S.D. Codified Laws § 58-17A-8 — SD Code / Title 58 / Chapter 17A / Section 58-17A-8
Notice of right to return and right to premium refund printed in medicare supplement policies and certificates--Payment of refund
Status: in_force

Medicare supplement policies and certificates shall have a notice prominently printed on the first page of the policy or attached thereto stating in substance that the applicant shall have the right to return the policy or certificate within thirty days of its delivery and to have the premium refunded if, after examination of the policy or certificate, the applicant is not satisfied for any reason.

Any refund made pursuant to this section shall be paid directly to the applicant by the issuer within thirty days of receipt of the returned policy.

Source: SL 1982, ch 360, § 8; SL 1989, ch 431, § 8; SL 1992, ch 347, § 9.
S.D. Codified Laws § 58-11-9.2 — SD Code / Title 58 / Chapter 11 / Section 58-11-9.2
Notice required when automobile policy does not include liability insurance
Status: in_force

Any automobile policy and certificate of insurance which is issued on any automobile registered or principally garaged in this state and which does not provide bodily injury and property damage liability insurance, shall contain the following notice in ten point, or larger, bold print on the face of the policy and certificate: "This policy does not provide bodily injury and property damage liability insurance or any other coverage for which a specific premium charge is not made, and does not comply with any Financial Responsibility Law."

Source: SL 1971, ch 268; SL 1990, ch 393.
S.D. Codified Laws § 58-18-95 — SD Code / Title 58 / Chapter 18 / Section 58-18-95
Coverage for treatment of hearing impairment for persons under age nineteen
Status: in_force

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

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

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

Source: SL 2014, ch 237, § 2.
S.D. Codified Laws § 58-17-1.4 — SD Code / Title 58 / Chapter 17 / Section 58-17-1.4
Policies required to cover occult breast cancer screening
Status: in_force

Each policy of health insurance that covers a female and that is delivered, issued for delivery, or renewed in this state, except for a policy that provides coverage for specified disease or other limited benefit coverage, shall provide coverage for screening for the presence of occult breast cancer.

The provisions of this section apply only to plans that are not grandfathered 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 2011, ch 216, § 13.
S.D. Codified Laws § 58-17E-22 — SD Code / Title 58 / Chapter 17E / Section 58-17E-22
Surety bonds and deposits not subject to levy by claimants
Status: in_force

Except for the director, the assets or securities held in this state as a deposit pursuant to §§ 58-17E-20 and 58-17E-21 are not subject to levy by a judgment creditor or other claimant of the discount medical plan organization.

Source: SL 2006, ch 257, § 22.
S.D. Codified Laws § 58-15-43.10 — SD Code / Title 58 / Chapter 15 / Section 58-15-43.10
Refiling of nonforfeiture values or methods of computation
Status: in_force

Notwithstanding any other provision in this code to the contrary, any refiling of nonforfeiture values or their methods of computation for any previously approved policy form which involves only a change in the interest rate or mortality table used to compute nonforfeiture values do not require refiling of any other provisions of that policy form.

Source: SL 1982, ch 357, § 14.
S.D. Codified Laws § 58-23-7 — SD Code / Title 58 / Chapter 23 / Section 58-23-7
Supplemental coverage to be offered with automobile liability policy
Status: in_force

No application for an automobile liability policy may be taken with respect to any automobile registered or principally garaged in this state unless the supplemental coverages set forth in § 58-23-8 are made available to the named insured.

Source: SL 1971, ch 270, § 2; SL 1972, ch 263, § 2; SL 2005, ch 273, § 1.
S.D. Codified Laws § 58-33-32 — SD Code / Title 58 / Chapter 33 / Section 58-33-32
Boycott, coercion, or intimidation as misdemeanor
Status: in_force

No persons shall enter into any agreement to commit, or by any concerted action commit, any act of boycott, coercion, or intimidation resulting in or tending to result in unreasonable restraint of, or monopoly in, the business of insurance. Violation of this section is a Class 2 misdemeanor.

Source: SL 1966, ch 111, ch 13, § 9; SL 1978, ch 359, § 2.
S.D. Codified Laws § 58-5A-4 — SD Code / Title 58 / Chapter 5A / Section 58-5A-4
Contents of information statement--Violation as misdemeanor
Status: in_force

The statement to be filed with the director as required pursuant to § 58-5A-3 shall be made under oath or affirmation and shall contain the following information:

(1) The name and address of each person by whom or on whose behalf the merger or other acquisition of control referred to in § 58-5A-3 is to be effected (hereinafter called acquiring party); and

(a) If the person is an individual, the person's principal occupation and all offices and positions held during the past five years, and any conviction of crimes other than minor traffic violations during the past ten years;

(b) If the person is not an individual, a report of the nature of its business operations during the past five years or for a lesser period as the person and any predecessors thereof shall have been in existence; an informative description of the business intended to be done by the person and the person's subsidiaries; and a list of all individuals who are or who have been selected to become directors or executive officers of the person, or who perform or will perform functions appropriate to such positions. The list shall include for each such individual the information required by subsection (a) of this subdivision;

(2) The source, nature, and amount of the consideration used or to be used in effecting the merger or other acquisition of control, a description of any transaction wherein funds were or are to be obtained for any such purpose, and the identity of persons furnishing the consideration. However, where a source of the consideration is a loan made in the lender's ordinary course of business, the identity of the lender is confidential, if the person filing the statement so requests;

(3) Fully audited financial information as to the earnings and financial condition of each acquiring party for the preceding five fiscal years of each acquiring party (or for a lesser period as the acquiring party and any predecessors thereof have been in existence), and similar unaudited information as of a date not earlier than ninety days prior to the filing of the statement;

(4) Any plans or proposals which each acquiring party may have to liquidate the insurer, to sell the insurer's assets or merge or consolidate the insurer with any person, or to make any other material change in the insurer's business or corporate structure or management;

(5) The number of shares of any security referred to in § 58-5A-3 which each acquiring party proposes to acquire, and the terms of the offer, request, invitation, agreement, or acquisition referred to in § 58-5A-3 , and a statement as to the method by which the fairness of the proposal was arrived at;

(6) The amount of each class of any security referred to in § 58-5A-3 which is beneficially owned or concerning which there is a right to acquire beneficial ownership by each acquiring party;

(7) A full description of any contract, arrangement, or understanding with respect to any security referred to in § 58-5A-3 in which any acquiring party is involved, including transfer of any of the securities, joint ventures, loan or option arrangements, puts or calls, guarantees of loans, guarantees against loss or guarantees of profits, division of losses or profits, or the giving or withholding of proxies. The description shall identify each person with whom the contract, arrangement, or understanding has been entered into;

(8) A description of the purchase of any security referred to in § 58-5A-3 during the twelve calendar months preceding the filing of the statement, by any acquiring party, including the dates of purchase, names of the purchasers, and consideration paid or agreed to be paid therefor;

(9) A description of any recommendations to purchase any security referred to in § 58-5A-3 made during the twelve calendar months preceding the filing of the statement, by any acquiring party, or by anyone based upon interviews or at the suggestion of the acquiring party;

(10) A copy of all tender offers for, requests or invitations for tenders of exchange offers for, and agreements to acquire or exchange any securities referred to in § 58-5A-3 , and, if distributed, of additional soliciting material related thereto;

(11) The terms of any agreement, contract or understanding made with any broker-dealer as to solicitation of securities referred to in § 58-5A-3 for tender, and the amount of any fees, commissions or other compensation to be paid to broker-dealers with regard thereto;

(12) An agreement by the person required to file the statement specified in § 58-5A-3 that the person shall provide the annual report specified in § 58-5A-29.1 if control exists;

(13) An acknowledgment by the person required to file the statement referred to in §§ 58-5A-3 and 58-5A-3.1 that the person and all subsidiaries within the person's control in the insurance holding company system shall provide information to the director upon request as necessary to evaluate enterprise risk to the insurer; and

(14) Such additional information as the director may require by rule as necessary or appropriate for the protection of policyholders and security holders of the insurer or in the public interest.

A violation of this section is a Class 2 misdemeanor.

Source: SL 1972, ch 267, § 4; SL 1990, ch 158, § 21; SL 2015, ch 246, § 3.
S.D. Codified Laws § 58-29B-120 — SD Code / Title 58 / Chapter 29B / Section 58-29B-120
Hearing upon objections--Notice--Referee may conduct
Status: in_force

If objections are filed with the liquidator and the liquidator does not alter his denial of the claim as a result of the objections, the liquidator shall ask the court for a hearing as soon as practicable and give notice of the hearing by first class mail to the claimant or his attorney and to any other persons directly affected, not less than ten nor more than thirty days before the date of the hearing. The matter may be heard by the court or by a court - appointed referee who shall submit findings of fact along with his recommendation.

Source: SL 1989, ch 436, § 120.
S.D. Codified Laws § 58-20-16 — SD Code / Title 58 / Chapter 20 / Section 58-20-16
Reinsurance reserve--Amount required
Status: in_force

Any insurer engaging in the business of writing workers' compensation insurance in this state shall maintain a reinsurance reserve for outstanding losses under such insurance, for which the insured is liable as follows:

(1) For all liability suits being defended under policies written more than ten years prior to the date as of which the statement is made, one thousand five hundred dollars for each suit; five and less than ten years prior to the date as of which the statement is made, one thousand dollars for each suit; three and less than five years prior to the date as of which the statement is made, eight hundred fifty dollars for each suit.

(2) For all liability policies written during the three years immediately preceding the date as of which the statement is made, such reserve shall be sixty percent of the earned liability premiums of each of such years, less all loss and loss expense payments made under liability policies written in the corresponding years; but in any event, such reserve shall, for the first of such three years, be not less than seven hundred fifty dollars for each outstanding liability suit on said year's policies.

(3) For all compensation claims under policies written more than three years prior to the date as of which the statement is made, the present values at four percent interest of the determined and the estimated future payments.

(4) For all compensation claims under policies written in the three years immediately preceding the date as of which the statement is made, such reserve shall be sixty - five percent of the earned compensation premiums of each of such three years, less all loss and loss expense payments made in connection with such claims under policies written in the corresponding years; but in any event, in the case of the first year of any such three - year period, such reserve shall be not less than the present value at four percent interest of the determined and the estimated unpaid compensation claims under policies written during such year.

Source: SL 1966, ch 111, ch 29, § 2.
S.D. Codified Laws § 58-5-105 — SD Code / Title 58 / Chapter 5 / Section 58-5-105
Continued issuance of participating policies without authorization in articles
Status: in_force

Any domestic insurer which, prior to July 1, 1966, had been issuing all or part of its policies on a participating basis without authorization in its articles of incorporation, may continue to issue such policies.

Source: SL 1966, ch 111, ch 16, § 32 (1).
S.D. Codified Laws § 58-18-93 — SD Code / Title 58 / Chapter 18 / Section 58-18-93
Agent licensing requirements
Status: in_force

No agent may sell, solicit, or negotiate a self-funded multiple employer trust authorized under this chapter unless the agent is licensed to sell life and health insurance pursuant to chapter 58-30 .

Source: SL 2005, ch 272, § 7; SL 2019, ch 212, § 10.
S.D. Codified Laws § 58-14-16.18 — SD Code / Title 58 / Chapter 14 / Section 58-14-16.18
Qualified United States financial institution defined for purposes of subdivision 58-14-16(3)
Status: in_force

For the purposes of subdivision 58-14-16(3), a qualified United States financial institution, means an institution that:

(1) Is organized or, in the case of a United States branch or agency office of a foreign banking organization, licensed under the laws of the United States or any state thereof;

(2) Is regulated, supervised, and examined by United States federal or state authorities having regulatory authority over banks and trust companies; and

(3) Has been determined by either the director or the Securities Valuation Office of the National Association of Insurance Commissioners to meet the standards of financial condition and standing as are considered necessary and appropriate to regulate the quality of financial institutions whose letters of credit will be acceptable to the director.

Source: SL 2017, ch 211, § 29.
S.D. Codified Laws § 58-17B-7 — SD Code / Title 58 / Chapter 17B / Section 58-17B-7
Requirements for long-term care insurance policies--Post-confinement, post-acute care, or recuperative benefits
Status: in_force

No long - term care insurance policy may be delivered or issued for delivery in this state if the policy:

(1) Conditions eligibility for any benefits on a prior hospitalization requirement;

(2) Conditions eligibility for benefits provided in an institutional care setting on the receipt of a higher level of institutional care; or

(3) Conditions eligibility for any benefits other than waiver of premium, post - confinement, post - acute care or recuperative benefits on a prior institutionalization requirement.

Post - confinement, post - acute care, or recuperative benefits do not include home health care, adult day care, or any other benefit based on treatment or services received.

A long - term care insurance policy, continuing post - confinement, post - acute care, or recuperative benefits, shall clearly label, in a separate paragraph of the policy or certificate entitled "Limitations or Conditions on Eligibility for Benefits," such limitations or conditions, including any required number of days of confinement.

A long - term care insurance policy or rider which conditions eligibility of non - institutional benefits on the prior receipt of institutional care may not require a prior institutional stay of more than thirty days, except waiver of premium which may not require a prior institutional stay of more than ninety days.

Source: SL 1989, ch 440, § 7; SL 1991, ch 401.
S.D. Codified Laws § 58-15-3 — SD Code / Title 58 / Chapter 15 / Section 58-15-3
Investment of trust funds in life insurance and annuities
Status: in_force

Personal representatives, conservators, and trustees may invest the funds of their trusts, in the absence of any provision pertaining to investments contained in the instrument under which they are acting, in insurance policies and annuities of life insurers authorized to do business in South Dakota and, with the approval of the court, may retain and pay premiums on annuities, life insurance policies and health insurance policies benefitting the beneficiary of the trust or the ward or their dependents.

Source: SL 1966, ch 111, ch 23, § 34; SL 1993, ch 213, § 259; SL 1995, ch 167, § 188.
S.D. Codified Laws § 58-33-101 — SD Code / Title 58 / Chapter 33 / Section 58-33-101
Disclosure of information to agencies of other states or federal government--Conditions--Immunity from civil liability
Status: in_force

Nothing in §§ 58-33-93 to 58-33-116 , inclusive, prevents the director from disclosing the contents of a report or notification filed under this section to the insurance division of any other state or agency of the federal government at any time, or any other regulatory or law enforcement agency if the agency or office receiving the report or matters relating thereto agrees to hold it confidential and in a manner consistent with §§ 58-33-93 to 58-33-116 , inclusive. A report filed or notification provided under §§ 58-33-93 to 58-33-116 , inclusive, is confidential and privileged from disclosure in response to a subpoena or otherwise except to the extent the director determines disclosure is appropriate to accomplish a regulatory purpose. There is no civil liability imposed on and no cause of action arises from a person's furnishing information pursuant to §§ 58-33-93 to 58-33-116 , inclusive, concerning suspected, anticipated, or completed acts, if the information is provided to or received from:

(1) The director or the director's employees, agents, or representatives;

(2) Federal, state, or local law enforcement or regulatory officials or their employees, agents, or representatives;

(3) A person involved in the prevention and detection of fraudulent insurance acts or that person's agents, employees, or representatives; or

(4) The NAIC or its employees, agents, or representatives.

Source: SL 2007, ch 292, § 9.
S.D. Codified Laws § 58-30-185 — SD Code / Title 58 / Chapter 30 / Section 58-30-185
Pleadings in action brought against provider of information regarding termination of insurance producer
Status: in_force

In any action brought against a person that may have immunity under § 58-30-184 for making any statement required by §§ 58-30-180 to 58-30-193 , inclusive, providing any information relating to any statement that may be requested by the director, the party bringing the action shall plead specifically in any allegation that § 58-30-184 does not apply because the person making the statement or providing the information did so with actual malice.

Source: SL 2001, ch 286, § 45.
S.D. Codified Laws § 58-1-5 — SD Code / Title 58 / Chapter 1 / Section 58-1-5
Compliance required
Status: in_force

No person shall engage in or transact an insurance business in South Dakota, or act relative to a subject of insurance resident, located or to be performed in South Dakota, without complying with the applicable provisions of this title.

Source: SL 1966, ch 111, ch 1, § 1.
S.D. Codified Laws § 58-15-17 — SD Code / Title 58 / Chapter 15 / Section 58-15-17
Loans on policies under standard policy provisions--Loan value--Deferment of application--Private placement policies
Status: in_force

In the case of policies issued on or after the operative date specified in § 58-15-42 , the loan value referred to in § 58-15-15 shall be the cash surrender value at the end of the current policy year as required by § 58-15-33 . The policy shall reserve to the insurer the right to defer the granting of a loan, other than for the payment of any premium to the insurer, for six months after application of the loan. For any private placement policy, the loan value shall be equal to the portion of the cash surrender value that can immediately be converted to cash, pursuant to the policyholder's consent. A private placement policy may reserve to the insurer the right to defer the granting of a loan, or any portion of the loan, until the policy separate account assets, from which the loan is to be made, can be, by their respective terms, converted to cash.

Source: SL 1966, ch 111, ch 23, § 30 (2); SL 2001, ch 54, § 3; SL 2003, ch 245, § 3; SL 2006, ch 252, § 4; SL 2009, ch 259, § 3.
S.D. Codified Laws § 58-29G-2 — SD Code / Title 58 / Chapter 29G / Section 58-29G-2
General protections--Exclusions
Status: in_force

A pharmaceutical manufacturer may not, directly or indirectly, deny, restrict, or prohibit the acquisition of a 340B drug or the delivery of a 340B drug to a location that is authorized to receive the drug by a 340B entity or pharmacy, unless receipt of the 340B drug is prohibited by federal law.

Nothing in this section requires a pharmaceutical manufacturer to provide a 340B drug price discount to a pharmacy.

Nothing in this section prohibits a pharmaceutical manufacturer from limiting distribution of a drug in accordance with 21 U.S.C. § 3 55-1 (January 1, 2025).

Source: SL 2025, ch 198, § 3.
S.D. Codified Laws § 58-17H-35 — SD Code / Title 58 / Chapter 17H / Section 58-17H-35
Registration of utilization review organizations--Required information
Status: in_force

Any utilization review organization which engages in utilization review activities in this state shall register with the Division of Insurance prior to conducting business in this state. The registration shall be in a format prescribed by the director. In prescribing the form or in carrying out other functions required by §§ 58-17H-35 to 58-17H-39 , inclusive, the director shall consult with the secretary if applicable. The director or the secretary may require that the following information be submitted:

(1) Information relating to its actual or anticipated activities in this state;

(2) The status of any accreditation designation it holds or has sought;

(3) Information pertaining to its place of business, officers, and directors;

(4) Qualifications of review staff; and

(5) Any other information reasonable and necessary to monitor its activities in this state.

Source: SL 2011, ch 219, § 60.
S.D. Codified Laws § 58-40-10.3 — SD Code / Title 58 / Chapter 40 / Section 58-40-10.3
Plans not within alcoholism coverage requirement
Status: in_force

Sections 58-40-10.1 and 58-40-10.2 shall not apply to group major - medical service plans or accident only, or limited or specified disease plans.

Source: SL 1979, ch 344, § 11.
S.D. Codified Laws § 58-11-11 — SD Code / Title 58 / Chapter 11 / Section 58-11-11
Charter and bylaws, inclusion as part of contract of insurance--Subscriber's agreement or power of attorney of a reciprocal insurer as part of contract
Status: in_force

No policy shall contain any provision purporting to make any portion of the charter, bylaws or other constituent document of the insurer, other than the subscriber's agreement or power of attorney of a reciprocal insurer, a part of the contract unless such portion is set forth in full in the policy. Any policy provision in violation of this section shall be invalid.

Source: SL 1966, ch 111, ch 22, § 19.
S.D. Codified Laws § 58-17-54.1 — SD Code / Title 58 / Chapter 17 / Section 58-17-54.1
Copayment or coinsurance amounts for chiropractic, physical therapy, or occupational therapy services
Status: in_force

No health insurer may impose any copayment or coinsurance amount on an insured for services rendered by a doctor of chiropractic licensed pursuant to chapter 36-5 , an occupational therapist licensed pursuant to chapter 36-31 , or a physical therapist licensed pursuant to chapter 36-10 that is greater than the copayment or coinsurance amount imposed on the insured for the services of a primary care physician or practitioner for the same or a similar diagnosed condition even if a different nomenclature is used to describe a condition.

Source: SL 2011, ch 217, § 1; SL 2012, ch 244, § 1.
S.D. Codified Laws § 58-28-28 — SD Code / Title 58 / Chapter 28 / Section 58-28-28
Grace, reinstatement, and nonforfeiture provisions required
Status: in_force

Any individual variable life insurance or annuity contracts delivered or issued for delivery in this state shall contain grace, reinstatement, and nonforfeiture provisions appropriate to such a contract.

Source: SL 1971, ch 266, § 5; SL 1977, ch 412, § 21.
S.D. Codified Laws § 58-14-26 — SD Code / Title 58 / Chapter 14 / Section 58-14-26
License required to sell, solicit, negotiate, or place reinsurance
Status: in_force

No person may sell, solicit, negotiate, or place reinsurance without being licensed pursuant to §§ 58-14-24 to 58-14-42 , inclusive, to sell, negotiate, solicit, or place reinsurance. The provisions of chapter 58-30 apply to the extent that the provisions are not inconsistent with this chapter.

Source: SL 1992, ch 345, § 3; SL 1994, ch 379, § 1.
S.D. Codified Laws § 58-24-10.1 — SD Code / Title 58 / Chapter 24 / Section 58-24-10.1
Rating rules required to be filed with director--Filing date--Supporting information required
Status: in_force

Every insurer writing automobile insurance as defined by subdivisions 58-11-45(1) to (3), inclusive, and subdivision 58-23-6(2), and every insurer writing liability insurance, physical damage insurance, and collision insurance on all motor vehicles ordinarily used on the public highways, except for insurance which falls within the inland marine risk exemption of § 58-24-10 or for insurance policies excluded under the definition of "policy" in subdivision 58-11-45(5), shall file with the director of the Division of Insurance every manual, minimum, class rate, rating schedule, or rating plan and every other rating rule, and modification of any of the foregoing which it proposes to use, and shall indicate the character and extent of the coverages contemplated. The filing date shall be the effective date thereof unless the insurer proposes an effective date subsequent to the filing date. If the director is not satisfied with the information provided to support a filing made in accordance with this section, he shall proceed in accordance with § 58-24-13 .

Source: SL 1979, ch 341, §§ 4, 5.
S.D. Codified Laws § 58-18A-64 — SD Code / Title 58 / Chapter 18A / Section 58-18A-64
Closed panel plans
Status: in_force

Under the terms of a closed panel plan, no benefits are payable if the covered person does not use the services of a closed panel provider. No COB occurs if a covered person is enrolled in two or more closed panel plans and obtains services from a provider in one of the closed panel plans because the other closed panel plan (the one whose providers were not used) has no liability. However, COB may occur during the plan year if the covered person receives emergency services that would have been covered by both plans. In such a case, the secondary plan shall use the provisions of § 58-18A-75 to determine the amount it should pay for the benefit.

Source: SL 2006, ch 259, § 12.
S.D. Codified Laws § 58-5-27 — SD Code / Title 58 / Chapter 5 / Section 58-5-27
Membership of policyholders in domestic mutual insurer--Reinsurance contract excepted
Status: in_force

Each policyholder of a domestic mutual insurer, other than of a reinsurance contract, is a member of the insurer with all rights and obligations of such membership, and the policy shall so specify.

Source: SL 1966, ch 111, ch 16, § 15 (1).
S.D. Codified Laws § 58-43-16.21 — SD Code / Title 58 / Chapter 43 / Section 58-43-16.21
Compliance schedule for insurers not retaining independent accountant on July 1, 2009
Status: in_force

Any domestic insurer not retaining a certified public accountant on July 1, 2009, who qualifies as independent shall meet the following schedule for compliance unless the director permits otherwise:

(1) As of December 31, 2010, file with the director an audited financial report; and

(2) For the year ending December 31, 2010, the insurer shall file with the director all reports and communication required by this chapter.

Source: SL 2009, ch 271, § 36.
S.D. Codified Laws § 58-26-77 — SD Code / Title 58 / Chapter 26 / Section 58-26-77
Minimum aggregate reserves for life insurance policies
Status: in_force

No company's aggregate reserves for all life insurance policies, excluding disability and accidental death benefits, issued on or after July 1, 1995, may be less than the aggregate reserves calculated in accordance with the methods set forth in §§ 58-26-75 , 58-26-76 , 58-26-81 , 58-26-82 , and 58-26-83 and the mortality table or tables and rate or rates of interest used in calculating nonforfeiture benefits for the policies. The aggregate reserves for all policies, contracts, and benefits may not be less than the aggregate reserves determined by the appointed actuary to be necessary to give the opinion required by §§ 58-26-46 to 58-26-55 , inclusive.

Source: SL 1995, ch 284, § 33; SL 2015, ch 254, § 18.
S.D. Codified Laws § 58-9-3 — SD Code / Title 58 / Chapter 9 / Section 58-9-3
Health insurance defined
Status: in_force

"Health insurance" is insurance of human beings against bodily injury, disablement, or death by accident or accidental means, or the expense thereof, or against disablement or expense resulting from sickness, or childbirth, or against expenses incurred in prevention of sickness, or dental care, and every insurance appertaining thereto. Health insurance does not include workers' compensation insurance.

Source: SL 1966, ch 111, ch 4, § 3.
S.D. Codified Laws § 58-27-12.1 — SD Code / Title 58 / Chapter 27 / Section 58-27-12.1
Maximum investments in bonds, warrants, and evidence of indebtedness
Status: in_force

An insurer may invest up to twenty percent of its admitted assets in any bonds, warrants, or evidence of indebtedness described in §§ 58-27-11 and 58-27-12 and not rated pursuant to § 58-27-108 . The valuation of such investments shall be the amortized cost of the investments or the market value of the investments, whichever is less.

Source: SL 2004, ch 309, § 1.
S.D. Codified Laws § 58-26-35 — SD Code / Title 58 / Chapter 26 / Section 58-26-35
Maintaining a reserve for outstanding losses under credit insurance policies
Status: in_force

An insurer shall maintain a reserve for outstanding losses under credit insurance policies in accordance with the Annual Statement Instructions Manual prescribed by the National Association of Insurance Commissioners as adopted by rule by the director pursuant to chapter 1-26 . But in any event, the reserve may not be less than the determined and estimated unpaid claims on all policies.

Source: SL 1966, ch 111, ch 5, § 8 (1); SL 1995, ch 284, § 46.
S.D. Codified Laws § 58-41-36 — SD Code / Title 58 / Chapter 41 / Section 58-41-36
Unfair and misleading information in evidence of coverage as misdemeanor
Status: in_force

No evidence of coverage shall contain provisions or statements which are unjust, unfair, inequitable, misleading, or deceptive, as defined in §§ 58-41-37 to 58-41-40 , inclusive. Violation of this section is a Class 2 misdemeanor.

Source: SL 1974, ch 321, §§ 19 (1), 50; SDCL Supp, § 58-41-77 ; SL 1978, ch 359, § 2.
S.D. Codified Laws § 58-41-65 — SD Code / Title 58 / Chapter 41 / Section 58-41-65
Applications, filings and reports as public documents
Status: in_force

All applications, filings, and reports required under this chapter are public documents except as provided for by § 1-27-30 .

Source: SL 1974, ch 321, § 57; SL 2013, ch 256, § 18.
S.D. Codified Laws § 58-33-46.1 — SD Code / Title 58 / Chapter 33 / Section 58-33-46.1
Civil action for damages resulting from unfair or prohibited act--Attorneys' fees
Status: in_force

Any person who claims to have been damaged by any act or practice declared to be unlawful by this chapter shall be permitted to bring a civil action for the recovery of all actual and consequential damages suffered as a result of such act or practice including reasonable attorneys' fees to be set by the court.

Source: SL 1974, ch 319.
S.D. Codified Laws § 58-29C-51 — SD Code / Title 58 / Chapter 29C / Section 58-29C-51
Impaired or insolvent member--Actions authorized
Status: in_force

(1) Guarantee, assume, reissue, or reinsure, or cause to be guaranteed, assumed, reissued, or reinsured, any or all of the policies or contracts of the impaired insurer; and

(2) Provide any moneys, pledges, loans, notes, guarantees, or other means as is proper to effectuate subdivision (1) and assure payment of the contractual obligations of the impaired insurer pending action under subdivision (1).

B. If a member insurer is an insolvent insurer, the association shall, in its discretion, either:

(1)(a)(i) Guarantee, assume, reissue, or reinsure, or cause to be guaranteed, assumed, reissued, or reinsured, the policies or contracts of the insolvent insurer; or

(ii) Assure payment of the contractual obligations of the insolvent insurer; and

(b) Provide moneys, pledges, loans, notes, guarantees, or other means reasonably necessary to discharge the association's duties; or

(2) Provide benefits and coverages in accordance with the following provisions:

(a) With respect to policies and contracts, assure payment of benefits that would have been payable under the policies or contracts of the insolvent insurer, for claims incurred:

(i) With respect to group policies and contracts, not later than the earlier of the next renewal date under those policies or contracts or forty-five days, but in no event less than thirty days, after the date on which the association becomes obligated with respect to the policies and contracts;

(ii) With respect to nongroup policies, contracts, and annuities not later than the earlier of the next renewal date, if any, under the policies or contracts or one year, but in no event less than thirty days, from the date on which the association becomes obligated with respect to the policies or contracts;

(b) Make diligent efforts to provide all known insureds or annuitants (for nongroup policies and contracts), or group policy or contract owners with respect to group policies and contracts, thirty days notice of the termination (pursuant to subsection (a) of this subdivision) of the benefits provided;

(c) With respect to nongroup policies and contracts covered by the association, make available to each known insured or annuitant, or owner if other than the insured or annuitant, and with respect to an individual formerly an insured or annuitant under a group policy or contract who is not eligible for replacement group coverage, make available substitute coverage on an individual basis in accordance with the provisions of subsection (d), if the insureds or annuitants had a right under law or the terminated policy, contract, or annuity to convert coverage to individual coverage or to continue an individual policy, contract, or annuity in force until a specified age or for a specified time, during which the insurer had no right unilaterally to make changes in any provision of the policy, contract, or annuity or had a right only to make changes in premium by class;

(d)(i) In providing the substitute coverage required under subsection (c), the association may offer either to reissue the terminated coverage or to issue an alternative policy or contract at the actuarially justified rates subject to prior approval of the director;

(ii) Alternative or reissued policies or contracts shall be offered without requiring evidence of insurability, and may not provide for any waiting period or exclusion that would not have applied under the terminated policy or contract;

(iii) The association may reinsure any alternative or reissued policy or contract;

(e)(i) Alternative policies or contracts adopted by the association are subject to the approval of the director. The association may adopt alternative policies or contracts of various types for future issuance without regard to any particular impairment or insolvency;

(ii) Alternative policies or contracts shall contain at least the minimum statutory provisions required in this state and provide benefits that are not unreasonable in relation to the premium charged. The association shall set the premium in accordance with a table of rates that it shall adopt. The premium shall reflect the amount of insurance to be provided and the age and class of risk of each insured, but may not reflect any changes in the health of the insured after the original policy or contract was last underwritten;

(iii) Any alternative policy or contract issued by the association shall provide coverage of a type similar to that of the policy or contract issued by the impaired or insolvent insurer, as determined by the association;

(f) If the association elects to reissue terminated coverage at a premium rate different from that charged under the terminated policy or contract, the premium shall be actuarially justified and set by the association in accordance with the amount of insurance or coverage provided and the age and class of risk, subject to prior approval of the director;

(g) The association's obligations with respect to coverage under any policy or contract of the impaired or insolvent insurer or under any reissued or alternative policy or contract shall cease on the date the coverage or policy or contract is replaced by another similar policy or contract by the policy or contract owner, the insured, or the association;

(h) When proceeding under subdivision B(2) with respect to a policy or contract carrying guaranteed minimum interest rates, the association shall assure the payment or crediting of a rate of interest consistent with subsection 58-29C-46 (B)(2)(c).

C. Nonpayment of premiums within thirty-one days after the date required under the terms of any guaranteed, assumed, alternative, or reissued policy or contract or substitute coverage shall terminate the association's obligations under the policy, contract, or coverage under this chapter with respect to the policy, contract, or coverage, except with respect to any claims incurred or any net cash surrender value which may be due in accordance with the provisions of this chapter.

D. Premiums due for coverage after entry of an order of liquidation of an insolvent insurer shall belong to and be payable at the direction of the association. If the liquidator of an insolvent insurer requests, the association shall provide a report to the liquidator regarding any premium collected by the association. The association shall be liable for unearned premiums due to policy or contract owners arising after the entry of the order.

E. The protection provided by this chapter does not apply if any guaranty protection is provided to residents of this state by the laws of the domiciliary state or jurisdiction of the impaired or insolvent insurer other than this state.

F. In carrying out its duties under subpart B, the association may:

(1) Subject to approval by a court in this state, impose permanent policy or contract liens in connection with a guarantee, assumption, or reinsurance agreement, if the association finds that the amounts that can be assessed under this chapter are less than the amounts needed to assure full and prompt performance of the association's duties under this chapter, or that the economic or financial conditions affecting member insurers are sufficiently adverse to render the imposition of such permanent policy or contract liens, to be in the public interest;

(2) Subject to approval by a court in this state, impose temporary moratoriums or liens on payments of cash values and policy loans, or any other right to withdraw funds held in conjunction with policies or contracts, in addition to any contractual provisions for deferral of cash or policy loan value. In addition, in the event of a temporary moratorium or moratorium charge imposed by the receivership court on payment of cash values or policy loans, or on any other right to withdraw funds held in conjunction with policies or contracts, out of the assets of the impaired or insolvent insurer, the association may defer the payment of cash values, policy loans, or other rights by the association for the period of the moratorium or moratorium charge imposed by the receivership court, except for claims covered by the association to be paid in accordance with a hardship procedure established by the liquidator or rehabilitator and approved by the receivership court.

G. A deposit in this state, held pursuant to law or required by the director for the benefit of creditors, including policy or contract owners, not turned over to the domiciliary liquidator upon the entry of a final order of liquidation or order approving a rehabilitation plan of a member insurer domiciled in this state or in a reciprocal state, pursuant to §§ 58-29B-144 and 58-29B-149 , shall be promptly paid to the association. The association shall be entitled to retain a portion of any amount so paid to it equal to the percentage determined by dividing the aggregate amount of policy or contract owners' claims related to that insolvency for which the association has provided statutory benefits by the aggregate amount of all policy or contract owners' claims in this state related to that insolvency and shall remit to the domiciliary receiver the amount paid to the association less the amount retained pursuant to this subpart. Any amount paid to the association and retained by the association shall be treated as a distribution of estate assets pursuant to § 58-29B-98 or similar provision of the state of domicile of the impaired or insolvent insurer.

H. If the association fails to act within a reasonable period of time with respect to an insolvent insurer, as provided in subpart B of this section, the director shall have the powers and duties of the association under this chapter with respect to the insolvent insurer.

I. The association may render assistance and advice to the director, upon the director's request, concerning rehabilitation, payment of claims, continuance of coverage, or the performance of other contractual obligations of an impaired or insolvent insurer.

J. The association shall have standing to appear or intervene before a court or agency in this state with jurisdiction over an impaired or insolvent insurer concerning which the association is or may become obligated under this chapter or with jurisdiction over any person or property against which the association may have rights through subrogation or otherwise. Standing extends to all matters germane to the powers and duties of the association, including proposals for reinsuring, reissuing, modifying, or guaranteeing the policies or contracts of the impaired or insolvent insurer and the determination of the policies or contracts and contractual obligations. The association also has the right to appear or intervene before a court or agency in another state with jurisdiction over an impaired or insolvent insurer for which the association is or may become obligated or with jurisdiction over any person or property against whom the association may have rights through subrogation or otherwise.

K. (1) A person receiving benefits under this chapter is determined to have assigned the rights under, and any causes of action against any person for losses arising under, resulting from, or otherwise relating to, the covered policy or contract to the association to the extent of the benefits received because of this chapter, whether the benefits are payments of or on account of contractual obligations, continuation of coverage, or provision of substitute or alternative policies, contracts, or coverages. The association may require an assignment to the association of the rights and cause of action by any payee, policy, or contract owner, beneficiary, insured, or annuitant as a condition precedent to the receipt of any right or benefits conferred by this chapter upon the person.

(2) The subrogation rights of the association under this subpart have the same priority against the assets of the impaired or insolvent insurer as that possessed by the person entitled to receive benefits under this chapter.

(3) In addition to subdivisions (1) and (2) of this subpart, the association shall have all common law rights of subrogation and any other equitable or legal remedy that would have been available to the impaired or insolvent insurer or owner, beneficiary, or payee of a policy or contract with respect to the policy or contracts.

(4) If the preceding provisions of this subpart are invalid or ineffective with respect to any person or claim for any reason, the amount payable by the association with respect to the related covered obligations shall be reduced by the amount realized by any other person with respect to the person or claim that is attributable to the policies or contracts (or portion thereof) covered by the association.

(5) If the association has provided benefits with respect to a covered obligation and a person recovers amounts as to which the association has rights as described in the preceding subdivisions of this subpart, the person shall pay to the association the portion of the recovery attributable to the policies or contracts (or portion thereof) covered by the association.

L. In addition to the rights and powers elsewhere in this chapter, the association may:

(1) Enter into such contracts as are necessary or proper to carry out the provisions and purposes of this chapter;

(2) Sue or be sued, including taking any legal actions necessary or proper to recover any unpaid assessments under § 58-29C-52 and to settle claims or potential claims against it;

(3) Borrow money to effect the purposes of this chapter; any notes or other evidence of indebtedness of the association not in default are legal investments for domestic member insurers and may be carried as admitted assets;

(4) Employ or retain any persons as necessary or appropriate to handle the financial transactions of the association, and to perform other functions as become necessary or proper under this chapter;

(5) Take legal action as may be necessary or appropriate to avoid or recover payment of improper claims;

(6) Exercise, for the purposes of this chapter and to the extent approved by the director, the powers of a domestic life insurer or health insurer, but in no case may the association issue policies or contracts other than those issued to perform its obligations under this chapter;

(7) Organize the association as a corporation or in other legal form permitted by the laws of the state;

(8) Request information from a person seeking coverage from the association in order to aid the association in determining its obligations under this chapter with respect to the person, and the person shall promptly comply with the request;

(9) Unless prohibited by law, in accordance with the terms and conditions of the policy or contract, file for actuarially justified rate or premium increases for any policy or contract for which the association provides coverage under this chapter; and

(10) Take other necessary or appropriate action to discharge the duties and obligations of the association as provided in this chapter or to exercise its powers under this chapter.

M. The association may join an organization of one or more other state associations of similar purposes to further the purposes and administer the powers and duties of the association.

N. (1)(a) At any time within one hundred eighty days of the date of the order of liquidation, the association may elect to succeed to the rights and obligations of the ceding member insurer that relate to policies, contracts, or annuities covered, in whole or in part, by the association, in each case under any one or more reinsurance contracts entered into by the insolvent insurer and its reinsurers and selected by the association. Any election shall be effective as of the date of the order of liquidation. The election shall be effected by the association or the National Organization of Life and Health Insurance Guaranty Associations (NOLHGA) on its behalf sending written notice, return receipt requested, to the affected reinsurers.

(b) To facilitate the earliest practicable decision about whether to assume any of the contracts of reinsurance, and in order to protect the financial position of the estate, the receiver and each reinsurer of the ceding member insurer shall make available upon request to the association or to NOLHGA on its behalf as soon as possible after commencement of formal delinquency proceedings:

(i) Copies of in-force contracts of reinsurance and all related files and records relevant to the determination of whether contracts should be assumed; and

(ii) Notices of any defaults under the reinsurance contracts or any known event or condition which with the passage of time could become a default under the reinsurance contracts.

(c) Subparagraphs (i) to (iv) apply to reinsurance contracts so assumed by the association:

(i) The association is responsible for all unpaid premiums due under the reinsurance contracts for periods both before and after the date of the order of liquidation, and is responsible for the performance of all other obligations to be performed after the date of the order of liquidation, in each case which relate to policies, contracts, or annuities covered, in whole or in part, by the association. The association may charge policies, contracts, or annuities covered in part by the association, through reasonable allocation methods, the costs for reinsurance in excess of the obligations of the association and shall provide notice and an accounting of these charges to the liquidator;

(ii) The association is entitled to any amounts payable by the reinsurer under the reinsurance contracts with respect to losses or events that occur in periods after the date of the order of liquidation and that relate to policies, contracts, or annuities covered, in whole or in part, by the association, provided that, upon receipt of any amounts, the association is obliged to pay to the beneficiary under the policy, contract, or annuity on account of which the amounts were paid a portion of the amount equal to the lesser of:

(A) The amount received by the association; and

(B) The excess of the amount received by the association, over the amount equal to the benefits paid by the association on account of the policy, contract, or annuity less the retention of the insurer applicable to the loss or event.

(iii) Within thirty days following the association's election (the "election date"), the association and each reinsurer under contracts assumed by the association shall calculate the net balance due to or from the association under each reinsurance contract as of the election date with respect to policies, contracts, or annuities covered, in whole or in part, by the association, which calculation shall give full credit to all items paid by either the member insurer or its receiver or the reinsurer prior to the election date. The reinsurer shall pay the receiver any amounts due for losses or events prior to the date of the order of liquidation, subject to any set-off for premiums unpaid for periods prior to the date, and the association or reinsurer shall pay any remaining balance due the other, in each case within five days of the completion of the aforementioned calculation. Any disputes over the amounts due to either the association or the reinsurer shall be resolved by arbitration pursuant to the terms of the affected reinsurance contracts or, if the contract contains no arbitration clause, as otherwise provided by law. If the receiver has received any amounts due the association pursuant to subparagraph (1)(c)(ii), the receiver shall remit the amounts to the association as promptly as practicable.

(iv) If the association or receiver, on the association's behalf, within sixty days of the election date, pays the unpaid premiums due for periods both before and after the election date that relate to policies, contracts, or annuities covered, in whole or in part by the association, the reinsurer may not terminate the reinsurance contracts for failure to pay premium insofar as the reinsurance contracts relate to policies, contracts, or annuities covered, in whole or in part, by the association, and may not set off any unpaid amounts due under other contracts, or unpaid amounts due from parties other than the association, against amounts due the association.

(2) During the period from the date of the order of liquidation until the election date (or, if the election date does not occur, until one hundred eighty days after the date of the order of liquidation);

(a)(i) Neither the association nor the reinsurer has any rights or obligations under reinsurance contracts that the association has the right to assume under subdivision (1), whether for periods prior to or after the date of the order of liquidation; and

(ii) The reinsurer, the receiver, and the association shall, to the extent practicable, provide each other data and records reasonably requested;

(b) Provided that once the association elects to assume a reinsurance contract, the parties' rights and obligations shall be governed by subdivision (1).

(3) If the association does not elect to assume a reinsurance contract by the election date pursuant to subdivision (1), the association shall have no rights or obligations, in each case for periods both before and after the date of the order of liquidation, with respect to the reinsurance contract.

(4) When policies, contracts, or annuities, or covered obligations with respect thereto, are transferred to an assuming insurer, reinsurance on the policies, contracts, or annuities may also be transferred by the association, in the case of contracts assumed under subdivision (1), subject to the following:

(a) Unless the reinsurer and the assuming insurer agree otherwise, the reinsurance contract transferred may not cover any new policies of insurance or annuities in addition to those transferred;

(b) The obligations described in subdivision (1) of this section no longer apply with respect to matters arising after the effective date of the transfer; and

(c) The transferring party shall give notice in writing, return receipt requested, to the affected reinsurer not less than thirty days prior to the effective date of the transfer;

(5) The provisions of subpart N supersede the provisions of any state law or of any affected reinsurance contract that provides for or requires any payment of reinsurance proceeds, on account of losses or events that occur in periods after the date of the order of liquidation, to the receiver of the insolvent insurer or any other person. The receiver remains entitled to any amounts payable by the reinsurer under the reinsurance contracts with respect to losses or events that occur in periods prior to the date of the order of liquidation, subject to applicable setoff provisions; and

(6) Except as otherwise provided in this section, nothing in subpart N alters or modifies the terms and conditions of any reinsurance contract. Nothing in this section abrogates or limits any rights of any reinsurer to claim that the reinsurer is entitled to rescind a reinsurance contract. Nothing in this section gives a policyholder, policy owner, contract owner, certificate holder, or beneficiary an independent cause of action against a reinsurer that is not otherwise set forth in the reinsurance contract. No provision in this section limits or affects the association's rights as a creditor of the estate against the assets of the estate. No provision in this section applies to reinsurance agreements covering property or casualty risks.

O. The board of directors of the association shall have discretion and may exercise reasonable business judgment to determine the means by which the association is to provide the benefits of this chapter in an economical and efficient manner.

P. If the association has arranged or offered to provide the benefits of this chapter to a covered person under a plan or arrangement that fulfills the association's obligations under this chapter, the person is not entitled to benefits from the association in addition to or other than those provided under the plan or arrangement.

Q. Venue in a suit against the association arising under the chapter is in Hughes County. The association may not be required to give an appeal bond in an appeal that relates to a cause of action arising under this chapter.

R. In carrying out the association's duties in connection with guaranteeing, assuming, reissuing, or reinsuring policies or contracts under subpart A or B of this section, the association may issue substitute coverage for a policy or contract that provides an interest rate, crediting rate, or similar factor determined by use of an index or other external reference stated in the policy or contract employed in calculating returns or changes in value by issuing an alternative policy or contract in accordance with the following provisions:

(1) In lieu of the index or other external reference provided for in the original policy or contract, the alternative policy or contract provides for (i) a fixed interest rate or (ii) payment of dividends with minimum guarantees or (iii) different methods for calculating interest or changes in value;

(2) There is no requirement for evidence of insurability, waiting period, or other exclusion that would not have applied under the replaced policy or contract; and

(3) The alternative policy or contract is substantially similar to the replaced policy or contract in all other material terms.

Source: SL 2003, ch 252, § 8; SL 2013, ch 252, § 4; SL 2020, ch 210, § 5.
S.D. Codified Laws § 58-39-3 — SD Code / Title 58 / Chapter 39 / Section 58-39-3
Members and directors
Status: in_force

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

Source: SL 1966, ch 111, ch 30, § 4.
S.D. Codified Laws § 58-6-30 — SD Code / Title 58 / Chapter 6 / Section 58-6-30
Health insurer issuing insurance against congenital defects without additional capital or surplus
Status: in_force

A health insurer may also issue insurance against congenital defects without additional capital or additional surplus.

Source: SL 1966, ch 111, ch 3, § 12 (2).
S.D. Codified Laws § 58-18B-24 — SD Code / Title 58 / Chapter 18B / Section 58-18B-24
Application of minimum participation and minimum employer contribution requirements
Status: in_force

A small employer carrier may vary application of minimum participation requirements and minimum employer contribution requirements only by the size of the small employer group or by the class of business.

Source: SL 1995, ch 281, § 18.
S.D. Codified Laws § 58-30-209 — SD Code / Title 58 / Chapter 30 / Section 58-30-209
Definitions regarding travel insurance
Status: in_force

Terms used in §§ 58-30-209 to 58-30-217.1 , inclusive, mean:

(1) “Aggregator site,” a website that provides access to information regarding insurance products from more than one insurer, including product and insurer information, for use in comparison shopping;

(2) “Blanket travel insurance,” a policy of travel insurance issued to any eligible group providing coverage for specific classes of persons defined in the policy, with coverage provided to all members of the eligible group without a separate charge to individual members of the eligible group;

(3) “Cancellation fee waiver,” a contractual agreement between a supplier of travel services and its customer to waive some or all of the non-refundable cancellation fee provisions of the supplier’s underlying travel contract with or without regard to the reason for the cancellation or form of reimbursement;

(4) “Eligible group,” for the purposes of §§ 58-30-209 to 58-30-217.1 , inclusive, only, two or more persons who are engaged in a common enterprise, or have an economic, educational, or social affinity or relationship, including, but not limited to:

(a) An entity engaged in the business of providing travel or travel services, including, but not limited to, tour operators, lodging providers, vacation property owners, hotels and resorts, travel clubs, travel agencies, property managers, cultural exchange programs, and common carriers or the operator, owner, or lessor of a means of transportation of passengers, including but not limited to airlines, cruise lines, railroads, steamship companies, and public bus carriers, wherein with regard to any particular travel or type of travel or travelers, all members or customers of the group must have a common exposure to risk in the travel;

(b) A college, school, or other institution of learning, covering students, teachers, employees, or volunteers;

(c) An employer covering any group of employees, volunteers, contractors, board of directors, dependents, or guests;

(d) A sports team, camp, or sponsor thereof, covering participants, members, campers, employees, officials, supervisors, or volunteers;

(e) A religious, charitable, recreational, educational, or civic organization, or branch thereof, covering any group of members, participants, or volunteers;

(f) A financial institution or financial institution vendor, or parent holding company, trustee, or agent of or designated by one or more financial institutions or financial institution vendors, including accountholders, credit card holders, debtors, guarantors, or purchasers;

(g) An incorporated or unincorporated association, including labor unions, having a common interest, constitution and bylaws, and organized and maintained in good faith for purposes other than obtaining insurance for members or participants of such association covering its members;

(h) A trust or the trustees of a fund established, created or maintained for the benefit of and covering members, employees or customers, subject to the director’s permitting the use of a trust and the state’s premium tax provisions in § 10-44-2 , of one or more associations meeting the above requirements of (g) of this section;

(i) An entertainment production company covering any group of participants, volunteers, audience members, contestants, or workers;

(j) A volunteer fire department, ambulance, rescue, police, court, or any first aid, civil defense, or other such volunteer group;

(k) A preschool, daycare institution for children or adults, and senior citizen club;

(l) An automobile or truck rental or leasing company covering a group of individuals who may become renters, lessees, or passengers defined by their travel status on the rented or leased vehicles. The common carrier, the operator, owner or lessor of a means of transportation, or the automobile or truck rental or leasing company, is the policyholder for group coverage under this subdivision; or

(m) Another group where the director has determined that the members are engaged in a common enterprise, or have an economic, educational, or social affinity or relationship, and that issuance of the policy would not be contrary to the public interest;

(5) “Fulfillment materials,” documentation sent to the purchaser of a travel protection plan confirming the purchase and providing the travel protection plan’s coverage and assistance details;

(6) “Group travel insurance,” travel insurance issued to any eligible group;

(7) "Limited lines travel insurance producer," a:

(a) Licensed managing general underwriter;

(b) Licensed managing general agent or third party administrator;

(c) Licensed insurance producer, including a limited lines producer; or

(d) Travel administrator;

(8) "Offer and disseminate," providing general information, including a description of the coverage and price, as well as processing the application, collecting premiums, and performing other activities permitted by the state;

(9) “Primary certificate holder,” an individual person who elects and purchases travel insurance under a group travel insurance policy;

(10) “Primary policyholder,” an individual person who elects and purchases individual travel insurance;

(11) “Travel administrator,” a person who directly or indirectly underwrites; collects charges, collateral, or premiums from; or adjusts or settles claims on; residents of this state, in connection with travel insurance, except that a person is not a travel administrator if that person’s only actions that would otherwise cause the person to be considered a travel administrator are the following:

(a) A person working for a travel administrator to the extent that the person’s activities are subject to the supervision and control of the travel administrator;

(b) An insurance producer selling insurance or engaged in administrative and claims-related activities within the scope of the producer’s license;

(c) A travel retailer offering and disseminating travel insurance and registered under the license of a limited lines travel insurance producer in accordance with § 58-30-211 ;

(d) An individual adjusting or settling claims in the normal course of the individual’s practice or employment as an attorney-at-law and who does not collect charges or premiums in connection with insurance coverage; or

(e) A business entity that is affiliated with a licensed insurer while acting as a travel administrator for the direct and assumed insurance business of an affiliated insurer;

(12) “Travel assistance services,” non-insurance services unrelated to insurance for which the consumer is not indemnified based on a fortuitous event, and where providing the service does not result in transfer or shifting of risk that would constitute the business of insurance. Travel assistance services include but are not limited to:

(a) Security advisories;

(b) Destination information;

(c) Vaccination and immunization information services;

(d) Travel reservation services;

(e) Entertainment;

(f) Activity and event planning;

(g) Translation assistance;

(h) Emergency messaging;

(i) International legal and medical referrals;

(j) Medical case monitoring;

(k) Coordination of transportation arrangements;

(l) Emergency cash transfer assistance;

(m) Medical prescription replacement assistance;

(n) Passport and travel document replacement assistance;

(o) Lost luggage assistance;

(p) Concierge services; and

(q) Any other service that is furnished in connection with planned travel;

(13) "Travel insurance," insurance coverage for personal risks incident to planned travel, including:

(a) Interruption or cancellation of a trip or event;

(b) Loss of baggage or personal effects;

(c) Damages to accommodations or rental vehicles;

(d) Sickness, accident, disability, or death occurring during travel;

(e) Emergency evacuation;

(f) Repatriation of remains; or

(g) Any other contractual obligations to indemnify or pay a specified amount to the traveler upon determinable contingencies related to travel as approved by the director.

Travel insurance does not include major medical plans providing comprehensive medical protection for persons with trips or overseas residence or deployment lasting six months or longer, or any other product that requires a specific insurance producer license;

(14) “Travel protection plan,” a plan that provides travel insurance, travel assistance services, or cancellation fee waivers, or any combination thereof;

(15) "Travel retailer," a business entity that makes, arranges, or offers planned travel and may offer and disseminate travel insurance as a service to its customers on behalf of and under the direction of a limited lines travel insurance producer.

Source: SL 2014, ch 241, § 5; SL 2022, ch 185, § 1.
S.D. Codified Laws § 58-17A-9 — SD Code / Title 58 / Chapter 17A / Section 58-17A-9
Regulations subject to Administrative Procedures Act
Status: in_force

Regulations promulgated pursuant to this chapter shall be subject to the provisions of chapter 1-26 .

Source: SL 1982, ch 360, § 9.
S.D. Codified Laws § 58-27-76 — SD Code / Title 58 / Chapter 27 / Section 58-27-76
Expiration of period for disposal of ineligible property or securities--Disallowance as admitted asset
Status: in_force

Any real estate, personal property, or securities acquired and held by an insurer after expiration of the period for disposal thereof or any extension of such period granted by the director, as provided in §§ 58-27-50 and 58-27-70 to 58-27-75 , inclusive, shall not be allowed as an admitted asset of the insurer.

Source: SL 1966, ch 111, ch 6, § 33 (1).
S.D. Codified Laws § 58-18-19 — SD Code / Title 58 / Chapter 18 / Section 58-18-19
Blanket health insurance for other risks approved by director
Status: in_force

Blanket health insurance may be under a policy or contract issued to cover any other risk or class of risks which, in the discretion of the director may be properly eligible for blanket health insurance. The discretion of the director may be exercised on an individual risk basis or class of risks, or both.

Source: SL 1966, ch 111, ch 26, § 4 (7).
S.D. Codified Laws § 58-19-3 — SD Code / Title 58 / Chapter 19 / Section 58-19-3
Life and health insurance connected with credit transactions subject to chapter--Exceptions
Status: in_force

All life insurance and all health insurance in connection with loans or other credit transactions shall be subject to the provisions of this chapter, except such insurance in connection with a loan or other credit transaction of more than ten years' duration; nor shall insurance be subject to the provisions of this chapter where the issuance of such insurance is an isolated transaction on the part of the insurer not related to an agreement or a plan for insuring debtors of the creditor.

Source: SL 1966, ch 111, ch 27, § 2 (2); SL 1970, ch 271.
S.D. Codified Laws § 58-17G-5 — SD Code / Title 58 / Chapter 17G / Section 58-17G-5
Carrier may be deemed in compliance if private accrediting body meets requirements
Status: in_force

If the director and secretary find that the requirements of any private accrediting body meet the requirements of network adequacy, quality assurance, or quality improvement as set forth in this chapter, the carrier may, at the discretion of the director and secretary, be deemed to have met the applicable requirements.

Source: SL 2011, ch 219, § 25.
S.D. Codified Laws § 58-29A-82 — SD Code / Title 58 / Chapter 29A / Section 58-29A-82
Refund of surplus to member insurers
Status: in_force

The association may refund to the member insurers in proportion to the contribution of each member insurer to that account that amount by which the assets of the account exceed the liabilities, if, at the end of any calendar year, the board of directors finds that the assets of the association in any account exceed the liabilities of that account as estimated by the board of directors for the coming year.

Source: SL 2000, ch 247, § 29.
S.D. Codified Laws § 58-29B-2 — SD Code / Title 58 / Chapter 29B / Section 58-29B-2
Scope
Status: in_force

The provisions of this chapter apply to:

(1) All insurers who are doing, or have done, an insurance business in this state, and against whom claims arising from that business may exist now or in the future;

(2) All insurers who purport to do an insurance business in this state;

(3) All insurers who have insureds resident in this state;

(4) All other persons organized or in the process of organizing with the intent to do an insurance business in this state;

(5) All nonprofit service plans and all fraternal benefit societies, health maintenance organizations, benefit societies and any other entity subject to Title 58;

(6) All title insurance companies, subject to chapter 58-25 ;

(7) Any entity whose administrative actions represent the administrative actions of an insurance company.

Source: SL 1989, ch 436, § 2.
S.D. Codified Laws § 58-17-40 — SD Code / Title 58 / Chapter 17 / Section 58-17-40
Renewal of policy at option of insurer
Status: in_force

Health insurance policies, other than accident insurance only policies, in which the insurer reserves the right to refuse renewal on an individual basis, shall provide in substance in a provision thereof or in an endorsement thereon or rider attached thereto that subject to the right to terminate the policy upon nonpayment of premium when due, such right to refuse renewal may not be exercised so as to take effect before the renewal date occurring on, or after and nearest, each policy anniversary, or in the case of lapse and reinstatement, at the renewal date occurring on, or after and nearest, each anniversary of the last reinstatement, and that any refusal of renewal shall be without prejudice to any claim originating while the policy is in force. The clause making reference to lapse and reinstatement may be omitted at the insurer's option.

Source: SL 1966, ch 111, ch 25, § 23.
S.D. Codified Laws § 58-29A-100 — SD Code / Title 58 / Chapter 29A / Section 58-29A-100
Examination and regulation of association--Annual report
Status: in_force

The association is subject to examination and regulation by the director. The board of directors shall submit, not later than May thirtieth of each year, a financial report for the preceding calendar year in a form approved by the director.

Source: SL 2000, ch 247, § 47; SL 2011, ch 222, § 1.
S.D. Codified Laws § 58-17-147 — SD Code / Title 58 / Chapter 17 / Section 58-17-147
Elective abortion coverage prohibited in qualified health plan offered through health insurance exchange
Status: in_force

Pursuant to the Patient Protection and Affordable Care Act, Pub. L. No. 111-148, no qualified health plan offered through a health insurance exchange established in the state may include elective abortion coverage.

For the purposes of this section, an elective abortion is an abortion performed for any reason other than a medical emergency as set forth in subdivision 34-23A-1(5).

Source: SL 2012, ch 245, §§ 1, 2.
S.D. Codified Laws § 58-29D-31 — SD Code / Title 58 / Chapter 29D / Section 58-29D-31
Grounds for denial, suspension, or revocation of license or registration
Status: in_force

The application or annual renewal must be denied and the license or registration of an administrator must be suspended or revoked if the director finds that the administrator or applicant:

(1) Is in an unsound financial condition;

(2) Is using methods or practices in the conduct of its business so as to render its further transaction of business in this state hazardous or injurious to insured persons or the public;

(3) Has failed to pay any judgment rendered against it in this state within sixty days after the judgment has become final;

(4) Has violated any lawful rule or order of the director, or any provision of the insurance laws of this state;

(5) Has refused to be examined or to produce its accounts, records, and files for examination, or if any of its officers has refused to give information with respect to its affairs or has refused to perform any other legal obligation as to the examination, if required by the director;

(6) Has, without just cause, refused to pay proper claims or perform services arising under its contracts or has, without just cause, caused covered individuals to accept less than the amount due them or caused covered individuals to employ attorneys or bring suit against the administrator to secure full payment or settlement of the claims;

(7) Is affiliated with or under the same general management or interlocking directorate or ownership as another administrator or insurer, which unlawfully transacts business in this state without having a license;

(8) At any time fails to meet any qualification for which issuance of the certificate could have been refused had such failure then existed and been known to the Division of Insurance;

(9) Has been convicted of, or has entered a plea of guilty or nolo contendere to, a felony, without regard to whether adjudication was withheld;

(10) Is under suspension or revocation in another state;

(11) Has supplied false information to the director;

(12) Has engaged in a discriminatory act, as described in § 58-29E-15 ; or

(13) Has engaged in an unfair act or deceptive practice, as described in § 58-33-135 .

Source: SL 1992, ch 352, § 31; SL 2001, ch 285, § 5; SL 2013, ch 253, § 3; SL 2024, ch 203, § 1, eff. Jan. 1, 2025.
S.D. Codified Laws § 58-26-97 — SD Code / Title 58 / Chapter 26 / Section 58-26-97
Required change in assumption or method and adjustment of reserves
Status: in_force

The director may require a company to change any assumption or method that in the opinion of the director is necessary in order to comply with the requirements of the valuation manual or this chapter; and the company shall adjust the reserves as required by the director. The director may take other disciplinary action as permitted pursuant to the laws of this state.

Source: SL 2015, ch 254, § 31.
S.D. Codified Laws § 58-29C-48 — SD Code / Title 58 / Chapter 29C / Section 58-29C-48
Definitions
Status: in_force

Terms used in this chapter mean:

(1) "Account," either of the two accounts created under § 58-29C-49 ;

(2) "Association," the South Dakota Life and Health Insurance Guaranty Association described in § 58-29C-49 ;

(3) "Authorized assessment" or the term "authorized" when used in the context of assessments, means a resolution by the board of directors has been passed whereby an assessment will be called immediately or in the future from member insurers for a specified amount. An assessment is authorized when the resolution is passed;

(4) "Benefit plan," a specific employee, union, or association of natural persons benefit plan;

(5) "Called assessment" or the term "called" when used in the context of assessments, means that a notice has been issued by the association to member insurers requiring that an authorized assessment be paid within the time frame set forth within the notice. An authorized assessment becomes a called assessment when notice is mailed by the association to member insurers;

(6) "Contractual obligation," an obligation under a policy or contract or certificate under a group policy or contract, or portion thereof for which coverage is provided under § 58-29C-46 ;

(7) "Covered contract" or "covered policy," a policy or contract or portion of a policy or contract for which coverage is provided under § 58-29C-46 ;

(8) "Extra-contractual claims," include, for example, claims relating to bad faith in the payment of claims, punitive or exemplary damages, or attorneys' fees and costs;

(9) "Health benefit plan," any hospital or medical expense policy or certificate. This term does not include:

(a) Accident only insurance;

(b) Credit insurance;

(c) Dental only insurance;

(d) Vision only insurance;

(e) Medicare supplement insurance;

(f) Benefits for long-term care, home health care, community-based care, or any combination thereof;

(g) Disability income insurance;

(h) Coverage for on-site medical clinics; or

(i) Specified disease, hospital confinement indemnity, or limited benefit health insurance if the types of coverage do not provide coordination of benefits and are provided under separate policies or certificates;

(10) "Impaired insurer," a member insurer which, after July 1, 2003, is not an insolvent insurer, and is placed under an order of rehabilitation or conservation by a court of competent jurisdiction;

(11) "Insolvent insurer," a member insurer which after July 1, 2003, is placed under an order of liquidation by a court of competent jurisdiction with a finding of insolvency;

(12) "Member insurer," an insurer licensed or that holds a certificate of authority to transact in this state any kind of insurance for which coverage is provided under § 58-29C-46 , and includes an insurer whose license or certificate of authority in this state may have been suspended, revoked, not renewed, or voluntarily withdrawn, but does not include:

(a) A hospital or medical service organization, whether for profit or nonprofit;

(b) A health maintenance organization;

(c) A fraternal benefit society;

(d) A mandatory state pooling plan;

(e) A mutual assessment company or other person that operates on an assessment basis;

(f) An insurance exchange;

(g) An organization engaged in the issuance of charitable gift annuities, which is described in § 58-1-16 ; or

(h) An entity similar to any of the above;

(13) "Moody's Corporate Bond Yield Average," the Monthly Average Corporates as published by Moody's Investors Service, Inc., or any successor thereto;

(14) "Owner" of a policy or contract, "policyholder," "policy owner," and "contract owner," the person who is identified as the legal owner under the terms of the policy or contract or who is otherwise vested with legal title to the policy or contract through a valid assignment completed in accordance with the terms of the policy or contract and properly recorded as the owner on the books of the member insurer. The terms owner, contract owner, policyholder, and policy owner do not include persons with a mere beneficial interest in a policy or contract;

(15) "Person," an individual, corporation, limited liability company, partnership, association, governmental body or entity, or voluntary organization;

(16) "Premiums," amounts or considerations (by whatever name called) received on covered policies or contracts less returned premiums, considerations, and deposits and less dividends and experience credits. The term, premiums, does not include amounts or considerations received for policies or contracts or for the portions of policies or contracts for which coverage is not provided under subpart B of § 58-29C-46 except that assessable premium may not be reduced on account of subsection 58-29C-46 B(2)(c) relating to interest limitations and subdivision 58-29C-46 C(2) relating to limitations with respect to one individual, one participant, and one policy or contract owner. Premiums do not include:

(a) Premiums on an unallocated annuity contract; or

(b) With respect to multiple nongroup policies of life insurance owned by one owner, whether the policy or contract owner is an individual, firm, corporation, or other person, and whether the persons insured are officers, managers, employees, or other persons, premiums in excess of five million dollars with respect to these policies or contracts, regardless of the number of policies or contracts held by the owner;

(17) "Principal place of business" of a plan sponsor or a person other than a natural person, the single state in which the natural persons who establish policy for the direction, control, and coordination of the operations of the entity as a whole primarily exercise that function, determined by the association in its reasonable judgment by considering the following factors:

(a) The state in which the primary executive and administrative headquarters of the entity is located;

(b) The state in which the principal office of the chief executive officer of the entity is located;

(c) The state in which the board of directors (or similar governing person or persons) of the entity conducts the majority of its meetings;

(d) The state in which the executive or management committee of the board of directors (or similar governing person or persons) of the entity conducts the majority of its meetings;

(e) The state from which the management of the overall operations of the entity is directed; and

(f) In the case of a benefit plan sponsored by affiliated companies comprising a consolidated corporation, the state in which the holding company or controlling affiliate has its principal place of business as determined using the above factors. However, in the case of a plan sponsor, if more than fifty percent of the participants in the benefit plan are employed in a single state, that state is determined to be the principal place of business of the plan sponsor.

The principal place of business of a plan sponsor of a benefit plan is determined to be the principal place of business of the association, committee, joint board of trustees, or other similar group of representatives of the parties who establish or maintain the benefit plan that, in lieu of a specific or clear designation of a principal place of business, is determined to be the principal place of business of the employer or employee organization that has the largest investment in the benefit plan in question;

(18) "Receivership court," the court in the insolvent or impaired insurer's state having jurisdiction over the conservation, rehabilitation, or liquidation of the member insurer;

(19) "Resident," a person to whom a contractual obligation is owed and who resides in this state on the date of entry of a court order that determines a member insurer to be an impaired insurer or a court order that determines a member insurer to be an insolvent insurer. A person may be a resident of only one state, which in the case of a person other than a natural person is its principal place of business. Citizens of the United States that are either (i) residents of foreign countries, or (ii) residents of United States possessions, territories, or protectorates that do not have an association similar to the association created by this chapter, are determined to be residents of the state of domicile of the member insurer that issued the policies or contracts;

(20) "Structured settlement annuity," an annuity purchased in order to fund periodic payments for a plaintiff or other claimant in payment for or with respect to personal injury suffered by the plaintiff or other claimant;

(21) "State," a state, the District of Columbia, Puerto Rico, and a United States possession, territory, or protectorate;

(22) "Supplemental contact," a written agreement entered into for the distribution of proceeds under a life, health, or annuity policy or contract;

(23) "Unallocated annuity contract," an annuity contract or group annuity certificate that is not issued to and owned by an individual, except to the extent of any annuity benefits guaranteed to an individual by an insurer under the contract or certificate.

Source: SL 2003, ch 252, § 5; SL 2013, ch 252, § 2; SL 2020, ch 210, § 3.
S.D. Codified Laws § 58-41-81 — SD Code / Title 58 / Chapter 41 / Section 58-41-81
Suspension or revocation of certificate of authority on findings by director
Status: in_force

The director may suspend or revoke any certificate of authority issued to a health maintenance organization under this chapter if the director finds that any of the following conditions exists:

(1) The health maintenance organization is operating significantly in contravention of its basic organizational document, its health maintenance contract, or in a manner contrary to that described in and reasonably inferred from any other information submitted under this chapter, unless amendments to such submissions have been filed with and approved by the director;

(2) The health maintenance organization issues evidence of coverage or uses a schedule or charges for health care services which do not comply with the requirements of §§ 58-41-34 to 58-41-45 , inclusive;

(3) The health care plan does not provide or arrange for comprehensive health maintenance services;

(4) The health maintenance organization is no longer financially responsible and may reasonably be expected to be unable to meet its obligations to enrollees or prospective enrollees;

(5) The health maintenance organization has failed to implement a mechanism affording the enrollees an opportunity to participate in matters of policy and operation under the provisions of §§ 58-41-23 and 58-41-24 ;

(6) The health maintenance organization has failed to implement the complaint system in a manner designed to reasonably resolve valid complaints;

(7) The health maintenance organization, or any person acting with its sanction, has advertised or merchandised its services in an untrue, misrepresentative, misleading, deceptive, or unfair manner;

(8) The continued operation of the health maintenance organization would be hazardous to its enrollees; or

(9) The health maintenance organization has otherwise failed to substantially comply with this chapter, has violated a provision of chapter 58-33 or any other provision of law applicable to health maintenance organizations, or has submitted false information in any report required hereunder.

Source: SL 1974, ch 321, § 37; SL 2000, ch 235, § 3; SL 2013, ch 256, § 27.
S.D. Codified Laws § 58-6-14 — SD Code / Title 58 / Chapter 6 / Section 58-6-14
Use of deceptively similar name prohibited
Status: in_force

No insurer shall be formed or authorized to transact insurance in this state which has or uses a name or principal identifying name factor which is the same as or deceptively similar to that of another insurer earlier so authorized.

Source: SL 1966, ch 111, ch 3, § 8 (1).
S.D. Codified Laws § 58-11-2 — SD Code / Title 58 / Chapter 11 / Section 58-11-2
Contents of policy
Status: in_force

Every policy as defined by § 58-10-2 shall specify:

(1) The names of the parties to the contract;

(2) The subject of the insurance;

(3) The risks insured against;

(4) The time when the insurance takes effect and the duration thereof;

(5) The premium; and

(6) The conditions pertaining to the insurance.

Source: SL 1966, ch 111, ch 22, § 16 (1).
S.D. Codified Laws § 58-15-22 — SD Code / Title 58 / Chapter 15 / Section 58-15-22
Reinstatement provisions required in policy
Status: in_force

There shall be a provision that unless:

(1) The policy has been surrendered for its cash surrender value, or

(2) Its cash surrender value has been exhausted, or

(3) The paid - up term insurance, if any, has expired, the policy will be reinstated at any time within three years, or two years in the case of industrial life insurance policies, from the date of premium default upon written application therefor, the production of evidence of insurability satisfactory to the insurer, the payment of all premiums in arrears and the payment or reinstatement of any other indebtedness to the insurer upon the policy, all with interest at a rate as provided in § 58-15-15.6 .

Source: SL 1966, ch 111, ch 23, § 12; SL 1982, ch 358, § 10.
S.D. Codified Laws § 58-5A-13 — SD Code / Title 58 / Chapter 5A / Section 58-5A-13
Statements and notices mailed to shareholders--Expenses of mailing--Security required
Status: in_force

All statements, amendments, or other material filed pursuant to §§ 58-5A-3 to 58-5A-7 , inclusive, and all notices of public hearings held pursuant to §§ 58-5A-9 to 58-5A-12 , inclusive, shall be mailed by the insurer to its shareholders within five business days after the insurer has received such statements, amendments, other material, or notices. The expenses of mailing shall be borne by the person making the filing. As security for the payment of such expenses, such person shall file with the director an acceptable bond or other deposit in an amount to be determined by the director.

Source: SL 1972, ch 267, § 10.
S.D. Codified Laws § 58-19-18 — SD Code / Title 58 / Chapter 19 / Section 58-19-18
Individual policy or group certificate delivered to debtor
Status: in_force

All credit life insurance and credit health insurance sold shall be evidenced by an individual policy, or in the case of group insurance by a certificate of insurance, which individual policy, or group certificate of insurance shall be delivered to the debtor.

Source: SL 1966, ch 111, ch 27, § 6 (1).
S.D. Codified Laws § 58-32-30 — SD Code / Title 58 / Chapter 32 / Section 58-32-30
False certificate by broker--Failure to notify insured as to material change--Misdemeanor
Status: in_force

Any surplus line broker who knowingly or negligently issues a false certificate, or who fails promptly to notify the insured of any material change with respect to such insurance by delivery to the insured of a substitute certificate as provided in § 58-32-29 , commits a Class 2 misdemeanor.

Source: SL 1966, ch 111, ch 11, § 8 (5); SL 1978, ch 359, § 2.
S.D. Codified Laws § 58-4A-10 — SD Code / Title 58 / Chapter 4A / Section 58-4A-10
Consent agreement not prohibited
Status: in_force

Notwithstanding any other section of this chapter, the unit or its designees, and a person alleged to have committed a fraudulent insurance act as set forth in § 58-4A-2 , are not prohibited from entering into a written agreement upon commencement of a civil action in which the person alleged to have committed a fraudulent insurance act does not admit or deny the charges but consents to payment of the civil penalty.

Source: SL 1999, ch 241, § 10.
S.D. Codified Laws § 58-47-2 — SD Code / Title 58 / Chapter 47 / Section 58-47-2
Portable electronics insurance defined
Status: in_force

Portable electronics insurance is insurance providing coverage for the repair or replacement of portable electronics which may provide coverage for portable electronics against any one or more of the following causes of loss: loss, theft, inoperability due to mechanical failure, malfunction, damage, or other similar causes of loss. It is not a service contract or extended warranty providing coverage limited to the repair, replacement, or maintenance of property for the operational or structural failure of property due to a defect in materials, workmanship, accidental damage from handling power surges, or normal wear and tear, a policy of insurance covering a seller's or a manufacturer's obligations under a warranty, or a homeowner's, renter's, private passenger automobile, commercial multi-peril, or similar coverage.

Source: SL 2012, ch 251, § 2.
S.D. Codified Laws § 58-29A-62 — SD Code / Title 58 / Chapter 29A / Section 58-29A-62
Notice to director of indications of member insolvency
Status: in_force

To aid in the detection and prevention of insurer insolvencies, it is the duty of the board of directors, upon majority vote, to notify the director of any information indicating any member insurer may be insolvent or in a financial condition hazardous to the policyholders or the public.

Source: SL 2000, ch 247, § 9.
S.D. Codified Laws § 58-35-72 — SD Code / Title 58 / Chapter 35 / Section 58-35-72
Articles of incorporation of surviving corporation amended by plan of merger
Status: in_force

If a merger has been effected pursuant to §§ 58-35-60 to 58-35-74 , inclusive, the articles of incorporation of the surviving corporation shall be deemed to be amended to the extent, if any, the changes in its articles of incorporation are stated in the plan of merger.

Source: SL 1995, ch 293, § 13.
S.D. Codified Laws § 58-41-96 — SD Code / Title 58 / Chapter 41 / Section 58-41-96
Severability of provisions
Status: in_force

If a part of this chapter is invalid, all valid parts that are severable from the invalid part remain in effect. If a part of this chapter is invalid in one or more of its applications, the part remains in effect in all valid applications that are severable from the invalid applications.

Source: SL 1974, ch 321, § 58.
S.D. Codified Laws § 58-27-38 — SD Code / Title 58 / Chapter 27 / Section 58-27-38
Equity of seller of real property in contract for deed--Maximum amount of investment
Status: in_force

An insurer may invest any of its funds in the equity of the seller of real property in a contract for deed, covering the entire balance due on a bona fide sale of such property, in amount not to exceed ten thousand dollars or the amount permissible under §§ 58-27-52 to 58-27-60 , inclusive, whichever is greater, in any one such contract for deed; nor in any amount in excess of the following percentages of the actual sale price or fair value of the property, whichever is the smaller:

(1) If a dwelling primarily designed for single - family occupancy and occupied by the purchaser under such contract, seventy - five percent.

(2) In all other cases, seventy - five percent.

Source: SL 1966, ch 111, ch 6, § 24 (2).
S.D. Codified Laws § 58-7-33 — SD Code / Title 58 / Chapter 7 / Section 58-7-33
Duration of deposit of assets and securities
Status: in_force

Every deposit made in this state by an insurer pursuant to this title, including assets and securities held in another state under custodial arrangements, shall be held as long as there is outstanding any liability of the insurer as to which the deposit was so required; or if a deposit required under the retaliatory law, §§ 58-6-70 to 58-6-73 , inclusive, the deposit shall be held for so long as the basis of such retaliation exists.

Source: SL 1966, ch 111, ch 7, § 14 (1); SL 2021, ch 210, § 4.
S.D. Codified Laws § 58-12-31 — SD Code / Title 58 / Chapter 12 / Section 58-12-31
Definitions regarding standards for claims processing
Status: in_force

Terms used in §§ 58-12-31 to 58-12-37 , inclusive, mean:

(1) "Director," the director of the South Dakota Division of Insurance;

(2) "Insured," the party named on a policy or certificate as the individual with legal rights to the benefits provided by the policy;

(3) "Insurer," a person, reciprocal exchange, interinsurer, Lloyd's insurer, fraternal benefit society, and any other legal entity engaged in the business of insurance, including claim agents, brokers, adjusters, and third party administrators. The term also includes medical service plans, hospital service plans, health maintenance organizations, prepaid limited health care service plans, dental plans, and optometric plans. This term does not include any insurance producer licensed pursuant to chapter 58-30 , unless an insurance producer is directly involved in the adjudication of claims;

(4) "Person," a natural or artificial entity, including individuals, partnerships, associations, trusts, or corporations;

(5) "Policy," or "certificate," a contract of insurance, indemnity, medical, health, or hospital service, or annuity issued. The term does not include contracts of workers' compensation, fidelity, suretyship, or boiler and machinery insurance.

Source: SL 2014, ch 235, § 1.
S.D. Codified Laws § 58-19-36 — SD Code / Title 58 / Chapter 19 / Section 58-19-36
Revocation or suspension of license or certificate for violation--Notice and hearing--Judicial review
Status: in_force

The director may revoke or suspend the license or certificate of authority of the person, firm, or corporation guilty of violation of an order of the commissioner after it has become final, and while such order is in effect. Such order for suspension or revocation shall be upon notice and hearing, and shall be subject to judicial review as provided in chapter 1-26 .

Source: SL 1966, ch 111, ch 27, § 13; SL 1978, ch 359, § 15.
S.D. Codified Laws § 58-29B-64 — SD Code / Title 58 / Chapter 29B / Section 58-29B-64
Validity of transfers after petitions filed and before receiver takes possession or order granted
Status: in_force

After a petition for rehabilitation or liquidation has been filed and before either the receiver takes possession of the property of the insurer or an order of rehabilitation or liquidation is granted:

(1) A transfer of any of the property of the insurer, other than real property, made to a person acting in good faith shall be valid against the receiver if made for a present fair equivalent value, or, if not made for a present fair equivalent value, then to the extent of the present consideration actually paid therefor, for which amount the transferee shall have a lien on the property so transferred;

(2) A person indebted to the insurer or holding property of the insurer may, if acting in good faith, pay the indebtedness or deliver the property, or any part thereof, to the insurer or upon his order, with the same effect as if the petition were not pending;

(3) A person having actual knowledge of the pending rehabilitation or liquidation is deemed not to act in good faith;

(4) A person asserting the validity of a transfer under this section has the burden of proof. Except as elsewhere provided in this section, no transfer by or on behalf of the insurer after the date of the petition for liquidation by any person other than the liquidator may be valid against the liquidator.

Source: SL 1989, ch 436, § 64.
S.D. Codified Laws § 58-14-16.7 — SD Code / Title 58 / Chapter 14 / Section 58-14-16.7
Rating of certified reinsurer
Status: in_force

The director shall assign a rating to each certified reinsurer, giving due consideration to the financial strength ratings that have been assigned by rating agencies deemed acceptable to the director. The director shall publish a list of all certified reinsurers and their ratings.

Source: SL 2017, ch 211, § 18.
S.D. Codified Laws § 58-34-45 — SD Code / Title 58 / Chapter 34 / Section 58-34-45
Limited liability of subscriber on judgment
Status: in_force

Any such judgment shall be binding upon each subscriber only in such proportion as his interest may appear and in an amount not exceeding his contingent liability, if any.

Source: SL 1966, ch 111, ch 19, § 22 (2).
S.D. Codified Laws § 58-34-11 — SD Code / Title 58 / Chapter 34 / Section 58-34-11
Deposit in lieu of bond
Status: in_force

In lieu of the bond required under § 58-34-8 , the attorney may maintain on deposit through the office of the director, a like amount of cash or of securities eligible for deposit under §§ 58-7-8 to 58-7-10 , inclusive, and subject to the same conditions as the bond.

Source: SL 1966, ch 111, ch 19, § 13.
S.D. Codified Laws § 58-17F-1 — SD Code / Title 58 / Chapter 17F / Section 58-17F-1
Definitions
Status: in_force

Terms used in this chapter mean:

(1) "Closed plan," a managed care plan or health carrier that requires covered persons to use participating providers under the terms of the managed care plan or health carrier and does not provide any benefits for out-of-network services except for emergency services;

(2) "Covered benefits" or "benefits," those health care services to which a covered person is entitled under the terms of a health benefit plan;

(3) "Covered person," a policyholder, subscriber, enrollee, or other individual participating in a health benefit plan;

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

(5) "Emergency medical condition," a medical condition manifesting itself by acute symptoms of sufficient severity, including severe pain, such that a prudent layperson, who possesses an average knowledge of health and medicine, could reasonably expect that the absence of immediate medical attention would result in serious impairment to bodily functions or serious dysfunction of a bodily organ or part, or would place the person's health or, with respect to a pregnant woman, the health of the woman or her unborn child, in serious jeopardy;

(6) "Emergency services," with respect to an emergency medical condition:

(a) A medical screening examination that is within the capability of the emergency department of a hospital, including ancillary services routinely available to the emergency department to evaluate such emergency condition; and

(b) Such further medical examination and treatment, to the extent they are within the capability of the staff and facilities at a hospital to stabilize a patient;

(7) "Facility," an institution providing health care services or a health care setting, including hospitals and other licensed inpatient centers, ambulatory surgical or treatment centers, skilled nursing centers, residential treatment centers, diagnostic, laboratory, and imaging centers, and rehabilitation, and other therapeutic health settings;

(8) "Health care professional," a physician or other health care practitioner licensed, accredited, or certified to perform specified health services consistent with state law;

(9) "Health care provider" or "provider," a health care professional or a facility;

(10) "Health care services," services for the diagnosis, prevention, treatment, cure, or relief of a health condition, illness, injury, or disease;

(11) "Health carrier," an entity subject to the insurance laws and regulations of this state, or subject to the jurisdiction of the director, that contracts or offers to contract, or enters into an agreement to provide, deliver, arrange for, pay for, or reimburse any of the costs of health care services, including a sickness and accident insurance company, a health maintenance organization, a nonprofit hospital and health service corporation, or any other entity providing a plan of health insurance, health benefits, or health services;

(12) "Health indemnity plan," a health benefit plan that is not a managed care plan;

(13) "Intermediary," a person authorized to negotiate and execute provider contracts with health carriers on behalf of health care providers or on behalf of a network;

(14) "Managed care contractor," a person who establishes, operates, or maintains a network of participating providers; or contracts with an insurance company, a hospital or medical service plan, an employer, an employee organization, or any other entity providing coverage for health care services to operate a managed care plan or health carrier;

(15) "Managed care entity," a licensed insurance company, hospital or medical service plan, health maintenance organization, or an employer or employee organization, that operates a managed care plan or a managed care contractor. The term does not include a licensed insurance company unless it contracts with other entities to provide a network of participating providers;

(16) "Managed care plan," a plan operated by a managed care entity that provides for the financing or delivery of health care services, or both, to persons enrolled in the plan through any of the following:

(a) Arrangements with selected providers to furnish health care services;

(b) Explicit standards for the selection of participating providers; or

(c) Financial incentives for persons enrolled in the plan to use the participating providers and procedures provided for by the plan;

(17) "Network," the group of participating providers providing services to a health carrier;

(18) "Open plan," a managed care plan or health carrier other than a closed plan that provides incentives, including financial incentives, for covered persons to use participating providers under the terms of the managed care plan or health carrier;

(19) "Participating provider," a provider who, under a contract with the health carrier or with its contractor or subcontractor, has agreed to provide health care services to covered persons with an expectation of receiving payment, other than coinsurance, copayments, or deductibles, directly or indirectly, from the health carrier;

(20) "Primary care professional," a participating health care professional designated by a health carrier to supervise, coordinate or provide initial care or continuing care to a covered person, and who may be required by the health carrier to initiate a referral for specialty care and maintain supervision of health care services rendered to the covered person; and

(21) "Secretary," the secretary of the Department of Health.

Source: SL 2011, ch 219, § 2.
S.D. Codified Laws § 58-29B-77 — SD Code / Title 58 / Chapter 29B / Section 58-29B-77
Voidable lien dissolved--Indemnifying transfer or lien deemed voidable
Status: in_force

If any lien deemed voidable under § 58-29B-67 has been dissolved by the furnishing of a bond or other obligation, the surety on which has been indemnified directly or indirectly by the transfer of or the creation of a lien upon any property of an insurer before the filing of a petition under this chapter which results in a liquidation order, the indemnifying transfer or lien shall also be deemed voidable.

Source: SL 1989, ch 436, § 77.
S.D. Codified Laws § 58-14-36 — SD Code / Title 58 / Chapter 14 / Section 58-14-36
Loss reserves--Actuary's opinion--Employee of agent or broker not to be appointed to reinsurer's board of directors
Status: in_force

If an agent or broker establishes loss reserves, the reinsurer shall annually obtain the opinion of an actuary attesting to the adequacy of loss reserves established for losses incurred and outstanding on business produced by the agent. This opinion shall be in addition to any other required loss reserve certification. Binding authority for all retrocessional contracts or participation in reinsurance syndicates shall rest with an officer of the reinsurer who may not be affiliated with an agent or broker. No reinsurer may appoint to its board of directors, any officer, director, employee, controlling shareholder, or sub - producer of its agent or broker; however, this prohibition does not apply to relationships governed by chapter 58-5A or, if applicable, chapter 58-30 .

Source: SL 1992, ch 345, § 13.
S.D. Codified Laws § 58-15-20 — SD Code / Title 58 / Chapter 15 / Section 58-15-20
Policy loan provisions inapplicable to term insurance or industrial life insurance policies
Status: in_force

Sections 58-15-14 to 58-15-19 , inclusive, shall not apply to term policies nor to term insurance benefits provided by rider or supplemental policy provisions, or to industrial life insurance policies.

Source: SL 1966, ch 111, ch 23, § 9.
S.D. Codified Laws § 58-14-16.32 — SD Code / Title 58 / Chapter 14 / Section 58-14-16.32
Assuming insurers in receivership
Status: in_force

If subject to a legal process of rehabilitation, liquidation, or conservation, the ceding insurer or its representative may seek and, if determined appropriate by the court in which the proceedings are pending, obtain an order requiring that the assuming insurer post security for all outstanding ceded liabilities.

Source: SL 2021, ch 211, § 10.
S.D. Codified Laws § 58-5A-28 — SD Code / Title 58 / Chapter 5A / Section 58-5A-28
Insurer exempt from registration requirements on order of director
Status: in_force

The provisions of §§ 58-5A-20 to 58-5A-34 , inclusive, shall not apply to any insurer, information or transaction if and to the extent that the director by rule, regulation, or order shall exempt the same from the provisions hereof as not comprehended within the purposes thereof.

Source: SL 1972, ch 267, § 22.
S.D. Codified Laws § 58-33A-4 — SD Code / Title 58 / Chapter 33A / Section 58-33A-4
Certain material and communication not deemed to be advertisement
Status: in_force

For the purposes of this chapter, the term, advertisement, does not include:

(1) Any material to be used solely for the training and education of an insurer's employees, representatives, or insurance producers;

(2) Any material used in - house by insurers;

(3) Any communications within an insurer's own organization not intended for dissemination to the public;

(4) Any individual communications of a personal nature with current policyholders other than material urging such policyholders to increase or expand coverages;

(5) Any correspondence between a prospective group or blanket policyholder and an insurer in the course of negotiating a group or blanket contract;

(6) Any court - approved material ordered by a court to be disseminated to policyholders; or

(7) Any general announcement from a group or blanket policyholder to eligible individuals on an employment or membership list that a contract or program has been written or arranged if the announcement clearly indicates that it is preliminary to the issuance of a booklet and the announcement does not describe the benefits under the contract or program or describe advantages as to the purchase of the contract or program.

Source: SL 1999, ch 240, § 4; SL 2000, ch 251, § 5; SL 2001, ch 286, § 213.
S.D. Codified Laws § 58-30-203 — SD Code / Title 58 / Chapter 30 / Section 58-30-203
Training of rental car insurance endorsee
Status: in_force

Each rental car agent shall provide a training and education program for each endorsee prior to allowing an endorsee to offer, sell, or solicit rental car insurance. The training and education program may be conducted at remote locations or through videotape or any means approved by the director in rules promulgated pursuant to chapter 1-26 . The training and education program shall meet the following minimum standards:

(1) Each endorsee shall receive instruction about the kinds of insurance specified in §§ 58-30-197 to 58-30-208 , inclusive, that are offered for sale to prospective renters;

(2) Each endorsee shall receive training about the requirements and limitations imposed on car rental agents and endorsees by §§ 58-30-197 to 58-30-208 , inclusive. That training shall include specific instruction that the endorsee is prohibited by law from making any statement or engaging in any conduct, express or implied, that would lead a renter to believe:

(a) That the purchase of rental car insurance is required in order for the renter to rent a motor vehicle;

(b) That the renter does not have insurance policies in place that already provide the coverage being offered by the rental car company pursuant to §§ 58-30-197 to 58-30-208 , inclusive; and

(c) That the endorsee is qualified to evaluate the adequacy of the renter's existing insurance coverages.

The director may request to review the training and education program at any time.

Source: SL 2001, ch 272, § 7; SDCL § 58-9-40; SL 2010, ch 233, § 2.
S.D. Codified Laws § 58-27-28 — SD Code / Title 58 / Chapter 27 / Section 58-27-28
Equipment trust obligations or certificates
Status: in_force

An insurer may invest in equipment trust obligations or certificates adequately secured and evidencing an interest in transportation equipment, wholly or in part within the United States of America, which obligations or certificates carry the right to receive determined portions of rental, purchase, or other fixed obligatory payments to be made for the use or purchase of such transportation equipment.

Source: SL 1966, ch 111, ch 6, § 12 (5).
S.D. Codified Laws § 58-29B-49 — SD Code / Title 58 / Chapter 29B / Section 58-29B-49
Powers of liquidator
Status: in_force

The liquidator may:

(1) Appoint a special deputy to act for the liquidator under this chapter and determine his reasonable compensation. The special deputy shall have all powers of the liquidator granted by this section. The special deputy shall serve at the pleasure of the liquidator;

(2) Employ employees, representatives, insurance producers, legal counsel, actuaries, accountants, appraisers, consultants, and such other personnel as the liquidator may consider necessary to assist in the liquidation;

(3) Fix the reasonable compensation of employees, representatives, insurance producers, legal counsel, actuaries, accountants, appraisers, and consultants with the approval of the court;

(4) Pay reasonable compensation to persons appointed and defray from the funds or assets of the insurer all expenses of taking possession of, conserving, conducting, liquidating, disposing of, or otherwise dealing with the business and property of the insurer. If the property of the insurer does not contain sufficient cash or liquid assets to defray the costs incurred, the director may advance the costs so incurred out of any appropriation for the maintenance of the Division of Insurance. Any amounts so advanced for expenses of administration shall be repaid to the director for the use of the Division of Insurance out of the first available money of the insurer;

(5) Hold hearings, subpoena witnesses to compel their attendance, administer oaths, examine any person under oath, and compel any person to subscribe to the person's testimony after it has been correctly reduced to writing, and, in connection therewith, require the production of any books, papers, records, or other documents which the liquidator considers relevant to the inquiry;

(6) Collect all debts and money due and claims belonging to the insurer, wherever located, and, for this purpose:

(a) To institute timely action in other jurisdictions, in order to forestall garnishment and attachment proceedings against such debts;

(b) To do such other acts as are necessary or expedient to collect, conserve, or protect its assets or property, including the power to sell, compound, compromise, or assign debts for purposes of collection upon such terms and condition as the liquidator deems best; and

(c) To pursue any creditor's remedies available to enforce the creditor's claims;

(7) Conduct public and private sales of the property of the insurer;

(8) Use assets of the estate of an insurer under a liquidation order to transfer policy obligations to a solvent assuming insurer, if the transfer can be arranged without prejudice to applicable priorities under § 58-29B-124 ;

(9) Acquire, hypothecate, encumber, lease, improve, sell, transfer, abandon, or otherwise dispose of or deal with, any property of the insurer at its market value or upon such terms and conditions as are fair and reasonable. The liquidator may also execute, acknowledge, and deliver any and all deeds, assignments, releases, and other instruments necessary or proper to effectuate any sale of property or other transaction in connection with liquidation;

(10) Borrow money on the security of the insurer's assets or without security and to execute and deliver all documents necessary to that transaction for the purpose of facilitating the liquidation;

(11) Enter into such contracts as are necessary to carry out the order to liquidate, and affirm or disavow any contracts to which the insurer is a party;

(12) Continue to prosecute and institute in the name of the insurer or in the liquidator's name any and all suits and other legal proceedings, in this state or elsewhere, and abandon the prosecution of claims the liquidator considers unprofitable to pursue further. If the insurer is dissolved under § 58-29B-48 , the liquidator may apply to any court in this state or elsewhere for leave to proceed on behalf of the insurer as plaintiff;

(13) Prosecute any action which may exist on behalf of the creditors, members, policyholders, or shareholders of the insurer against any officer of the insurer, or any other person;

(14) Remove any or all records and property of the insurer to the offices of the director or to such other place as may be convenient for the purposes of efficient and orderly execution of the liquidation. Guaranty associations and foreign guaranty associations shall have such reasonable access to the records of the insurer as is necessary for them to carry out their statutory obligations;

(15) Deposit in one or more banks in this state such sums as are required for meeting current administration expenses and dividend distributions;

(16) Invest all sums not currently needed, unless the court orders otherwise;

(17) File any necessary documents for record in the office of any register of deeds or record office in this state or elsewhere where property of the insurer is located;

(18) Assert all defenses available to the insurer as against third persons, including statutes of limitation, statutes of frauds, and the defense of usury. A waiver of any defense by the insurer after a petition in liquidation has been filed does not bind the liquidator. If a guaranty association or foreign guaranty association has an obligation to defend any suit, the liquidator shall give precedence to such obligation and may defend only in the absence of a defense by such guaranty associations;

(19) Exercise and enforce all the rights, remedies, and powers of any creditor, shareholder, policyholder, or member, including any power to avoid any transfer or lien that may be given by the general law and that is not included with §§ 58-29B-61 to 58-29B-83 , inclusive;

(20) Intervene in any proceeding wherever instituted that might lead to the appointment of a receiver or trustee, and act as the receiver or trustee if the appointment is offered;

(21) Enter into agreements with any receiver or director of any other state relating to the rehabilitation, liquidation, conservation, or dissolution of an insurer doing business in both states;

(22) Exercise all powers conferred upon receivers by the laws of this state not inconsistent with the provisions of this chapter;

(23) To appoint, with the approval of the court, an advisory committee of policyholders, claimants, or other creditors including guaranty associations. The committee shall serve at the pleasure of the director and shall serve without compensation other than reimbursement for reasonable travel and per diem living expenses. No other committee of any nature may be appointed by the director or the court in liquidation proceedings;

(24) To audit the books and records of all representatives and insurance producers of the insurer insofar as those records relate to the business activities of the insurer.

Source: SL 1989, ch 436, § 49; SL 1992, ch 351, § 7; SL 2001, ch 286, § 143.
S.D. Codified Laws § 58-41-18 — SD Code / Title 58 / Chapter 41 / Section 58-41-18
Factors considered in determining financial responsibility
Status: in_force

In making a determination under subdivision 58-41-17(4), the director may consider:

(1) The financial soundness of the applicant's arrangements for health care services and the proposed schedule of charges used in connection therewith;

(2) The adequacy of its working capital;

(3) Arrangements which will guarantee for a reasonable period of time the continued availability or payment of the cost of health care services in the event of discontinuance of the health maintenance organization;

(4) Agreements with providers for the provision of health care services; and

(5) Any surety bond or deposit of cash or securities submitted in accordance with § 58-41-11 as a guarantee that the obligations will be duly performed.

Source: SL 1974, ch 321, § 10 (4).
S.D. Codified Laws § 58-35-57 — SD Code / Title 58 / Chapter 35 / Section 58-35-57
Application of other provisions
Status: in_force

The following chapters and sections of this title apply to farm mutual insurers to the extent not inconsistent with the express provisions of this chapter and the reasonable implications of the express provisions:

(1) Chapter 58-1 . Definitions and General Provisions;

(2) Chapter 58-2 . Division of Insurance;

(3) Chapter 58-3 . Examination of Insurers and Insurance Producers;

(4) Chapter 58-4 . Enforcement Powers and Proceedings (except § 58-4-7 );

(5) Chapter 58-4A . Insurance Fraud;

(6) Sections 58-5-134 to 58-5-140 , inclusive. Organization and General Powers of Insurers;

(7) Chapter 58-10 . Insurable Interest;

(8) Chapter 58-11 . Form and Contents of Insurance Policies;

(9) Chapter 58-12 . Insurance Claims and Benefits (except § 58-12-3 );

(10) Chapter 58-17D . Standards for Utilization Review for Property and Casualty Insurers;

(11) Chapter 58-33 . Unfair Trade Practices;

(12) Chapter 58-30 . Insurance Producers;

(13) Chapter 58-29B . Insurers Supervision, Rehabilitation and Liquidation;

(14) Chapter 58-43 . Independent Audit of Insurers (except § 58-43-2 ).

Source: SL 1966, ch 111, ch 17, § 33; SL 1967, ch 129, § 5; SL 1977, ch 417; SL 1979, ch 341, § 14; SL 1991, ch 407, § 1; SL 2001, ch 286, § 216; SL 2001, ch 288, § 1; SL 2003, ch 255, § 1; SL 2008, ch 274, § 1.
S.D. Codified Laws § 58-29G-3 — SD Code / Title 58 / Chapter 29G / Section 58-29G-3
Requiring claim or utilization data restricted--Exclusion
Status: in_force

A pharmaceutical manufacturer may not, directly or indirectly, require a 340B entity or pharmacy to submit any claim or utilization data, as a condition for allowing the acquisition of a 340B drug by, or delivery of a 340B drug to, a 340B entity, unless the claim or utilization data sharing is required by federal law.

Nothing in this section prohibits a pharmaceutical manufacturer from conducting an audit of a 340B entity, in accordance with 42 U.S.C. § 256b(a)(5)(C) (January 1, 2025).

Source: SL 2025, ch 198, § 4.
S.D. Codified Laws § 58-29E-4 — SD Code / Title 58 / Chapter 29E / Section 58-29E-4
Request for disclosure of rebates and other revenues
Status: in_force

A third-party payor may request that a pharmacy benefit manager, with which it has a pharmacy benefit management services contract, disclose to the third-party payor the amount of all rebate revenues and the nature, type, and amounts of all other revenues that the pharmacy benefit manager receives from each pharmaceutical manufacturer with which the pharmacy benefit manager has a contract.

Annually, at the time of contract renewal, the pharmacy benefit manager shall disclose in writing:

(1) The aggregate amount, and for a list of drugs to be specified in the contract, the specific amount, of all rebates and other retrospective utilization discounts that are received by the pharmacy benefit manager, directly or indirectly, from each pharmaceutical manufacturer, and which are earned in connection with the dispensing of prescription drugs to covered individuals of the health benefit plans issued by the third-party payor or for which the third-party payor is the designated administrator;

(2) The nature, type, and amount of all other revenue received by the pharmacy benefit manager, directly or indirectly, from each pharmaceutical manufacturer, for any other products or services, provided to the pharmaceutical manufacturer by the pharmacy benefit manager, with respect to programs that the third-party payor offers or provides to its covered individuals; and

(3) Any prescription drug utilization information requested by the third-party payor and relating to covered individuals.

A pharmacy benefit manager shall, within thirty days, provide the information requested in accordance with this section.

If requested, the information must be provided no less than once each year.

The contract entered into between the pharmacy benefit manager and the third-party payor must set forth any fees to be charged for drug utilization reports requested by the third-party payor.

Source: SL 2004, ch 311, § 4; SL 2023, ch 166, § 4.
S.D. Codified Laws § 58-27-101 — SD Code / Title 58 / Chapter 27 / Section 58-27-101
Investment in money market funds
Status: in_force

The term, money market fund, means any open end, diversified management type of mutual fund registered under the Investment Company Act of 1940, 15 U.S.C. 80a-1 et seq., as adopted by the director pursuant to rules promulgated pursuant to chapter 1-26 , the moneys of which are invested only in the following kinds of investments, none of which shall mature more than three hundred ninety - seven days from the date of acquisition by the mutual fund:

(1) Securities issued or guaranteed as to principal and interest by the government of the United States or by agencies, government sponsored enterprises, or instrumentalities thereof;

(2) Certificates of deposit and bankers' acceptances of banks chartered by the United States or any state thereof or foreign branches of such banks;

(3) Commercial paper and other obligation of corporations chartered by or under the laws of the United States or any state thereof;

(4) Repurchase agreements with respect to those investments; and

(5) Dollar-denominated unsecured promissory obligations of foreign corporations which have an investment grade rating from at least one rating agency recognized by the Securities Valuation Office of the National Association of Insurance Commissioners.

Insurance companies may invest in the shares of any one or more money market funds the objectives of which include the maintenance of a stable net asset value of a specified dollar amount per share and the shareholders of which may withdraw the value of their shares by check, telephone, or mail.

In addition to the forty percent investment limitation available for money - market fund investments pursuant to § 58-27-57 , an insurer may acquire additional money market funds pursuant to this section not to exceed ten percent of its admitted assets. The aggregate value of all money market shares which may be acquired under this section and § 58-27-57 may not exceed fifty percent of the insurance company's total admitted assets. At the time of the investment, no insurance company's investment may exceed five percent of the outstanding shares of any one money market fund. No investment may exceed the lesser of the amount in this section or the amount in § 58-27-53 .

The limitations set forth in this section do not apply to investments in money market funds in which portfolio assets are invested entirely in the type of securities permitted pursuant to §§ 58-27-9 to 58-27-13 , inclusive.

Source: SL 1992, ch 350, § 24; SL 1994, ch 384, § 5; SL 1997, ch 294, § 24.
S.D. Codified Laws § 58-29B-98 — SD Code / Title 58 / Chapter 29B / Section 58-29B-98
Application for approval of proposal to disburse assets
Status: in_force

Within one hundred twenty days of a final determination of insolvency of an insurer by the court, the liquidator shall make application to the court for approval of a proposal to disburse assets out of marshaled assets, from time to time as such assets become available, to a guaranty association or foreign guaranty association having obligations because of such insolvency. If the liquidator determines that there are insufficient assets to disburse, the application required by this section shall be considered satisfied by a filing by the liquidator stating the reasons for this determination.

Source: SL 1989, ch 436, § 98.
S.D. Codified Laws § 58-39-1 — SD Code / Title 58 / Chapter 39 / Section 58-39-1
Incorporators, number required--Purpose of incorporation
Status: in_force

Five or more natural persons of full age and of either sex, all of whom are residents of this state and citizens of the United States, may form, under the provisions of the law of this state relating to benevolent corporations, so far as those provisions are applicable and are not inconsistent with the provisions of this chapter a nonprofit dental service corporation for the purpose of establishing and operating a nonprofit dental service plan whereby dental service may be provided at the expense of said corporation by duly licensed dentists to such of the public as become subscribers to said corporation under a contract which entitles each subscriber to dental care. Such corporation shall be governed by this chapter and shall be subject to regulation and supervision by the director as hereinafter provided.

Source: SL 1966, ch 111, ch 30, § 2.
S.D. Codified Laws § 58-17E-16 — SD Code / Title 58 / Chapter 17E / Section 58-17E-16
Winding up of affairs
Status: in_force

If the registration of a discount medical plan organization is surrendered, revoked, or not renewed, the discount medical plan organization shall proceed, immediately following the effective date of the order of revocation or, in the case of a nonrenewal, the date of expiration of the registration, to wind up its affairs transacted under the registration. The discount medical plan organization may not engage in any further advertising, solicitation, collecting of fees or renewal of contracts.

Source: SL 2006, ch 257, § 15.
S.D. Codified Laws § 58-5A-69 — SD Code / Title 58 / Chapter 5A / Section 58-5A-69
Order by director upon violation of standards--Cease and desist--Denial of license
Status: in_force

If an acquisition violates the standards of this chapter, the director may enter an order:

(1) Requiring an involved insurer to cease and desist from doing business in this state with respect to the line or lines of insurance involved in the violation; or

(2) Denying the application of an acquired or acquiring insurer for a license to do business in this state.

Source: SL 1992, ch 341, § 36.
S.D. Codified Laws § 58-34-52 — SD Code / Title 58 / Chapter 34 / Section 58-34-52
Annual statement--Supplemental information required by director
Status: in_force

The annual statement of a reciprocal insurer shall be supplemented by such information as may be required by the director relative to the affairs and transactions of the attorney in so far as they relate to the reciprocal insurer.

Source: SL 1966, ch 111, ch 19, § 17 (2).
S.D. Codified Laws § 58-46-1 — SD Code / Title 58 / Chapter 46 / Section 58-46-1
Definition of terms
Status: in_force

Terms used in this chapter mean:

(1) "Affiliated entity," any entity, in the same corporate system as the captive insurance company, owned or controlled, directly or indirectly, by a parent or subsidiary, or a member organization by virtue of control, operation, or management. In the case of a trust captive insurance company or, if approved by the director, a special purpose captive insurance company, an affiliated entity of a trust which holds ownership interest in the captive insurance company also includes any other trust created by the settlor, the settlor's grandparents or their descendants, the settlor's spouse, or any trust created by any one of the aforementioned persons;

(1A) "Agency captive insurance company," an insurance company that is:

(a) Owned or controlled by an insurance agency, brokerage, or reinsurance intermediary, or an affiliate thereof, or under common ownership or control with the agency, brokerage, or reinsurance intermediary, and that only insures the risks of insurance or annuity contracts placed by or through the agency, brokerage, or reinsurance intermediary; or

(b) Owned or controlled by a producer of service contracts or warranties, and that only insures or reinsures the contractual liability arising out of service contracts or warranties sold through such producer.

For purposes of this subdivision, common ownership or control means ownership of thirty percent or more of the voting securities of an entity or such other form of ownership or control as the director approves. For purposes of this subdivision, producer means an individual, agent, broker, or agency that is licensed by a state's insurance division or department to sell insurance;

(2) "Association," any legal association of entities, the members of the organization of which:

(a) Own, control, or hold with power to vote all of the outstanding voting securities of a group captive insurance company incorporated as a stock insurer or nonprofit corporation; or

(b) Have complete voting control over group captive insurance company formed as a limited liability company;

(3) "Captive insurance company," any insurance company licensed under chapter 58-46 ;

(4) "Controlled unaffiliated business," any person or entity that is not in the corporate system of a parent and its affiliated entities and has an existing contractual relationship for its control, operation, or management with the parent or one of its affiliated entities;

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

(5A) "Entity," a corporation, business trust, cooperative corporation, estate, trust, partnership, limited liability company, association, joint venture, government, governmental subdivision, agency, or instrumentality, or any other legal or commercial entity;

(5B) "Governing board," in the case of a corporation, its board of directors; in the case of a member managed limited liability company, its board of members; in the case of a manager managed limited liability company, its board of managers; in the case of a partnership, its general partner; in the case of a business trust or trust, its trustee; and in the case of any other entity not defined, the person in charge of managing its business affairs;

(6) "Group," any association of entities with substantially similar or related risks, the members of which collectively own, control, or hold with power to vote all of the outstanding voting securities or other ownership interest of a group captive insurance company;

(7) "Group captive insurance company," any entity licensed under this chapter that insures the risks of the member organizations of the group, the risks of the affiliated entities of the member organizations, or the risks of the association;

(8) "Member organization," any entity that belongs to an association;

(9) "Parent," an entity that directly or indirectly owns, controls, or holds with power to vote fifty percent or more of the outstanding voting securities of a pure captive insurance company;

(10) "Pure captive insurance company," any entity licensed under this chapter that insures risks of its parent and affiliated entities or a controlled unaffiliated business;

(11) "Participant contract," with respect to a sponsored captive insurance company, a contract by which a sponsored captive insurance company insures the risks of one or more participants, and limits the losses of each participant to its pro rata share of the assets of one or more protected cells identified in the participant contract;

(12) "Special purpose captive insurance company," a captive insurance company that is licensed under this chapter that does not meet the definition of any other type of captive insurance company defined in this section and it may insure the risks of its parent, unless otherwise approved by the director;

(13A) "Participant," any person or entity that is insured by a sponsored captive insurance company, where the losses of the participant are limited through a participant contract to the participant's pro rata share of the assets of one or more protected cells identified in the participant contract;

(13B) "Protected cell," a separate and distinct account established and maintained by or on behalf of a sponsored captive insurance company in which assets, including assets invested pursuant to § 58-46-30 , are accounted for and recorded for one or more participants in accordance with the terms of one or more participant contracts to fund the liability of the sponsored captive insurance company assumed on behalf of the participants as set forth in the participant contracts;

(14) "Sponsor," a person or entity qualifying as a sponsor under § 58-46-28 ;

(15) "Sponsored captive insurance company," a captive insurance company that is licensed under this chapter:

(a) Of which the minimum capital and surplus required by this chapter is provided by one or more sponsors;

(b) That insures the risks of its participants only, through separate participant contracts; and

(c) That funds its liability to each participant through one or more protected cells and segregates the assets of each protected cell from the assets of other protected cells and from the assets of the sponsored captive insurance company's general account;

(16) "Trust captive insurance company," a captive insurance company whose ownership interest is held in a trust or trusts;

(17) "Trust," any trust with a South Dakota jurisdiction provision as set forth in §§ 55-3-40 to 55-3-42 , inclusive, and which complies with § 55-3-39 .

Source: SL 1996, ch 287, § 1; SL 2009, ch 272, § 1; SL 2013, ch 257, § 1; SL 2015, ch 257, § 1.
S.D. Codified Laws § 58-5-151 — SD Code / Title 58 / Chapter 5 / Section 58-5-151
Reporting material nonrenewal, cancellation or revision
Status: in_force

Subject to the criteria provided in § 58-5-150 , a report shall be filed without regard to which party has initiated the nonrenewal, cancellation or revision of ceded reinsurance whenever one or more of the following conditions exist:

(1) The entire cession has been cancelled, nonrenewed, or revised and ceded indemnity and loss adjustment expense reserves after any nonrenewal, cancellation, or revision represent less than fifty percent of the comparable reserves that would have been ceded had the nonrenewal, cancellation, or revision not occurred;

(2) An authorized or accredited reinsurer has been replaced on an existing cession by an unauthorized reinsurer; or

(3) Collateral requirements previously established for unauthorized reinsurers have been reduced.

Subject to the materiality criteria, for purposes of subdivisions (2) and (3), a report shall be filed if the result of the revision affects more than ten percent of the cession.

Source: SL 1995, ch 275, § 8.
S.D. Codified Laws § 58-5A-98 — SD Code / Title 58 / Chapter 5A / Section 58-5A-98
Confidentiality of group capital calculation and liquidity stress test
Status: in_force

The group capital calculation and resulting group capital ratio required under § 58-5A-94 and the liquidity stress test, along with its results and supporting disclosures, required under § 58-5A-97 , are regulatory tools for assessing group risks and capital adequacy and group liquidity risks and may not be used as a means to rank insurers or insurance holding company systems generally. Except as otherwise required under the provisions of this chapter, a licensee under this title is prohibited from releasing information with regard to the group capital calculation, group capital ratio, the liquidity stress test results, or supporting disclosures for the liquidity stress test of any insurer or any insurer group or of any component derived in the calculation by any insurer, broker, or other person engaged in any manner in the insurance business by making, publishing, disseminating, circulating, or placing before the public the information, or causing the information to be directly or indirectly made, published, disseminated, circulated, or placed before the public:

(1) In a newspaper, magazine, or other publication;

(2) In the form of a notice, circular, pamphlet, letter, or poster;

(3) Over any radio or television station;

(4) Any electronic means of communication available to the public; or

(5) In any other way as an advertisement, announcement, or statement.

Source: SL 2024, ch 201, § 11.
S.D. Codified Laws § 58-33-81 — SD Code / Title 58 / Chapter 33 / Section 58-33-81
Notification to policyholder of request for information
Status: in_force

Notwithstanding the provisions of §§ 58-33-76 to 58-33-77 , inclusive, the authorized agency shall notify in writing, the policyholder of any request for information.

Source: SL 1993, ch 368, § 7.
S.D. Codified Laws § 58-33-44 — SD Code / Title 58 / Chapter 33 / Section 58-33-44
Liabilities and penalties not relieved by director's or court order
Status: in_force

No order of the director pursuant to § 58-33-40 or order of court to enforce it shall in any way relieve or absolve any person affected by such order from any other liability, penalty, or forfeiture under law.

Source: SL 1966, ch 111, ch 13, § 4 (4).
S.D. Codified Laws § 58-6A-5 — SD Code / Title 58 / Chapter 6A / Section 58-6A-5
Taxation of premiums--Payment by insurance producers or brokers--Payment by risk retention group--Report of premiums
Status: in_force

All premiums paid for coverages within this state to risk retention groups are subject to taxation at the same rate and subject to the same interest, fines, and penalties for nonpayment as that applicable to foreign admitted insurers. To the extent insurance producers are utilized, they shall report and pay the taxes for the premiums for risks which they have placed with or on behalf of a risk retention group not chartered in this state. To the extent insurance producers are not utilized or fail to pay the tax, each risk retention group shall pay the tax for risks insured within this state. Further, each risk retention group shall report all premiums paid to it for risks insured within this state.

Source: SL 1987, ch 372, § 5; SL 2001, ch 286, § 88.
S.D. Codified Laws § 58-18B-18 — SD Code / Title 58 / Chapter 18B / Section 58-18B-18
Promulgation of rules for rating practices
Status: in_force

The director may promulgate rules pursuant to chapter 1-26 to implement the provisions of §§ 58-18B-1 to 58-18B-3 , inclusive, § 58-18B-7 , §§ 58-18B-15 to 58-18B-18 , inclusive, and to assure that rating practices used by small employer carriers are consistent with the purposes of this chapter, including rules that:

(1) Assure that differences in rates charged for health benefit plans by small employer carriers are reasonable and reflect objective differences in plan design not including differences due to the nature of the groups assumed to select particular health benefit plans; and

(2) Prescribe the manner in which case characteristics may be used by small employer carriers.

Source: SL 1995, ch 281, § 11.
S.D. Codified Laws § 58-6-72 — SD Code / Title 58 / Chapter 6 / Section 58-6-72
Domicile of alien insurer for retaliatory tax purposes
Status: in_force

For the purposes of § 58-6-70 and subject to the provisions of § 58-6-73 , the domicile of an alien insurer, shall be that state in which is located its principal place of business in the United States.

Source: SL 1966, ch 111, ch 3, § 29 (3).
S.D. Codified Laws § 58-7-38 — SD Code / Title 58 / Chapter 7 / Section 58-7-38
Release of deposited assets--Terms--Nonliability of director acting in good faith
Status: in_force

No release of deposited assets and securities may be made except upon application to and the written order of the director and under the terms of the custodial or depository arrangement. The director is not personally liable for the release of any deposit made by him in good faith.

Source: SL 1966, ch 111, ch 7, § 14 (5); SL 1991, ch 398, § 19.
S.D. Codified Laws § 58-41-19 — SD Code / Title 58 / Chapter 41 / Section 58-41-19
Insurance arrangements permitted
Status: in_force

The requirement of subdivision 58-41-17(5) shall not prohibit a health maintenance organization from obtaining insurance or making other arrangements:

(1) For the cost of providing to any enrollee comprehensive health maintenance services, the aggregate value of which exceeds five thousand dollars in any year;

(2) For the cost of providing comprehensive health care services to its members on a nonelective emergency basis, or while they are outside the area served by the organization; or

(3) For not more than ninety - five percent of the amount by which the health maintenance organization's costs for any of its fiscal years exceeds one hundred five percent of its income for such fiscal years.

Source: SL 1974, ch 321, § 10 (5).
S.D. Codified Laws § 58-32-37 — SD Code / Title 58 / Chapter 32 / Section 58-32-37
Action against unauthorized insurer--Service of process on director--Jurisdiction of court
Status: in_force

Service of legal process against the insurer may be made in any such action by service upon the director as provided in § 58-6-39 . The director shall forthwith mail a copy of the process served to the person designated by the insurer in the policy for the purpose, by prepaid registered or certified mail with return receipt requested. The insurer shall have thirty days from the date of service upon the director within which to plead, answer, or otherwise defend the action. Upon service of process upon the director in accordance with this provision, the court shall be deemed to have jurisdiction in personam of the insurer.

Source: SL 1966, ch 111, ch 11, § 20 (2); SL 1982, ch 28, § 18.
S.D. Codified Laws § 58-33-107 — SD Code / Title 58 / Chapter 33 / Section 58-33-107
Written disclosures required before issuing contract for stop loss policy
Status: in_force

No insurer may engage in the transacting of insurance in this state by issuing a stop loss policy unless, prior to issuing a contract for the stop loss policy, the insurer discloses clearly and conspicuously to the employer, in writing the following:

(1) The employer is not covered for claims below the stop loss attachment point;

(2) A description of the attachment point, including the specific and aggregate attachment points; and

(3) The insurer provides no other coverage of the employer's retention.

Source: SL 2007, ch 292, § 15.
S.D. Codified Laws § 58-26-76 — SD Code / Title 58 / Chapter 26 / Section 58-26-76
Valuation of reserves for certain annuity or pure endowment contracts
Status: in_force

This section applies to all annuity and pure endowment contracts other than group annuity and pure endowment contracts purchased under a retirement plan or plan of deferred compensation, established or maintained by an employer, including a partnership or sole proprietorship, or by an employee organization, or by both, other than a plan providing individual retirement accounts or individual retirement annuities under section 408 of the Internal Revenue Code, as of January 1, 1995.

Reserves according to the commissioners' annuity reserve method for benefits under annuity or pure endowment contracts, excluding any disability and accidental death benefits in the contracts, are the greatest of the respective excesses of the present values, at the date of valuation, of the future guaranteed benefits, including guaranteed nonforfeiture benefits, provided for by the contracts at the end of each respective contract year, over the present value, at the date of valuation, of any future valuation considerations derived from the future gross considerations, required by the terms of the contract, that become payable prior to the end of the respective contract year. The future guaranteed benefits shall be determined by using the mortality table, if any, and the interest rate or rates, specified in the contracts for determining guaranteed benefits. The valuation considerations are the portions of the respective gross considerations applied under the terms of the contract to determine nonforfeiture values.

Source: SL 1995, ch 284, § 32.
S.D. Codified Laws § 58-6A-9 — SD Code / Title 58 / Chapter 6A / Section 58-6A-9
Notice contained on policy--Contents
Status: in_force

Any policy issued by any person, firm, association, or corporation licensed pursuant to the provisions of chapter 58-6A , on business placed with risk retention groups or written through a purchasing group, shall inform each prospective insured of the provisions of the notice and shall contain in ten - point type on the front page and the declaration page, the following notice:

This policy is issued by your risk retention group. Your risk retention group may not be subject to all of the insurance laws and regulations of your state. State insurance insolvency guaranty funds are not available for your risk retention group.

Source: SL 1987, ch 372, § 9; SL 1988, ch 392, § 2.
S.D. Codified Laws § 58-14-16.21 — SD Code / Title 58 / Chapter 14 / Section 58-14-16.21
Credit for reinsurance during suspension or revocation
Status: in_force

While a reinsurer's accreditation or certification is suspended, no reinsurance contract issued or renewed after the effective date of the suspension qualifies for credit except to the extent that the reinsurer's obligations under the contract are secured in accordance with § 58-14-16 . If a reinsurer's accreditation or certification is revoked, no credit for reinsurance may be granted after the effective date of the revocation except to the extent the reinsurer's obligations under the contract are secured in accordance with § 58-14-16 or §§ 58-14-16.8 to 58-14-16.13 , inclusive.

Source: SL 2017, ch 211, § 32.
S.D. Codified Laws § 58-26-1 — SD Code / Title 58 / Chapter 26 / Section 58-26-1
Assets allowed in determination of financial condition
Status: in_force

In any determination of the financial condition of an insurer, there shall be allowed as assets only such assets as are owned by the insurer and which consist of:

(1) Cash in the possession of the insurer, or in transit under its control, and including the true balance of any deposit in a solvent bank or trust company;

(2) Investments, securities, properties, and loans acquired or held in accordance with this title and in connection therewith the following items:

(a) Interest due or accrued on any bond or evidence of indebtedness which is not in default and which is not valued on a basis including accrued interest;

(b) Declared and unpaid dividends on shares of stock, unless such amount has otherwise been allowed as an asset;

(c) Interest due or accrued upon a collateral loan in an amount not to exceed one year's interest thereon;

(d) Interest due or accrued on deposits in solvent banks and trust companies, and interest due or accrued on other assets, if such interest is in the judgment of the director a collectible asset;

(e) Interest due or accrued on a mortgage loan, in an amount not exceeding in any event the amount, if any, of the excess of the value of the property less delinquent taxes thereon over the unpaid principal; but in no event may interest accrued for a period in excess of eighteen months be allowed as an asset;

(f) Rent due or accrued on real property if such rent is not in arrears for more than three months, and rent more than three months in arrears if the payment of such rent be adequately secured by property held in the name of the tenant and conveyed to the insurer as collateral;

(g) The unaccrued portion of taxes paid prior to the due date on real property;

(3) Premium notes, policy loans, and other policy assets and liens on policies and certificates of life insurance and annuity contracts and accrued interest thereon, in an amount not exceeding the legal reserve and other policy liabilities carried on each individual policy;

(4) The net amount of uncollected and deferred premiums and annuity considerations in the case of a life insurer;

(5) Premiums in the course of collection, other than for life insurance, not more than three months past due, less commissions payable thereon. The foregoing limitation does not apply to premiums payable directly or indirectly by the United States government or by any of its instrumentalities;

(6) Installment premiums other than life insurance premiums to the extent of the unearned premium reserve carried on the policy to which premiums apply;

(7) Notes and like written obligations not past due, taken for premiums other than life insurance premiums, on policies permitted to be issued on such basis, to the extent of the unearned premium reserves carried thereon;

(8) The full amount of reinsurance recoverable by a ceding insurer from a solvent reinsurer and which reinsurance is authorized under this title;

(9) Amounts receivable by an assuming insurer representing funds withheld by a solvent ceding insurer under a reinsurance treaty;

(10) Deposits or equities recoverable from underwriting associations, syndicates, and reinsurance funds, or from any suspended banking institution, to the extent deemed by the director available for the payment of losses and claims and at values to be determined by the director;

(11) Data and word processing machines used in the insurer's business. However, the original cost of the system shall be at least one thousand dollars but may not be more than three percent of the admitted assets of the insurer. Such cost shall be amortized over a period not to exceed five years;

(12) All assets, whether or not consistent with the provisions of this section, as may be allowed pursuant to the annual statement form approved by the director for the kinds of insurance to be reported upon therein;

(13) Goodwill arising from acquisitions and mergers occurring after January 1, 2001;

(14) Other assets, not inconsistent with the provisions of this section, deemed by the director to be available for the payment of losses and claims at values to be determined by the director.

Source: SL 1966, ch 111, ch 5, § 1; SL 1978, ch 364; SL 1983, ch 376, § 1; SL 2001, ch 283, § 1; SL 2004, ch 308, § 1.
S.D. Codified Laws § 58-24-51 — SD Code / Title 58 / Chapter 24 / Section 58-24-51
Criteria considered on application for deviation--Order permitting or denying deviation
Status: in_force

In considering the application to file such deviation, the director shall give consideration to the available statistics and the principles for rate - making as provided in §§ 58-24-5 to 58-24-9 , inclusive. The director shall issue an order permitting the deviation for such insurer to be filed if he finds it to be justified and it shall thereupon become effective. He shall issue an order denying such application if he finds that the deviation applied for does not meet the requirements of this chapter.

Source: SL 1966, ch 111, ch 15, § 7.
S.D. Codified Laws § 58-12-2 — SD Code / Title 58 / Chapter 12 / Section 58-12-2
Acts of insurer not constituting waiver of policy provision or defense
Status: in_force

Without limitation of any right or defense of an insurer, none of the following acts by an insurer shall be deemed to constitute a waiver of any provision of a policy or of any defense of the insurer thereunder:

(1) Acknowledgment of the receipt of notice of loss or claim under the policy;

(2) Furnishing forms for reporting a loss or claim, for giving information relative thereto, or for making proof of loss or receiving or acknowledging receipt of any such forms or proof completed or uncompleted;

(3) Investigating any loss or claim under any policy.

Source: SL 1966, ch 111, ch 22, § 30.
S.D. Codified Laws § 58-9-12 — SD Code / Title 58 / Chapter 9 / Section 58-9-12
Casualty insurance including automobile guaranty insurance
Status: in_force

"Casualty insurance" includes automobile guaranty insurance, insurance of the mechanical condition, or freedom from defective or worn parts or equipment, of motor vehicles.

Source: SL 1966, ch 111, ch 4, § 6 (1) (b).
S.D. Codified Laws § 58-47-4 — SD Code / Title 58 / Chapter 47 / Section 58-47-4
Brochures to be available at locations where portable electronics insurance offered--Contents
Status: in_force

At every location where portable electronics insurance is offered to customers, brochures or other written materials must be made available by a vendor to a prospective customer which:

(1) Disclose that portable electronics insurance may provide a duplication of coverage already provided by a customer's homeowner's insurance policy, renter's insurance policy, or other source of coverage;

(2) State that the enrollment by the customer in a portable electronics insurance program is not required in order to purchase or lease portable electronics or services;

(3) Summarize the material terms of the insurance coverage, including:

(a) The identity of the insurer;

(b) The identity of the supervising entity;

(c) The amount of any applicable deductible and how it is to be paid;

(d) Benefits of the coverage; and

(e) Key terms and conditions of coverage such as whether portable electronics may be repaired or replaced with similar make and model reconditioned or nonoriginal manufacturer parts or equipment;

(4) Summarize the process for filing a claim, including a description of how to return portable electronics and the maximum fee applicable in the event the customer fails to comply with any equipment return requirements; and

(5) State that an enrolled customer may cancel enrollment for coverage under a portable electronics insurance policy at any time and the person paying the premium shall receive a refund or credit of any applicable unearned premium.

Source: SL 2012, ch 251, § 4.
S.D. Codified Laws § 58-40-40 — SD Code / Title 58 / Chapter 40 / Section 58-40-40
Diabetes coverage not required of certain plans and policies
Status: in_force

The provisions of § 58-40-39 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, § 10.
S.D. Codified Laws § 58-17K-3 — SD Code / Title 58 / Chapter 17K / Section 58-17K-3
Cost-sharing information disclosed--Required internet method and format
Status: in_force

The cost-sharing information to be provided under this chapter shall be made available without a subscription or other fee through a self-service tool on a website that provides real-time responses based on cost-sharing information that is accurate at the time of request. A health insurer shall ensure the self-service tool allows enrollees to:

(1) Search for cost-sharing information for a covered item or service by an in-network provider by inputting:

(a) A billing code or a descriptive term;

(b) The name of an in-network provider; and

(c) Other factors utilized by the health insurer that are relevant for determining the applicable cost-sharing information;

(2) Search for an out-of-network allowed amount, percentage of billed charges, or other rate for a covered item or service by an out-of-network provider by inputting:

(a) A billing code or a descriptive term; and

(b) Other factors utilized by the health insurer that are relevant for determining the applicable out-of-network allowed amount or other rate; and

(3) Refine and reorder search results based on geographic proximity of in-network providers and the amount of the enrollee's estimated cost-sharing liability.

Source: SL 2021, ch 213, § 3.
S.D. Codified Laws § 58-17-82 — SD Code / Title 58 / Chapter 17 / Section 58-17-82
Renewal of individual health benefit plans--Exceptions
Status: in_force

An individual health benefit plan subject to §§ 58-17-66 to 58-17-87 , inclusive, is renewable with respect to any person or dependent at the option of the person and may not be terminated by the insurer at any time, except as provided in § 58-17-15 or in any of the following cases:

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

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

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

(4) Election by the carrier not to renew all of its individual health benefit plans delivered or issued for delivery to persons in the state. In such a case, the carrier shall provide advance notice of its decision under this subdivision to the director in each state in which it is licensed and provide notice of the decision not to renew coverage to all affected individuals and to the director in each state in which an affected insured individual is known to reside at least one hundred eighty days before the nonrenewal of any individual health benefit plans by the carrier. Notice to the director under this subdivision shall be provided at least three working days before the notice to the affected individuals. In such instances, the director shall assist the affected persons in finding replacement coverage;

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

(6) The insured individual becomes eligible for medicare coverage under Title XVIII of the Social Security Act, unless federal law requires that medicare coverage under Title XVIII be excluded as a reason for renewability of coverage;

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

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

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

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

Source: SL 1996, ch 286, § 17; SL 1997, ch 289, § 3; SL 2003, ch 248, § 1.
S.D. Codified Laws § 58-3-5 — SD Code / Title 58 / Chapter 3 / Section 58-3-5
Examination of agents, managers, and promoters
Status: in_force

For the purpose of ascertaining compliance with this title, the director may as often as the director deems advisable examine the accounts, records, documents, and transactions, pertaining to or affecting its insurance affairs or proposed insurance affairs, of:

(1) Any insurance producer, surplus line broker, or general agent;

(2) Any person having a contract under which the person enjoys in fact the exclusive or dominant right to manage or control an insurer;

(3) Any person holding the shares of voting stock or policyholder proxies of a domestic insurer, for the purpose of controlling the management thereof, as voting trustee or otherwise;

(4) Any person engaged in or proposing to be engaged in or assisting in the promotion or formation of a domestic insurer or insurance holding corporation, or corporation to finance a domestic insurer or the production of its business.

Source: SL 1966, ch 111, ch 2, § 17; SL 2001, ch 286, § 61.
S.D. Codified Laws § 58-30-58 — SD Code / Title 58 / Chapter 30 / Section 58-30-58
Failure to pass examination--Waiting period for re-examination
Status: in_force

The director may require a reasonable waiting period before reexamination of an applicant who has taken and failed to pass a previous examination covering the same kind or kinds of insurance.

Source: SL 1966, ch 111, ch 9, § 15 (4).
S.D. Codified Laws § 58-5A-50 — SD Code / Title 58 / Chapter 5A / Section 58-5A-50
Acquisitions subject to order under §58-5A-69
Status: in_force

An order may not be entered under § 58-5A-69 if:

(1) The acquisition will yield substantial economies of scale or economies in resource utilization that cannot be feasibly achieved in any other way, and the public benefits which would arise from the economies would exceed the public benefits which would arise from not lessening competition; or

(2) The acquisition will substantially increase the availability of insurance, and the public benefits of the increase would exceed the public benefits which would arise from not lessening competition.

Source: SL 1992, ch 341, § 12.
S.D. Codified Laws § 58-43-6 — SD Code / Title 58 / Chapter 43 / Section 58-43-6
Registration of retained accountant--Letter of acknowledgment from accountant
Status: in_force

Each insurer required to file an annual audited financial report shall, within sixty days after becoming subject to the requirement, register with the director in writing the name and address of the independent certified public accountant or accounting firm retained to conduct the annual audit set forth in this chapter. Any insurer not retaining an independent certified public accountant on July 1, 2009, shall register the name and address of the insurer's retained independent certified public accountant not less than six months before the date when the first audited financial report is to be filed.

The insurer shall obtain a letter from the accountant, and file a copy with the director, stating that the accountant is aware of the laws of the state of domicile that relate to accounting and financial matters and affirming that the accountant will express his or her opinion on the financial statements in terms of their conformity to the statutory accounting practices prescribed or permitted and specify any exceptions.

Source: SL 1992, ch 357, § 6; SL 2009, ch 271, § 6.
S.D. Codified Laws § 58-22-6 — SD Code / Title 58 / Chapter 22 / Section 58-22-6
Application for license--Affirmative showing of qualifications
Status: in_force

The application for license, in addition to the other matters set out in this chapter to serve as a bail bondsperson shall affirmatively show that the applicant is a natural person who has reached the age of twenty - one years, is a citizen of the United States, has been a bona fide resident of the state for the preceding year, will actively engage in the bail bond business, and has not been convicted of, or pled guilty or nolo contendere to, a felony or a crime involving moral turpitude or any crime involving moral turpitude. The director of the Division of Insurance may waive the restriction relating to the conviction of, or plea of guilty or nolo contendere to, a felony if three years have elapsed since the completion of the sentence imposed by the court in connection with the violation.

Source: SL 1966, ch 111, ch 31, § 7; SL 1998, ch 296, § 4.
S.D. Codified Laws § 58-5-58 — SD Code / Title 58 / Chapter 5 / Section 58-5-58
Directors of domestic insurer--Number--Management of affairs of insurer
Status: in_force

The affairs of every domestic insurer shall be managed by the number of directors fixed in the insurer's bylaws, which shall not be less than five nor more than twenty - one directors.

Source: SL 1966, ch 111, ch 16, § 21 (1).
S.D. Codified Laws § 58-29D-6 — SD Code / Title 58 / Chapter 29D / Section 58-29D-6
Termination of written agreement--Suspension of underwriting authority--Dispute
Status: in_force

The insurer or administrator may, with written notice, terminate the written agreement for cause as provided in the agreement. The insurer may suspend the underwriting authority of the administrator during the pendency of any dispute regarding the cause for termination of the written agreement. The insurer must fulfill any lawful obligations with respect to policies affected by the written agreement, regardless of any dispute between the insurer and the administrator. The insurer must file the notice and the reason for termination with the director within thirty days of such termination.

Source: SL 1992, ch 352, § 6.
S.D. Codified Laws § 58-5A-57 — SD Code / Title 58 / Chapter 5A / Section 58-5A-57
Transactions entered into to avoid director's review prohibited
Status: in_force

A domestic insurer may not enter into transactions which are part of a plan or series of like transactions with persons within the holding company system if the purpose of those separate transactions is to avoid the statutory amounts in § 58-5A-56 and thus the review. If the director determines that transactions were entered into over any twelve - month period to avoid § 58-5A-56 , the director may exercise his authority under §§ 58-5A-62 to 58-5A-67 , inclusive.

Source: SL 1992, ch 341, § 22.
S.D. Codified Laws § 58-40-21 — SD Code / Title 58 / Chapter 40 / Section 58-40-21
Coverage for phenylketonuria
Status: in_force

Every service or indemnity - type contract issued by a nonprofit hospital 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 offer coverage for testing, diagnosis, and treatment of phenylketonuria including dietary management, formulas, case management, intake and screening, assessment, comprehensive care planning, and service referral.

Source: SL 1992, ch 348, § 5.
S.D. Codified Laws § 58-33-126 — SD Code / Title 58 / Chapter 33 / Section 58-33-126
Using the credited interest rate as net return or misrepresenting mortality costs considered false, misleading, deceptive, or unfair
Status: in_force

The following acts or practices by an insurer or insurance producer are declared to be false, misleading, deceptive, or unfair:

(1) Using or describing the credited interest rate on a life insurance policy in a manner that implies that the credited interest rate is a net return on premium paid; or

(2) Excluding individually issued annuities, misrepresenting the mortality costs of a life insurance product, including, stating, or implying that the product costs nothing or is free.

Source: SL 2008, ch 272, § 10.
S.D. Codified Laws § 58-47-12 — SD Code / Title 58 / Chapter 47 / Section 58-47-12
Notice of termination
Status: in_force

If a portable electronics insurance policy is terminated by a vendor policyholder, the vendor policyholder shall mail or deliver a written notice to each enrolled customer advising the enrolled customer of the termination of the policy and the effective date of termination. The written notice shall be mailed or delivered to the enrolled customer at least thirty days before the termination.

Source: SL 2012, ch 251, § 12.
S.D. Codified Laws § 58-6A-3.4 — SD Code / Title 58 / Chapter 6A / Section 58-6A-3.4
Notice to director of intent to enter into service provider contract meeting criteria of material relationship
Status: in_force

No service provider contract meeting the criteria of material relationship contained in § 58-6A-3.2 may be entered into unless the risk retention group has notified the director in writing of the risk retention group's intention to enter into the contract at least thirty days before entering into the transaction and the director has not disapproved the contract within that period.

Source: SL 2016, ch 232, § 6.
S.D. Codified Laws § 58-30-123 — SD Code / Title 58 / Chapter 30 / Section 58-30-123
Continuing education requirements--Provider and instructor--Violations--Director action
Status: in_force

If the director determines that a provider or instructor has violated the provisions of § 58-30-117 or 58-30-122 , the director may withdraw approval of the provider or instructor, or may order a refund of course fees to licensees who attended the course, or both. The director may also refuse to approve courses conducted by a provider or instructor if the director determines that past offerings by the provider or instructor have not been in compliance with insurance continuing education laws and rules.

Source: SL 1990, ch 406, § 3; SL 2025, ch 197, § 7.
S.D. Codified Laws § 58-17-81 — SD Code / Title 58 / Chapter 17 / Section 58-17-81
Availability of information on rating methods and practices of carriers offering individual health benefit plans
Status: in_force

A carrier shall make the information and documentation described in § 58-17-79 available to the director upon request. Except in cases of violations of §§ 58-17-66 to 58-17-87 , inclusive, the information is proprietary and trade secret information and may not be disclosed by the director to persons outside of the division, except in the case of an administrative proceeding, to the Office of Hearing Examiners or the court in question or except as agreed to by the carrier or as ordered by a court of competent jurisdiction.

Source: SL 1996, ch 286, § 16.
S.D. Codified Laws § 58-29A-96 — SD Code / Title 58 / Chapter 29A / Section 58-29A-96
Restrictions on liability of insured to association
Status: in_force

The association has no cause of action against the insured of the insolvent insurer for any sums it has paid out, except such causes of action as the insolvent insurer would have had if the sums had been paid by the insolvent insurer and except as provided in § 58-29A-71 .

Source: SL 2000, ch 247, § 43.
S.D. Codified Laws § 58-41-39 — SD Code / Title 58 / Chapter 41 / Section 58-41-39
Statements deemed misleading
Status: in_force

For the purposes of this chapter, a statement or item of information shall be deemed to be misleading, whether or not it may be literally untrue, if, in the total context in which such statement is made or such item of information is communicated, such statement or item of information may be reasonably understood by a reasonable person, not possessing special knowledge regarding health care coverage, as indicating any benefit or advantage or the absence of any exclusion, limitation, or disadvantage of possible significance to an enrollee of, or person considering enrollment in, a health care plan, if such benefit or advantage or absence of limitation, exclusion, or disadvantage does not in fact exist.

Source: SL 1974, ch 321, § 32 (1) (b).
S.D. Codified Laws § 58-17H-47 — SD Code / Title 58 / Chapter 17H / Section 58-17H-47
Calculation of time periods for determination
Status: in_force

For purposes of calculating the time periods within which a determination is required to be made under §§ 58-17H-43 to 58-17H-45 , inclusive, the time period within which the determination is required to be made shall begin on the date the request is filed with the health carrier in accordance with the health carrier's procedures established pursuant to § 58-17H-16 for filing a request without regard to whether all of the information necessary to make the determination accompanies the filing.

Source: SL 2011, ch 219, § 72.
S.D. Codified Laws § 58-33-54 — SD Code / Title 58 / Chapter 33 / Section 58-33-54
Additional method of service of process and notice
Status: in_force

Service of process and notice under the provisions of this title shall be in addition to all other methods of service provided by law, and nothing in this chapter shall limit or prohibit the right to serve any statement of charges, notices, or process upon an insurer in any other manner now or hereafter permitted by law.

Source: SL 1966, ch 111, ch 13, § 30 (5).
S.D. Codified Laws § 58-18-8 — SD Code / Title 58 / Chapter 18 / Section 58-18-8
Representations by applicant not warranties--Written statement required to avoid insurance or reduce benefits
Status: in_force

Each such group health insurance policy shall contain in substance a provision that, in the absence of fraud, all statements made by applicants or the policyholder or by an insured person shall be deemed representations and not warranties, and that no statement made for the purpose of effecting insurance shall avoid such insurance or reduce benefits unless contained in a written instrument signed by the policyholder or the insured person, a copy of which has been furnished to such policyholder or to such person or his beneficiary.

Source: SL 1966, ch 111, ch 26, § 2 (1).
S.D. Codified Laws § 58-5-144 — SD Code / Title 58 / Chapter 5 / Section 58-5-144
Confidentiality of disclosure report
Status: in_force

Any report obtained by or disclosed to the director pursuant to §§ 58-5-143 to 58-5-153 , inclusive, shall be given confidential treatment and may not be subject to subpoena and may not be made public by the director, the National Association of Insurance Commissioners, or any other person, except to insurance departments of other states, without the prior written consent of the insurer to which it pertains unless the director, after giving the insurer who would be affected thereby, notice and an opportunity to be heard, determines that the interest of policyholders, shareholders, or the public will be served by the publication of the report, in which event the director may publish all or any part of the report in such manner as the director considers appropriate.

Source: SL 1995, ch 275, § 1A.
S.D. Codified Laws § 58-35-59 — SD Code / Title 58 / Chapter 35 / Section 58-35-59
Financial reporting standards
Status: in_force

The financial reporting standards, procedures and accounting principles for farm mutuals are those set forth in the following National Association of Insurance Commissioners' manuals as amended as of December 31, 1993: Annual Statement Instructions, Property and Casualty; Examiner's Handbook; and Accounting Practices and Procedures Manual, Fire and Casualty Insurance Companies. The director may waive any standard, procedure, or accounting principle which the director determines is inapplicable to a farm mutual. The director shall establish a date by which the farm mutuals shall comply with financial reporting standards, procedures, and accounting principles or any amendment to them. The director may promulgate rules, pursuant to chapter 1-26 , for the enforcement of this section.

Source: SL 1991, ch 407, § 2; SL 1993, ch 357, § 6.
S.D. Codified Laws § 58-17I-1 — SD Code / Title 58 / Chapter 17I / Section 58-17I-1
Definitions
Status: in_force

Terms used in this chapter mean:

(1) "Adverse determination," any of the following:

(a) A determination by a health carrier or the carrier's designee utilization review organization that, based upon the information provided, a request by a covered person for a benefit under the health carrier's health benefit plan upon application of any utilization review technique does not meet the health carrier's requirements for medical necessity, appropriateness, health care setting, level of care or effectiveness or is determined to be experimental or investigational and the requested benefit is therefore denied, reduced, or terminated or payment is not provided or made, in whole or in part, for the benefit;

(b) The denial, reduction, termination, or failure to provide or make payment in whole or in part, for a benefit based on a determination by a health carrier or the carrier's designee utilization review organization of a covered person's eligibility to participate in the health carrier's health benefit plan;

(c) Any prospective review or retrospective review determination that denies, reduces, terminates, or fails to provide or make payment, in whole or in part, for a benefit; or

(d) A rescission of coverage determination;

(2) "Ambulatory review," utilization review of health care services performed or provided in an outpatient setting;

(3) "Authorized representative," a person to whom a covered person has given express written consent to represent the covered person for purposes of this chapter, a person authorized by law to provide substituted consent for a covered person, a family member of the covered person or the covered person's treating health care professional if the covered person is unable to provide consent, or a health care professional if the covered person's health benefit plan requires that a request for a benefit under the plan be initiated by the health care professional. For any urgent care request, the term includes a health care professional with knowledge of the covered person's medical condition;

(4) "Case management," a coordinated set of activities conducted for individual patient management of serious, complicated, protracted, or other health conditions;

(5) "Certification," a determination by a health carrier or the carrier's designee utilization review organization that a request for a benefit under the health carrier's health benefit plan has been reviewed and, based on the information provided, satisfies the health carrier's requirements for medical necessity, appropriateness, health care setting, level of care, and effectiveness;

(6) "Clinical peer," a physician or other health care professional who holds a non-restricted license in a state of the United States and in the same or similar specialty as typically manages the medical condition, procedure, or treatment under review;

(7) "Clinical review criteria," written screening procedures, decision abstracts, clinical protocols, and practice guidelines used by the health carrier to determine the medical necessity and appropriateness of health care services;

(8) "Closed plan," a managed care plan or health carrier that requires covered persons to use participating providers under the terms of the managed care plan or health carrier and does not provide any benefits for out-of-network services except for emergency services;

(9) "Concurrent review," utilization review conducted during a patient's hospital stay or course of treatment in a facility or other inpatient or outpatient health care setting;

(10) "Covered benefits" or "benefits," those health care services to which a covered person is entitled under the terms of a health benefit plan;

(11) "Covered person," a policyholder, subscriber, enrollee, or other individual participating in a health benefit plan;

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

(13) "Discharge planning," the formal process for determining, prior to discharge from a facility, the coordination and management of the care that a patient receives following discharge from a facility;

(14) "Discounted fee for service," a contractual arrangement between a health carrier and a provider or network of providers under which the provider is compensated in a discounted fashion based upon each service performed and under which there is no contractual responsibility on the part of the provider to manage care, to serve as a gatekeeper or primary care provider, or to provide or assure quality of care. A contract between a provider or network of providers and a health maintenance organization is not a discounted fee for service arrangement;

(15) "Emergency medical condition," a medical condition manifesting itself by acute symptoms of sufficient severity, including severe pain, such that a prudent layperson, who possesses an average knowledge of health and medicine, could reasonably expect that the absence of immediate medical attention would result in serious impairment to bodily functions or serious dysfunction of a bodily organ or part, or would place the person's health or, with respect to a pregnant woman, the health of the woman or her unborn child, in serious jeopardy;

(16) "Emergency services," with respect to an emergency medical condition:

(a) A medical screening examination that is within the capability of the emergency department of a hospital, including ancillary services routinely available to the emergency department to evaluate such emergency condition; and

(b) Such further medical examination and treatment, to the extent they are within the capability of the staff and facilities at a hospital to stabilize a patient;

(17) "Facility," an institution providing health care services or a health care setting, including hospitals and other licensed inpatient centers, ambulatory surgical or treatment centers, skilled nursing centers, residential treatment centers, diagnostic, laboratory, and imaging centers, and rehabilitation, and other therapeutic health settings;

(18) "Final adverse determination," an adverse determination that as been upheld by the health carrier at the completion of the internal appeals process applicable pursuant to §§ 58-17I-7 to 58-17I-15 , inclusive, or an adverse determination that with respect to which the internal appeals process has been deemed exhausted in accordance with § 58-17I-6 ;

(19) "Grievance," a written complaint, or oral complaint if the complaint involves an urgent care request, submitted by or on behalf of a covered person regarding:

(a) Availability, delivery, or quality of health care services;

(b) Claims payment, handling, or reimbursement for health care services; or

(c) Any other matter pertaining to the contractual relationship between a covered person and the health carrier.

A request for an expedited review need not be in writing;

(20) "Health care professional," a physician or other health care practitioner licensed, accredited, or certified to perform specified health services consistent with state law;

(21) "Health care provider" or "provider," a health care professional or a facility;

(22) "Health care services," services for the diagnosis, prevention, treatment, cure, or relief of a health condition, illness, injury, or disease;

(23) "Health carrier," an entity subject to the insurance laws and regulations of this state, or subject to the jurisdiction of the director, that contracts or offers to contract, or enters into an agreement to provide, deliver, arrange for, pay for, or reimburse any of the costs of health care services, including a sickness and accident insurance company, a health maintenance organization, a nonprofit hospital and health service corporation, or any other entity providing a plan of health insurance, health benefits, or health services;

(24) "Health indemnity plan," a health benefit plan that is not a managed care plan;

(25) "Managed care contractor," a person who establishes, operates, or maintains a network of participating providers; or contracts with an insurance company, a hospital or medical service plan, an employer, an employee organization, or any other entity providing coverage for health care services to operate a managed care plan or health carrier;

(26) "Managed care entity," a licensed insurance company, hospital or medical service plan, health maintenance organization, or an employer or employee organization, that operates a managed care plan or a managed care contractor. The term does not include a licensed insurance company unless it contracts with other entities to provide a network of participating providers;

(27) "Managed care plan," a plan operated by a managed care entity that provides for the financing or delivery of health care services, or both, to persons enrolled in the plan through any of the following:

(a) Arrangements with selected providers to furnish health care services;

(b) Explicit standards for the selection of participating providers; or

(c) Financial incentives for persons enrolled in the plan to use the participating providers and procedures provided for by the plan;

(28) "Network," the group of participating providers providing services to a health carrier;

(29) "Open plan," a managed care plan or health carrier other than a closed plan that provides incentives, including financial incentives, for covered persons to use participating providers under the terms of the managed care plan or health carrier;

(30) "Participating provider," a provider who, under a contract with the health carrier or with its contractor or subcontractor, has agreed to provide health care services to covered persons with an expectation of receiving payment, other than coinsurance, copayments, or deductibles, directly or indirectly, from the health carrier;

(31) "Prospective review," utilization review conducted prior to an admission or the provision of a health care service or a course of treatment in accordance with a health carrier's requirement that the health care service or course of treatment, in whole or in part, be approved prior to its provision;

(32) "Rescission," a cancellation or discontinuance of coverage under a health benefit plan that has a retroactive effect. The term does not include a cancellation or discontinuance of coverage under a health benefit plan if:

(a) The cancellation or discontinuance of coverage has only a prospective effect; or

(b) The cancellation or discontinuance of coverage is effective retroactively to the extent it is attributable to a failure to timely pay required premiums or contributions towards the cost of coverage;

(33) "Retrospective review," any review of a request for a benefit that is not a prospective review request, which does not include the review of a claim that is limited to veracity of documentation, or accuracy of coding, or adjudication for payment;

(34) "Second opinion," an opportunity or requirement to obtain a clinical evaluation by a provider other than the one originally making a recommendation for a proposed health care service to assess the medical necessity and appropriateness of the initial proposed health care service;

(35) "Secretary," the secretary of the Department of Health;

(36) "Stabilized," with respect to an emergency medical condition, that no material deterioration of the condition is likely, with reasonable medical probability, to result from or occur during the transfer of the individual from a facility or, with respect to a pregnant woman, the woman has delivered, including the placenta;

(37) "Utilization review," a set of formal techniques used by a managed care plan or utilization review organization to monitor and evaluate the medical necessity, appropriateness, and efficiency of health care services and procedures including techniques such as ambulatory review, prospective review, second opinion, certification, concurrent review, case management, discharge planning, and retrospective review; and

(38) "Utilization review organization," an entity that conducts utilization review other than a health carrier performing utilization review for its own health benefit plans.

Source: SL 2011, ch 219, § 75.
S.D. Codified Laws § 58-46-16 — SD Code / Title 58 / Chapter 46 / Section 58-46-16
Alternative reporting date
Status: in_force

A pure, agency, or trust captive insurance company may make written application for filing the report required by § 58-46-15 on a fiscal year-end that is consistent with the parent company's fiscal year. If an alternative reporting date is granted, the annual report is due six months after its fiscal year-end.

Source: SL 1996, ch 287, § 16; SL 2009, ch 272, § 8; SL 2013, ch 257, § 14; SL 2015, ch 257, § 4.
S.D. Codified Laws § 58-18C-4 — SD Code / Title 58 / Chapter 18C / Section 58-18C-4
Notice of termination required
Status: in_force

Written notice of termination of group coverage shall be provided by the employer to each employee having coverage within ten days of termination. The notice shall contain such information as required by the director.

Source: SL 1998, ch 294, § 4.
S.D. Codified Laws § 58-32-11 — SD Code / Title 58 / Chapter 32 / Section 58-32-11
Suspension or revocation of license of surplus line broker--Grounds
Status: in_force

The director may suspend or revoke any surplus line broker's license:

(1) If the broker fails to file his annual statement or to remit the tax as required by this chapter; or

(2) If the broker fails to keep records, or to allow the director to examine his records as required by this chapter; or

(3) If the broker knowingly or negligently places a surplus line coverage in an insurer that is in unsound financial condition in violation of § 58-32-25 ; or

(4) For any other cause for which a general lines agent's license may be suspended or revoked.

Source: SL 1966, ch 111, ch 11, § 13 (1); SL 2001, ch 286, § 197.
S.D. Codified Laws § 58-17H-38 — SD Code / Title 58 / Chapter 17H / Section 58-17H-38
Activities of nonregistered utilization review organizations prohibited
Status: in_force

A utilization review organization may not engage in utilization review in this state unless the utilization review organization is properly registered. The director may issue a cease and desist order against any utilization review organization which fails to comply with the requirements of §§ 58-17H-35 to 58-17H-39 , inclusive, prohibiting the utilization review organization from engaging in utilization review activities in this state.

Source: SL 2011, ch 219, § 63.
S.D. Codified Laws § 58-29B-39 — SD Code / Title 58 / Chapter 29B / Section 58-29B-39
Rehabilitation futile--Petition for liquidation--Effect--Court to permit directors or insurers to defend
Status: in_force

If the director believes further attempts to rehabilitate an insurer would substantially increase the risk of loss to creditors, policyholders, or the public, or would be futile, the director may petition the circuit court of Hughes County for an order of liquidation. A petition under this section has the same effect as a petition under § 58-29B-41 . The circuit court of Hughes County shall permit the directors of the insurer to take such actions as are reasonably necessary to defend against the petition and may order payment from the estate of the insurer of such costs and other expenses of defense as justice may require. If the insurer is insolvent, the court shall issue an order for liquidation and shall set a hearing to determine the issues being asserted by the directors.

Source: SL 1989, ch 436, § 39; SL 1992, ch 351, § 15.
S.D. Codified Laws § 58-43-16.6 — SD Code / Title 58 / Chapter 43 / Section 58-43-16.6
Election of controlling person to designate audit committee
Status: in_force

To exercise the election of the controlling person to designate the audit committee for purposes of this chapter, the ultimate controlling person shall provide written notice to the directors of the affected insurer. Notification shall be made timely prior to the issuance of the statutory audit report and include a description of the basis for the election. The election can be changed through notice to the director by the insurer, which shall include a description of the basis for the change. The election shall remain in effect until rescinded.

If an audit committee is not designated by the insurer, the insurer's entire board of directors shall constitute the audit committee.

Source: SL 2009, ch 271, § 21, eff. Jan. 1, 2010.
S.D. Codified Laws § 58-15-43.9 — SD Code / Title 58 / Chapter 15 / Section 58-15-43.9
Nonforfeiture interest rate
Status: in_force

The nonforfeiture interest rate is:

(1) For policies issued prior to the operative date of the valuation manual, the nonforfeiture interest rate per annum for any policy issued in a particular calendar year is equal to one hundred twenty-five percent of the calendar year statutory valuation interest rate for the policy as defined in the standard valuation law, rounded to the nearer one quarter of one percent, provided that the nonforfeiture rate may not be less than four percent;

(2) For policies issued on or after the operative date of the valuation manual the forfeiture interest rate per annum for any policy issued in a particular calendar year is provided by the valuation manual.

Source: SL 1982, ch 357, § 13; SL 2015, ch 254, § 42.
S.D. Codified Laws § 58-4-39 — SD Code / Title 58 / Chapter 4 / Section 58-4-39
Standards for determining hazardous financial condition
Status: in_force

The director shall promulgate rules, pursuant to chapter 1-26 , setting forth standards for determining the hazardous financial condition of an insurer under this title.

Source: SL 1992, ch 339, § 1.