized service plan.

Source: SL 2015, ch 250, § 8.
S.D. Codified Laws § 58-46-25 — SD Code / Title 58 / Chapter 46 / Section 58-46-25
Application of chapter58-29B
Status: in_force

The terms and conditions set forth in chapter 58-29B pertaining to insurers' supervision, rehabilitation, and liquidation apply to captive insurance companies formed under this chapter.

Source: SL 1996, ch 287, § 25.
S.D. Codified Laws § 58-18-34 — SD Code / Title 58 / Chapter 18 / Section 58-18-34
Notice of birth or adoption required for continued coverage
Status: in_force

An insurer may require notice that a newly born or newly adopted child is to be added to the policy or that coverage is to be changed from single or spousal coverage to family coverage. However, the insurer may not require notification sooner than the birth of the child or the start of the adoption bonding period. If the child is added or coverage changed to family coverage before the birth of the child or the start of the adoption bonding period, no additional premium may be charged by the insurer until the birth of the child or the start of the adoption bonding period. The insurer shall take reasonable steps to provide adequate notice to insureds of the need to alter coverage to ensure newborn or adopted children are covered and of the lack of premium adjustment until the birth of the child or the start of the adoption bonding period. An insurer is considered to have taken reasonable steps if prominent disclosure of the requirements of this section are included in a certificate, subscriber contract, evidence of coverage, or employee handbook if such are provided to all insureds.

If payment of a specific premium or subscription fee is required to provide coverage for a child, the policy or contract may require that notification of birth of a newly born child or notification of the start of the six - month adoption bonding period for an adopted child or start of the bonding period and payment of the required premium or fees be furnished to the insurer or nonprofit service or indemnity corporation within thirty - one days after the date of birth or notification of the start of the six - month adoption bonding period for an adopted child or start of the bonding period in order to have the coverage continued beyond the thirty - one day period.

Source: SL 1974, ch 322; SDCL Supp, § 58-17-30.4 ; SL 1984, ch 327, § 3; SL 1994, ch 387, § 8.
S.D. Codified Laws § 58-33A-16.6 — SD Code / Title 58 / Chapter 33A / Section 58-33A-16.6
Additional disclosure upon request
Status: in_force

Upon request of the consumer or the consumer’s designated representative, the producer shall disclose:

(1) A reasonable estimate of the amount of cash compensation to be received by the producer, which may be stated as a range of amounts or percentages; and

(2) Whether the cash compensation is a one-time or multiple occurrence amount, and if a multiple occurrence amount, the frequency and amount of the occurrence, which may be stated as a range of amounts or percentages.

Source: SL 2022, ch 186, § 13, eff. Jan. 1, 2023.
S.D. Codified Laws § 58-11-18 — SD Code / Title 58 / Chapter 11 / Section 58-11-18
Extension of time for approval or disapproval of filing by director--Notice to insurer--Approval at expiration of extended period
Status: in_force

The director may extend by not more than thirty days the period within which he may so approve or disapprove any such form, by giving notice to the insurer of such extension before expiration of the initial thirty - day period. At the expiration of any such period as so extended, and in the absence of such prior affirmative approval or disapproval, any such form shall be deemed approved.

Source: SL 1966, ch 111, ch 22, § 13 (2).
S.D. Codified Laws § 58-6A-3.6 — SD Code / Title 58 / Chapter 6A / Section 58-6A-3.6
Members of audit committee
Status: in_force

The risk retention group shall have an audit committee composed of at least three independent board members as defined in §§ 58-6A-3.1 and 58-6A-3.2 . A nonindependent board member may participate in the activities of the audit committee, if invited by the committee, but cannot be a member of the audit committee.

Source: SL 2016, ch 232, § 8.
S.D. Codified Laws § 58-18B-56 — SD Code / Title 58 / Chapter 18B / Section 58-18B-56
Policies to provide coverage for diabetes supplies, equipment and education--Exceptions--Conditions and limitations
Status: in_force

Every small employer health benefit plan delivered, issued for delivery, or renewed in this state, except for policies that provide coverage for specified disease or other limited benefit coverage, shall provide, in writing, coverage for equipment, supplies, and self - management training and education, including medical nutrition therapy, for treatment of persons diagnosed with diabetes if prescribed by a physician or other licensed health care provider legally authorized to prescribe such treatment. Medical nutrition therapy does not include any food items or nonprescription drugs.

Coverage for medically necessary equipment and supplies shall include blood glucose monitors, blood glucose monitors for the legally blind, test strips for glucose monitors, urine testing strips, insulin, injection aids, lancets, lancet devices, syringes, insulin pumps and all supplies for the pump, insulin infusion devices, prescribed oral agents for controlling blood sugars, glucose agents, glucagon kits, insulin measurement and administration aids for the visually impaired, and other medical devices for treatment of diabetes.

Diabetes self - management training and education shall be covered if: (a) the service is provided by a physician, nurse, dietitian, pharmacist, or other licensed health care provider who satisfies the current academic eligibility requirements of the National Certification Board for Diabetic Educators and has completed a course in diabetes education and training or has been certified as a diabetes educator; and (b) the training and education is based upon a diabetes program recognized by the American Diabetes Association or a diabetes program with a curriculum approved by the American Diabetes Association or the South Dakota Department of Health.

Coverage of diabetes self - management training is limited to (a) persons who are newly diagnosed with diabetes or have received no prior diabetes education; (b) persons who require a change in current therapy; (c) persons who have a co - morbid condition such as heart disease or renal failure; or (d) persons whose diabetes condition is unstable. Under these circumstances, no more than two comprehensive education programs per lifetime and up to eight follow - up visits per year need be covered. Coverage is limited to the closest available qualified education program that provides the necessary management training to accomplish the prescribed treatment.

The benefits provided in this section are subject to the same dollar limits, deductibles, coinsurance, and other restrictions established for all other benefits covered in the plan.

Source: SL 1999, ch 252, § 5.
S.D. Codified Laws § 58-5-24 — SD Code / Title 58 / Chapter 5 / Section 58-5-24
Cessation of corporate powers upon failure of mutual insurer to secure certificate of authority--Return of trust deposit
Status: in_force

If the proposed domestic insurer fails to secure its certificate of authority within one year from the date of its certificate of incorporation, its corporate powers shall cease, and the director shall cause to be returned to the persons entitled thereto all sums held in trust under § 58-5-19 .

Source: SL 1966, ch 111, ch 16, § 13.
S.D. Codified Laws § 58-41-82 — SD Code / Title 58 / Chapter 41 / Section 58-41-82
Additional grounds for suspension or revocation
Status: in_force

The director may suspend or revoke any certificate of authority issued to a health maintenance organization under this chapter if:

(1) The health maintenance organization does not meet the requirements of § 58-41-12 ; or

(2) The health maintenance organization is unable to fulfill its obligations to furnish comprehensive health maintenance services as required under its health maintenance contract.

Source: SL 1974, ch 321, § 37 (4); SL 2013, ch 256, § 28.
S.D. Codified Laws § 58-29A-60 — SD Code / Title 58 / Chapter 29A / Section 58-29A-60
General corporate powers of association
Status: in_force

The association may:

(1) Employ or retain such persons as are necessary to handle claims and perform other duties of the association;

(2) Borrow funds necessary to effect the purposes of this chapter in accord with the plan of operation;

(3) Sue or be sued. The power to sue includes the power and right to intervene as a party before any court in this state that has jurisdiction over an insolvent insurer as defined by this chapter;

(4) Negotiate and become a party to such contracts as are necessary to carry out the purpose of this chapter;

(5) Perform such other acts as are necessary or proper to effectuate the purpose of this chapter.

Source: SL 2000, ch 247, § 7.
S.D. Codified Laws § 58-29G-1 — SD Code / Title 58 / Chapter 29G / Section 58-29G-1
Definitions
Status: in_force

Terms used in this chapter mean:

(1) "Pharmaceutical manufacturer," any person engaged in the business of preparing, producing, converting, processing, packaging, labeling, or distributing a prescription drug, but not including a wholesale distributor or dispenser;

(2) "Pharmacy," any place within or outside this state, licensed by the State Board of Pharmacy, where drugs are dispensed, and pharmaceutical care is provided to residents of this state;

(3) "340B drug," a drug purchased through the 340B drug discount program by a 340B entity;

(4) "340B drug discount program," a program that imposes limitations on the prices of drugs purchased by covered entities, in accordance with 42 U.S.C. § 256b (January 1, 2025); and

(5) "340B entity," a covered entity as defined in 42 U.S.C. § 256b(a)(4) (January 1, 2025).

Source: SL 2025, ch 198, § 2.
S.D. Codified Laws § 58-33-65 — SD Code / Title 58 / Chapter 33 / Section 58-33-65
Automobile policies exempt
Status: in_force

Sections 58-33-59 to 58-33-64 , inclusive, do not apply to the cancellation of automobile policies or coverages, as defined in § 58-11-45 .

Source: SL 1985, ch 392, § 7; SL 1988, ch 408.
S.D. Codified Laws § 58-40-12 — SD Code / Title 58 / Chapter 40 / Section 58-40-12
Rates charged for services--Approval by director
Status: in_force

The rates charged to the subscribers for hospital service and the rates of payment by a hospital service plan corporation to the contracting hospitals at all times shall be subject to the approval of the director.

Source: SL 1966, ch 111, ch 21, § 17.
S.D. Codified Laws § 58-17H-34 — SD Code / Title 58 / Chapter 17H / Section 58-17H-34
Health carrier may be deemed to meet utilization review requirements if met by private accrediting body
Status: in_force

If the director and the secretary find that the requirements of any private accrediting body meet the requirements of utilization review as set forth in this chapter, the health carrier may, at the discretion of the director and secretary, be deemed to have met the applicable requirements.

Source: SL 2011, ch 219, § 59.
S.D. Codified Laws § 58-35-9 — SD Code / Title 58 / Chapter 35 / Section 58-35-9
Fee for filing articles of incorporation
Status: in_force

At the time of filing the proposed articles of incorporation, the incorporators shall submit a fee of twenty - five dollars payable to the division and the applicable filing fee payable to the secretary of state.

Source: SL 1966, ch 111, ch 17, § 8 (3); SL 1993, ch 369, § 2.
S.D. Codified Laws § 58-17A-8.1 — SD Code / Title 58 / Chapter 17A / Section 58-17A-8.1
Issuance of policies by insurance company, nonprofit hospital service plan, medical service corporation, or fraternal benefit society--Delivery receipts--Certificates of mailing--Term of retention
Status: in_force

An issuer 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 issuer 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, § 4; SL 1992, ch 347, § 10; SL 2001, ch 286, § 120; SL 2003, ch 249, § 1.
S.D. Codified Laws § 58-40-29 — SD Code / Title 58 / Chapter 40 / Section 58-40-29
Rates for group health insurance issued to purchasing organizations
Status: in_force

Any insurer issuing group health insurance pursuant to §§ 58-40-22 to 58-40-32 , 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 § 58-30-215.1 — SD Code / Title 58 / Chapter 30 / Section 58-30-215.1
Travel protection plans
Status: in_force

Travel protection plans may be offered for one price for the combined features that the travel protection plan offers in this state if:

(1) The travel protection plan clearly discloses to the consumer, at or prior to the time of purchase, that it includes travel insurance, travel assistance services, and cancellation fee waivers, as applicable, and provides information and an opportunity, at or prior to the time of purchase, for the consumer to obtain additional information regarding the features and pricing of each; and

(2) The fulfillment materials:

(a) Describe and delineate the travel insurance, travel assistance services, and cancellation fee waivers in the travel protection plan; and

(b) Include the travel insurance disclosures and the contact information for persons providing travel assistance services, and cancellation fee waivers, as applicable.

Source: SL 2022, ch 185, § 7.
S.D. Codified Laws § 58-33-90 — SD Code / Title 58 / Chapter 33 / Section 58-33-90
Sale of securities by unregistered insurance producer prohibited
Status: in_force

No insurance producer may offer or sell any security in this state unless the insurance producer is properly registered or exempt from registration pursuant to chapter 47-31B .

Source: SL 2001, ch 287, § 1; SL 2004, ch 278, § 67.
S.D. Codified Laws § 58-13-1 — SD Code / Title 58 / Chapter 13 / Section 58-13-1
Maximum single risk assumed
Status: in_force

No insurer shall retain any risk on any one subject of insurance, whether located or to be performed in this state or elsewhere, in an amount exceeding ten percent of its surplus to policyholders.

Source: SL 1966, ch 111, ch 4, § 11 (1).
S.D. Codified Laws § 58-33A-8.1 — SD Code / Title 58 / Chapter 33A / Section 58-33A-8.1
Disclosure of usual, customary, and reasonable limitation provision required
Status: in_force

Any insurer that is subject to § 58-33A-1 offering to provide health benefits in this state through a policy, contract, or certificate that contains a provision limiting coverage to usual, customary, or reasonable charges shall provide prominent disclosure that the policy, certificate, or contract contains a usual, customary, and reasonable limitation and that this limitation may cause the insured to incur additional out - of - pocket expenses. An insurer may comply with this section by including the required disclosure in an outline of coverage.

Source: SL 2000, ch 251, § 1.
S.D. Codified Laws § 58-33A-1 — SD Code / Title 58 / Chapter 33A / Section 58-33A-1
Applicability of chapter
Status: in_force

This chapter applies to all individual and group health policies which are solicited or sold in this state that are subject to chapters 58-15 , 58-16 , 58-17 , 58-18 , 58-18B , 58-37A , 58-38 , 58-39 , 58-40 , and 58-41 . However, this chapter does not apply to insurance policies and subscriber contracts subject to the medicare supplement requirements. Except for the exemptions specified in this section, this chapter applies to any solicitation, negotiation, or effectuation of life insurance occurring within this state. This chapter applies to any issuer of life insurance contracts including fraternal benefit societies. This chapter does not apply to:

(1) Group annuities;

(2) Credit life insurance;

(3) Group life insurance (except for disclosures relating to preneed funeral contracts or prearrangements as provided by this chapter. These disclosure requirements extend to the issuance or delivery of certificates as well as to the master policy);

(4) Life insurance policies issued in connection with pension and welfare plans as defined by and which are subject to the federal Employee Retirement Income Security Act of 1974 (ERISA), 29 U.S.C. Section 1001 et seq. as amended to January 1, 1999; or

(5) Variable life insurance under which the amount or duration of the life insurance varies according to the investment experience of a separate account.

Source: SL 1999, ch 240, § 1; SL 2000, ch 251, § 2; SL 2012, ch 250, § 19.
S.D. Codified Laws § 58-40-34 — SD Code / Title 58 / Chapter 40 / Section 58-40-34
Minimum inpatient care coverage following delivery
Status: in_force

If a service or indemnity - type contract issued or renewed on or after July 1, 1996, by a nonprofit hospital service plan corporation provides maternity coverage, the contract shall provide coverage for a minimum of forty - eight hours of inpatient care following a vaginal delivery and a minimum of ninety - six hours of inpatient care following delivery by cesarean section for a mother and her newborn child in a health care facility licensed pursuant to chapter 34-12 , except as otherwise provided in § 58-40-35 . Any individual policy and any policy issued to employers with less than fifteen employees that provides coverage for complications of pregnancy, and does not provide other maternity benefits, is not required to comply with this section.

Source: SL 1996, ch 292, § 13; SL 1998, ch 290, § 5.
S.D. Codified Laws § 58-16-48 — SD Code / Title 58 / Chapter 16 / Section 58-16-48
Application limited
Status: in_force

The provisions of §§ 58-16-44 to 58-16-48 , inclusive, shall apply only to deaths of insureds which occur on or after July 1, 1987.

Source: SL 1987, ch 375, § 5.
S.D. Codified Laws § 58-29D-21 — SD Code / Title 58 / Chapter 29D / Section 58-29D-21
Administrator's license or registration required
Status: in_force

No person may act as, or offer to act as, or hold himself out to be an administrator in this state without a valid license or registration as an administrator issued by the director.

Source: SL 1992, ch 352, § 21; SL 2001, ch 285, § 3.
S.D. Codified Laws § 58-33-131 — SD Code / Title 58 / Chapter 33 / Section 58-33-131
Employer insurance assistance program defined
Status: in_force

For purposes of §§ 58-33-132 to 58-33-134 , inclusive, the term, employer insurance assistance program, means a service, which is directly related to insurance purchased by an employer, that enhances that employer's ability to purchase insurance or assists in the administration of any insurance purchased by the employer.

Source: SL 2009, ch 270, § 1.
S.D. Codified Laws § 58-41-28 — SD Code / Title 58 / Chapter 41 / Section 58-41-28
Solicitation of enrollment not deemed professional advertising
Status: in_force

Solicitation of enrollees by a health maintenance organization granted a certificate of authority, or its representatives, shall not be construed to violate any provision of law relating to solicitation or advertising by health professionals.

Source: SL 1974, ch 321, § 52.
S.D. Codified Laws § 58-29D-1 — SD Code / Title 58 / Chapter 29D / Section 58-29D-1
Definition of terms
Status: in_force

Terms used in this chapter mean:

(1) "Affiliate" or "affiliated," any entity or person who directly or indirectly through one or more intermediaries, controls or is controlled by, or is under common control with, a specified entity or person;

(2) "Underwrites" or "underwriting," the acceptance of employer or individual applications for coverage of individuals in accordance with the written rules of the insurer; the overall planning and coordinating of an insurance program; and the ability to procure bonds and excess insurance.

Source: SL 1992, ch 352, § 1.
S.D. Codified Laws § 58-46-10 — SD Code / Title 58 / Chapter 46 / Section 58-46-10
Forms of incorporation
Status: in_force

A pure or agency captive insurance company may be incorporated as a stock corporation, a nonstock corporation, a nonprofit corporation, or may be formed as a limited liability company, business trust under chapter 47-14A , or other form of legal entity as approved by the director.

A group captive insurance company may be incorporated as a stock corporation or as a nonstock corporation, may be formed as a limited liability company, a business trust, or may be organized as a reciprocal insurer, or other form of legal entity as approved by the director.

A special purpose captive insurance company may be incorporated as a stock corporation or as a nonstock corporation, may be formed as a limited liability company, business trust or trust, or may be such other form of legal entity as approved by the director.

A trust captive insurance company may be incorporated as a stock corporation or as a nonstock corporation, or may be formed as a limited liability company, or business trust, or other form of legal entity as approved by the director.

A sponsored captive insurance company may be incorporated as a stock corporation or as a nonstock corporation, or may be formed as a limited liability company, or business trust, or other form of legal entity as approved by the director.

Source: SL 1996, ch 287, § 10; SL 2009, ch 272, § 6; SL 2013, ch 257, § 9; SL 2015, ch 257, § 2.
S.D. Codified Laws § 58-18B-39 — SD Code / Title 58 / Chapter 18B / Section 58-18B-39
Information regarding restricted network provision of carrier
Status: in_force

The provisions of § 58-18B-38 do not apply with respect to information provided by a small employer carrier or insurance producer to a small employer regarding a restricted network provision of a small employer carrier.

Source: SL 1995, ch 281, § 34; SL 2001, ch 286, § 124.
S.D. Codified Laws § 58-46-31 — SD Code / Title 58 / Chapter 46 / Section 58-46-31
Form of application--Confidentiality of information
Status: in_force

The director shall prescribe the form for making an application and any application submitted shall contain such information as required. The applicant may, with approval of the director, designate confidential information.

All information the director generates in making an investigation or examination of a captive insurance company is confidential. All confidential information is the property of the division but shall be furnished to the captive insurance company for its confidential use. Under no circumstances may a captive insurance company disclose a report or any supporting documentation to anyone, other than directors and officers of the captive insurance company or anyone acting in a fiduciary capacity for the captive insurance company, without written permission from the director.

The director shall give ten days' prior written notice of intent to disclose confidential information to the affected captive insurance company. Any captive insurance company which receives a notice may object to the disclosure of the confidential information and shall be afforded the right to a hearing in accordance with the provisions of chapter 1-26 . If a captive insurance company requests a hearing, the director may not reveal confidential information prior to the conclusion of the hearing and a ruling. Disclosure of confidential information shall be made only to formal regulatory bodies which clearly have a need for the confidential information. Prior to dissemination of any confidential information, the director shall require a written agreement not to reveal the confidential information by the party receiving the confidential information. In no event may the director disclose confidential information to the general public, any competitor, or any potential competitor of a captive insurance company, or its parents or affiliates.

The submission of any information to the division in the course of any application, investigation, or examination shall not be construed as waiving, destroying, or otherwise affecting any privilege any person may claim with respect to the information under South Dakota law or federal law.

For the purposes of this chapter, confidential information includes the names of stockholders, membership interest holders, or owners, ownership information, capital contributions, addresses, business affiliations, state and director findings through any examination or inquiry of any kind, and any information required to be reported or filed with the director.

The provisions of this section do not apply to the disclosure of information by the director in connection with the institution and prosecution of an action against a captive insurance company under this chapter. Disclosure of confidential information may be made only to formal governmental regulatory bodies which have a need for the confidential information.

Source: SL 2013, ch 257, § 27.
S.D. Codified Laws § 58-14-27 — SD Code / Title 58 / Chapter 14 / Section 58-14-27
Agent or broker bond--Errors and omissions policy
Status: in_force

The director may require an agent or broker under §§ 58-14-24 to 58-14-42 , inclusive, to file a bond in an amount acceptable to the director for the protection of the reinsurer or maintain an errors and omissions policy in an amount acceptable to the director, or both.

Source: SL 1992, ch 345, § 4.
S.D. Codified Laws § 58-20-21 — SD Code / Title 58 / Chapter 20 / Section 58-20-21
Annual workplace safety review services--Recommendations for improved safety--Increased premiums
Status: in_force

Any insurer writing workers' compensation insurance in this state shall offer to conduct or contract for annual workplace safety review services, including review reports with written recommendations for improved safety procedures, to each of its insureds whose policy premium is five thousand dollars or more, unless the employer has five or fewer employees. No written recommendation prepared by an insurer pursuant to this section is subject to discovery or disclosure under chapter 15-6 or any other provision of law or admissible as evidence in any action of any kind in any court or arbitration forum. However, the recommendation may be disclosed to a subsequent insurer of the employer. Compliance with this section does not constitute an undertaking by an insurer to supplant any responsibility its insured may otherwise have for workplace safety. Any employer subject to this section shall have workplace safety reviews conducted by the employer's insurer at least once every three years. If an insurer makes a written recommendation to correct a safety deficiency pursuant to § 58-20-21 , including failure to post safety posters as required by § 62-2-11 , and the deficiency has not been corrected at the time of a subsequent safety review, the insured is subject to an appropriate increase in premium as determined by the insurer subject to the approval of the director. The insurer is not responsible for inspecting for compliance with federal or state safety laws or regulations.

Source: SL 1992, ch 364, § 8; SL 1993, ch 362, § 1; SL 1997, ch 292, § 1; SL 2004, ch 306, § 3.
S.D. Codified Laws § 58-5-77 — SD Code / Title 58 / Chapter 5 / Section 58-5-77
Rules and regulations on insider trading
Status: in_force

The director of the Division of Insurance shall have the power to make such rules and regulations as may be necessary for the execution of the functions vested in him by §§ 58-5-68 to 58-5-76 , inclusive, and may for such purpose classify domestic stock insurance companies, securities, and other persons or matters within his jurisdiction.

Source: SL 1966, ch 111, ch 16, § 27 (8).
S.D. Codified Laws § 58-5-82 — SD Code / Title 58 / Chapter 5 / Section 58-5-82
Vice-presidents acting as directors during national emergency--Insufficient number of vice-presidents, appointment of directors by insurance director
Status: in_force

If there are no surviving directors, but at least three vice - presidents of the insurer survive, the three vice - presidents with the longest term of service shall be the directors and shall possess all of the powers of the previous board of directors and such powers as are granted herein or by subsequently enacted legislation. By majority vote such emergency board of directors may elect other directors. If there are not at least three surviving vice - presidents, the director of the Division of Insurance or duly designated person exercising the powers of the director shall appoint three persons as directors who shall possess all of the powers of the previous board of directors and such powers as are granted herein or by subsequently enacted legislation, and these persons by majority vote may elect other directors.

Source: SL 1966, ch 111, ch 16, § 43 (4).
S.D. Codified Laws § 58-19-43 — SD Code / Title 58 / Chapter 19 / Section 58-19-43
Filing of credit unemployment insurance policies, certificates, notices, applications, endorsements, and riders, and premium rate schedules
Status: in_force

All credit unemployment 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 1987, ch 380, § 5.
S.D. Codified Laws § 58-23A-6 — SD Code / Title 58 / Chapter 23A / Section 58-23A-6
Information and files kept by division--Confidentiality--Release at director's discretion
Status: in_force

The Division of Insurance shall retain the information and maintain the files in the form and for a period as it shall determine necessary. The division shall maintain the data and information filed in accordance with this chapter as confidential records and shall release the same only for bona fide research, educational, or legislative purposes, or as required by § 58-23A-5 . The director of the division in his sole discretion shall determine the validity of any request for the information.

Source: SL 1976, ch 316, § 5.
S.D. Codified Laws § 58-32-52 — SD Code / Title 58 / Chapter 32 / Section 58-32-52
Insured's liability for tax on independently procured coverages
Status: in_force

The tax imposed by § 58-32-50 shall be collectible from the insured by civil action brought by the director, or by distraint.

Source: SL 1966, ch 111, ch 11, § 22 (5).
S.D. Codified Laws § 58-10-9 — SD Code / Title 58 / Chapter 10 / Section 58-10-9
Measure of insurable interest in property
Status: in_force

The measure of an insurable interest in property is the extent to which the insured might be directly damnified by loss, injury, or impairment thereof.

Source: SL 1966, ch 111, ch 22, § 6 (3).
S.D. Codified Laws § 58-23-1 — SD Code / Title 58 / Chapter 23 / Section 58-23-1
Action against insurer by injured party where execution returned unsatisfied
Status: in_force

All liability insurance policies issued in this state shall provide in substance that if an execution upon any final judgment in an action brought by the injured or by another person claiming, by, through, or under the injured, is returned unsatisfied, then an action may be maintained by the injured, or by such other person against the insurer under the terms of the policy for the amount of any judgment recovered in such action, not exceeding the amount of the policy, and every such policy shall be construed to so provide, anything in such policy to the contrary notwithstanding.

Source: SL 1966, ch 111, ch 32, § 2.
S.D. Codified Laws § 58-29B-21 — SD Code / Title 58 / Chapter 29B / Section 58-29B-21
Violation of supervision order--Penalty
Status: in_force

If any person has violated any supervision order issued under this chapter, he is liable to pay a civil penalty imposed by the circuit court of Hughes County not to exceed ten thousand dollars.

Source: SL 1989, ch 436, § 21.
S.D. Codified Laws § 58-12-28 — SD Code / Title 58 / Chapter 12 / Section 58-12-28
Provisions of chapter1-27not applicable to insurer records
Status: in_force

The provisions of chapter 1-27 do not apply to any records the insurer is required to provide to the department.

Source: SL 2005, ch 263, § 7.
S.D. Codified Laws § 58-20-17 — SD Code / Title 58 / Chapter 20 / Section 58-20-17
Unallocated compensation loss expense payments--Distribution schedule included in annual statement
Status: in_force

All unallocated compensation loss expense payments made in a given calendar year subsequent to the first three years in which an insurer has been issuing compensation policies shall be distributed as follows: forty percent shall be charged to the policies written in that year, forty - five percent to the policies written in the preceding year, ten percent to the policies written in the second year preceding and five percent to the policies written in the third year preceding, and such payments made in each of the first three calendar years in which an insurer issues compensation policies shall be distributed as follows: in the first calendar year one hundred percent shall be charged to the policies written in that year; in the second calendar year fifty percent shall be charged to the policies written in that year and fifty percent to the policies written in the preceding year; in the third calendar year forty - five percent shall be charged to the policies written in that year, forty - five percent to the policies written in the preceding year and ten percent to the policies written in the second year preceding; and a schedule showing such distribution shall be included in the annual statement.

Source: SL 1966, ch 111, ch 29, § 3.
S.D. Codified Laws § 58-17-60 — SD Code / Title 58 / Chapter 17 / Section 58-17-60
Certain payments exempt
Status: in_force

Payments made pursuant to federal medicare laws or payments made to the health - care provider according to a contract or agreement between an employer and employee which requires a third - party payor to pay the full amount for health - care services are exempt from §§ 58-17-57 to 58-17-60 , inclusive.

Source: SL 1989, ch 429, § 4.
S.D. Codified Laws § 58-29A-107 — SD Code / Title 58 / Chapter 29A / Section 58-29A-107
Insolvent insurer's records to be made available to board
Status: in_force

The liquidator, receiver, or statutory successor of an insolvent insurer covered by this chapter shall permit access by the board or its authorized representative to any of the insolvent insurer's records that are necessary for the board in carrying out its functions under this chapter with regard to covered claims. In addition, the liquidator, receiver, or statutory successor shall provide the board or its representative with copies of such records upon request by the board and at the expense of the board.

Source: SL 2000, ch 247, § 54.
S.D. Codified Laws § 58-15-30 — SD Code / Title 58 / Chapter 15 / Section 58-15-30
Nonforfeiture benefits in policies issued prior to the adoption of standard nonforfeiture law
Status: in_force

This section shall apply only to policies of life insurance issued prior to the operative date specified in § 58-15-42 .

The nonforfeiture benefit referred to in § 58-15-21 shall be available to the owner of the policy in event of default in premium payments, after premiums shall have been paid for three years, and shall be a stipulated form of insurance, the net value of which shall be at least equal to the reserve at the date of default on the policy and on any dividend additions thereto, computed according to a mortality table, interest rate, and method of valuation permitted by §§ 58-26-17 to 58-26-20, inclusive, less a sum not more than two and one - half percent of the amount insured by the policy and of any existing dividend additions thereto, and less any existing indebtedness to insurer on the policy. The policy shall stipulate that it may be surrendered to the insurer at its home office within one month from date of default for a specified cash value at least equal to the sum which would otherwise be available for the purchase of insurance as aforesaid and may stipulate that the insurer may defer payment for not more than six months after the application therefor is made. Provided, however, that if the benefits under the policy are calculated according to the commissioner's 1958 standard ordinary mortality table, the value of any extended term insurance, with accompanying pure endowment, if any, may be calculated according to rates of mortality not exceeding those shown in the commissioner's 1958 extended term insurance table, and that if the benefits under the policy are calculated according to any other more modern table than the American experience table of mortality, the value of any extended term insurance, with accompanying pure endowment, if any, may be calculated according to rates of mortality not exceeding one hundred thirty percent of the rates according to such more modern table. The policy shall contain a table showing in figures the options available each year upon default in premium payments during at least the first twenty years of the policy, or during the term of the policy, whichever is the shorter. This section shall not apply to term insurance of twenty years or less or to industrial life insurance policies.

Source: SL 1966, ch 111, ch 23, § 29.
S.D. Codified Laws § 58-27-42 — SD Code / Title 58 / Chapter 27 / Section 58-27-42
Real property mortgage loan limited by property value--Loan on leasehold--Additional investment in other assets
Status: in_force

No mortgage loan or investment in a mortgage loan upon any one parcel of real property may exceed in amount at the time of acquisition:

(1) Seventy - five percent of the fair value of the property if the property is a dwelling house primarily intended for occupancy by one family and the loan is required to be amortized within not more than thirty years by payment of installments on the loan at regular intervals not less frequent than annually; or

(2) Seventy - five percent of the fair value of the property in all other cases. However, the percentage may be up to one hundred percent if the loan is made to a corporation which qualifies under subdivision 58-27-17(2) for investment in its bonds, notes, or other evidences of indebtedness, or if the borrower assigns to the lender a noncancellable lease or leases on the real estate providing rentals payable to the borrower in amount sufficient to repay the loan with interest in the manner specified by the note or notes evidencing the loan and executed as lessee or lessees by a corporation or corporations, which qualified under subdivision 58-27-17(2) for investment in its or their bonds, notes, or other evidences of indebtedness and in each case the obligations of the borrower or of the lessee or lessees shall be rated in the three highest grades by any one of the recognized rating agencies or whose securities, if publicly issued, would qualify for a rating. The director shall define "noncancellable lease" and "recognized rating agencies" by regulation. No mortgage loan upon a leasehold may be made or acquired pursuant to this subdivision unless the terms of the mortgage loan shall provide for amortization payments to be made by the borrower on the principal thereof at least once in each year in amount sufficient to completely amortize the loan within four - fifths of the term of the leasehold which is unexpired at the time the loan is made, but in no event exceeding thirty years.

(3) An additional ten percent of the fair value of the property in excess of the limitation imposed by subdivisions (1) and (2) of this section, but not to exceed one hundred percent in all, if the excess is treated as an investment under § 58-27-51 and within the limitations imposed by the section.

An insurer's investments authorized under this section may not exceed twenty five percent of its admitted assets.

Source: SL 1966, ch 111, ch 6, § 25 (1); SL 1967, ch 130; SL 1972, ch 265; SL 1992, ch 350, § 20; SL 1995, ch 285, § 1.
S.D. Codified Laws § 58-22-8 — SD Code / Title 58 / Chapter 22 / Section 58-22-8
Surety bondspersons--Annual list--Subsequent appointments--Fees
Status: in_force

Every insurer shall annually, prior to May first, furnish the director a list of all surety bondsperson appointed by it to write bail bonds on its behalf accompanied by a renewal fee of ten dollars for each bondsperson being reappointed. Every such insurer who subsequently appoints a surety bondsperson in the state shall give notice to the director along with a written application for license for bondspersons accompanied by a ten dollar appointment fee. All such appointments are subject to the issuance of a license to such surety bondsperson.

Source: SL 1966, ch 111, ch 31, § 19; SL 1998, ch 296, § 6.
S.D. Codified Laws § 58-33-69 — SD Code / Title 58 / Chapter 33 / Section 58-33-69
No private right of action
Status: in_force

Nothing in §§ 58-33-66 to 58-33-69 , inclusive, grants a private right of action.

Source: SL 1986, ch 422, § 4.
S.D. Codified Laws § 58-5-71 — SD Code / Title 58 / Chapter 5 / Section 58-5-71
Profits from insider security transactions accruing to company
Status: in_force

For the purpose of preventing the unfair use of information which may have been obtained by such beneficial owner, director, or officer by reason of his relationship to such company, any profit realized by him from any purchase and sale, or any sale and purchase, of any equity security of such company within any period of less than six months, unless such security was acquired in good faith in connection with a debt previously contracted, shall inure to and be recoverable by the company, irrespective of any intention on the part of such beneficial owner, director, or officer in entering into such transaction of holding the security purchased or of not repurchasing the security sold for a period exceeding six months.

Source: SL 1966, ch 111, ch 16, § 27 (2).
S.D. Codified Laws § 58-24-21 — SD Code / Title 58 / Chapter 24 / Section 58-24-21
Effect of finding and order that filing does not comply with chapter
Status: in_force

If at any time subsequent to the applicable review period provided for in § 58-24-19 , 58-24-20 , or in the case of a filing made under § 58-24-10.1 , the director of the Division of Insurance finds that a filing does not meet the requirements of this chapter, he shall, after a hearing held upon not less than ten days' written notice, specifying the matters to be considered at such hearing, to every insurer and rating organization which made such filing, issue an order specifying in what respect he finds that such filing fails to meet the requirements of this chapter, and stating when, within a reasonable period thereafter, such filing shall be deemed no longer effective. Copies of said order shall be sent to every such insurer and rating organization. Said order shall not affect any contract or policy made or issued prior to the expiration of the period set forth in said order.

Source: SL 1966, ch 111, ch 15, § 5 (3); SL 1979, ch 341, § 6.
S.D. Codified Laws § 58-6A-3.7 — SD Code / Title 58 / Chapter 6A / Section 58-6A-3.7
Purpose of audit committee
Status: in_force

The audit committee of the risk retention group shall have a written charter that defines the committee's purpose, which, at a minimum, shall:

(1) Assist board oversight of the integrity of financial statements, the compliance with legal and regulatory requirements, and the qualifications, independence, and performance of the independent auditor and actuary;

(2) Discuss the annual audited financial statements and quarterly financial statements with management;

(3) Discuss the annual audited financial statements with the group's independent auditor and, if advisable, discuss the group's quarterly financial statements with the group's independent auditor;

(4) Discuss policies with respect to risk assessment and risk management;

(5) Meet separately and periodically, either directly or through a designated representative of the committee, with management and the independent auditor;

(6) Review with the independent auditor any audit problems or difficulties and management's response;

(7) Set clear hiring policies of the risk retention group as to the hiring of employees or former employees of the independent auditor;

(8) Require the external auditor to rotate the lead or coordinating audit partner having primary responsibility for the risk retention group's audit as well as the audit partner responsible for reviewing that audit so that neither individual performs audit services for more than five consecutive fiscal years; and

(9) Report regularly to the board of directors.

Source: SL 2016, ch 232, § 9.
S.D. Codified Laws § 58-12-1 — SD Code / Title 58 / Chapter 12 / Section 58-12-1
Forms for proof of loss--Furnishing by insurer on request
Status: in_force

An insurer shall furnish, upon written request of any person claiming to have a loss under an insurance contract issued by such insurer, forms of proof of loss for completion by such person, but such insurer shall not, by reason of the requirement so to furnish forms, have any responsibility for or with reference to the completion of such proof or the manner of any such completion or attempted completion.

Source: SL 1966, ch 111, ch 22, § 29.
S.D. Codified Laws § 58-17E-28 — SD Code / Title 58 / Chapter 17E / Section 58-17E-28
Contents of provider network agreement
Status: in_force

A provider agreement between a discount medical plan organization and a provider network shall require that the provider network have written agreements with its providers that:

(1) Contain the provisions described in § 58-17E-27 ;

(2) Authorize the provider network to contract with the discount medical plan organization on behalf of the provider; and

(3) Require the provider network to maintain an up-to-date list of its contracted providers and to provide the list on a monthly basis to the discount medical plan organization.

Source: SL 2006, ch 257, § 28.
S.D. Codified Laws § 58-18B-13 — SD Code / Title 58 / Chapter 18B / Section 58-18B-13
Transition period when acquiring additional class of business
Status: in_force

The director may promulgate rules pursuant to chapter 1-26 to provide for a period of transition in order for a small employer carrier to come into compliance with subdivision 58-18B-1(5) when the carrier acquires an additional class of business from another small employer carrier.

Source: SL 1995, ch 281, § 6.
S.D. Codified Laws § 58-33-64 — SD Code / Title 58 / Chapter 33 / Section 58-33-64
Immunity from liability for statements concerning cancellation
Status: in_force

Except for knowingly supplying false information, there is no liability on the part of and no cause of action arises against the following persons for any communication giving notice of or specifying the reasons for a cancellation or for any statement made in connection with an attempt to discover or verify the existence of conditions that would provide grounds for cancellation of coverage under the provisions of §§ 58-33-59 to 58-33-65 , inclusive:

(1) The director of the Division of Insurance;

(2) Any insurer or its authorized representatives, insurance producers, or employees;

(3) Any licensed insurance producer; or

(4) Any person furnishing information to an insurer as to reasons for a cancellation.

Source: SL 1985, ch 392, § 6; SL 2001, ch 286, § 207.
S.D. Codified Laws § 58-27-11 — SD Code / Title 58 / Chapter 27 / Section 58-27-11
Obligations of states, provinces, and political subdivisions
Status: in_force

An insurer may invest any of its funds in bonds, warrants, or other evidences of indebtedness which are general obligations of, or are secured by pledge of specific revenues by, this state or of any other state of the United States or province of Canada or of any of the political subdivisions or other taxing districts of such states or provinces.

Source: SL 1966, ch 111, ch 6, § 8.
S.D. Codified Laws § 58-18-85 — SD Code / Title 58 / Chapter 18 / Section 58-18-85
Policies to provide coverage for prostate cancer screening
Status: in_force

Every group health insurance policy that covers a male and 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 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, § 2.
S.D. Codified Laws § 58-40-20 — SD Code / Title 58 / Chapter 40 / Section 58-40-20
Grandfathered service and indemnity-type contracts required to cover low-dose mammography--Extent of coverage
Status: in_force

Each service or indemnity-type contract issued by a nonprofit hospital service plan corporation that covers a female and that is delivered, issued for delivery, or renewed in this state, except for a contract that provides coverage for specified disease or other limited benefit coverage, shall provide coverage for screening by low-dose mammography for the presence of occult breast cancer that is subject to the same dollar limits, deductibles, and coinsurance factors as for other radiological examinations. Coverage for the screening shall be provided as follows: ages thirty-five to thirty-nine, one baseline mammography; ages forty to forty-nine, a mammography every other year; and age fifty and older, a mammography every year.

As used in this section, "low-dose mammography" means the X ray examination of the breast using equipment dedicated specifically for mammography, including the X ray tube, filter, compression device, screens, films, and cassettes, with an average radiation exposure delivery of less than one rad midbreast, with two views for each breast and with interpretation by a qualified radiologist.

The provisions of this section apply only to grandfathered plans pursuant to 75 Fed. Reg. 116 (2010) to be codified at 26 C.F.R. §§ 54 and 602, 29 C.F.R. § 2590, and 45 C.F.R. § 147.

Source: SL 1990, ch 397, §§ 1, 6; SL 1991, ch 400, § 6; SL 2011, ch 216, § 11.
S.D. Codified Laws § 58-15-71 — SD Code / Title 58 / Chapter 15 / Section 58-15-71
Life insurance policy--Restrictions on issuing and delivering
Status: in_force

No life insurer shall hereafter deliver in this state as a part of or in combination with any insurance, endowment, or annuity contract, any agreement or plan, additional to the rights, dividends, and benefits arising out of any such insurance, endowment, or annuity contract:

(1) Which provides for the accumulation of profits over a period of years and for payment of all or any part of such accumulated profits only to members or policyholders of a designated group or class who continue as member or policyholders until the end of a specified period of years; or

(2) Which provides that on the death of anyone, other than a beneficiary or a person insured thereunder, the owner or beneficiary of the policy shall receive the payment or granting of anything of value.

Source: SL 1966, ch 111, ch 23, § 33.
S.D. Codified Laws § 58-16-3 — SD Code / Title 58 / Chapter 16 / Section 58-16-3
Employees eligible for group insurance
Status: in_force

The employees eligible for insurance under a policy issued under § 58-16-2 shall be all of the employees of the employer, or all of any class or classes thereof determined by conditions pertaining to their employment. The policy may provide that the term "employees" shall include the employees of one or more subsidiary corporations, and the employees, individual proprietors, and partners of one or more affiliated corporations, proprietors, or partnerships if the business of the employer and of such affiliated corporations, proprietors, or partnerships is under common control through stock ownership, or contract or otherwise. The policy may provide that the term "employees" shall include the individual proprietor or partners if the employer is an individual proprietor or a partnership. The policy may provide that the term "employees" shall include retired employees. No director of a corporate employer shall be eligible for insurance under the policy unless such person is otherwise eligible as a bona fide employee of the corporation by performing services other than the usual duties of a director. No individual proprietor or partner shall be eligible for insurance under the policy unless he is actively engaged in and devotes a substantial part of his time to the conduct of the business of the proprietor or partnership. A policy issued to insure the employees of a public body may provide that the term "employees" shall include elected or appointed officials.

Source: SL 1966, ch 111, ch 24, § 1 (1) (a).
S.D. Codified Laws § 58-15-45 — SD Code / Title 58 / Chapter 15 / Section 58-15-45
Excluding or restricting coverage in case of death--Permissible exclusions
Status: in_force

No policy of life insurance may be delivered or issued for delivery in this state if it contains any provision which excludes or restricts liability for death caused in a certain specified manner or occurring while the insured has a specified status. However, a policy may contain provisions excluding or restricting coverage as specified in the policy in the event of death under any one or more of the following circumstances:

(1) Death as a result, directly or indirectly, of war, declared or undeclared, or of action by military forces, or of any act or hazard of such war or action, or of service in the military, naval, or air forces or in civilian forces auxiliary thereto, or from any cause while a member of such military, naval, or air forces of any country at war, declared or undeclared, or of any country engaged in such military action. However, this exclusion is not enforceable unless the applicant is affirmatively advised at the time of delivery of the policy that the policy in question contains war clause exclusions;

(2) Death as a result of aviation or any air travel or flight;

(3) Death as a result of a specified hazardous occupation or occupations;

(4) Death within two years from the date of issue of the policy as a result of suicide, while sane or insane;

(5) Any other exclusion or restriction the director may adopt, by rule promulgated pursuant to chapter 1-26 , if the exclusion or restriction is in the best interest of the insurance buying public.

Source: SL 1966, ch 111, ch 23, § 26 (1) (b); SL 1992, ch 346; SL 2002, ch 233, § 1.
S.D. Codified Laws § 58-11-7 — SD Code / Title 58 / Chapter 11 / Section 58-11-7
Substitute provisions required by law of domicile of foreign or alien insurer, approval by director
Status: in_force

In lieu of the provisions required by this title for contracts for particular kinds of insurance, substantially similar provisions required by the law of the domicile of a foreign or alien insurer may be used when approved by the director.

Source: SL 1966, ch 111, ch 22, § 15 (3).
S.D. Codified Laws § 58-17-32 — SD Code / Title 58 / Chapter 17 / Section 58-17-32
Occupational change--Policy provision for adjustment of premium or benefits
Status: in_force

There may be a provision as follows: "Change of occupation: If the insured be injured or contract sickness after having changed his occupation to one classified by the insurer as more hazardous than that stated in this policy or while doing for compensation anything pertaining to an occupation so classified, the insurer will pay only such portion of the indemnities provided in this policy as the premium paid would have purchased at the rates and within the limits fixed by the insurer for such more hazardous occupation. If the insured changes his occupation to one classified by the insurer as less hazardous than that stated in this policy, the insurer, upon receipt of proof of such change of occupation, will reduce the premium rate accordingly, and will return the excess prorata unearned premium from the date of change of occupation or from the policy anniversary date immediately preceding receipt of such proof, whichever is the more recent. In applying this provision, the classification of occupational risk and the premium rates shall be such as have been last filed by the insurer prior to the occurrence of the loss for which the insurer is liable or prior to date of proof of change in occupation with the state official having supervision of insurance in the state where the insured resided at the time this policy was issued; but if such filing was not required, then the classification of occupational risk and the premium rates shall be those last made effective by the insurer in such state prior to the occurrence of the loss or prior to the date of proof of change in occupation."

Source: SL 1966, ch 111, ch 25, § 17.
S.D. Codified Laws § 58-4-7 — SD Code / Title 58 / Chapter 4 / Section 58-4-7
Cease and desist order to prevent violations of title--Injunction
Status: in_force

If the director of the Division of Insurance believes, from substantial evidence, that any person is violating or about to violate any provision of this title or any order or requirement of the director issued or promulgated pursuant to authority expressly granted by law, the director may issue a temporary cease and desist order pending a hearing pursuant to chapter 1-26 . The order shall set the time and place for hearing not less than ten days nor more than twenty days from the date of the order. The director may also bring an action in the name of the state against such person to enjoin that person from continuing the violation or engaging therein, or doing any act in furtherance thereof. In such action an order or judgment may be entered awarding such temporary or permanent injunction as is proper.

Source: SL 1966, ch 111, ch 32, § 6; SL 1978, ch 155, § 25; SL 1985, ch 385, § 1.
S.D. Codified Laws § 58-9-13 — SD Code / Title 58 / Chapter 9 / Section 58-9-13
Casualty insurance including liability insurance
Status: in_force

"Casualty insurance" includes liability insurance, insurance against legal liability for the death, injury, or disability of any human being, or for damage to property; and provision of medical, hospital, surgical, disability benefits to injured persons and funeral and death benefits to dependents, beneficiaries, or personal representative of persons killed, irrespective of legal liability of the insured, when issued as incidental coverage with or supplemental to liability insurance.

Source: SL 1966, ch 111, ch 4, § 6 (1) (c).
S.D. Codified Laws § 58-29E-12 — SD Code / Title 58 / Chapter 29E / Section 58-29E-12
Charging cost share that exceeds amount retained by pharmacy--Prohibition
Status: in_force

A pharmacy benefit manager may not contractually require a pharmacy that is a participating provider in a health benefit plan provided by a third-party payor, from charging a covered individual or collecting from a covered individual a cost share for a prescription drug or pharmacy service that exceeds the amount retained by the pharmacist or pharmacy from all payment sources, for filling the prescription or providing the pharmacy service.

Source: SL 2019, ch 213, § 1; SL 2023, ch 166, § 12.
S.D. Codified Laws § 58-29B-3 — SD Code / Title 58 / Chapter 29B / Section 58-29B-3
Definition of terms
Status: in_force

Terms used in this chapter mean:

(1) "Ancillary state," any state other than a domiciliary state;

(2) "Creditor," a person having any claim, whether matured or unmatured, liquidated or unliquidated, secured or unsecured, absolute, fixed, or contingent;

(3) "Delinquency proceeding," any proceeding instituted against an insurer for the purpose of liquidating, rehabilitating, reorganizing, or conserving such insurer, and any summary proceeding under § 58-29B-9 or 58-29B-10 . A "formal delinquency proceeding" is any liquidation or rehabilitation proceeding;

(4) "Director," the director of the Division of Insurance;

(5) "Doing business," includes, but is not limited to, any of the following acts, whether effected by mail or otherwise:

(a) The issuance or delivery of contracts of insurance to persons resident in this state;

(b) The solicitation of applications;

(c) The collection of premiums, membership fees, assessments, or other consideration of such contracts, or the transaction of matters subsequent to execution of such contracts and matters arising out of the contracts;

(d) Operating under a license or certificate of authority, as an insurer, issued by the Division of Insurance.

(6) "Domiciliary state," the state in which an insurer is incorporated or organized, or, in the case of an alien insurer, its state of entry;

(7) "Fair consideration," is given for property or obligation:

(a) When in exchange for such property or obligation, as a fair equivalent therefor, and in good faith, property or services are rendered or an obligation is incurred or an antecedent debt is satisfied; or

(b) When property or obligation is received in good faith to secure a present advance or antecedent debt in an amount not disproportionate when compared to the value of the property or obligation obtained;

(8) "Foreign country," any other jurisdiction not in any state of the United States;

(9) "General assets," all property, real, personal, or otherwise, not specifically mortgaged, pledged, deposited, or otherwise encumbered for the security or benefit of specified persons or classes of persons. As to specifically encumbered property, the term "general assets" includes all such property or its proceeds in excess of the amount necessary to discharge the sum or sums secured thereby. Assets held in trust and on deposit for the security or benefit of all policyholders in more than a single state shall be treated as general assets;

(10) "Guaranty association," the South Dakota Insurance Guaranty Association created by chapter 58-29A for the payment of claims of insolvent insurers. A foreign guaranty association is any similar entity of any other state;

(11) "Insolvency" or "insolvent," for an insurer issuing only assessable fire insurance policies:

(a) The inability to pay any obligation within thirty days after it becomes payable, or

(b) If an assessment be made within thirty days after such date, the inability to pay such obligation thirty days following the date specified in the first assessment notice issued after the date of loss.

For any other insurer, "insolvency" or "insolvent" means that it is unable to pay its obligations when they are due, or when its admitted assets do not exceed its liabilities plus the greater of any capital and surplus required by law for its organization or the total par or stated value of its authorized and issued capital stock.

For purposes of this section the term "liabilities" includes, but is not limited to, reserves required by statute or by insurance division general regulations or specific requirements imposed by the director upon a subject company at the time of admission or subsequent thereto.

(12) "Insurer," any person who has done, purports to do, is doing or is licensed to do an insurance business, and is or has been subject to the authority of, or to liquidation, rehabilitation, reorganization, supervision, or conservation by any insurance director. For purposes of this chapter, any other person included under § 58-29B-2 is an insurer;

(13) "Preferred claim," any claim with respect to which the terms of this chapter accord priority of payment from the general assets of the insurer;

(14) "Receiver," receiver, liquidator, rehabilitator, or conservator as the context requires;

(15) "Reciprocal state," any state other than this state which has laws similar in substance to §§ 58-29B-42 , 58-29B-144 to 58-29B-150 , inclusive, and 58-29B-152 to 58-29B-157 , inclusive, and in which provisions are in force requiring that the director or equivalent official be the receiver of a delinquent insurer, and in which some provision exists for the avoidance of fraudulent conveyances and preferential transfers;

(16) "Secured claim," any claim secured by mortgage, trust deed, pledge, deposit as security, escrow, or otherwise, but not including special deposit claims or claims against general assets. The term also includes claims which have become liens upon specific assets by reason of judicial process;

(17) "Special deposit claim," any claim secured by a deposit made pursuant to statute for the security or benefit of a limited class or classes of persons, but not including any claim secured by general assets;

(18) "State," any state, district or territory of the United States and the Panama Canal Zone;

(19) "Transfer," includes the sale and every other and different mode, direct or indirect, of disposing of or of parting with property or with an interest therein, or with the possession thereof or of fixing a lien upon property or upon an interest therein, absolutely or conditionally, voluntarily, by or without judicial proceedings. The retention of a security title to property delivered to a debtor shall be deemed a transfer suffered by the debtor.

Source: SL 1989, ch 436, § 3.
S.D. Codified Laws § 58-11-65 — SD Code / Title 58 / Chapter 11 / Section 58-11-65
Carriers subject to filing requirements
Status: in_force

Sections 58-11-64 to 58-11-76 , inclusive, apply to any individual or group health policy form issued by a carrier as defined in subdivision 58-18B-1(3) required to be filed with the director for review or approval.

Source: SL 2008, ch 261, § 2.
S.D. Codified Laws § 58-35-30 — SD Code / Title 58 / Chapter 35 / Section 58-35-30
Insurance of property not owned by member or spouse prohibited--Exceptions
Status: in_force

No insurer may insure any property not owned by a member or by his spouse except for the following:

(1) Property described in subdivision 58-35-29(3); and

(2) Personal property in the care, custody, and control of a member or his spouse.

Source: SL 1966, ch 111, ch 17, § 3 (2); SL 1992, ch 356.
S.D. Codified Laws § 58-32-58 — SD Code / Title 58 / Chapter 32 / Section 58-32-58
Citation of chapter
Status: in_force

This chapter constitutes and may be cited as the Surplus Line Law.

Source: SL 1966, ch 111, ch 11, § 1 (1).
S.D. Codified Laws § 58-33A-10 — SD Code / Title 58 / Chapter 33A / Section 58-33A-10
Advertisements not to be deceptive or misleading--Standard to be used in determination
Status: in_force

Any advertisements shall be truthful and not materially misleading in fact or by implication. The form and content of an advertisement of a policy shall be sufficiently complete and clear so as to avoid deception. No advertisement may have the capacity and tendency to materially mislead or deceive. In determining whether an advertisement has the capacity and tendency to materially mislead or deceive, the director shall make the determination from the overall impression that the advertisement may be reasonably expected to create upon a person of average education or intelligence within the segment of the public to which it is directed.

Source: SL 1999, ch 240, § 10.
S.D. Codified Laws § 58-33-121 — SD Code / Title 58 / Chapter 33 / Section 58-33-121
Certain advertisements and marketing exempt--Face-to-face meetings not exempt
Status: in_force

For purposes of §§ 58-33-117 to 58-33-130 , inclusive, general advertisements, direct mail and internet marketing does not constitute solicitation. Telephone marketing does not constitute solicitation if the caller explicitly and conspicuously discloses that the product concerned is life insurance and makes no statements that avoid a clear and unequivocal statement that life insurance is the subject matter of the solicitation. However, nothing in this section exempts an insurer or insurance producer from §§ 58-33-117 to 58-33-130 , inclusive, in any in-person, face-to-face meeting established as a result of the solicitation exemptions identified in this section.

Source: SL 2008, ch 272, § 5.
S.D. Codified Laws § 58-22-31 — SD Code / Title 58 / Chapter 22 / Section 58-22-31
Receipt for collateral--Description of collateral received
Status: in_force

When a bail bondsman accepts collateral he shall give a written receipt for same, and this receipt shall give in detail a full description of the collateral received.

Source: SL 1966, ch 111, ch 31, § 16.
S.D. Codified Laws § 58-34-51 — SD Code / Title 58 / Chapter 34 / Section 58-34-51
Annual statement of insurer--Filing
Status: in_force

The annual statement of a reciprocal insurer shall be made and filed by its attorney.

Source: SL 1966, ch 111, ch 19, § 17 (1).
S.D. Codified Laws § 58-33-51 — SD Code / Title 58 / Chapter 33 / Section 58-33-51
Acts constituting appointment of director as process agent
Status: in_force

Any of the following acts in this state, effected by mail or otherwise, by any such unauthorized foreign or alien insurer:

(1) The issuance or delivery of contracts of insurance to residents of this state;

(2) The solicitation of applications for such contracts;

(3) The collection of premiums, membership fees, assessments, or other considerations for such contracts; or

(4) Any other transaction of insurance business;

Source: SL 1966, ch 111, ch 13, § 30 (1).
S.D. Codified Laws § 58-33-27 — SD Code / Title 58 / Chapter 33 / Section 58-33-27
Compensation to insurance producers permitted--Allowance or return of dividends, savings, or unabsorbed premium deposits permitted
Status: in_force

Nothing in §§ 58-33-24 to 58-33-26 , inclusive, prohibits the payment of commissions or other compensation to duly licensed insurance producers, or prohibits any insurer from allowing or returning to its participating policyholders, members or subscribers, lawful dividends, savings, or unabsorbed premium deposits.

Source: SL 1966, ch 111, ch 13, § 16 (4); SL 2001, ch 286, § 203.
S.D. Codified Laws § 58-30-127 — SD Code / Title 58 / Chapter 30 / Section 58-30-127
Written contract between managing general agent and insurer
Status: in_force

No managing general agent may place business with an insurer unless there is in force a written contract between the parties which sets forth the responsibilities of each party and specifies the division of common or shared responsibilities. The contract shall contain the following minimum provisions:

(1) The insurer may terminate the contract for cause upon written notice to the managing general agent. The insurer may suspend the underwriting authority of the managing general agent during the pendency of any dispute regarding the cause for termination;

(2) The managing general agent shall render accounts to the insurer detailing all transactions and remit all funds due under the contract to the insurer on not less than a monthly basis;

(3) All funds collected for the account of an insurer shall be held by the managing general agent in an escrow account in a bank which is a qualified United States financial institution as defined in § 58-30-139 . This account shall be used for all payments on behalf of the insurer. The managing general agent may retain no more than three months estimated claims payments and allocated loss adjustment expenses;

(4) Separate records of business written by the managing general agent shall be maintained. The insurer shall have access and right to copy all accounts and records related to its business in a form usable by the insurer and the director shall have access to all books, bank accounts, and records of the managing general agent in a form usable to the director. Records shall be retained for five years;

(5) The contract may not be assigned in whole or part by the managing general agent;

(6) Appropriate underwriting guidelines including:

(a) The maximum annual premium volume;

(b) The basis of the rates to be charged;

(c) The types of risks which may be written;

(d) Maximum limits of liability;

(e) Applicable exclusions;

(f) Territorial limitations;

(g) Policy cancellation provisions; and

(h) The maximum policy period; and

(7) Timely transmission of electronic claims files.

The insurer may cancel or nonrenew any policy of insurance subject to the applicable laws and regulations concerning the cancellation and nonrenewal of insurance policies.

Source: SL 1992, ch 353, § 4; SL 2002, ch 241, § 1.
S.D. Codified Laws § 58-20-3.1 — SD Code / Title 58 / Chapter 20 / Section 58-20-3.1
Premiums based on certain wages prohibited
Status: in_force

Premiums for workers' compensation insurance may not be based on wages paid to employees while they are on vacation, holidays, or sick leave or on wages received from employment not performed for the insured employer.

Source: SL 1983, ch 386; SL 2016, ch 236, § 7.
S.D. Codified Laws § 58-41-104 — SD Code / Title 58 / Chapter 41 / Section 58-41-104
Approval of purchasing organization by Division of Insurance
Status: in_force

Any organization shall, prior to its engaging in the business of insurance, obtain approval from the Division of Insurance. The division may deny approval or withdraw approval of an organization to engage in the business of insurance for any of the following reasons:

(1) Any of the grounds specified in § 58-6-8 ;

(2) Insufficient membership control of the organization;

(3) Unreasonable compensation to officers, directors, or employees of the organization;

(4) Misuse of premiums; or

(5) Refusal to be examined or to cooperate in an examination.

Source: SL 1994, ch 382, § 6.
S.D. Codified Laws § 58-26-47 — SD Code / Title 58 / Chapter 26 / Section 58-26-47
Opinion required as to adequacy of reserves to provide for company's obligations
Status: in_force

Any life insurance company shall also annually include in the opinion required by §§ 58-26-46 to 58-26-50 , inclusive, an opinion of the same qualified actuary as to whether the reserves and related actuarial items held in support of the policies and contracts specified by the director by rules promulgated pursuant to chapter 1-26 , if considered in light of the assets held by the company with respect to the reserves and related actuarial items, including the investment earnings on the assets and the considerations anticipated to be received and retained under the policies and contracts, make adequate provision for the company's obligations under the policies and contracts, including the benefits under and expenses associated with the policies and contracts.

Source: SL 1995, ch 284, § 3.
S.D. Codified Laws § 58-29C-53 — SD Code / Title 58 / Chapter 29C / Section 58-29C-53
Plan of operation--Effective date--Requirements--Delegation of powers
Status: in_force

A. (1) The association shall submit to the director a plan of operation and any amendments thereto necessary or suitable to assure the fair, reasonable, and equitable administration of the association. The plan of operation and any amendments thereto shall become effective upon the director's written approval or unless it has not been disapproved within thirty days.

(2) If the association fails to submit a suitable plan of operation within one hundred twenty days following July 1, 2003, or if at any time thereafter the association fails to submit suitable amendments to the plan, the director shall, after notice and hearing, adopt and 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.

B. All member insurers shall comply with the plan of operation.

C. The plan of operation shall, in addition to requirements enumerated elsewhere in this chapter:

(1) Establish procedures for handling the assets of the association;

(2) Establish the amount and method of reimbursing members of the board of directors under § 58-29C-50 ;

(3) Establish regular places and times for meetings including telephone conference calls of the board of directors;

(4) Establish procedures for records to be kept of all financial transactions of the association, its agents, and the board of directors;

(5) Establish the procedures whereby selections for the board of directors will be made and submitted to the director;

(6) Establish any additional procedures for assessments under § 58-29C-52 ;

(7) Contain additional provisions necessary or proper for the execution of the powers and duties of the association;

(8) Establish procedures whereby a director may be removed for cause, including in the case where a member insurer director becomes an impaired or insolvent insurer;

(9) Require the board of directors to establish a policy and procedures for addressing conflicts of interests.

D. The plan of operation may provide that any or all powers and duties of the association, except those under subdivision 58-29C-51L(3) and § 58-29C-52 , are delegated to a corporation, association, or other organization which performs or will perform functions similar to those of this association, or its equivalent, in two or more states. Such a corporation, association, or organization shall be reimbursed for any payments made on behalf of the association and shall be paid for its performance of any function of the association. A delegation under this subpart shall take effect only with the approval of both the board of directors and the director, and may be made only to a corporation, association, or organization which extends protection not substantially less favorable and effective than that provided by this chapter.

Source: SL 2003, ch 252, § 10; SL 2013, ch 252, § 6.
S.D. Codified Laws § 58-18A-60 — SD Code / Title 58 / Chapter 18A / Section 58-18A-60
Application date
Status: in_force

Sections 58-18A-53 to 58-18A-83 , inclusive, apply to all plans that are issued on or after January 1, 2007.

Source: SL 2006, ch 259, § 8.
S.D. Codified Laws § 58-17B-14 — SD Code / Title 58 / Chapter 17B / Section 58-17B-14
Coverage offered to resident under group policy issued in other state--Requirements
Status: in_force

No group long - term care insurance coverage may be offered to a resident of this state under a group policy issued in another state to a group described in subdivisions 58-17B-2(4)(a) and (4)(d) unless this state or another state having statutory and regulatory long - term care insurance requirements substantially similar to those adopted in this state has made a determination that such requirements have been met.

Source: SL 1989, ch 440, § 16.
S.D. Codified Laws § 58-5A-25 — SD Code / Title 58 / Chapter 5A / Section 58-5A-25
Termination of registration
Status: in_force

The director shall terminate the registration of any insurer which demonstrates that it no longer is a member of an insurance holding company system.

Source: SL 1972, ch 267, § 19.
S.D. Codified Laws § 58-43-12 — SD Code / Title 58 / Chapter 43 / Section 58-43-12
Disqualification hearing
Status: in_force

An accountant which has been disqualified or any firm which has had an accountant disqualified by the director may request a hearing on the disqualification. The director may, as a result of the hearing, require the insurer to replace the accountant with another qualified accountant.

Source: SL 1992, ch 357, § 12.
S.D. Codified Laws § 58-17I-6 — SD Code / Title 58 / Chapter 17I / Section 58-17I-6
Grievance procedures--Filing--Certificate of compliance--Contact information
Status: in_force

Except as specified in this chapter, each health carrier shall use written procedures for receiving and resolving grievances from covered persons, as provided in §§ 58-17I-7 to 58-17I-11 , inclusive. If a health carrier fails to strictly adhere to the requirements of §§ 58-17I-7 to 58-17I-10 , inclusive, or §§ 58-17I-12 to 58-17I-15 , inclusive, with respect to receiving and resolving grievances involving an adverse determination, the covered person shall be deemed to have exhausted the provisions of this chapter, and may take action regardless of whether the health carrier asserts that the carrier substantially complied with the requirements of §§ 58-17I-7 to 58-17I-10 , inclusive, or §§ 58-17I-12 to 58-17I-15 , inclusive, or that any error the carrier committed was de minimus.

A covered person may file a request for external review in accordance with rules promulgated by the director. In addition, a covered person is entitled to pursue any available remedies under state or federal law on the basis that the health carrier failed to provide a reasonable internal claims and appeals process that would yield a decision on the merits of the claim.

A health carrier shall file with the director a copy of the procedures required under this section, including all forms used to process requests made pursuant to §§ 58-17I-7 to 58-17I-11 , inclusive. Any subsequent material modifications to the documents also shall be filed. The director may disapprove a filing received in accordance with this section that fails to comply with this chapter, or applicable rules. A description of the grievance procedures required under this section shall be set forth in or attached to the policy, certificate, membership booklet, outline of coverage, or other evidence of coverage provided to covered persons. The grievance procedure documents shall include a statement of a covered person's right to contact the Division of Insurance for assistance at any time. The statement shall include the telephone number and address of the Division of Insurance.

Commission Note: SL 2012, ch 239, § 1 provides: "The provisions of chapter 219 of the 2011 Session Laws shall be deemed repealed if the Patient Protection and Affordable Care Act, Pub. L. No. 111-148, 124 Stat. 119 (2010), as amended by the Health Care and Education Reconciliation Act of 2010, Pub. L. No. 111-152, 124 Stat. 1029 (2010) is found to be unconstitutional in its entirety by a final decision of a federal court of competent jurisdiction and all appeals exhausted or time for appeals elapsed."

Source: SL 2011, ch 219, § 78; SL 2023, ch 165, § 2.
S.D. Codified Laws § 58-9-4 — SD Code / Title 58 / Chapter 9 / Section 58-9-4
Burial insurance--Definition--Compliance with provisions concerning life insurers required
Status: in_force

Burial insurance as used in this section includes any kind of agreement, certificate, policy, contract, bond, assurance guarantee, or other arrangement, by bylaw, regulation or otherwise, in or by which the party issuing such certificate, policy, contract, bond, assurance guarantee, or other arrangement agrees to provide for the burial of a named or designated person, or to save harmless anyone for the whole or any part of the costs of the burial of the body of a named or designated person, or to pay any part or all of the incidents of the burial of the body of a named or designated person. Any person engaging in the business of burial insurance shall be subject to and shall comply with all of the provisions of this title concerning the organization, qualification and conduct of life insurers. Nothing in this section shall be construed to limit or restrict the definitions of life insurance or life insurer under §§ 58-9-2 and 58-9-3 .

Source: SL 1966, ch 111, ch 32, § 4.
S.D. Codified Laws § 58-30-118 — SD Code / Title 58 / Chapter 30 / Section 58-30-118
Continuing education activities--Approval by director--Hours certified by director
Status: in_force

The director of the Division of Insurance shall certify as approved continuing education activities those courses, lectures, seminars, or other instructional programs, including insurance company education programs, which he determines are beneficial in improving the product knowledge or service capability of licensees. The director may require descriptive information about any continuing education activity and refuse approval of any continuing education activity that does not advance the purposes of §§ 58-30-114 to 58-30-121 , inclusive. The director shall certify the number of hours to be awarded for participation in an approved continuing education activity based upon contact or classroom hours. The director shall certify the number of hours to be awarded for successful completion of a correspondence course or program of independent study, based upon the number of hours which would be awarded in an equivalent classroom course or program.

Source: SL 1984, ch 331, § 5.
S.D. Codified Laws § 58-3-27 — SD Code / Title 58 / Chapter 3 / Section 58-3-27
Application of chapter
Status: in_force

This chapter applies to all persons doing insurance business notwithstanding any provision exempting them from the insurance laws of this title.

Source: SL 1992, ch 338, § 22.
S.D. Codified Laws § 58-38-42 — SD Code / Title 58 / Chapter 38 / Section 58-38-42
Policies to provide coverage for diabetes supplies, equipment and education--Exceptions--Conditions and limitations
Status: in_force

Every service or indemnity - type contract issued by a nonprofit medical and surgical service plan corporation delivered, issued for delivery, or renewed in this state, except for policies that provide coverage for specified disease or other limited benefit coverage, shall provide, in writing, coverage for equipment, supplies, and self - management training and education, including medical nutrition therapy, for treatment of persons diagnosed with diabetes if prescribed by a physician or other licensed health care provider legally authorized to prescribe such treatment. Medical nutrition therapy does not include any food items or nonprescription drugs.

Coverage for medically necessary equipment and supplies shall include blood glucose monitors, blood glucose monitors for the legally blind, test strips for glucose monitors, urine testing strips, insulin, injection aids, lancets, lancet devices, syringes, insulin pumps and all supplies for the pump, insulin infusion devices, prescribed oral agents for controlling blood sugars, glucose agents, glucagon kits, insulin measurement and administration aids for the visually impaired, and other medical devices for treatment of diabetes.

Diabetes self - management training and education shall be covered if: (a) the service is provided by a physician, nurse, dietitian, pharmacist, or other licensed health care provider who satisfies the current academic eligibility requirements of the National Certification Board for Diabetic Educators and has completed a course in diabetes education and training or has been certified as a diabetes educator; and (b) the training and education is based upon a diabetes program recognized by the American Diabetes Association or a diabetes program with a curriculum approved by the American Diabetes Association or the South Dakota Department of Health.

Coverage of diabetes self - management training is limited to (a) persons who are newly diagnosed with diabetes or have received no prior diabetes education; (b) persons who require a change in current therapy; (c) persons who have a co - morbid condition such as heart disease or renal failure; or (d) persons whose diabetes condition is unstable. Under these circumstances, no more than two comprehensive education programs per lifetime and up to eight follow - up visits per year need be covered. Coverage is limited to the closest available qualified education program that provides the necessary management training to accomplish the prescribed treatment.

The benefits provided in this section are subject to the same dollar limits, deductibles, coinsurance, and other restrictions established for all other benefits covered in the contract.

Source: SL 1999, ch 252, § 7.
S.D. Codified Laws § 58-33-77 — SD Code / Title 58 / Chapter 33 / Section 58-33-77
Accessibility of information relevant to suspected fraud--Types of information
Status: in_force

Upon request by an insurer to an authorized agency or by an authorized agency to an insurer, each may provide to the other, directly or through any person authorized to act on its behalf, all information relevant to any suspected false or fraudulent claim, statement, or representation, including the following information:

(1) Insurance policy information relevant to an investigation, including any application for such a policy;

(2) Available policy premium payment records;

(3) History of previous claims made by an insured; and

(4) Information relating to the investigation of any suspected insurance fraud, including statements of any person, proofs of loss and notice of loss.

Source: SL 1993, ch 368, § 3.
S.D. Codified Laws § 58-33-129 — SD Code / Title 58 / Chapter 33 / Section 58-33-129
Certain additional life insurance sales practices considered false, misleading, deceptive, or unfair
Status: in_force

The following acts or practices by an insurer or insurance producer with respect to the sale of certain life insurance products are declared to be false, misleading, deceptive, or unfair:

(1) Excluding individually issued annuities, recommending the purchase of any life insurance product which includes a side fund to a service member in pay grades E-4 and below unless the insurer has reasonable grounds for believing that the life insurance death benefit, standing alone, is suitable;

(2) Offering for sale or selling a life insurance product which includes a side fund to a service member in pay grades E-4 and below who is currently enrolled in Servicemembers' Group Life Insurance (SGLI), is presumed unsuitable unless, after the completion of a needs assessment, the insurer demonstrates that the applicant's SGLI death benefit, together with any other military survivor benefits, savings and investments, survivor income, and other life insurance are insufficient to meet the applicant's insurable needs for life insurance;

For the purposes of this subdivision, insurable needs, are the risks associated with premature death taking into consideration the financial obligations and immediate and future cash needs of the applicant's estate and survivors or dependents.

For the purposes of this subdivision, other military survivor benefits, include the death gratuity, funeral reimbursement, transition assistance, survivor and dependents' educational assistance, dependency and indemnity compensation, federal TRICARE health care benefits, survivor housing benefits and allowances, federal income tax forgiveness, and social security survivor benefits; or

(3) Excluding individually issued annuities, offering for sale or selling any life insurance contract which includes a side fund:

(a) Unless interest credited accrues from the date of deposit to the date of withdrawal and permits withdrawals without limit or penalty;

(b) Unless the applicant has been provided with a schedule of effective rates of return based upon cash flows of the combined product. For this disclosure, the effective rate of return shall consider all premiums and cash contributions made by the policyholder and all cash accumulations and cash surrender values available to the policyholder in addition to life insurance coverage. This schedule shall be provided for at least each policy year from one to ten and for every fifth policy year thereafter ending at age one hundred, policy maturity, or final expiration; and

(c) Which by default diverts or transfers funds accumulated in the side fund to pay, reduce or offset any premiums due;

(4) Excluding individually issued annuities, offering for sale or selling any life insurance contract which after considering all policy benefits, including endowment, return of premium, or persistency, does not comply with standard nonforfeiture law for life insurance; or

(5) Selling any life insurance product to a person known to be a service member that excludes coverage if the insured's death is related to war, declared or undeclared, or any act related to military service except for an accidental death coverage, which may be excluded.

Source: SL 2008, ch 272, § 13.
S.D. Codified Laws § 58-6-40 — SD Code / Title 58 / Chapter 6 / Section 58-6-40
Time for approval or disapproval of original certificate--Extension--Failure to disapprove deemed approval
Status: in_force

Upon the filing and completion of an application for an original certificate of authority, the director shall have sixty days in which to approve the application by issuing an appropriate certificate of authority or to disapprove the application by issuing an order setting forth the grounds for such disapproval. The director may extend such sixty - day period for an additional sixty days by notifying the applicant in writing of such extension. If the application is not approved or disapproved within the time period as set forth above, but in no event to exceed one hundred twenty days, the application shall be deemed to be approved and the director shall thereupon issue the appropriate certificate of authority. The waiting period shall commence as of the date all information and documents required by the director are received.

Source: SL 1966, ch 111, ch 3, § 16 (1).
S.D. Codified Laws § 58-1-44 — SD Code / Title 58 / Chapter 1 / Section 58-1-44
Unfair trade provisions not abrogated
Status: in_force

Nothing contained in §§ 58-1-40 to 58-1-43 , inclusive, shall abrogate or supersede the provisions set forth in chapter 58-33 relating to unfair trade practices.

Source: SL 2018, ch 277, § 5.
S.D. Codified Laws § 58-32-12 — SD Code / Title 58 / Chapter 32 / Section 58-32-12
Procedure for suspension or revocation of license
Status: in_force

The procedures provided by chapter 58-30 for suspension or revocation of licenses shall apply to suspension or revocation of a surplus line broker's license.

Source: SL 1966, ch 111, ch 11, § 13 (2).
S.D. Codified Laws § 58-33-114 — SD Code / Title 58 / Chapter 33 / Section 58-33-114
Suspension or revocation of registration of preferred provider organization for violation--Other action to assure future compliance
Status: in_force

If a preferred provider organization violates a provision of §§ 58-33-93 to 58-33-116 , inclusive, the organization's registration may be suspended or revoked or other action may be taken by the director as is otherwise authorized by this title to ensure that compliance with §§ 58-33-93 to 58-33-116 , inclusive, will be achieved in the future.

Source: SL 2007, ch 292, § 22.
S.D. Codified Laws § 58-18-58 — SD Code / Title 58 / Chapter 18 / Section 58-18-58
Premiums held in trust by purchasing organization
Status: in_force

The organization shall hold all premiums received in trust and promptly remit premiums to the person entitled thereto.

Source: SL 1994, ch 382, § 7.
S.D. Codified Laws § 58-15-47 — SD Code / Title 58 / Chapter 15 / Section 58-15-47
Prohibited policy provisions--Person soliciting insurance or annuity insurance producer of insured
Status: in_force

No policy of life insurance may be delivered or issued for delivery in this state if it contains any provision to the effect that the insurance producer soliciting the insurance or annuity is the insurance producer of the person covered under such contract, or making the acts or representations of such insurance producer binding upon the person so covered.

Source: SL 1966, ch 111, ch 23, § 26 (1) (f); SL 2001, ch 286, § 110.
S.D. Codified Laws § 58-32-28 — SD Code / Title 58 / Chapter 32 / Section 58-32-28
Authority of broker to make certificate as to insurance granted by unauthorized insurer
Status: in_force

No broker shall issue any such certificate or purport or represent that insurance will be or has been granted by any unauthorized insurer, unless he has prior written authority from the insurer, or has received information from the insurer in the regular course of business that such insurance has been granted.

Source: SL 1966, ch 111, ch 11, § 8 (2).
S.D. Codified Laws § 58-26-54 — SD Code / Title 58 / Chapter 26 / Section 58-26-54
Promulgation of rules defining disciplinary action against company or qualified actuary
Status: in_force

The director shall promulgate rules pursuant to chapter 1-26 to define disciplinary action that may be taken by the director against the company or the qualified actuary.

Source: SL 1995, ch 284, § 10.
S.D. Codified Laws § 58-17-57 — SD Code / Title 58 / Chapter 17 / Section 58-17-57
Abuse of health insurance as misdemeanor
Status: in_force

A person who provides health care commits abuse of health insurance, if, as a regular business practice, he knowingly accepts from any third - party payor, as payment in full for services rendered, the amount the third - party payor covers, or submits a fee to a third - party payor which is higher than the fee he has agreed to accept from the insured with the understanding of waiving the required deductible or co - payment, if the effect of either business practice is to eliminate the need for payment by the insured of any required deductible or co - payment applicable in the insured's health benefit plan. Abuse of health insurance is a Class 1 misdemeanor.

Source: SL 1989, ch 429, § 1.
S.D. Codified Laws § 58-18C-3 — SD Code / Title 58 / Chapter 18C / Section 58-18C-3
Eligibility requirements
Status: in_force

Continuation is only available to an employee who has been continuously insured under the group policy or under any creditable coverage which it replaced during the entire six-month period ending with such termination.

Source: SL 1998, ch 294, § 3; SL 2005, ch 270, § 2; SL 2008, ch 268, § 1.
S.D. Codified Laws § 58-11-48 — SD Code / Title 58 / Chapter 11 / Section 58-11-48
Modification of automobile physical damage coverage not deemed cancellation
Status: in_force

Modification of automobile physical damage coverage by the inclusion of a deductible not exceeding one hundred dollars shall not be deemed a cancellation of the coverage or of the policy.

Source: SL 1968, ch 138, § 2 (C).
S.D. Codified Laws § 58-5-150 — SD Code / Title 58 / Chapter 5 / Section 58-5-150
Materiality of nonrenewals, cancellations or revisions
Status: in_force

No nonrenewals, cancellations, or revisions of ceded reinsurance programs need to be reported pursuant to § 58-5-143 if the nonrenewals, cancellations, or revisions are not material. For purposes of the chapter, a material nonrenewal, cancellation, or revision is one that affects the property and casualty business, including accident and health business, by more than fifty percent of an insurer's ceded written premium, or for life, annuity, and accident and health business, more than fifty percent of the total reserve credit taken for business ceded, on an annualized basis as indicated in the insurer's most recently filed statutory statement. However, no filing is required if the insurer's ceded written premium or the total reserve credit taken for business ceded represents, on an annualized basis, less than ten percent of direct plus assumed written premium or ten percent of the statutory reserve requirement prior to any cession, respectively.

Source: SL 1995, ch 275, § 7.
S.D. Codified Laws § 58-38-40 — SD Code / Title 58 / Chapter 38 / Section 58-38-40
Health insurance policies to provide coverage for biologically-based mental illnesses
Status: in_force

Every service or indemnity - type contract issued by a nonprofit medical and surgical service plan corporation 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 provide, in writing, coverage for the treatment and diagnosis of biologically - based mental illnesses with the same dollar limits, deductibles, coinsurance factors, and restrictions as for other covered illnesses.

The term, biologically - based mental illness, means schizophrenia and other psychotic disorders, bipolar disorder, major depression, and obsessive - compulsive disorder.

Source: SL 1998, ch 291, § 4; SL 1999, ch 251, § 4.
S.D. Codified Laws § 58-6-49 — SD Code / Title 58 / Chapter 6 / Section 58-6-49
Order of suspension, revocation, or refusal to renew certificate--Replacement of policies
Status: in_force

Each suspension or revocation of, or refusal to renew, an insurer's certificate of authority shall be by the director's order given to the insurer as provided by § 58-4-17 . If the director finds that the public health, safety, and welfare of insureds is imperiled due to being covered under a policy of insurance by an insurer or carrier whose certificate of authority has been revoked, and all appeals of the revocation have been exhausted the director may also order that the insurer or carrier replace all policies with equivalent policies issued by an authorized insurer in this state or otherwise provide for the transfer of all such risk through an arrangement approved by the director.

Source: SL 1966, ch 111, ch 3, § 20 (1); SL 2013, ch 246, § 2.
S.D. Codified Laws § 58-34-18 — SD Code / Title 58 / Chapter 34 / Section 58-34-18
Issuance of certificate of authority
Status: in_force

The certificate of authority of a reciprocal insurer shall be issued to its attorney in the name of the insurer.

Source: SL 1966, ch 111, ch 19, § 9 (1).
S.D. Codified Laws § 58-32-43 — SD Code / Title 58 / Chapter 32 / Section 58-32-43
Records of interstate commerce coverage--Report to director--Violation as misdemeanor
Status: in_force

Licensed insurance producers and brokers placing any insurance enumerated in subdivisions 58-32-5(1) to (4), inclusive, with an authorized insurer shall keep a record of each such coverage in detail as required of surplus line insurance under this chapter. The record shall be preserved for not less than five years from the effective date of the insurance and shall be kept available in this state for examination by the director. The broker shall furnish to the director at the director's request and on forms furnished by the director a report of all such coverages so placed in a designated calendar year. Any violation of this section is a Class 2 misdemeanor.

Source: SL 1966, ch 111, ch 11, § 2 (2); SL 1978, ch 359, § 2; SL 2001, ch 286, § 199.
S.D. Codified Laws § 58-26-31 — SD Code / Title 58 / Chapter 26 / Section 58-26-31
Reserve for outstanding losses under liability insurance and workers' compensation
Status: in_force

An insurer shall maintain a reserve for outstanding losses under insurance against loss or damage from accident to or injuries suffered by an employee or other person and for which the insured is liable and which shall be computed as provided by §§ 58-26-32 to 58-26-35 , inclusive.

Source: SL 1966, ch 111, ch 5, § 8.
S.D. Codified Laws § 58-5-138 — SD Code / Title 58 / Chapter 5 / Section 58-5-138
Conversion of mutual to stock insurer restricted
Status: in_force

No domestic mutual insurer in this state may reorganize or convert into a corporation with capital stock unless the reorganization or conversion plan provides each member of the mutual insurer with cash or other valuable consideration for the fair value of the member's equity in the company as determined under a formula approved by the director of the Division of Insurance and the secretary of labor and regulation.

Source: SL 1966, ch 111, ch 16, § 4; SL 1984, ch 325, § 1; SL 2018, ch 278, § 1.
S.D. Codified Laws § 58-25-24 — SD Code / Title 58 / Chapter 25 / Section 58-25-24
Calculation of adjusted statutory or unearned premium reserve
Status: in_force

The insurer shall calculate an adjusted statutory or unearned premium reserve as of the year of first application of § 58-25-22 . The adjusted reserve must be calculated as if § 58-25-22 had been in effect for each year beginning twenty years before the year of first application of § 58-25-22 . For purposes of this calculation, the balance of the reserve as of that date is considered to be zero. If the adjusted reserve so calculated exceeds the aggregate amount set aside for statutory or unearned premiums in the insurer's most recent annual statement filed with the director, the insurer shall, out of total charges for policies of title insurance, increase its statutory or unearned premium reserve by an amount equal to one - sixth of that excess in each of the succeeding six years, beginning with the calendar year that includes the year of first application of § 58-25-22 until the entire excess has been added.

Source: SL 2002, ch 239, § 3.
S.D. Codified Laws § 58-6-61 — SD Code / Title 58 / Chapter 6 / Section 58-6-61
Suspension or revocation of authority of insurance producers--Notice by director
Status: in_force

Such refusal, suspension, or revocation shall likewise automatically suspend or revoke, as the case may be, the authority of all such insurance producers to act as insurance producers of the insurer in this state, and the director shall so state in the notice to insurance producers provided for in § 58-6-60 .

Source: SL 1966, ch 111, ch 3, § 25 (2); SL 2001, ch 286, § 80.
S.D. Codified Laws § 58-33-79 — SD Code / Title 58 / Chapter 33 / Section 58-33-79
Liability of supplier of information
Status: in_force

Any insurer, authorized agency, or person authorized to act on their behalf, acting without bad faith or malice, who provides or receives information pursuant to §§ 58-33-76 and 58-33-77 is not subject to criminal prosecution, civil penalty, or civil liability therefor, except in cases of perjury or insurance fraud.

Source: SL 1993, ch 368, § 5.
S.D. Codified Laws § 58-17D-3 — SD Code / Title 58 / Chapter 17D / Section 58-17D-3
Property and casualty insurers to use registered utilization review organizations
Status: in_force

Any property and casualty insurer seeking utilization review with respect to an insurance contract issued in this state may only use a utilization review organization registered pursuant to this chapter.

Source: SL 2002, ch 231, § 3.
S.D. Codified Laws § 58-7-17 — SD Code / Title 58 / Chapter 7 / Section 58-7-17
Release of assigned security--Reassignment to insurer or other person
Status: in_force

Upon release to the insurer, or other person entitled thereto, of any security that may have been assigned pursuant to § 58-7-13 , the director shall reassign the same to such insurer or other person entitled thereto.

Source: SL 1966, ch 111, ch 7, § 8 (2).
S.D. Codified Laws § 58-20-11 — SD Code / Title 58 / Chapter 20 / Section 58-20-11
Provision relieving insurer from payment on insolvency of insured prohibited
Status: in_force

No such policy of insurance issued shall contain any provision relieving the insurer from payment if the insured becomes insolvent or discharged in bankruptcy during the period that the policy is in operation, or the compensation, or any part of it, is due and unpaid.

Source: SL 1966, ch 111, ch 29, § 9.
S.D. Codified Laws § 58-30-212.1 — SD Code / Title 58 / Chapter 30 / Section 58-30-212.1
Required provisions and disclosures for travel insurance
Status: in_force

The following standards apply to the sale, solicitation, and negotiation of travel insurance:

(1) All documents provided to consumers prior to the purchase of travel insurance, including but not limited to sales materials, advertising materials, and marketing materials, must be consistent with the travel insurance policy itself, including but not limited to, forms, endorsements, policies, rate filings, and certificates of insurance;

(2) For travel insurance policies or certificates that contain pre-existing condition exclusions, information and an opportunity to learn more about the pre-existing condition exclusions must be provided any time prior to the time of purchase, and in the coverage’s fulfillment materials;

(3) The person shall disclose in the policy documentation and fulfillment materials whether the travel insurance is primary or secondary to other applicable coverage;

(4) No person offering, soliciting, or negotiating travel insurance or travel protection plans on an individual or group basis may do so by using negative option or opt out, which would require a consumer to take an affirmative action to deselect coverage, such as unchecking a box on an electronic form, when the consumer purchases a trip; and

(5) The fulfillment materials and the information described in subdivision 58-30-211 (1) must be provided to a policyholder or certificate holder as soon as practicable, following the purchase of a travel protection plan. Unless the insured has started a covered trip or filed a claim under the travel insurance coverage, a policyholder or certificate holder may cancel a policy or certificate for a full refund of the travel protection plan price from the date of purchase of a travel protection plan until at least:

(a) Fifteen days following the date of delivery of the travel protection plan’s fulfillment materials by postal mail; or

(b) Ten days following the date of delivery of the travel protection plan’s fulfillment materials by means other than postal mail.

For the purposes of this section, the term delivery means handing fulfillment materials to the policyholder or certificate holder or sending fulfillment materials by postal mail or electronic means to the policyholder or certificate holder.

Source: SL 2022, ch 185, § 5.
S.D. Codified Laws § 58-44-15 — SD Code / Title 58 / Chapter 44 / Section 58-44-15
Promulgation of rules
Status: in_force

The director may promulgate rules, pursuant to chapter 1-26 , for accreditation; requirements for insurers, agents, or brokers, whether controlled or not; contracts between the parties; bank accounts; standards of disapproval of the contracts between the parties; reporting requirements; limitation of business between the parties; and reinsurance agreements and negotiations.

Source: SL 1992, ch 358, § 15.
S.D. Codified Laws § 58-18A-69 — SD Code / Title 58 / Chapter 18A / Section 58-18A-69
Plan covering person other than as dependent
Status: in_force

The plan that covers the person other than as a dependent, for example as an employee, member, subscriber, policyholder, or retiree, is the primary plan and the plan that covers the person as a dependent is the secondary plan.

However, if the person is a medicare beneficiary, and, as a result of the provisions of Title XVIII of the Social Security Act and implementing regulations, medicare is:

(1) Secondary to the plan covering the person as a dependent; and

(2) Primary to the plan covering the person as other than a dependent (e.g. a retired employee);

Source: SL 2006, ch 259, § 17.
S.D. Codified Laws § 58-28-22 — SD Code / Title 58 / Chapter 28 / Section 58-28-22
Valuation of portion of assets equal to reserve liability
Status: in_force

Notwithstanding § 58-28-21 , unless otherwise approved by the director, the portion, if any, of the assets of such separate account equal to the insurer's reserve liability with regard to the guaranteed benefits and funds referred to in § 58-28-14 shall be valued in accordance with the rules otherwise applicable to the insurer's assets.

Source: SL 1971, ch 266, § 1 (4).