S.D. Codified Laws § 58-30-180 — SD Code / Title 58 / Chapter 30 / Section 58-30-180
Termination of relationship between insurer and insurance producer
Status: in_force

An insurer or authorized representative of the insurer that terminates the appointment, employment, contract, or other insurance business relationship with an insurance producer shall notify the director within thirty days following the effective date of the termination, using a format prescribed by the director. In addition, an insurer or authorized representative of the insurer that terminates the appointment, employment, contract, or other insurance business relationship with a producer shall notify the director within thirty days following the effective date of the termination, using a format prescribed by the director, if a reason for termination is one of the reasons set forth in § 58-30-167 or the insurer has knowledge the producer was found by a court, government body, or self-regulatory organization authorized by law to have engaged in any of the activities in § 58-30-167 . Upon the written request of the director, the insurer shall provide additional information, documents, records, or other data pertaining to the termination or activity of the insurance producer. Such information, documents, records, or other data are confidential pursuant to § 58-30-187 .

Source: SL 2001, ch 286, § 40; SL 2007, ch 291, § 3; SL 2010, ch 233, § 14.
S.D. Codified Laws § 58-6-4 — SD Code / Title 58 / Chapter 6 / Section 58-6-4
Activities excepted from certificate of authority requirements
Status: in_force

A certificate of authority shall not be required of an insurer with respect to the following:

(1) Investigation, settlement, or litigation of claims under its policies lawfully written in this state, or liquidation of assets and liabilities of the insurer, other than collection of new premiums, all as resulting from its former authorized operations in this state;

(2) Transactions thereunder subsequent to issuance of a policy covering only subjects of insurance not resident, located or expressly to be performed in this state at time of issuance, and lawfully solicited, written and delivered outside this state;

(3) Transactions pursuant to surplus lines coverages lawfully written under the chapter of this title relating to surplus lines;

(4) Reinsurance, when transacted by an insurer duly authorized by its state of domicile to transact the kind of insurance involved;

(5) The continuation and servicing of life insurance or health insurance policies or annuity contracts remaining in force as to residents of this state if the insurer has withdrawn from the state and is not transacting new insurance therein.

Source: SL 1966, ch 111, ch 3, § 2.
S.D. Codified Laws § 58-5-76 — SD Code / Title 58 / Chapter 5 / Section 58-5-76
Arbitrage transactions exempt from insider trading restrictions
Status: in_force

The provisions of §§ 58-5-69 to 58-5-73 , inclusive, shall not apply to foreign or domestic arbitrage transactions unless contrary to such rules and regulations as the insurance director may adopt in order to carry out the purpose of §§ 58-5-68 to 58-5-78 , inclusive.

Source: SL 1966, ch 111, ch 16, § 27 (5).
S.D. Codified Laws § 58-24-3 — SD Code / Title 58 / Chapter 24 / Section 58-24-3
Insurance to which chapter does not apply
Status: in_force

This chapter shall not apply to:

(1) Reinsurance, other than joint reinsurance to the extent stated in §§ 58-24-57 and 58-24-58 ;

(2) Life insurance;

(3) Health insurance;

(4) Insurance of vessels or craft, their cargoes, marine builders' risks, marine protection and indemnity, or other risks commonly insured under marine, as distinguished from inland marine insurance policies; or

(5) Title insurance.

Source: SL 1966, ch 111, ch 15, § 2.
S.D. Codified Laws § 58-27-52 — SD Code / Title 58 / Chapter 27 / Section 58-27-52
Limits on categories of investments
Status: in_force

Except as otherwise provided in this chapter, an insurer shall invest in or hold as admitted assets categories of investments only within applicable limits as prescribed by §§ 58-27-53 to 58-27-60 , inclusive.

Source: SL 1966, ch 111, ch 6, § 5; SL 1997, ch 294, § 14.
S.D. Codified Laws § 58-12-18 — SD Code / Title 58 / Chapter 12 / Section 58-12-18
Compliance with §58-12-16
Status: in_force

An insurer may comply with § 58-12-16 by entering into an agreement with a repairer that guarantees repairs and by notifying the insured of such an agreement.

Source: SL 2000, ch 239, § 4.
S.D. Codified Laws § 58-6-54 — SD Code / Title 58 / Chapter 6 / Section 58-6-54
Reinstatement of certificate of authority which has not terminated where cause for suspension no longer exists
Status: in_force

After an insurer has been suspended and if the insurer's certificate of authority has not terminated, the insurer's certificate of authority shall be reinstated if the insurer can demonstrate to the satisfaction of the director that cause for suspension no longer exists.

Source: SL 1966, ch 111, ch 3, § 21(3); SL 1988, ch 391.
S.D. Codified Laws § 58-11-9.7 — SD Code / Title 58 / Chapter 11 / Section 58-11-9.7
Adding of insured's uninsured and underinsured motorist coverage limits prohibited--Exception
Status: in_force

In no case may an insured's uninsured motorist coverage limits and underinsured motorist coverage limits be added together to determine the limit of insurance coverage available to an injured person for any one accident. However, this provision does not preclude recovery under both an insured's underinsured and uninsured coverages where two or more separate motor vehicle operators, one uninsured and the other underinsured, are determined to be liable.

Source: SL 1986, ch 417, § 2.
S.D. Codified Laws § 58-18-26 — SD Code / Title 58 / Chapter 18 / Section 58-18-26
Physical examination of insured--Autopsy in death claims
Status: in_force

Subject to § 58-18-20 , every blanket health insurance policy shall contain a provision that the insurer at its own expense, shall have the right and opportunity to examine the person of the insured when and so often as it may reasonably require during the pendency of claim under the policy and also the right and opportunity to make an autopsy in case of death where it is not prohibited by law.

Source: SL 1966, ch 111, ch 26, § 5 (6).
S.D. Codified Laws § 58-29B-28 — SD Code / Title 58 / Chapter 29B / Section 58-29B-28
Petition for review of order--Procedure
Status: in_force

An insurer subject to an ex parte order under § 58-29B-25 may petition the court at any time after the issuance of such order for a hearing and review of the order. The court shall hold the hearing and review the order within fifteen days of the date of the request. A hearing under this section may be held privately in chambers and it shall be so held if the insurer proceeded against so requests.

Source: SL 1989, ch 436, § 28.
S.D. Codified Laws § 58-35-15 — SD Code / Title 58 / Chapter 35 / Section 58-35-15
Qualifications of state mutual insurer for certificate of authority
Status: in_force

When applying for an original certificate of authority, a state mutual insurer must be otherwise qualified therefor under this title, and it must have received acceptable applications from one hundred persons, each for substantial insurance, aggregating at least five hundred thousand dollars; and such applicants must have given to the insurer the obligations referred to in § 58-35-41 , or paid the premium required, subject to the insurer qualifying to transact insurance.

Source: SL 1966, ch 111, ch 17, § 11 (2).
S.D. Codified Laws § 58-35-66 — SD Code / Title 58 / Chapter 35 / Section 58-35-66
Examination of articles of merger by attorney general--Submission to secretary of state
Status: in_force

The director of the Division of Insurance, after approving the articles of merger, shall submit the proposed articles of merger to the attorney general for examination. If the attorney general finds that the articles of merger comply with the provisions of §§ 58-35-60 to 58-35-74 , inclusive, and the constitution and laws of the United States and of this state, the attorney general shall endorse and return the proposed articles to the director. The director shall submit the original and two copies to the secretary of state for approval.

Source: SL 1995, ch 293, § 7.
S.D. Codified Laws § 58-15-43 — SD Code / Title 58 / Chapter 15 / Section 58-15-43
Citation of standard nonforfeiture law for life insurance
Status: in_force

Sections 58-15-31 to 58-15-43 , inclusive, shall be known as the standard nonforfeiture law for life insurance.

For purposes of §§ 58-15-31 to 58-15-43 , the operative date of the valuation manual is January first of the first calendar year that the valuation manual, as defined in § 58-26-44.1 , is effective.

Source: SL 1966, ch 111, ch 23, § 28; SL 1977, ch 412, § 2; SL 2015, ch 254, § 40.
S.D. Codified Laws § 58-18-12 — SD Code / Title 58 / Chapter 18 / Section 58-18-12
Blanket health insurance defined
Status: in_force

Blanket health insurance is hereby declared to be that form of health insurance covering groups of persons as enumerated in one of §§ 58-18-13 to 58-18-19 , inclusive.

Source: SL 1966, ch 111, ch 26, § 4.
S.D. Codified Laws § 58-6-74 — SD Code / Title 58 / Chapter 6 / Section 58-6-74
Dissolution or retirement of insurer during year--Filing of reports and collection of taxes not defeated
Status: in_force

In the event any insurer shall dissolve or retire from this state, either voluntarily or involuntarily, during any calendar year, such dissolution or voluntary or involuntary retirement from this state shall not defeat the filing of reports and the assessment and collection of the taxes imposed by this title with respect to the premiums written or deposits held during that part of such calendar year prior to such dissolution or retirement from this state. In any such case the report herein required to be filed shall be filed within thirty days after such dissolution or retirement from this state. In the case of an insurer taken over for liquidation or rehabilitation the report shall be filed within six months thereafter.

Source: SL 1966, ch 111, ch 32, § 1.
S.D. Codified Laws § 58-33A-18 — SD Code / Title 58 / Chapter 33A / Section 58-33A-18
Conditions resulting in no obligation to consumer
Status: in_force

Except as provided pursuant to § 58-33A-19 , a producer has no obligation to a consumer under §§ 58-33A-16.1 to 58-33A-16.3 , inclusive, and § 58-33A-17 related to any annuity transaction if:

(1) A consumer refuses to provide relevant consumer profile information and the annuity transaction is not recommended;

(2) A consumer decides to enter into an annuity transaction that is not based on a recommendation of the producer;

(3) A recommendation was made and was later found to have been prepared based on materially inaccurate information provided by the consumer; or

(4) No recommendation is made.

Source: SL 2008, ch 273, § 6; SL 2012, ch 250, § 4; SL 2022, ch 186, § 10, eff. Jan. 1, 2023.
S.D. Codified Laws § 58-15-10 — SD Code / Title 58 / Chapter 15 / Section 58-15-10
Incontestability provision required--Exceptions
Status: in_force

There shall be a provision that the policy, exclusive of provisions relating to health benefits or to additional benefits in the event of death by accident or accidental means, is incontestable, except for nonpayment of premiums or fraud on the part of the applicant or insured, after it has been in force during the lifetime of the insured for a period of two years from its date of issue.

Source: SL 1966, ch 111, ch 23, § 5; SL 2010, ch 236, § 2.
S.D. Codified Laws § 58-27-105 — SD Code / Title 58 / Chapter 27 / Section 58-27-105
Foreign investments
Status: in_force

An insurer may invest in securities or other investments which are issued or denominated in the currency of countries other than the United States or whose obligor is domiciled in another country. The securities and investments shall meet the limitation, quality, and quantity requirements of chapters 58-26 and 58-27 .

The investments in other countries may not exceed in the aggregate twenty percent of the insurer's admitted assets or one hundred percent of capital and surplus, whichever is less.

Source: SL 1993, ch 364, § 4; SL 1997, ch 294, § 27.
S.D. Codified Laws § 58-11-16 — SD Code / Title 58 / Chapter 11 / Section 58-11-16
Property, marine and transportation, casualty and surety insurance coverages--Filing of forms by rating organizations
Status: in_force

As to forms for use in property, marine and transportation, casualty and surety insurance coverages, the filing required by § 58-11-12 may be made by rating organizations on behalf of its members and subscribers; but this provision shall not be deemed to prohibit any such member or subscriber from filing any such forms on its own behalf.

Source: SL 1966, ch 111, ch 22, § 13 (1).
S.D. Codified Laws § 58-11-54 — SD Code / Title 58 / Chapter 11 / Section 58-11-54
Director or insurer not liable for statements as to reasons for cancellation or refusal of automobile coverage
Status: in_force

No liability on the part of and no cause of action of any nature may arise against the director of the Division of Insurance or against any insurer, its authorized representative, its insurance producers, its employees, or any firm, person, or corporation furnishing to the insurer information as to reasons for cancellation, for any statement made by any of them in any written notice of cancellation, notice of nonrenewal, or statement in their notice of refusal to insure, or in any other communication, oral or written specifying the reasons for cancellation, nonrenewal, or refusal to insure, or the providing of information pertaining thereto, or for statements made or evidence submitted at any hearings conducted in connection therewith.

Source: SL 1968, ch 138, § 8; SL 1970, ch 270, § 2; SL 2001, ch 286, § 105.
S.D. Codified Laws § 58-24-31 — SD Code / Title 58 / Chapter 24 / Section 58-24-31
Recording and reporting of loss and experience--Rules and statistical plans of director
Status: in_force

The director shall promulgate rules and statistical plans, reasonably adapted to each of the rating systems on file with the division, which may be modified from time to time and which shall be used thereafter by each insurer in the recording and reporting of its loss and country - wide expense experience in order that the experience of all insurers may be made available at least annually in such form and detail as may be necessary in determining whether rating systems comply with the standards set forth in §§ 58-24-5 to 58-24-8 , inclusive. Such rules and plans may also provide for the recording and reporting of expense experience items which are specially applicable to this state and are not susceptible of determination by a prorating of country - wide expense experience. In promulgating such rules and deciding what plans to use, the director shall give due consideration to the rating systems on file and, in order that the plans may be as uniform as is practicable among the several states, to the rules and to the form of the plans used for such rating systems in other states. No insurer shall be required to record or report its loss experience on a classification basis that is inconsistent with the rating system filed by it. The director may designate one or more rating organizations or other agencies for assistance in gathering such experience and making compilations thereof, and such compilations shall be made available, subject to rules promulgated by the director, to insurers and rating organizations.

Source: SL 1966, ch 111, ch 15, § 13(1); SL 1986, ch 22, § 34.
S.D. Codified Laws § 58-20-15 — SD Code / Title 58 / Chapter 20 / Section 58-20-15
Equitable apportionment among insurers of applicants for policies--Participation by all insurers--Appeal to director--Judicial review
Status: in_force

After consultation with insurers authorized to issue workers' compensation policies in this state, the director shall provide or approve a reasonable plan or plans for the equitable apportionment among such insurers of applicants for such workers' compensation policies who are in good faith entitled to but unable to procure such policies through ordinary methods. The director may approve applicants who are only able to procure workers' compensation policies at a rate that substantially exceeds that of the rate in the plan. When any such plans have been made by or been approved by the director, all such insurers shall subscribe thereto and participate therein. Any applicant for any such policy, any person insured under any such plan, and any insurer affected thereby, may appeal to the director from any ruling or decision of the manager or committee designated to operate such plan. Any person aggrieved hereunder by any order or act of the director may, within ten days after notice thereof, file a petition in the circuit court for the county of Hughes, or in the circuit court for the county in which applicant is a resident, for a review thereof. The court shall summarily hear the petition and make any appropriate order or decree.

Source: SL 1966, ch 111, ch 29, § 15; SL 2004, ch 306, § 2.
S.D. Codified Laws § 58-26-66 — SD Code / Title 58 / Chapter 26 / Section 58-26-66
Tables used for individual single premium immediate annuity contracts issued on or after July 1, 1978--Interest
Status: in_force

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

Source: SL 1995, ch 284, § 22; SL 2015, ch 254, § 12.
S.D. Codified Laws § 58-29A-79 — SD Code / Title 58 / Chapter 29A / Section 58-29A-79
Offset of payments and expenses against assessment due
Status: in_force

Each member insurer may set off against any assessment, authorized payments made on covered claims and expenses incurred in the payment of such claims by the member insurer if they are chargeable to the account for which the assessment is made.

Source: SL 2000, ch 247, § 26.
S.D. Codified Laws § 58-16-52 — SD Code / Title 58 / Chapter 16 / Section 58-16-52
Notice of discontinuance
Status: in_force

A notice of discontinuance given by the carrier shall include a request to the group policyholder or other entity involved to notify employees covered under the policy of the date as of which the group policy, contract, or certificate will discontinue and to advise that, unless otherwise provided in the policy, contract, or certificate, the carrier is not liable for claims for losses incurred after the date of discontinuance. The notice of discontinuance also shall advise, in any instance in which the plan involves employee contributions, that if the policyholder or other entity continues to collect contributions for the coverage beyond the date of discontinuance, the policyholder or other entity may be held solely liable for the benefits with respect to which the contributions have been collected.

The carrier shall prepare and furnish to the policyholder or other entity at the same time the carrier gives a notice of discontinuance, a supply of, or access to, notice forms to be distributed to the employees or members concerned, indicating the discontinuance and the effective date of the discontinuance, and urging the employees or members to refer to their certificates or contracts in order to determine what rights, if any, are available to them upon the discontinuance.

Source: SL 2009, ch 261, § 4.
S.D. Codified Laws § 58-4-15 — SD Code / Title 58 / Chapter 4 / Section 58-4-15
Orders and notices of director required to be in writing--Signature
Status: in_force

Orders and notices of the director shall not be effective unless in writing signed by him or by his authority.

Source: SL 1966, ch 111, ch 2, § 15 (1).
S.D. Codified Laws § 58-6-19 — SD Code / Title 58 / Chapter 6 / Section 58-6-19
Combination of insuring power of one insurer--Exception
Status: in_force

An insurer which otherwise qualifies therefor may be authorized to transact any one kind or combination of kinds of insurance as defined in this title except as provided by §§ 58-6-20 to 58-6-22 , inclusive.

Source: SL 1966, ch 111, ch 3, § 9.
S.D. Codified Laws § 58-32-1 — SD Code / Title 58 / Chapter 32 / Section 58-32-1
Purposes of chapter
Status: in_force

It is declared that the purposes of this chapter are to provide orderly access for the insuring public of South Dakota to insurers not authorized to transact insurance in this state, through licensed surplus line brokers in South Dakota for insurance coverages not procurable from authorized insurers; to protect such authorized insurers, which must meet certain standards as to policy forms and rates, from unwarranted competition by unauthorized insurers who, in the absence of this chapter, would not be subject to similar requirements; and for other purposes as set forth in this chapter.

Source: SL 1966, ch 111, ch 11, § 1 (2); SL 2001, ch 286, § 193.
S.D. Codified Laws § 58-29B-32 — SD Code / Title 58 / Chapter 29B / Section 58-29B-32
Order of rehabilitation--Contents--Effect of filing or recording--Vesting of title--Accounting required
Status: in_force

Except for good cause shown, an order to rehabilitate the business of a domestic insurer, or an alien insurer domiciled in this state, shall be issued within ten days of the hearing on the order to show cause and shall contain an appointment of the director and his successors in office as the rehabilitator, and shall direct the rehabilitator forthwith to take possession of the assets of the insurer, and to administer them under the general supervision of the court. The filing or recording of the order with the clerk of the circuit court of Hughes County or register of deeds of the county in which the principal business of the company is conducted, or the county in which its principal office or place of business is located, shall impart the same notice as a deed, bill of sale, or other evidence of title duly filed or recorded with that register of deeds would have imparted. The order to rehabilitate the insurer shall by operation of law vest title to all assets of the insurer in the rehabilitator. Any order issued under this section shall require an accounting to the court by the rehabilitator. Accountings shall be at such intervals as the court specifies in its order, but no less than semiannually. Entry of an order of rehabilitation does not constitute an anticipatory breach of any contracts of the insurer nor may it be grounds for retroactive revocation or cancellation of any contracts of the insurer, unless revocation or cancellation is done by the rehabilitator pursuant to §§ 58-29B-32.1 to 58-29B-35 , inclusive. Each accounting shall include a report from the rehabilitator on whether a plan pursuant to § 58-29B-35 is being prepared and, if so, the timetable for the preparation.

Source: SL 1989, ch 436, § 32; SL 1992, ch 351, § 2.
S.D. Codified Laws § 58-33-139 — SD Code / Title 58 / Chapter 33 / Section 58-33-139
Inducement and certain language in advertising prohibited
Status: in_force

An insurer, producer, or representative of an insurer or a producer, may not offer or provide insurance as an inducement to the purchase of another policy or otherwise use the word, free, or the phrase, no cost, or words and phrases of a similar meaning, in any advertisement.

Source: SL 2023, ch 167, § 4.
S.D. Codified Laws § 58-32-41 — SD Code / Title 58 / Chapter 32 / Section 58-32-41
Annual statement of broker--Filing with director--Violation as misdemeanor
Status: in_force

Each broker shall before the first day of April of each year file with the director a verified statement of all surplus line insurance transacted by him during the preceding calendar year. Violation of this section is a Class 2 misdemeanor.

Source: SL 1966, ch 111, ch 11, § 17 (1); SL 1978, ch 359, § 2.
S.D. Codified Laws § 58-6A-5.1 — SD Code / Title 58 / Chapter 6A / Section 58-6A-5.1
Rate of taxation on premiums--Interest, fines and penalties--Payment
Status: in_force

The premium tax imposed by chapter 10-44 and taxes on premiums paid for coverage of risks resident or located in this state by a purchasing group or any member of a purchasing group shall be imposed at the same rate and subject to the same interest, fines, and penalties as that applicable to premium taxes and taxes on premiums paid for similar coverage from a similar insurance source by other insureds. The tax may be paid first by such insurance source or the insurance producer for the purchasing group or by the purchasing group or by each member of a purchasing group.

Source: SL 1988, ch 392, § 1; SL 2001, ch 286, § 89.
S.D. Codified Laws § 58-30-115 — SD Code / Title 58 / Chapter 30 / Section 58-30-115
Resident insurance producers--Continuing education requirements--Exceptions
Status: in_force

The provisions of §§ 58-30-114 to 58-30-121 , inclusive, do not apply to the following persons:

(1) Licensees for whom an examination is not required under the laws of this state. However, persons who are excused from the examination under subdivision 58-30-52(1) may not be exempt;

(2) Licensees over age sixty-five, if they have been licensed with the Division of Insurance for a period of at least ten years, and do not sell, solicit, or negotiate insurance; and

(3) Licensees holding limited or restricted licenses, as the director of the Division of Insurance may determine except as provided by subdivision 58-30-116(2).

Source: SL 1984, ch 331, § 2; SL 2006, ch 262, § 1; SL 2010, ch 233, § 8; SL 2012, ch 249, § 1.
S.D. Codified Laws § 58-15-41 — SD Code / Title 58 / Chapter 15 / Section 58-15-41
Nonforfeiture benefit provision inapplicable to reinsurance, group insurance, annuity contracts, or term insurance
Status: in_force

The provisions of §§ 58-15-31 to 58-15-43 , inclusive, do not apply to any reinsurance; group insurance; pure endowment; annuity or reversionary annuity contract; term policy of uniform amount, which provides no guaranteed nonforfeiture or endowment benefits, or renewal thereof, of twenty years or less expiring before age seventy - one, for which uniform premiums are payable during the entire term of the policy; term policy of decreasing amount, which provides no guaranteed nonforfeiture or endowment benefits, on which each adjusted premium, calculated as specified in §§ 58-15-35 to 58-15-38 , inclusive, and §§ 58-15-43.1 to 58-15-43.11 , inclusive, is less than the adjusted premium so calculated, on a term policy of uniform amount, or renewal thereof, which provides no guaranteed nonforfeiture or endowment benefits, issued at the same age and for the same initial amount of insurance and for a term of twenty years or less expiring before age seventy - one, for which uniform premiums are payable during the entire term of the policy; policy, which provides no guaranteed nonforfeiture or endowment benefits, for which no cash surrender value, if any, or present value of any paid - up nonforfeiture benefit, at the beginning of any policy year, calculated as specified in §§ 58-15-33 to 58-15-38 , inclusive, and §§ 58-15-43.1 to 58-15-43.11 , inclusive, exceeds two and one - half percent of the amount of insurance at the beginning of the same policy year; nor policy which is delivered outside this state through an insurance producer or other representative of the company issuing the policy. For purposes of determining the applicability of §§ 58-15-31 to 58-15-43 , inclusive, the age at expiry for a joint term life insurance policy is the age at expiry of the oldest life.

Source: SL 1966, ch 111, ch 23, § 28 (7); SL 1982, ch 357, § 19; SL 2001, ch 286, § 108.
S.D. Codified Laws § 58-29B-12 — SD Code / Title 58 / Chapter 29B / Section 58-29B-12
Directors and deputies responsible for official bonds--Source of payment
Status: in_force

In any proceeding under this chapter, the director and his deputies shall be responsible on their official bonds for the faithful performance of their duties. If the court deems it desirable for the protection of the assets, it may at any time require an additional bond from the director or his deputies, and such bonds shall be paid for out of the assets of the insurer as a cost of administration.

Source: SL 1989, ch 436, § 12.
S.D. Codified Laws § 58-5-31 — SD Code / Title 58 / Chapter 5 / Section 58-5-31
Unrealized contingent liability of members of mutual not an asset of insurer
Status: in_force

Any unrealized contingent liability of members shall not constitute an asset of the insurer in any determination of its financial condition.

Source: SL 1966, ch 111, ch 16, § 29 (3).
S.D. Codified Laws § 58-15-61 — SD Code / Title 58 / Chapter 15 / Section 58-15-61
Incontestability provision in annuity or endowment contract
Status: in_force

If any statements, other than those relating to age, sex, and identity are required as a condition to issuing an annuity or pure endowment contract, other than a reversionary, survivorship, or group annuity, and subject to § 58-15-60 , there shall be a provision that the contract shall be incontestable after it has been in force during the lifetime of the person or of each of the persons as to whom such statements are required, for a period of two years from its date of issue, except for nonpayment of stipulated payments to the insurer; and at the option of the insurer such contract may also except any provisions relative to benefits in the event of disability and any provisions which grant insurance specifically against death by accidental means.

Source: SL 1966, ch 111, ch 23, § 20.
S.D. Codified Laws § 58-18B-1 — SD Code / Title 58 / Chapter 18B / Section 58-18B-1
Definition of terms
Status: in_force

Terms used in this chapter mean:

(1) "Actuarial certification," a written statement by a member of the American Academy of Actuaries or other individual approved by the director that a small employer carrier is in compliance with the provisions of this chapter, based upon the person's examination, including a review of the appropriate records and of the actuarial assumptions and methods used by the carrier in establishing premium rates for applicable health benefit plans;

(2) "Base premium rate," the lowest premium rate charged or which could have been charged for each class of business for a rating period under a rating system for that class of business, by the small employer carrier to small employers with similar case characteristics for health benefit plans with the same or similar coverage;

(3) "Carrier," any person who provides health insurance in this state. In this chapter, carrier includes a licensed insurance company, a prepaid hospital or medical service plan, a health maintenance organization, a multiple employer welfare arrangement, or any person providing a plan of health insurance subject to state insurance regulation;

(4) "Case characteristics," demographic or other relevant characteristics of a small employer, as determined by a small employer carrier, which are considered by the carrier for the determination of premium rates. Claim experience, health status, and duration of coverage since issue are not case characteristics in this chapter;

(5) "Class of business," all or a distinct grouping of small employers as shown on the records of the small employer carrier;

(a) A distinct grouping may only be established by a small employer carrier on the basis that the applicable health benefit plans:

(i) Are marketed and sold through individuals and organizations which are not participating in the marketing or sale of other distinct groupings of small employers for such small employer carrier;

(ii) Have been acquired from another small employer carrier as a distinct grouping of plans;

(iii) Are provided through an association with membership of not less than twenty-five small employers which has been formed for purposes other than obtaining insurance; or

(iv) Are in a class of business that meets the requirements for exception to the restrictions related to premium rates provided in subsection 58-18B-3(1)(a);

(b) A small employer carrier may establish no more than two additional groupings under each of the subparagraphs in subsection (a) on the basis of underwriting criteria which are expected to produce substantial variation in the health care costs;

(c) The director may approve the establishment of additional distinct groupings upon application to, and a finding by, the director that such action would enhance the efficiency and fairness of the small employer insurance marketplace;

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

(7) "Division," the Division of Insurance of the Department of Labor and Regulation;

(8) "Index rate," the arithmetic average of the applicable base premium rate and the corresponding highest premium rate for each class of business for small employers with similar case characteristics;

(9) "New business premium rate," the premium rate charged or offered by a small employer carrier to small employers with similar case characteristics for newly issued health benefit plans with the same or similar coverage for each class of business for a rating period;

(10) "Rating period," the calendar period for which premium rates established by a small employer carrier are assumed to be in effect, as determined by the small employer carrier;

(11) "Small employer," any person, firm, corporation, partnership, or association actively engaged in business which on an average of its working days during the preceding year, employed no more than fifty and no less than two employees and who employs at least two employees on the first day of the plan year. In determining the number of employees, companies which are affiliated companies or which are eligible to file a combined tax return for purposes of state taxation are considered to be one employer;

(12) "Small employer carrier," any carrier which offers health benefit plans covering the employees of a small employer;

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

(14) "Dependent," except as otherwise required by this title, any spouse, any unmarried child under the age of nineteen years, any unmarried child who is a full-time student under the age of twenty-three and who is financially dependent upon the parent, and any unmarried child of any age who is medically certified as disabled and dependent upon the parent;

(15) "Eligible employee," any employee who works on a permanent basis and has a normal work week of thirty or more hours. The term includes any sole proprietor, any partner, and any independent contractor, if the sole proprietor, partner, or independent contractor is included as an employee under a health benefit plan of a small employer, but does not include any employee who works less than thirty hours or on a temporary or substitute basis;

(16) "Employee," has the meaning given such term under Section 3(6) of Title I of the Employee Retirement Income Security Act of 1974 (ERISA) as amended to January 1, 2001;

(17) "Health benefit plan," any hospital or medical policy or certificate, hospital or medical service plan, or health maintenance organization subscriber contract. The term does not include specified disease, hospital indemnity, fixed indemnity, accident-only, credit, dental, vision, prescription drug, medicare supplement, long-term care, or disability income insurance, coverage issued as a supplement to liability insurance, worker's compensation or similar insurance, or automobile medical payment insurance;

(18) "Restricted network provision," any provision of a health benefit plan that conditions the payment of benefits, in whole or in part, on the use of health care providers that have entered into a contractual arrangement with the carrier to provide health care services to covered individuals.

Source: SL 1991, ch 402, § 1; SL 1995, ch 281, § 1; SL 1997, ch 289, § 14; SL 2001, ch 279, § 1; SL 2003, ch 272 (Ex. Ord. 03-1), § 27; SL 2011, ch 1 (Ex. Ord. 11-1 ), § 162, eff. Apr. 12, 2011.
S.D. Codified Laws § 58-29B-145 — SD Code / Title 58 / Chapter 29B / Section 58-29B-145
Domiciliary liquidator for insurer not domiciled in reciprocal state--Title vested--Timing--Petition for conservation or liquidation
Status: in_force

If a domiciliary liquidator is appointed for an insurer not domiciled in a reciprocal state, the director of this state shall be vested by operation of law with the title to all of the property, contracts, and rights of action, and all of the books, accounts, and other records of the insurer located in this state, at the same time that the domiciliary liquidator is vested with title in the domicile. The director of this state may petition for a conservation or liquidation order under §§ 58-29B-134 to 58-29B-144 , inclusive, or for an ancillary receivership under §§ 58-29B-145 to 58-29B-148 , inclusive, or after approval by the circuit court of Hughes County may transfer title to the domiciliary liquidator, as the interests of justice and the equitable distribution of the assets require.

Source: SL 1989, ch 436, § 145.
S.D. Codified Laws § 58-12-16 — SD Code / Title 58 / Chapter 12 / Section 58-12-16
Motor vehicle insurer must provide sufficient compensation to restore vehicle to prior condition--Adjustment for paintless dent repair permitted--Conditions
Status: in_force

Any insurer providing commercial or personal motor vehicle insurance in this state responsible for repairing a damaged vehicle for which it is liable shall provide sufficient compensation to the insured to restore the vehicle to substantially the same physical condition as prior to the damage, regardless of whether the insured actually chooses to repair the vehicle. The insurer may adjust claims based in whole or in part upon the paintless dent repair method if:

(1) The damage is such that the paintless dent repair method is likely to place the damaged area or a portion thereof in substantially the same condition as prior to the damage;

(2) A paintless dent repair shop holding a South Dakota sales tax license is willing to perform the work as estimated within a reasonable time frame in the local market area of the insured; and

(3) The written estimate provided to the insured prominently discloses the following:

(a) That the repair estimate is based in whole or in part upon the paintless dent repair method. Each item of damage adjusted using that method shall be identified;

(b) That paintless dent repair may not be the appropriate repair method for all types of damage;

(c) That, if the insurer is liable for the damage listed on the estimate, the insurer shall provide sufficient compensation to restore the vehicle to substantially the same physical condition; and

(d) That for any damage which paintless dent repair is appropriate, the insured may choose not to repair the vehicle or to have the vehicle repaired using a different method of repair. If the insured chooses either of these options, the insurer is liable only for the cost of the paintless dent repair method.

However, if the insurer pays the claim based upon the paintless dent repair method and paintless dent repair was attempted but was unsuccessful, the insurer is liable for any repairs necessary to the area repaired by paintless dent repair, using the conventional method of repair, to restore the vehicle to substantially the same physical condition as prior to the damage.

Source: SL 2000, ch 239, § 2.
S.D. Codified Laws § 58-11-57 — SD Code / Title 58 / Chapter 11 / Section 58-11-57
Assigned risk plan for automobile liability insurance
Status: in_force

After consultation with insurance companies authorized to issue automobile liability policies in this state, the director of the Division of Insurance shall approve reasonable plans for the equitable apportionment of motor vehicle liability policies of applicants who are in good faith entitled to but are unable to procure policies through ordinary methods. All such insurance companies shall subscribe to and participate in the approved plan. An applicant for a policy, a person insured under the plan, or any insurance company affected, may appeal to the director from any ruling or decision of the manager or committee designated to operate the plan. Any person aggrieved by an order or act of the director may appeal pursuant to chapter 1-26 .

Source: SL 1980, ch 350.
S.D. Codified Laws § 58-43-9 — SD Code / Title 58 / Chapter 43 / Section 58-43-9
Qualifications of accountant
Status: in_force

An accountant shall be recognized as qualified as long as the accountant conforms to the standards of the profession, as contained in the Code of Professional Ethics of the American Institute of Certified Public Accountants and the requirements of chapter 36-20B and rules promulgated pursuant to that chapter.

Source: SL 1992, ch 357, § 9; SL 2007, ch 294, § 2.
S.D. Codified Laws § 58-35-5 — SD Code / Title 58 / Chapter 35 / Section 58-35-5
Incorporators--Number and property ownership required for state mutual insurer
Status: in_force

One hundred or more individuals residing in this state, each of whom is at least twenty - one years of age, who collectively own farm property as referred to in § 58-35-29 valued at not less than five hundred thousand dollars which they desire to insure, and each of whom owns farm or ranch land situated in this state valued at not less than five thousand dollars, may incorporate as a state mutual insurer.

Source: SL 1966, ch 111, ch 17, § 7 (1).
S.D. Codified Laws § 58-35-2 — SD Code / Title 58 / Chapter 35 / Section 58-35-2
Farm mutual insurers subject to chapter
Status: in_force

All insurers described in § 58-35-1 may be referred to as "farm mutual insurers."

Source: SL 1966, ch 111, ch 17, § 1 (2).
S.D. Codified Laws § 58-18-14 — SD Code / Title 58 / Chapter 18 / Section 58-18-14
Blanket health insurance for employees, dependents, or guests with reference to hazardous activities
Status: in_force

Blanket health insurance may be under a policy or contract issued to an employer, who shall be deemed the policyholder, covering all employees, dependents, or guests, defined by reference to specified hazards incident to the activities or operations of the employer or any class of employees, dependents, or guests similarly defined.

Source: SL 1966, ch 111, ch 26, § 4 (2).
S.D. Codified Laws § 58-17E-11 — SD Code / Title 58 / Chapter 17E / Section 58-17E-11
Internet website to be established
Status: in_force

Prior to registration by the director, each discount medical plan organization shall establish an internet website in order to conform to the requirements of § 58-17E-31 .

Source: SL 2006, ch 257, § 10.
S.D. Codified Laws § 58-29A-88 — SD Code / Title 58 / Chapter 29A / Section 58-29A-88
Notice to association of insolvency of insurer
Status: in_force

The director shall notify the association of the existence of an insolvent insurer not later than three days after the director receives notice of the determination of the insolvency. The association is entitled to a copy of any complaint seeking an order of liquidation with a finding of insolvency against a member company at the same time that the complaint is filed with a court of competent jurisdiction.

Source: SL 2000, ch 247, § 35.
S.D. Codified Laws § 58-1-12 — SD Code / Title 58 / Chapter 1 / Section 58-1-12
Applicability of title under unrepealed laws
Status: in_force

Any laws of South Dakota, other than this title, remaining in force after July 1, 1966, which refer to certain provisions of law repealed by chapter 111 of the Session Laws of 1966, shall be deemed to refer to those provisions of this title which are in substance the same or substantially the same as such repealed provisions.

Source: SL 1966, ch 111, ch 1, § 11.
S.D. Codified Laws § 58-18A-77 — SD Code / Title 58 / Chapter 18A / Section 58-18A-77
Coordination of benefits of complying and noncomplying plans
Status: in_force

A plan with order of benefit determination provisions that comply with §§ 58-18A-53 to 58-18A-83 , inclusive, may coordinate its benefits with a plan that is excess or always secondary or that uses order of benefit determination provisions that are inconsistent with those contained in §§ 58-18A-53 to 58-18A-83 , inclusive, on the following basis:

(1) If the complying plan is the primary plan, it shall pay or provide its benefits first;

(2) If the complying plan is the secondary plan, it shall pay or provide its benefits first, but the amount of the benefits payable shall be determined as if the complying plan were the secondary plan. In such a situation, the payment shall be the limit of the complying plan's liability; and

(3) If the noncomplying plan does not provide the information needed by the complying plan to determine its benefits within a reasonable time after it is requested to do so, the complying plan shall assume that the benefits of the noncomplying plan are identical to its own, and shall pay its benefits accordingly. If, within two years of payment, the complying plan receives information as to the actual benefits of the noncomplying plan, it shall adjust payments accordingly.

Source: SL 2006, ch 259, § 25.
S.D. Codified Laws § 58-33-12.1 — SD Code / Title 58 / Chapter 33 / Section 58-33-12.1
Blindness as basis for life insurance termination, modification or refusal--Unfair practice
Status: in_force

It is an unfair or discriminatory practice for an insurance company to terminate, or to modify coverage or to refuse to issue or refuse to renew any life policy or contract of life insurance solely because the applicant or insured or any employee of either is blind or partially blind. This section does not apply to accident and health insurance. This section may not be interpreted to prohibit the termination, modification, issuance, or renewal of any insurance policy or contract if the action is based on sound actuarial principles or is related to actual or reasonable anticipated experience.

Source: SL 1983, ch 373.
S.D. Codified Laws § 58-17-8 — SD Code / Title 58 / Chapter 17 / Section 58-17-8
Exceptions and reductions of coverage to be clearly set out
Status: in_force

The exceptions and reductions of indemnity shall be set forth in a policy of health insurance and, other than those contained in §§ 58-17-14 to 58-17-39 , inclusive, shall be printed, at the insurer's option, either included with the benefit provision to which they apply, or under an appropriate caption such as "Exceptions," or "Exceptions and Reductions," except that if an exception or reduction specifically applies only to a particular benefit of the policy, a statement of such exception or reduction shall be included with the benefit provision to which it applies.

Source: SL 1966, ch 111, ch 25, § 2 (5).
S.D. Codified Laws § 58-5-49 — SD Code / Title 58 / Chapter 5 / Section 58-5-49
Equity securities of domestic stock insurer--Rules and regulations as to solicitation of proxies, consents, and authorities--Adoption and promulgation
Status: in_force

The director shall have authority to make rules and regulations as to solicitation by mail, or otherwise, of proxies, consents, or authorizations, in respect of any equity securities of a domestic stock insurer, with requirements designed to assure timely, accurate, and reasonably adequate information to those solicited as to the identity of those for whom the solicitation is made, purposes for which the proxies, consents, or authorizations may be used, pertinent information as to the fiscal situation of such insurer, and generally, such factual material as is conducive to helpful and informed participation in corporate affairs on the part of those solicited, and which will tend to eliminate or curtail any abuses in the use of such proxies, consents, or authorizations and such rules and regulations to be so adopted and promulgated by the director with due regard to statutes, rules and regulations in force in other jurisdictions of the United States relative to such solicitation, this to the end of reasonable uniformity to the extent feasible in regulation of the insurance industry in this respect.

Source: SL 1966, ch 111, ch 16, § 20.
S.D. Codified Laws § 58-29A-95 — SD Code / Title 58 / Chapter 29A / Section 58-29A-95
Subrogation of association to rights of claimant
Status: in_force

Any person recovering under this chapter shall be deemed to have assigned that person's rights under the policy to the association to the extent of any recovery from the association. Every insured or claimant seeking the protection of this chapter shall cooperate with the association to the same extent as such person would have been required to cooperate with the insolvent insurer.

Source: SL 2000, ch 247, § 42.
S.D. Codified Laws § 58-1-7 — SD Code / Title 58 / Chapter 1 / Section 58-1-7
Local licenses and taxes prohibited
Status: in_force

No county or first or second class municipality of this state may require that any insurer, or any insurance producer obtain a certificate of authority or license to transact an insurance business in such county or municipality; and no county or municipality may levy any occupational tax or fee for transacting any such business. This section does not preempt or prevent the taxation and regulation of persons engaged in the bail bond business other than corporate sureties and their agents who are required to qualify and be licensed by the provisions of this title.

Source: SL 1966, ch 111, ch 1, § 4; SL 1992, ch 60, § 2; SL 2001, ch 286, § 58.
S.D. Codified Laws § 58-30-181 — SD Code / Title 58 / Chapter 30 / Section 58-30-181
Prompt notification of additional information regarding termination of insurance producer
Status: in_force

The insurer or authorized representative of the insurer shall promptly notify the director in a written or electronic format if, upon further review or investigation, the insurer discovers additional information that would have been reportable to the director in accordance with § 58-30-180 had the insurer then known of its existence.

Source: SL 2001, ch 286, § 41.
S.D. Codified Laws § 58-39-13 — SD Code / Title 58 / Chapter 39 / Section 58-39-13
Foreign corporation--Transaction of business in state
Status: in_force

A nonprofit dental service corporation organized under the laws of another state or any territory may, with the approval of the director, and under the rules as may be promulgated, consistent with the provisions of this chapter, transact and carry on its business in this state, provided it shall first file with the director:

(1) A duly certified copy of its charter or articles of incorporation;

(2) A verified statement of the condition of its affairs for the next preceding calendar year;

(3) A duly certified and authenticated appointment in writing of the director as its true and lawful agent in and for this state, upon whom all lawful process in any action or proceeding against the company may be served with the same effect as if a domestic company served in this state, such appointment to stipulate that any lawful process against such company served on such agent shall be of the same legal force and validity as if served on the company, and that the authority shall continue in force as long as any liability remains outstanding against such company in this state. Such service may be made on the director in the manner provided by statute for service of process, or may be made by filing a copy of such process in the office of the director. Whenever any such process is served upon the director, he shall forthwith forward a copy thereof by mail, postpaid, directed to the secretary of the company; or in case of companies in foreign countries to the resident manager thereof, in this country, and to its general agent in this state; and

(4) Evidence satisfactory to the director that such corporation has existing contracts for the rendering of dental service to the subscribers with at least twenty dentists licensed to practice their profession in the State of South Dakota, approved for participation by the director.

Any such foreign corporation shall be subject to the laws of this state pertaining to reciprocal relations imposed upon foreign insurance companies transacting or doing business in this state.

Source: SL 1966, ch 111, ch 30, § 11; SL 1986, ch 22, § 41.
S.D. Codified Laws § 58-26-61 — SD Code / Title 58 / Chapter 26 / Section 58-26-61
Disability tables used for total and permanent disability
Status: in_force

The tables that shall be used for total and permanent disability benefits in or supplementary to ordinary policies or contracts are: for policies or contracts issued on or after January 1, 1966, the tables of Period 2 disablement rates and the 1930 to 1950 termination rates of the 1952 Disability Study of the Society of Actuaries, with due regard to the type of benefit or any tables of disablement rates and termination rates adopted after 1980 by the NAIC, that are approved by rules promulgated pursuant to chapter 1-26 by the director for use in determining the minimum standard of valuation for the policies; for policies or contracts issued on or after January 1, 1961, and prior to January 1, 1966, either of the tables or, at the option of the company, the Class (3) Disability Table (1926) and for policies issued prior to January 1, 1961, the Class (3) Disability Table (1926). Any table shall, for active lives, be combined with a mortality table permitted for calculating the reserves for life insurance policies.

Source: SL 1995, ch 284, § 17; SL 2015, ch 254, § 9.
S.D. Codified Laws § 58-9-11 — SD Code / Title 58 / Chapter 9 / Section 58-9-11
Casualty insurance including vehicle insurance
Status: in_force

"Casualty insurance" includes vehicle insurance, insurance against loss of or damage to any land vehicle or aircraft or any draft or riding animal or to property while contained therein or thereon or being loaded or unloaded therein or therefrom, from any hazard or cause, and against any loss, liability, or expense resulting from or incidental to ownership, maintenance, or use of any such vehicle, aircraft, or animal; and provision of medical, hospital, surgical, disability benefits to injured persons and funeral and death benefits to dependents, beneficiaries, or personal representatives of persons killed, irrespective of legal liability of the insured, when issued as an incidental coverage with or supplemental to insurance on the vehicle, aircraft, or animal.

Source: SL 1966, ch 111, ch 4, § 6 (1) (a).
S.D. Codified Laws § 58-29F-12 — SD Code / Title 58 / Chapter 29F / Section 58-29F-12
Civil action by pharmacy
Status: in_force

In addition to the remedies otherwise provided for in this chapter, in chapter 58-29E , or under general South Dakota law, any pharmacy subject to an audit procedure may bring a civil action to enforce the provisions of this chapter and to seek damages from the pharmacy benefits manager and any person or organization representing the entity during the audit process for the violation of the provisions of this chapter.

Source: SL 2013, ch 254, § 12.
S.D. Codified Laws § 58-30-88 — SD Code / Title 58 / Chapter 30 / Section 58-30-88
Premiums received by agent as trust funds--Accounting and payment
Status: in_force

All premiums or return premiums received by an insurance producer shall be trust funds received by the licensee in a fiduciary capacity, and the insurance producer or soliciting insurance producer shall account for and pay the same to the insured, insurer, or insurance producer entitled thereto.

Source: SL 1966, ch 111, ch 9, § 28 (1); SL 2001, ch 286, § 173.
S.D. Codified Laws § 58-23-9 — SD Code / Title 58 / Chapter 23 / Section 58-23-9
Motor vehicle defined
Status: in_force

For the purposes of § 58-23-8 , the term, motor vehicle, means automobiles, motor trucks, motorcycles, and all vehicles propelled by power other than muscular power and designed primarily for travel on the public highway except traction engines, road rollers, farm wagons, freight trailers, house trailers, trailers, vehicles that run only on rails or tracks, and off-road vehicles as defined in § 32-3-1 . However, a vehicle not designed for travel on the public highway that is licensed is a motor vehicle for purposes of § 58-23-8 . Freight trailers, house trailers, and trailers which are attached to a motor vehicle are part of that motor vehicle.

Source: SL 2011, ch 221, § 1.
S.D. Codified Laws § 58-35-29.1 — SD Code / Title 58 / Chapter 35 / Section 58-35-29.1
Living expenses and fire department service charges incidental to casualty insurance
Status: in_force

A farm mutual insurer may, in connection with policies covering property insured under § 58-35-29 , afford coverage for additional expenses or loss of use resulting from fire or other casualty rendering the insured property unusable, and coverage for an insured's liability, assumed by contract or agreement, for fire department service charges.

Source: SL 1972, ch 267; SL 1993, ch 370, § 2.
S.D. Codified Laws § 58-34-34 — SD Code / Title 58 / Chapter 34 / Section 58-34-34
Advance of funds to insurer
Status: in_force

The attorney or other parties may advance to a domestic reciprocal insurer upon reasonable terms such funds as it may require from time to time in its operations. Sums so advanced shall not be treated as a liability of the insurer, and, except upon liquidation of the insurer, shall not be withdrawn or repaid except out of the insurer's realized earned surplus in excess of its minimum required surplus. No such withdrawal or repayment shall be made without the advance approval of the director. This section does not apply to bank loans, or to other loans made upon security.

Source: SL 1966, ch 111, ch 19, § 16.
S.D. Codified Laws § 58-30-120 — SD Code / Title 58 / Chapter 30 / Section 58-30-120
Continuing education prerequisite for license issuance or renewal--Exemptions
Status: in_force

The director of the Division of Insurance may not renew a license or issue a new license in those lines for which the licensee has failed to comply with the requirements set forth in §§ 58-30-114 to 58-30-121 , inclusive. However, the licensee is exempt from the examination requirement pursuant to subdivision 58-30-52(1). If the licensee is not exempt from the examination requirement pursuant to subdivision 58-30-52(1), the director may renew or issue a new license without the licensee complying with §§ 58-30-114 to 58-30-121 , inclusive, if he meets all statutory requirements for licensing, including examination.

Source: SL 1984, ch 331, § 7; SL 1989, ch 438, § 2.
S.D. Codified Laws § 58-26-89 — SD Code / Title 58 / Chapter 26 / Section 58-26-89
Statement of actuarial opinion to be filed with annual statement--Public document
Status: in_force

The statement of actuarial opinion shall be provided with the annual statement in accordance with the appropriate National Association of Insurance Commissioners Property and Casualty annual statement instructions: property and casualty, title, life/accident/health, health maintenance organizations and hospital medical and dental service or indemnity corporations as adopted by rules promulgated by the director pursuant to chapter 1-26 , and shall be treated as a public document.

Source: SL 2009, ch 271, § 44.
S.D. Codified Laws § 58-41-56 — SD Code / Title 58 / Chapter 41 / Section 58-41-56
Contracts for management and administrative services authorized
Status: in_force

A health maintenance organization may contract with other persons for the provision of services, including, but not limited to, managerial and administration, marketing and enrolling, data processing, actuarial analysis, and billing services.

Source: SL 1974, ch 321, § 14.
S.D. Codified Laws § 58-19-14 — SD Code / Title 58 / Chapter 19 / Section 58-19-14
Amount charged debtor not to exceed premium charged by insurer--Misdemeanor
Status: in_force

The amount charged to a debtor for any credit life or credit health insurance shall not exceed the premiums charged by the insurer, as computed at the time the charge to the debtor is determined. Violation of this section is a Class 2 misdemeanor.

Source: SL 1966, ch 111, ch 27, § 8 (4); SL 1978, ch 359, § 2.
S.D. Codified Laws § 58-35-39 — SD Code / Title 58 / Chapter 35 / Section 58-35-39
Cash premium plan--Special assessment in case of inadequacy
Status: in_force

An insurer transacting business on the cash premium plan shall provide in its bylaws and policies for special assessment of its members if the cash premium charged is found to be inadequate to pay losses and expenses currently incurred. The bylaws shall provide that the amount which can be so assessed in any one policy year shall not be less than one nor more than six times the premium charged on each member's policy at the annual rate for a term of one year.

Source: SL 1966, ch 111, ch 17, § 6 (4).
S.D. Codified Laws § 58-5-35 — SD Code / Title 58 / Chapter 5 / Section 58-5-35
Offsets not allowed against assessment by mutual insurer
Status: in_force

No member of a domestic mutual insurer shall have an offset against any assessment for which he is liable, on account of any claim for unearned premium or loss payable.

Source: SL 1966, ch 111, ch 16, § 30 (4).
S.D. Codified Laws § 58-26-104 — SD Code / Title 58 / Chapter 26 / Section 58-26-104
Exceptions to confidentiality of information
Status: in_force

Notwithstanding § 58-26-103 , any confidential information specified in subdivisions 58-26-102(1) and (4):

(1) May be subject to subpoena for the purpose of defending an action seeking damages from the appointed actuary submitting the related memorandum in support of an opinion submitted pursuant to §§ 58-26-46 to 58-26-55.1 , inclusive, or principle-based valuation report developed pursuant to subdivision 58-26-99(3), by reason of an action required by this chapter or by regulations promulgated hereunder;

(2) May otherwise be released by the director with the written consent of the company; and

(3) Once any portion of a memorandum in support of an opinion submitted pursuant to §§ 58-26-46 to 58-26-55.1 , inclusive, or a principle-based valuation report developed pursuant to subdivision 58-26-99(3), is cited by the company in its marketing or is publicly volunteered to or before a governmental agency other than a state insurance department or is released by the company to the news media, all portions of such memorandum or report is no longer confidential.

Source: SL 2015, ch 254, § 38.
S.D. Codified Laws § 58-24-2 — SD Code / Title 58 / Chapter 24 / Section 58-24-2
Application of chapter
Status: in_force

This chapter applies to all forms of casualty insurance, including fidelity, surety, and guaranty bonds, to all forms of property, fire, marine, and inland marine insurance, workers' compensation, and to any combination of any of the foregoing, on risks or operations in this state. Inland marine insurance shall be deemed to include insurance now or hereafter defined by statute, or by interpretation thereof, or if not so defined or interpreted, by ruling of the director, or as established by general custom of the business, as inland marine insurance.

Source: SL 1966, ch 111, ch 15, § 2.
S.D. Codified Laws § 58-40-25 — SD Code / Title 58 / Chapter 40 / Section 58-40-25
Purchasing organization's notice of premium charge
Status: in_force

The organization may provide not less than forty - five days advance notice of any benefit or premium change to its members.

Source: SL 1994, ch 382, § 4.
S.D. Codified Laws § 58-34-50 — SD Code / Title 58 / Chapter 34 / Section 58-34-50
Liquidation--Distribution of remaining assets to subscribers
Status: in_force

Upon the liquidation of a domestic reciprocal insurer, its assets remaining after discharge of its indebtedness and policy obligations, the return of any contributions of the attorney or other persons to its surplus made as provided in § 58-34-34 , and the return of any unused premium, savings, or credits then standing on subscribers' accounts, shall be distributed to its subscribers who were such within the twelve months prior to the last termination of its certificate of authority, according to such formula as the director may approve.

Source: SL 1966, ch 111, ch 19, § 28.
S.D. Codified Laws § 58-2-12 — SD Code / Title 58 / Chapter 2 / Section 58-2-12
Oath of office and bond of director--Bonds of insurance examiners, actuaries, and attorney for division--Bond premiums paid from state insurance fund
Status: in_force

The director shall, before entering upon the duties of his office, take and subscribe the constitutional oath of office and shall give the state a bond in the sum of one hundred thousand dollars, and each insurance examiner, the actuary and the attorney shall each give bond to the state in the sum of fifty thousand dollars, all such bonds to be conditioned for the faithful and impartial discharge of the duties imposed upon such director and employees by this title, and all such bonds to be approved by the attorney general, and recorded and filed as provided by law.

The premium of such bonds shall be paid by the state treasurer out of the insurance fund of this state upon warrants drawn on such fund by the state auditor.

Source: SL 1966, ch 111, ch 2, § 6.
S.D. Codified Laws § 58-19-32 — SD Code / Title 58 / Chapter 19 / Section 58-19-32
Settlement or adjustment of claims by person other than insurer prohibited--Creditor not claim representative--Payment by group policyholder
Status: in_force

No plan or arrangement shall be used whereby any person, firm or corporation other than the insurer or its designated claim representative shall be authorized to settle or adjust claims. The creditor shall not be designated as claim representative for the insurer in adjusting claims; provided, that a group policyholder may, by arrangement with the group insurer, draw drafts or checks in payment of claims due to the group policyholder subject to audit and review by the insurer.

Source: SL 1966, ch 111, ch 27, § 10 (3).
S.D. Codified Laws § 58-2-11 — SD Code / Title 58 / Chapter 2 / Section 58-2-11
Examiners for examination of insurers and others--Employment by department
Status: in_force

The Department of Labor and Regulation may appoint or employ examiners to conduct or assist in examinations of insurers and others provided for under this title.

Source: SL 1966, ch 111, ch 2, § 4 (4); SL 2003, ch 272 (Ex. Ord. 03-1), § 20; SL 2011, ch 1 (Ex. Ord. 11-1 ), § 162, eff. Apr. 12, 2011.
S.D. Codified Laws § 58-11-41 — SD Code / Title 58 / Chapter 11 / Section 58-11-41
Application for reinstatement or renewal of life or health insurance--Copy requested by insured--Effect of noncompliance by insurer
Status: in_force

If any policy of life or health insurance delivered in this state is reinstated or renewed, and the insured or the beneficiary or assignee of the policy makes written request to the insurer for a copy of the application, if any, for such reinstatement or renewal, the insurer shall, within thirty days after receipt of such request at its home office, deliver or mail to the person making such request a copy of such application reproduced by any legible means. If such copy is not so delivered or mailed after having been so requested, the insurer shall be precluded from introducing the application in evidence in any action or proceeding based upon or involving the policy or its reinstatement or renewal. In the case of such a request from a beneficiary, the time within which the insurer is required to furnish a copy of such application shall not begin to run until after receipt of evidence satisfactory to the insurer of the beneficiary's vested interest in the policy or contract.

Source: SL 1966, ch 111, ch 22, § 11 (2).
S.D. Codified Laws § 58-44-12 — SD Code / Title 58 / Chapter 44 / Section 58-44-12
Rights of third parties
Status: in_force

Nothing contained in this section alters or affects the rights of policyholders, claimants, creditors, or other third parties.

Source: SL 1992, ch 358, § 12.
S.D. Codified Laws § 58-29D-25 — SD Code / Title 58 / Chapter 29D / Section 58-29D-25
Validity of license
Status: in_force

A license issued under this chapter shall remain valid, unless surrendered, suspended, or revoked by the director, for so long as the administrator continues in business in this state and remains in compliance with this chapter.

Source: SL 1992, ch 352, § 25.
S.D. Codified Laws § 58-37A-20 — SD Code / Title 58 / Chapter 37A / Section 58-37A-20
Basis for computing value of nonforfeiture benefits
Status: in_force

For certificates issued before one year after January 1, 1991, the value of every paid - up nonforfeiture benefit and the amount of any cash surrender value, loan, or other option granted shall comply with the provisions of law applicable immediately before January 1, 1991.

For certificates issued on or after one year from January 1, 1991, every paid - up nonforfeiture benefit and the amount of any cash surrender value, loan, or other option granted may not be less than the corresponding amount based on the interest rate and mortality tables authorized by the laws of this state for the calculation of these benefits by life and health insurers issuing policies containing like benefits based upon such interest rate and mortality tables.

Source: SL 1990, ch 410, § 20.
S.D. Codified Laws § 58-2-22 — SD Code / Title 58 / Chapter 2 / Section 58-2-22
Power and authority of director--Examinations and investigations
Status: in_force

The director shall have the powers and the authority expressly conferred upon him by or reasonably implied from the provisions of this title. The director may conduct such examinations and investigations of insurance matters, in addition to examinations and investigations expressly authorized by this title, as he may deem proper to determine whether any person has violated any provision of this title or to secure information useful in the lawful administration of any such provision. The cost of such additional examinations and investigations shall be borne by the state.

Source: SL 1966, ch 111, ch 2, § 7.
S.D. Codified Laws § 58-17-61 — SD Code / Title 58 / Chapter 17 / Section 58-17-61
Assignment of health insurance proceeds to certain hospitals authorized
Status: in_force

Any person insured by a health insurance company, health maintenance organization, preferred provider organization, individual practice association, or nonprofit hospital service corporation may assign in writing benefits from such policy, contract, or certificate to a hospital licensed pursuant to chapter 34-12 . If such assignment is executed and written notice thereof is given, the insurance company, health maintenance organization, preferred provider organization, individual practice association, or nonprofit hospital service corporation shall pay the benefits directly to the hospital.

Nothing in this section modifies the scope of coverage or the amount of benefits payable under a health insurance policy, contract, or certificate.

Source: SL 1989, ch 430.
S.D. Codified Laws § 58-34-42 — SD Code / Title 58 / Chapter 34 / Section 58-34-42
Time limit for levy of assessment
Status: in_force

Every subscriber of a domestic reciprocal insurer having contingent liability shall be liable for, and shall pay his share of any assessment, as computed and limited in accordance with this chapter, if:

(1) While his policy is in force or within one year after its termination, he is notified by either the attorney or the director of his intentions to levy such assessment; or

(2) An order to show cause why a receiver, conservator, rehabilitator, or liquidator of the insurer should not be appointed is issued while his policy is in force or within one year after its termination.

Source: SL 1966, ch 111, ch 19, § 24.
S.D. Codified Laws § 58-25-25 — SD Code / Title 58 / Chapter 25 / Section 58-25-25
Adjusted reserves restored to net profits or equity
Status: in_force

The aggregate of the amounts set aside in this reserve in any calendar year as adjustments to the insurer's statutory or unearned premium reserve pursuant to § 58-25-24 shall be released from the reserve and restored to net profits, or equity if the additions required by § 58-25-24 reduced equity directly, over a period not exceeding ten years pursuant to the following table:

Year of Addition

Release

Year 1

Equally over ten years

Year 2

Equally over nine years

Year 3

Equally over eight years

Year 4

Equally over seven years

Year 5

Equally over six years

Year 6

Equally over five years

For purposes of this section, year is the calendar year following the year of first application of § 58-25-22 .

Source: SL 2002, ch 239, § 4.
S.D. Codified Laws § 58-37A-33 — SD Code / Title 58 / Chapter 37A / Section 58-37A-33
Insurance producers--When license is required
Status: in_force

Any insurance producer of a society shall be licensed in accordance with the provisions of chapter 58-30 regulating the licensing, revocation, suspension, or termination of license of resident and nonresident insurance producers.

Source: SL 1990, ch 410, § 33; SL 2001, ch 286, § 218.
S.D. Codified Laws § 58-5-67 — SD Code / Title 58 / Chapter 5 / Section 58-5-67
Pensions to officers and directors of domestic insurers
Status: in_force

No domestic insurer shall grant any pension to any officer or director thereof, or to any member of his family after his death, except that such insurer may in pursuance of the terms of a retirement plan adopted by the board of directors of such insurer and approved by the director of the Division of Insurance provide for any person who is or has been a salaried officer or employee of such insurer, a pension payable at the time of his retirement by reason of age or disability, and also life insurance benefits payable at his death.

Source: SL 1966, ch 111, ch 16, § 23 (3).
S.D. Codified Laws § 58-3-10 — SD Code / Title 58 / Chapter 3 / Section 58-3-10
Examination reports required
Status: in_force

The director or his examiner shall make a full and true report of each examination.

Source: SL 1966, ch 111, ch 2, § 20 (1).
S.D. Codified Laws § 58-33-43 — SD Code / Title 58 / Chapter 33 / Section 58-33-43
Affirmance of order of director--Order of court for obedience
Status: in_force

In the event of such appeal, to the extent that the director's order is affirmed, the court shall issue its own order commanding obedience to the terms of the director's order.

Source: SL 1966, ch 111, ch 13, § 4 (3).
S.D. Codified Laws § 58-15-43.4 — SD Code / Title 58 / Chapter 15 / Section 58-15-43.4
Recalculated future adjusted premiums
Status: in_force

Except as otherwise provided in § 58-15-43.7 , the recalculated future adjusted premiums for any such policy shall be such uniform percentage of the respective future premiums specified in the policy for each policy year, excluding amounts payable as extra premiums to cover impairments and special hazards, and also excluding any uniform annual contract charge or policy fee specified in the policy in a statement of the method to be used in calculating the cash surrender values and paid - up nonforfeiture benefits, that the present value, at the time of change to the newly defined benefits or premiums, of all the future adjusted premiums is equal to the excess of (A) the sum of the then present value of the then future guaranteed benefits provided for by the policy and the additional expense allowance, if any, over (B) the then cash surrender value, if any, or present value of any paid - up nonforfeiture benefit under the policy.

Source: SL 1982, ch 357, § 8.
S.D. Codified Laws § 58-17F-11 — SD Code / Title 58 / Chapter 17F / Section 58-17F-11
Requirements for health carrier and providers in managed care plans
Status: in_force

Any health carrier offering a managed care plan shall satisfy all the following requirements:

(1) The health carrier shall establish a mechanism by which the participating provider will be notified on an ongoing basis of the specific covered health services for which the provider will be responsible, including any limitations or conditions on services;

(2) In no event may a participating provider collect or attempt to collect from a covered person any money owed to the provider by the health carrier nor may the provider have any recourse against covered persons for any covered charges in excess of the copayment, coinsurance, or deductible amounts specified in the coverage, including covered persons who have a health savings account;

(3) The provisions of this chapter do not require the health carrier, its intermediaries or the provider networks with which they contract, to employ specific providers or types of providers that may meet their selection criteria, or to contract with or retain more providers or types of providers than are necessary to maintain an adequate network;

(4) The health carrier shall notify participating providers of the providers' responsibilities with respect to the health carrier's applicable administrative policies and programs, including payment terms, utilization review, quality assessment, and improvement programs, grievance procedures, data reporting requirements, confidentiality requirements, and any applicable federal or state programs;

(5) The health carrier may not prohibit or penalize a participating provider from discussing treatment options with covered persons irrespective of the health carrier's position on the treatment options, from advocating on behalf of covered persons within the utilization review or grievance processes established by the carrier or a person contracting with the carrier or from, in good faith, reporting to state or federal authorities any act or practice by the health carrier that jeopardizes patient health or welfare;

(6) The health carrier shall contractually require a provider to make health records available to the carrier upon request but only those health records necessary to process claims, perform necessary quality assurance or quality improvement programs, or to comply with any lawful request for information from appropriate state authorities. Any person that is provided records pursuant to this section shall maintain the confidentiality of such records and may not make such records available to any other person who is not legally entitled to the records;

(7) The health carrier and participating provider shall provide at least sixty days written notice to each other before terminating the contract without cause. If a provider is terminated without cause or chooses to leave the network, upon request by the provider or the covered person and upon agreement by the provider to follow all applicable network requirements, the carrier shall permit the covered person to continue an ongoing course of treatment for ninety days following the effective date of contract termination. If a covered person that has entered a second trimester of pregnancy at the time of contract termination as specified in this section, the continuation of network coverage through that provider shall extend to the provision of postpartum care directly related to the delivery;

(8) The health carrier shall notify the participating providers of their obligations, if any, to collect applicable coinsurance, copayments, or deductibles from covered persons pursuant to the evidence of coverage, or of the providers' obligations, if any, to notify covered persons of their personal financial obligations for noncovered services; and

(9) The health carrier shall establish a mechanism by which the participating providers may determine in a timely manner whether or not a person is covered by the carrier.

Source: SL 2011, ch 219, § 11.
S.D. Codified Laws § 58-17I-12 — SD Code / Title 58 / Chapter 17I / Section 58-17I-12
Expedited review for adverse determinations involving urgent care requests--Appointment of peers for review
Status: in_force

Each health carrier shall establish written procedures for the expedited review of urgent care requests of grievances involving an adverse determination. In addition, a health carrier shall provide expedited review of a grievance involving an adverse determination with respect to concurrent review urgent care requests involving an admission, availability of care, continued stay, or health care service for a covered person who has received emergency services, but has not been discharged from a facility. The procedures shall allow a covered person or the covered person's authorized representative to request an expedited review under this section orally or in writing.

Each health carrier shall appoint at least one appropriate clinical peer in the same or similar specialty as would typically manage the case being reviewed to review the adverse determination. The clinical peer may not have been involved in making the initial adverse determination.

Source: SL 2011, ch 219, § 84.
S.D. Codified Laws § 58-11-22 — SD Code / Title 58 / Chapter 11 / Section 58-11-22
Identification of contracts issued and forms filed with director--Change in form
Status: in_force

All policies and annuity contracts issued, and the forms thereof filed with the director, shall have printed thereon an appropriate designating letter or figure, or combination thereof identifying the respective forms of policies or contracts. Whenever any change is made in any such form, the designating letters, figures, or terms thereon shall be correspondingly changed.

Source: SL 1966, ch 111, ch 22, § 16 (4).
S.D. Codified Laws § 58-24-57 — SD Code / Title 58 / Chapter 24 / Section 58-24-57
Insurers engaging in joint underwriting or joint reinsurance subject to regulation
Status: in_force

Every group, association, or other organization of insurers which engages in joint underwriting or joint reinsurance shall be subject to regulation with respect thereto as provided in this title.

Source: SL 1966, ch 111, ch 15, § 11 (1).
S.D. Codified Laws § 58-35-7 — SD Code / Title 58 / Chapter 35 / Section 58-35-7
Declaration of intent to incorporate, filing--Proposed articles of incorporation, execution
Status: in_force

The individuals proposing to form a farm mutual insurer as referred to in § 58-35-5 or 58-35-6 shall file with the director:

(1) A declaration of their intention to form such a corporation signed by at least one hundred incorporators if a proposed state mutual insurer, or by at least twenty - five incorporators if a proposed county mutual insurer; and

(2) The original and two copies with original signatures of the proposed articles of incorporation signed by three or more of the incorporators and notarized.

Source: SL 1966, ch 111, ch 17, § 8 (1); SL 1993, ch 369, § 1.
S.D. Codified Laws § 58-34-59 — SD Code / Title 58 / Chapter 34 / Section 58-34-59
Computation of reserves
Status: in_force

The computation of reserves shall be based upon premium deposits other than membership fees and without any deduction for expenses and the compensation of the attorney.

Source: SL 1966, ch 111, ch 19, § 18 (7).
S.D. Codified Laws § 58-14-6 — SD Code / Title 58 / Chapter 14 / Section 58-14-6
Original insured--No interest in reinsurance
Status: in_force

The original insured has no interest in a contract of reinsurance.

Source: SL 1966, ch 111, ch 32, § 5.
S.D. Codified Laws § 58-11-69 — SD Code / Title 58 / Chapter 11 / Section 58-11-69
Approval or disapproval of filing--Review period
Status: in_force

The director shall review and approve, provide notice of deficiencies, or disapprove the initial filing within sixty days of receipt. At the end of the review period, the form is deemed approved if the director has taken no action. Any notice of deficiencies or disapproval shall be in writing and based only on the specific provisions of applicable statutes including § 58-11-21 , rules, or bulletins published by the director and contained in the document created by the director pursuant to § 58-11-67 . The notice of deficiencies or disapproval shall provide the reasons for the notice of deficiencies or disapproval and sufficient detail for the filer to bring the policy form into compliance, and shall cite any specific statute, rule, or bulletin upon which the notice of deficiencies or disapproval is based.

Source: SL 2008, ch 261, § 6.
S.D. Codified Laws § 58-38-35 — SD Code / Title 58 / Chapter 38 / Section 58-38-35
Promulgation of rules for purchasing organizations
Status: in_force

The director may promulgate rules pursuant to chapter 1-26 to further the provisions of §§ 58-38-25 to 58-38-35 , inclusive, and for purposes of carrying out the provisions of §§ 58-18-1 to 58-18-6 , inclusive, and to ensure that group health insurance coverage is issued to eligible groups and that organizations are formed and operated to further the purpose of providing economical group health insurance for its members. The rules may include:

(1) Definition of terms;

(2) Criteria for determining groups, associations, organizations, and trusts and their eligibility for coverage;

(3) Criteria for determining substantially similar groups or for determining related industries;

(4) Application requirements and procedures;

(5) Reasonable compensation; and

(6) Organizational structure.

Source: SL 1994, ch 382, § 11.
S.D. Codified Laws § 58-17H-51 — SD Code / Title 58 / Chapter 17H / Section 58-17H-51
Reclassification of benefits with respect to cancer treatment medications
Status: in_force

A health carrier may not reclassify benefits with respect to cancer treatment medications or increase a copayment, deductible, or coinsurance amount for covered cancer treatment medications that are injected or intravenously administered unless:

(1) The increase is applied generally to other medical or pharmaceutical benefits covered under the plan and is not done to circumvent § 58-17H-50 ;

(2) The reclassification of benefits with respect to cancer treatment medications is done in a manner that is consistent with §§ 58-17H-50 to 58-17H-52 , inclusive; or

(3) A health carrier is applying cost-sharing increases consistent with the annual increases in the cost of health care.

Source: SL 2015, ch 252, § 2, eff. Jan. 1, 2016.
S.D. Codified Laws § 58-15-59.2 — SD Code / Title 58 / Chapter 15 / Section 58-15-59.2
Issuance of policies by insurance company or fraternal benefit society--Delivery receipts--Certificates of mailing--Term of retention
Status: in_force

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

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

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

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

Source: SL 1982, ch 28, § 18; SL 1987, ch 374, § 2; SL 2001, ch 286, § 112; SL 2002, ch 232, § 2.
S.D. Codified Laws § 58-29B-138 — SD Code / Title 58 / Chapter 29B / Section 58-29B-138
Director's application to liquidate assets of foreign or alien insurer--Grounds
Status: in_force

If a domiciliary receiver has not been appointed, the director may apply to the circuit court of Hughes County by verified petition for an order directing him to liquidate the assets found in this state of a foreign insurer or an alien insurer or an alien insurer not domiciled in this state, on any of the following grounds:

(1) Any of the grounds in § 58-29B-31 or 58-29B-41 ; or

(2) Any of the grounds specified in subdivisions 58-29B-134(2) to (4), inclusive.

Source: SL 1989, ch 436, § 138.
S.D. Codified Laws § 58-11-45.3 — SD Code / Title 58 / Chapter 11 / Section 58-11-45.3
Informant to be identified if insurance refused--Violation as misdemeanor
Status: in_force

If an applicant for such insurance has made a full disclosure to the insurance producer of the insurer in response to the insurance producer's inquiry and the application is tendered with premium, the insurer, if it fails or refuses to issue the policy based upon information other than the insurance producer's recommendation, shall notify the insurance producer and the applicant of the name and location of the person or agency upon which such insurer relied as a basis for its failure or refusal to insure. Any violation of this section is a Class 2 misdemeanor.

Source: SL 1970, ch 270, § 1; SL 1978, ch 359, § 2; SL 2001, ch 286, § 104.
S.D. Codified Laws § 58-29A-63 — SD Code / Title 58 / Chapter 29A / Section 58-29A-63
Examination of insurer on request by board--Cost of examination--Handling of report
Status: in_force

To aid in the detection and prevention of insurer insolvencies, the board of directors may, upon majority vote, request that the director order an examination of any member insurer which the board in good faith believes may be in a financial condition hazardous to the policyholders or the public. Within thirty days of the receipt of such request, the director shall begin the examination. The examination may be conducted as a National Association of Insurance Commissioners' Examination or may be conducted by such persons as the director designates. The cost of the examination shall be paid by the association and the examination report shall be treated as are other examination reports. In no event may the examination report be released to the board of directors prior to its release to the public, but this does not preclude the director from complying with § 58-29A-64 . The director shall notify the board of directors when the examination is completed. The request for an examination shall be kept on file by the director but it may not be open to public inspection prior to the release of the examination report to the public.

Source: SL 2000, ch 247, § 10.
S.D. Codified Laws § 58-8-16 — SD Code / Title 58 / Chapter 8 / Section 58-8-16
Vexatious refusal by unauthorized foreign or alien insurer to make payment--Attorney fees of plaintiff
Status: in_force

In any action against an unauthorized foreign or alien insurer upon a contract of insurance issued or delivered in this state to a resident thereof or to a corporation authorized to do business therein, if the insurer has failed for thirty days after demand prior to the commencement of the action to make payment in accordance with the terms of the contract, and it appears to the court that such refusal was vexatious and without reasonable cause, the court may allow to the plaintiff a reasonable attorney fee and include such fee in any judgment that may be rendered in such action. Failure of an insurer to defend any such action shall be deemed prima facie evidence that its failure to make payment was vexatious and without reasonable cause.

Source: SL 1966, ch 111, ch 12, § 10.
S.D. Codified Laws § 58-1-46 — SD Code / Title 58 / Chapter 1 / Section 58-1-46
Living organ donors--Insurer limitation, declination restricted
Status: in_force

An insurer may not:

(1) Decline or limit coverage of an individual under any life, disability, or long-term care insurance policy solely due to the status of the individual as a living organ donor;

(2) Condition the continuation of a life, disability, or long-term care insurance policy on an insured individual not becoming a living organ donor; or

(3) Otherwise discriminate in the offering, issuance, cancellation, amount of coverage, price, or any other condition of a life, disability, or long-term care insurance policy based solely, and without any additional actuarial risk, upon the status of an individual as a living organ donor.

For purposes of this section, "living organ donor" means an individual who has donated all or part of an organ and is not deceased.

Source: SL 2026, ch 199, § 1.
S.D. Codified Laws § 58-27-17 — SD Code / Title 58 / Chapter 27 / Section 58-27-17
Investments authorized for insurers
Status: in_force

An insurer may invest in:

(1) Bonds, debentures, notes, and other evidences of indebtedness, or participations thereon, issued, assumed, or guaranteed by any solvent institution existing under the laws of the United States of America or Canada, or any state or province thereof, and which bear or accrue interest at a fixed or floating rate;

(2) Secured and unsecured obligations of institutions described in subdivision (1) of this section, bearing or accruing interest at a fixed or floating rate, with mandatory principal and interest due at specified times;

(3) Adjustment, income, or other contingent interest obligations of institutions described in subdivision (1) of this section;

(4) Securities of any (a) open - end or closed - end management type investment company or investment trust fund registered under the Investment Company Act of 1940, as adopted by the director pursuant to rules promulgated pursuant to chapter 1-26 , or (b) issuer meeting the requirements of Section 3(c)(1) of the Investment Company Act of 1940, as adopted by the director pursuant to rules promulgated pursuant to chapter 1-26 ; and

(5) Preferred shares of any solvent institution existing under the laws of the United States of America or Canada, or of any state or province thereof.

If an insurer has an investment in violation of this section, it shall divest itself of the investment pursuant to § 58-27-74 .

Source: SL 1966, ch 111, ch 6, § 12 (1); SL 1992, ch 350, § 13; SL 1994, ch 384, § 2; SL 1997, ch 294, § 7.
S.D. Codified Laws § 58-33-110 — SD Code / Title 58 / Chapter 33 / Section 58-33-110
Circumstances mitigating violation of §§58-33-102to58-33-108
Status: in_force

Any violation of §§ 58-33-102 to 58-33-108 , inclusive, is mitigated, and the division shall reduce or eliminate any sanction otherwise applicable, if a licensee or other person demonstrates all of the following:

(1) The licensee or other person maintained supervisory procedures and controls that complied with § 58-33-112 ;

(2) The violation occurred despite the maintenance of those procedures and controls;

(3) The licensee or other person promptly reported the health benefit plan to the MEWA contact once the licensee or other person had actual knowledge that it was unauthorized health insurance; and

(4) The licensee or other person took prompt corrective action.

Source: SL 2007, ch 292, § 18.
S.D. Codified Laws § 58-29A-92 — SD Code / Title 58 / Chapter 29A / Section 58-29A-92
Revocation of designation of servicing facility
Status: in_force

The director may revoke the designation of any servicing facility if the director finds claims are being handled unsatisfactorily.

Source: SL 2000, ch 247, § 39.
S.D. Codified Laws § 58-17B-1 — SD Code / Title 58 / Chapter 17B / Section 58-17B-1
Scope
Status: in_force

This chapter applies to policies delivered or issued for delivery in this state on or after July 1, 1989. This law does not supersede the obligations of entities subject to this chapter to comply with other applicable insurance laws insofar as they do not conflict with this chapter. Laws and rules designed and intended to apply to medicare supplement insurance policies may not be applied to long - term care insurance. A policy which is not advertised, marketed, or offered as long - term care insurance or nursing facility insurance need not meet the requirements of this chapter.

Source: SL 1989, ch 440, § 1.
S.D. Codified Laws § 58-15-15.11 — SD Code / Title 58 / Chapter 15 / Section 58-15-15.11
Insurance policy loan--Provisions of statutes required in policies
Status: in_force

The substance of the pertinent provisions of §§ 58-15-15.6 and 58-15-15.7 regarding the adjustable maximum interest rate shall be set forth in the policies to which they apply.

Source: SL 1982, ch 358, § 8.
S.D. Codified Laws § 58-15-66 — SD Code / Title 58 / Chapter 15 / Section 58-15-66
Reinstatement provision required in reversionary annuity contract
Status: in_force

Except as stated in § 58-15-67 , no contract for a reversionary annuity shall be delivered or issued for delivery in this state unless it contains in substance a provision that the contract may be reinstated at any time within three years from the date of default in making stipulated payments to the insurer, upon production of evidence of insurability satisfactory to the insurer, and upon condition that all overdue payments and any indebtedness to the insurer on account of the contract be paid, or, within the limits permitted by the then cash values of the contract, reinstated, with interest as to both payments and indebtedness at a rate to be specified in the contract but not exceeding six percent per annum.

Source: SL 1966, ch 111, ch 23, § 25 (1) (b).
S.D. Codified Laws § 58-44-10 — SD Code / Title 58 / Chapter 44 / Section 58-44-10
Civil action in behalf of insurer for violation while under order for liquidation or rehabilitation
Status: in_force

If an order for liquidation or rehabilitation of the controlled insurer has been entered pursuant to chapter 58-29B , and the receiver appointed under that order believes that the controlling broker or any other person has not complied with this chapter, or any regulation or order, and the insurer suffered any loss or damage therefrom, the receiver may maintain a civil action for recovery of damages or other appropriate sanctions for the benefit of the insurer.

Source: SL 1992, ch 358, § 10.
S.D. Codified Laws § 58-18-80 — SD Code / Title 58 / Chapter 18 / Section 58-18-80
Health insurance policies to provide coverage for biologically-based mental illnesses
Status: in_force

Every group health insurance policy, including a certificate that is subject to approval pursuant to § 58-11-12 , that is delivered, issued for delivery, or renewed in this state, except for policies that provide coverage for specified disease or other limited benefit coverage, shall provide, in writing, coverage for the treatment and diagnosis of biologically - based mental illnesses with the same dollar limits, deductibles, coinsurance factors, and restrictions as for other covered illnesses.

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

Source: SL 1998, ch 291, § 2; SL 1999, ch 251, § 2; SL 2000, ch 244, § 1.
S.D. Codified Laws § 58-17I-2 — SD Code / Title 58 / Chapter 17I / Section 58-17I-2
Health benefit plan defined
Status: in_force

For the purposes of this chapter, the term, health benefit plan, means a policy, contract, certificate, or agreement entered into, offered, or issued by a health carrier to provide, deliver, arrange for, pay for, or reimburse any of the costs of health care services. The term includes short-term and catastrophic health insurance policies, and a policy that pays on a cost-incurred basis, except as otherwise specifically exempted in this definition.

The term does not include coverage only for accident, or disability income insurance, or any combination thereof; coverage issued as a supplement to liability insurance; liability insurance, including general liability insurance and automobile liability insurance; workers' compensation or similar insurance; automobile medical payment insurance; credit-only insurance; coverage for on-site medical clinics; and other similar insurance coverage, specified in federal regulations issued pursuant to Public Law No. 104-191, as amended to January 1, 2011, under which benefits for medical care are secondary or incidental to other insurance benefits.

The term does not include the following benefits if they are provided under a separate policy, certificate, or contract of insurance or are otherwise not an integral part of the plan: limited scope dental or vision benefits; benefits for long-term care, nursing home care, home health care, community-based care, or any combination thereof; or other similar, limited benefits specified in federal regulations issued pursuant to Public Law No. 104-191, as amended to January 1, 2011.

The term does not include the following benefits if the benefits are provided under a separate policy, certificate, or contract of insurance, there is no coordination between the provision of the benefits and any exclusion of benefits under any group health plan maintained by the same plan sponsor, and the benefits are paid with respect to an event without regard to whether benefits are provided with respect to such an event under any group health plan maintained by the same plan sponsor: coverage only for a specified disease or illness; or hospital indemnity or other fixed indemnity insurance.

The term does not include the following if offered as a separate policy, certificate, or contract of insurance: medicare supplemental health insurance as defined under Section 1882(g)(1) of the Social Security Act, as amended to January 1, 2011; coverage supplemental to the coverage provided under Chapter 55 of Title 10, United States Code (Civilian Health and Medical Program of the Uniformed Services (CHAMPUS)), as amended to January 1, 2011; or similar supplemental coverage provided to coverage under a group health plan.

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

Source: SL 2011, ch 219, § 93; SL 2021, ch 210, § 15.
S.D. Codified Laws § 58-35-41 — SD Code / Title 58 / Chapter 35 / Section 58-35-41
Application for insurance to be in writing--Advance cash payments
Status: in_force

An insurer shall require a written application from each person desiring insurance. If the insurer is transacting business on the assessment plan, the applicant shall at the time of application give his obligation to the insurer for the payment of losses and expenses as provided in the insurer's bylaws, and make such advance payment in cash as the insurer may require.

Source: SL 1966, ch 111, ch 17, § 26.
S.D. Codified Laws § 58-15-103 — SD Code / Title 58 / Chapter 15 / Section 58-15-103
Search fees and costs not chargeable to beneficiary
Status: in_force

An insurer or its service provider may not charge any beneficiary or other authorized representative for any fees or costs associated with a DMF search or verification of a DMF match conducted pursuant to §§ 58-15-94 to 58-15-108 , inclusive.

Source: SL 2018, ch 280, § 10.
S.D. Codified Laws § 58-41-45 — SD Code / Title 58 / Chapter 41 / Section 58-41-45
Discrimination as misdemeanor
Status: in_force

No health maintenance organization or representative thereof may discriminate in the rates charged enrollees except in accordance with accepted actuarial principles.

Violation of this section is a Class 2 misdemeanor.

Source: SL 1974, ch 321, §§ 32 (6), (7), 50; SDCL Supp, § 58-41-77 ; SL 1978, ch 359, § 2; SL 2013, ch 256, § 11.
S.D. Codified Laws § 58-28-24.1 — SD Code / Title 58 / Chapter 28 / Section 58-28-24.1
Right of annuitant to cancel--Refund by insurer
Status: in_force

Every individual variable annuity contract issued for delivery in South Dakota on or after July 1, 1978, shall contain a provision, or a notice attached to the contract, to the effect that during a period of ten days from the date the contract is delivered to the contract owner, it may be surrendered to the insurer together with a written request for cancellation of the contract and in such event, the insurer will pay to the contract owner an amount equal to the sum of:

(1) The difference between the premiums paid and the amounts, if any, allocated to any separate accounts under the contract; and

(2) The cash value of the contract on the date of surrender attributable to the amounts so allocated.

Source: SL 1978, ch 361, § 1.
S.D. Codified Laws § 58-29C-57 — SD Code / Title 58 / Chapter 29C / Section 58-29C-57
Liability for unpaid assessment--Records of meetings--Association as creditor of impaired or insolvent insurer--Liquidation, rehabilitation, or conservation proceedings
Status: in_force

A. This chapter may not be construed to reduce the liability for unpaid assessments of the insureds of an impaired or insolvent insurer operating under a plan with assessment liability.

B. Records shall be kept of all meetings of the board of directors to discuss the activities of the association in carrying out the board's powers and duties under § 58-29C-51 . The records of the association with respect to an impaired or insolvent insurer may not be disclosed prior to the termination of a liquidation, rehabilitation, or conservation proceeding involving the impaired or insolvent insurer, except (i) upon the termination of the impairment or insolvency of the insurer, or (ii) upon the order of a court of competent jurisdiction. Nothing in this subpart limits the duty of the association to render a report of its activities under § 58-29C-58 .

C. For the purpose of carrying out the association's obligations under this chapter, the association is a creditor of the impaired or insolvent insurer to the extent of assets attributable to covered policies reduced by any amounts to which the association is entitled as subrogee pursuant to subpart § 58-29C-51K. Assets of the impaired or insolvent insurer attributable to covered policies or contracts shall be used to continue all covered policies and pay all contractual obligations of the impaired or insolvent insurer as required by this chapter. Assets attributable to covered policies or contracts, as used in this subpart, are that proportion of the assets which the reserves that should have been established for the policies or contracts bear to the reserves that should have been established for all policies of insurance or health benefit plans written by the impaired or insolvent insurer.

D. As a creditor of the impaired or insolvent insurer as established in subpart C of this section and consistent with § 58-29B-98 , the association and other similar associations are entitled to receive a disbursement of assets out of the marshaled assets, from time to time as the assets become available to reimburse the association, as a credit against contractual obligations under this chapter. If the liquidator has not, within one hundred twenty days of a final determination of insolvency of a member insurer by the receivership court, made an application to the court for the approval of a proposal to disburse assets out of marshaled assets to guaranty associations having obligations because of the insolvency, the association is entitled to make application to the receivership court for approval of the association's own proposal to disburse these assets.

E. (1) Prior to the termination of any liquidation, rehabilitation, or conservation proceeding, the court may take into consideration the contributions of the respective parties, including the association, the shareholders, contract owners, certificate holders, and policy owners of the insolvent insurer, and any other party with a bona fide interest, in making an equitable distribution of the ownership rights of the insolvent insurer. In a determination, consideration must be given to the welfare of the policy owners, contract owners, and certificate holders of the continuing or successor member insurer.

(2) An impaired or insolvent insurer may not make a distribution to stockholders until and unless the total amount of valid claims of the association with interest thereon for funds expended in carrying out the association's powers and duties under § 58-29C-51 with respect to the member insurer have been fully recovered by the association.

F. (1) If an order for liquidation or rehabilitation of a member insurer domiciled in this state has been entered, the receiver appointed under the order has a right to recover on behalf of the member insurer, from any affiliate that controlled it, the amount of distributions, other than stock dividends paid by the member insurer on its capital stock, made at any time during the five years preceding the petition for liquidation or rehabilitation subject to the limitations of subdivisions (2) to (4), inclusive.

(2) No distribution is recoverable if the member insurer shows that when paid the distribution was lawful and reasonable, and that the member insurer did not know and could not reasonably have known that the distribution might adversely affect the ability of the member insurer to fulfill the member insurer's contractual obligations.

(3) Any person who was an affiliate that controlled the member insurer at the time the distributions were paid is liable up to the amount of distributions received. Any person, who was an affiliate that controlled the member insurer at the time the distributions were declared, shall be liable up to the amount of distributions which would have been received if the distributions had been paid immediately. If two or more persons are liable with respect to the same distributions, the persons shall be jointly and severally liable.

(4) The maximum amount recoverable under this subpart is the amount needed in excess of all other available assets of the insolvent insurer to pay the contractual obligations of the insolvent insurer.

(5) If any person liable under subdivision (3) is insolvent, all the member insurer's affiliates that controlled the member insurer at the time the distribution was paid, shall be jointly and severally liable for any resulting deficiency in the amount recovered from the insolvent affiliate.

Source: SL 2003, ch 252, § 14; SL 2013, ch 252, § 8; SL 2020, ch 210, § 8.
S.D. Codified Laws § 58-5A-71 — SD Code / Title 58 / Chapter 5A / Section 58-5A-71
Application of §§58-5A-60and58-5A-61
Status: in_force

Sections 58-5A-60 and 58-5A-61 do not apply to § 58-5A-47 .

Source: SL 1992, ch 341, § 38.
S.D. Codified Laws § 58-1-36 — SD Code / Title 58 / Chapter 1 / Section 58-1-36
Notice to parties consenting to electronic transmission before July 1, 2014
Status: in_force

If the consent of a party to receive certain notices or documents in an electronic form is on file with an insurer before July 1, 2014, and pursuant to §§ 58-1-27 to 58-1-39 , inclusive, an insurer intends to deliver additional notices or documents to such party in an electronic form, then prior to delivering such additional notices or documents electronically, the insurer shall notify the party of:

(1) The notices or documents that may be delivered by electronic means pursuant to §§ 58-1-27 to 58-1-39 , inclusive, that were not previously delivered electronically; and

(2) The party's right to withdraw consent to have notices or documents delivered by electronic means.

Source: SL 2014, ch 230, § 10.
S.D. Codified Laws § 58-16-25 — SD Code / Title 58 / Chapter 16 / Section 58-16-25
Number of insureds required for group coverage of debtors--Evidence of insurability--Age exclusions
Status: in_force

A policy may be issued under § 58-16-23 only if the group of eligible debtors is then receiving new entrants at the rate of at least one hundred persons yearly, or may reasonably be expected to receive at least one hundred new entrants during the first policy year, and only if the policy reserves to the insurer the right to require evidence of individual insurability if less than seventy - five percent of the new entrants become insured. The policy may exclude from the classes eligible for insurance classes of debtors determined by age.

Source: SL 1966, ch 111, ch 24, § 1 (2) (c).
S.D. Codified Laws § 58-15-2 — SD Code / Title 58 / Chapter 15 / Section 58-15-2
Industrial life insurance defined
Status: in_force

For the purpose of this title "industrial life insurance" is that form of life insurance written under policies of face amount of one thousand dollars or less bearing the words "industrial policy" imprinted on the face thereof as part of the descriptive matter, and under which premiums are payable monthly or more often.

Source: SL 1966, ch 111, ch 23, § 2.
S.D. Codified Laws § 58-5A-68 — SD Code / Title 58 / Chapter 5A / Section 58-5A-68
Stay of director's action upon appeal to circuit court
Status: in_force

The filing of an appeal to the circuit court for any administrative act shall stay the application of any rule, order, or other action of the director to the appealing party unless the court, after giving the party notice and an opportunity to be heard, determines that a stay would be detrimental to the interest of policyholders, shareholders, creditors, or the public.

Source: SL 1992, ch 341, § 35.
S.D. Codified Laws § 58-29C-44 — SD Code / Title 58 / Chapter 29C / Section 58-29C-44
Short title
Status: in_force

This chapter shall be known and may be cited as the South Dakota Life and Health Insurance Guaranty Association Act.

Source: SL 2003, ch 252, § 1.
S.D. Codified Laws § 58-26-88 — SD Code / Title 58 / Chapter 26 / Section 58-26-88
Preparation of supporting actuarial report or workpapers upon insurer's failure to provide acceptable supporting documents
Status: in_force

If the insurance company fails to provide a supporting actuarial report or workpapers at the request of the director or the director determines that the supporting actuarial report or workpapers provided by the insurance company is otherwise unacceptable, the director may engage a qualified actuary at the expense of the company to review the opinion and the basis for the opinion and prepare the supporting actuarial report or workpapers.

Source: SL 2009, ch 271, § 43.
S.D. Codified Laws § 58-22-21 — SD Code / Title 58 / Chapter 22 / Section 58-22-21
Causes for denial, suspension, revocation, or refusal to renew license
Status: in_force

The director may deny, suspend, revoke, or refuse to renew any license issued under this chapter for any of the following causes:

(1) For any cause for which issuance of the license could have been refused had it then existed and been known to the director;

(2) Violation of any laws of this state to bail in the course of dealings under the license issued the licensee by the director;

(3) Material omission, misstatement, misrepresentation, or fraud in obtaining the license;

(4) Misappropriation, conversion, or unlawful withholding of moneys, belonging to insurers or others and received in the conduct of business under the license;

(5) Conviction of, or a plea of guilty or nolo contendere to, a felony or any crime involving moral turpitude;

(6) Fraudulent or dishonest practices in the conduct of business under the license;

(7) Willful failure to comply with, or willful violation of any proper order, rule, or regulation of the director, or the provisions of this chapter;

(8) If, in the judgment of the director, the licensee has, in the conduct of affairs under the license, demonstrated incompetency, or untrustworthiness, or conduct or practices rendering the licensee unfit to carry on the bail bond business or making the licensee's continuance in such business detrimental to the public interest, or that the licensee is no longer in good faith carrying on the bail bond business, or that the licensee is guilty of rebating, or offering to rebate, or unlawfully dividing, or offering to divide such licensee's premiums in the case of professional bondsperson, and for such reasons is found by the director to be a source of detriment, injury, or loss to the public.

Source: SL 1966, ch 111, ch 31, § 13; SL 1998, ch 296, § 13.
S.D. Codified Laws § 58-18B-27.1 — SD Code / Title 58 / Chapter 18B / Section 58-18B-27.1
Exclusion of benefits for injury while under the influence of alcohol or drugs prohibited--Exception for sickness or injury caused in commission of felony
Status: in_force

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

Nothing in this section precludes a hospital or medical service plan from excluding coverage for an insured for any sickness or injury caused in the commission of a felony.

Source: SL 1997, ch 290, §§ 3, 7.
S.D. Codified Laws § 58-33A-16 — SD Code / Title 58 / Chapter 33A / Section 58-33A-16
Annuity--Best interest standard--Material control or influence
Status: in_force

A producer, when making a recommendation of an annuity, shall act in the best interest of the consumer under the circumstances known at the time the recommendation is made, without placing the producer’s or the insurer’s financial interest ahead of the consumer’s interest. For purposes of this section, a producer has acted in the best interest of the consumer by satisfying the obligations regarding care in §§ 58-33A-16.1 to 58-33A-16.3 , inclusive, disclosure in §§ 58-33A-16.4 to 58-33A-16.6 , inclusive, conflict of interest in § 58-33A-16.7 , and documentation in § 58-33A-19.2 . Any requirement applicable to a producer under §§ 58-33A-13 to 58-33A-27 , inclusive, must apply to every producer who has exercised material control or influence in the making of a recommendation and has received direct compensation as a result of the recommendation or sale, regardless of whether the producer has had any direct contact with the consumer. Activities such as providing or delivering marketing or educational materials, product wholesaling or other back-office product support, and general supervision of a producer do not, in and of themselves, constitute material control or influence.

The following acts, when considered in isolation, do not constitute material control or influence:

(1) Receipt of override commissions;

(2) Transmittal of documents, including application to insurers; and

(3) Providing illustrations and quotes.

Source: SL 2008, ch 273, § 4; SL 2012, ch 250, § 1; SL 2022, ch 186, § 4, eff. Jan. 1, 2023; SL 2023, ch 168, § 2.
S.D. Codified Laws § 58-17-31 — SD Code / Title 58 / Chapter 17 / Section 58-17-31
Optional policy provisions
Status: in_force

Except as provided in § 58-17-13 , no policy of health insurance delivered or issued for delivery to any person in this state shall contain provisions respecting the matters set forth in §§ 58-17-32 to 58-17-40 , inclusive, unless such provisions are in the words in which the same appear in the applicable section, except that the insurer may, at its option, use in lieu of any such provision a corresponding provision of different wording approved by the director which is not less favorable in any respect to the insured or the beneficiary. Any such provision contained in the policy shall be preceded individually by the applicable caption or, at the option of the insurer, by such appropriate individual or group captions or subcaptions as the director may approve.

Source: SL 1966, ch 111, ch 25, § 16.
S.D. Codified Laws § 58-6-20 — SD Code / Title 58 / Chapter 6 / Section 58-6-20
Life insurer--Kinds of business authorized, exception
Status: in_force

An insurer authorized to engage in the business of life insurance may also grant annuities, but shall not be authorized to engage in any other kind of insurance business except health; except, that the director shall, if the insurer otherwise qualifies therefor, continue so to authorize any life insurer which immediately prior to July 1, 1966, was lawfully authorized to transact in this state a kind or kinds of insurance in addition to life and health insurance and annuity business.

Source: SL 1966, ch 111, ch 3, § 9 (1).
S.D. Codified Laws § 58-6A-7 — SD Code / Title 58 / Chapter 6A / Section 58-6A-7
Compliance with laws regarding deceptive, false, or fraudulent acts or practices--Injunction
Status: in_force

Any risk retention group shall comply with the laws of this state, chapter 58-33 , regarding deceptive, false, or fraudulent acts or practices. However, if the director seeks an injunction regarding such conduct, the injunction shall be obtained from a court of competent jurisdiction.

Source: SL 1987, ch 372, § 7.
S.D. Codified Laws § 58-29E-9 — SD Code / Title 58 / Chapter 29E / Section 58-29E-9
Rules--Content
Status: in_force

The Division of Insurance shall promulgate rules, pursuant to chapter 1-26 , to carry out the issuance of the license required by § 58-29E-2 and the enforcement provisions of this chapter. The rules may include the following:

(1) Definition of terms;

(2) Use of prescribed forms;

(3) Reporting requirements;

(4) Enforcement procedures; and

(5) Protection of proprietary information and trade secrets.

Source: SL 2004, ch 311, § 9.
S.D. Codified Laws § 58-26-80 — SD Code / Title 58 / Chapter 26 / Section 58-26-80
Company's greater standard of valuation may be lowered with director approval
Status: in_force

Any company which adopts any standard of valuation producing greater aggregate reserves than those calculated according to the minimum standard provided in this chapter may, with the approval of the director, adopt any lower standard of valuation, but not lower than the minimum provided by this chapter. However, for the purposes of this section and §§ 58-26-78 and 58-26-79 , the holding of additional reserves previously determined by the appointed actuary to be necessary to render the opinion required by §§ 58-26-46 to 58-26-55 , inclusive, is not considered to be the adoption of a higher standard of valuation.

Source: SL 1995, ch 284, § 36; SL 2015, ch 254, § 21.
S.D. Codified Laws § 58-6-69 — SD Code / Title 58 / Chapter 6 / Section 58-6-69
Report and payment of tax by surplus line brokers
Status: in_force

Surplus line brokers shall report and pay the taxes upon surplus line policies written pursuant to chapter 58-32 .

Source: SL 1966, ch 111, ch 3, § 28 (2).
S.D. Codified Laws § 58-30-1.1 — SD Code / Title 58 / Chapter 30 / Section 58-30-1.1
Excess business defined
Status: in_force

Excess business is that portion of a risk which is in excess of the amount that an insurer then represented by the insurance producer will accept.

Source: SL 1982, ch 365, § 6; SL 2001, ch 286, § 154.
S.D. Codified Laws § 58-41-29.1 — SD Code / Title 58 / Chapter 41 / Section 58-41-29.1
Notice required for rate increase in health maintenance contract by a health maintenance organization
Status: in_force

Forty - five days before a health maintenance contract rate increase is effective, the health maintenance organization shall notify the enrolling unit in writing that the contract rate for the health maintenance contract offered by the organization will be increased.

Source: SL 1989, ch 434, § 4.
S.D. Codified Laws § 58-17E-10 — SD Code / Title 58 / Chapter 17E / Section 58-17E-10
Review of application
Status: in_force

After the receipt of an application filed pursuant to § 58-17E-9 , the director shall review the application and notify the applicant of any deficiencies in the application.

Source: SL 2006, ch 257, § 9.
S.D. Codified Laws § 58-22-33 — SD Code / Title 58 / Chapter 22 / Section 58-22-33
Giving or promising anything of value to public officials to secure settlement, remission, or reduction as felony
Status: in_force

No bail bondsperson or runner may pay a fee or rebate or give or promise anything of value to a jailer, police, peace officer, committing magistrate, or any other person who has power to arrest or hold in custody; or to any public official or public employee in order to secure a settlement, compromise, remission, or reduction of the amount of any bail bond or the forfeiture thereof. Violation of this section is a Class 6 felony.

Source: SL 1966, ch 111, ch 31, §§ 15 (2), 27; SDCL, § 58-22-48 ; SL 1978, ch 359, § 2; SL 1998, ch 296, § 23.
S.D. Codified Laws § 58-5-15 — SD Code / Title 58 / Chapter 5 / Section 58-5-15
Commencement of solicitation by mutual insurer
Status: in_force

Upon receipt of the director's approval of the bond or deposit as provided in §§ 58-5-12 to 58-5-14 , inclusive, the directors and officers of the proposed domestic mutual insurer may commence solicitation of applications for insurance.

Source: SL 1966, ch 111, ch 16, § 11 (1).
S.D. Codified Laws § 58-11-13 — SD Code / Title 58 / Chapter 11 / Section 58-11-13
Policies exempt from form provisions
Status: in_force

Section 58-11-12 shall not apply to surety bonds, or to specially rated inland marine risks, nor to policies, riders, endorsements, or forms of unique character designed for and used with relation to insurance upon a particular subject, or which relate to the manner of distribution of benefits or to the reservation of rights and benefits under life or health insurance policies and are used at the request of the individual policyholder, contract holder, or certificate holder.

Source: SL 1966, ch 111, ch 22, § 13 (1).
S.D. Codified Laws § 58-28-29 — SD Code / Title 58 / Chapter 28 / Section 58-28-29
Actuarial standards for reserve liability on variable contracts
Status: in_force

The reserve liability for variable contracts shall be established in accordance with actuarial procedures that recognize the variable nature of the benefits provided and any mortality guarantees.

Source: SL 1971, ch 266, § 5.
S.D. Codified Laws § 58-38-11.3 — SD Code / Title 58 / Chapter 38 / Section 58-38-11.3
Plans not within alcoholism coverage requirement
Status: in_force

Sections 58-38-11.1 and 58-38-11.2 shall not apply to group major - medical service plans or accident only, or limited or specified disease plans.

Source: SL 1975, ch 314, § 3.
S.D. Codified Laws § 58-3-6 — SD Code / Title 58 / Chapter 3 / Section 58-3-6
Place where examination conducted
Status: in_force

The director shall conduct any such examination at the home office, if a domestic or foreign insurer, or United States branch office, if an alien insurer, of the insurer, or in any of its branch or agency offices; or with respect to persons other than insurers, at the office or other place of business of such person or at any place where his records are kept.

Source: SL 1966, ch 111, ch 2, § 18 (1).
S.D. Codified Laws § 58-43-9.1 — SD Code / Title 58 / Chapter 43 / Section 58-43-9.1
Disqualification of accountant
Status: in_force

No person or firm may be recognized as a qualified independent certified public accountant if the person or firm:

(1) Is not in conformity with the Code of Professional Ethics of the American Institute of CPA's and in all states in which the accountant is licensed to practice, or, for a Canadian or British company, that is not a chartered accountant; or

(2) Has either directly or indirectly entered into an agreement of indemnity or release from liability with respect to the audit of the insurer.

Source: SL 2007, ch 294, § 3.
S.D. Codified Laws § 58-43-16.3 — SD Code / Title 58 / Chapter 43 / Section 58-43-16.3
Membership of audit committee
Status: in_force

Each member of the audit committee shall be a member of the board of directors of the insurer or a member of the board of directors of an entity elected pursuant to § 58-43-16.6 .

Source: SL 2009, ch 271, § 18, eff. Jan. 1, 2010.
S.D. Codified Laws § 58-17E-39 — SD Code / Title 58 / Chapter 17E / Section 58-17E-39
Disclosure that product is not insurance--Advertisements--Rules--Revocation of registration--Agents
Status: in_force

Any person subject to registration pursuant to § 58-17E-9 shall prominently and boldly disclose that the product is not insurance. Any advertisements or solicitations made by such a person are subject to the provisions of §§ 58-33A-2 to 58-33A-4 , inclusive, and §§ 58-33A-7 to 58-33A-8 , inclusive, and §§ 58-33A-10 to 58-33A-12 , inclusive. Any administrative rule promulgated pursuant to § 58-33A-7 does not apply to those registered pursuant to the provisions of §§ 58-17E-9 , 58-17E-39 , 58-17E-41 , and 58-17E-45 , inclusive, unless specifically referenced in the rule. If any person fails to comply with these provisions or the provisions of §§ 58-17E-9 , 58-17E-39 , 58-17E-41 , and 58-17E-45 , inclusive, the director may issue an order to cease and desist pursuant to the provisions of chapter 58-4 and may revoke the registration. Any such action by the director is subject to notice and hearing as provided pursuant to chapter 1-26 and § 58-4-7 . A person acting as an agent as defined in chapter 58-30 who sells, solicits, or negotiates a plan or program containing insurance benefits shall meet the licensing and appointment requirements of that chapter if the person is otherwise required to be licensed pursuant to the provisions of chapter 58-30 .

Source: SL 2005, ch 269, § 2; SDCL § 58-17C-105 ; SL 2015, ch 260, § 7.
S.D. Codified Laws § 58-32-14 — SD Code / Title 58 / Chapter 32 / Section 58-32-14
Revival of suspended or revoked broker's surplus line license--Payment of fine and delinquent taxes--Waiting period
Status: in_force

No broker whose license has been so suspended or revoked shall again be so licensed until any fines or delinquent taxes owing by him have been paid, and, in case of revocation, until expiration of one year from the date that the revocation became final.

Source: SL 1966, ch 111, ch 11, § 13 (4).
S.D. Codified Laws § 58-38-24 — SD Code / Title 58 / Chapter 38 / Section 58-38-24
Hospital service plan authorized
Status: in_force

A medical and surgical plan corporation licensed under this chapter may establish and operate a nonprofit hospital service plan under the provisions of chapter 58-40 . Such plan shall be governed by chapter 58-40 , but is exempt from the provisions of § 58-40-4 .

Source: SL 1993, ch 374.
S.D. Codified Laws § 58-16-49 — SD Code / Title 58 / Chapter 16 / Section 58-16-49
Carrier and group-type basis defined
Status: in_force

Terms used in §§ 58-16-49 to 58-16-54 , inclusive, mean:

(1) "Carrier," a person or an entity that offers or provides a policy, contract, or certificate of group life insurance coverage in this state. Carrier includes an insurer, or any other person or entity providing a policy, contract, or certificate of group life insurance coverage subject to regulation under this title;

(2) "Group-type basis," a benefit plan, other than a salary budget plan utilizing individual insurance policies or subscriber contracts, which meets the following conditions:

(a) Coverage is provided through insurance policies to classes of employees or members defined in terms of conditions pertaining to employment or membership;

(b) The coverage is not available to the general public and can be obtained and maintained only because of the covered person's membership in or connection with the particular organization or group;

(c) There are arrangements for bulk payment of premiums or subscription charges to the carrier; and

(d) There is sponsorship of the plan by the employer, union, or association.

Source: SL 2009, ch 261, § 1.
S.D. Codified Laws § 58-11A-7 — SD Code / Title 58 / Chapter 11A / Section 58-11A-7
Other laws governing policy contents
Status: in_force

A policy form meeting the requirements of § 58-11A-3 shall be approved notwithstanding the provisions of any other laws which specify the content of policies if the policy form provides the policyholders and claimants protection not less favorable than they would be entitled to under such laws.

Source: SL 1981, ch 360, § 7.
S.D. Codified Laws § 58-24-8 — SD Code / Title 58 / Chapter 24 / Section 58-24-8
System of expense provisions used in rate-making--Reflection of operating methods
Status: in_force

The systems of expense provisions included in the rates for use by any insurer or group of insurers may differ from those of other insurers or group of insurers to reflect the requirements of the operating methods of any such insurer or group of insurers with respect to any kind of insurance, or with respect to any subdivision or combination thereof for which subdivision or combination separate expense provisions are applicable.

Source: SL 1966, ch 111, ch 15, § 3 (1) (c).
S.D. Codified Laws § 58-11-51 — SD Code / Title 58 / Chapter 11 / Section 58-11-51
Notice of nonrenewal of automobile policy--Time for notice--Exceptions to requirement for notice--Renewal not waiver of grounds for cancellation
Status: in_force

No insurer may fail to renew a policy unless the insurer mails or delivers to the named insured, at the address shown in the policy, at least sixty days' advance notice of the intention not to renew. This section does not apply:

(1) If the insurer has manifested its willingness to renew;

(2) If the policyholder is transferred to an insurer that is a member of the same insurance group as the previous insurer and notice of such transfer is given in the form adopted by rule by the Division of Insurance pursuant to chapter 1-26 ; nor

(3) In case of nonpayment of premium. However, notwithstanding the failure of an insurer to comply with this section, the policy shall terminate on the effective date of any other insurance policy with respect to any automobile designated in both policies.

Renewal of a policy does not constitute a waiver or estoppel with respect to grounds for cancellation which existed before the effective date of such renewal.

Source: SL 1968, ch 138, § 4; SL 1974, ch 311, § 2; SL 2000, ch 238, § 1.
S.D. Codified Laws § 58-12-7 — SD Code / Title 58 / Chapter 12 / Section 58-12-7
Premiums paid on annuity with intent to defraud creditors not exempt from execution
Status: in_force

Section 58-12-6 does not apply to amounts paid as premium on any such annuity with the intent to defraud creditors, with interest thereon, and of which the creditor has given the insurer written notice at its home office prior to the making of the payments to the annuitant out of which the creditor seeks to recover. Any such notice shall specify the amount claimed or such facts as will enable the insurer to ascertain such amount, and shall set forth such facts as will enable the insurer to ascertain the annuity contract, the annuitant and the payment sought to be avoided on the ground of fraud.

Source: SL 1966, ch 111, ch 22, § 32 (1) (a).
S.D. Codified Laws § 58-30-131 — SD Code / Title 58 / Chapter 30 / Section 58-30-131
Duties of insurer working with managing general agent
Status: in_force

The insurer has the following duties:

(1) The insurer shall review and have on file an annual independent financial examination done by a person acceptable to the director, of each managing general agent with which it has done business;

(2) If a managing general agent establishes loss reserves, the insurer 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 managing general agent. This is in addition to any other required loss reserve certification;

(3) The insurer shall at least semiannually conduct an on - site review of the underwriting and claims processing operations of the managing general agent;

(4) Binding authority for all reinsurance contracts or participation in insurance or reinsurance syndicates shall rest with an officer of the insurer, who may not be affiliated with the managing general agent;

(5) Within thirty days of entering into or termination of a contract with a managing general agent, the insurer shall provide written notification of the appointment or termination to the director. Notices of appointment of a managing general agent shall include a statement of duties which the applicant is expected to perform on behalf of the insurer, the lines of insurance for which the applicant is to be authorized to act, and any other information the director may request;

(6) An insurer shall review its books and records each quarter to determine if any insurance producer is a managing general agent as defined in § 58-30-124 . If the insurer determines that an insurance producer has become a managing general agent, the insurer shall promptly notify the insurance producer and the director within thirty days of the determination. The insurer and an insurance producer shall fully comply with the provisions of §§ 58-30-124 to 58-30-139 , inclusive, within thirty days of notification to the director; and

(7) An insurer may not appoint to its board of directors an officer, director, employee, insurance producer, or controlling shareholder of its managing general agents. This subdivision does not apply to relationships governed by chapters 58-5A and 58-44 .

Source: SL 1992, ch 353, § 8; SL 2001, ch 286, § 191.
S.D. Codified Laws § 58-26-4 — SD Code / Title 58 / Chapter 26 / Section 58-26-4
Preferred or guaranteed stocks--Method of computing value approved by director
Status: in_force

Preferred or guaranteed stocks or shares while paying full dividends may be carried at a fixed value in lieu of market value, at the discretion of the director and in accordance with such method of computation as he may approve.

Source: SL 1966, ch 111, ch 5, § 13 (2).
S.D. Codified Laws § 58-4-17 — SD Code / Title 58 / Chapter 4 / Section 58-4-17
Service of orders and notices of director
Status: in_force

An order or notice may be given by delivery to the person to be ordered or notified or by mailing it, postage prepaid, addressed to him at his principal place of business as last of record in the director's office.

Source: SL 1966, ch 111, ch 2, § 15 (3).
S.D. Codified Laws § 58-29B-156 — SD Code / Title 58 / Chapter 29B / Section 58-29B-156
Final allowance by state courts conclusive as to amount and priority
Status: in_force

The final allowance of the claim by the courts of this state shall be accepted as conclusive as to amount and as to priority against special deposits or other security located in this state.

Source: SL 1989, ch 436, § 156.
S.D. Codified Laws § 58-5-63 — SD Code / Title 58 / Chapter 5 / Section 58-5-63
Policy holding not a prohibited pecuniary interest
Status: in_force

Sections 58-5-61 and 58-5-62 shall not prohibit such a director, officer, stockholder, or member of a committee or employee from becoming a policyholder of the insurer and enjoying the usual rights given to other policyholders.

Source: SL 1966, ch 111, ch 16, § 22 (3).
S.D. Codified Laws § 58-14-16.6 — SD Code / Title 58 / Chapter 14 / Section 58-14-16.6
National Association of Insurance Commissioners' list of qualified jurisdictions
Status: in_force

A list of qualified jurisdictions shall be published through the National Association of Insurance Commissioners. The director shall consider the list in determining qualified jurisdictions. If the director approves a jurisdiction as qualified that does not appear on the list of qualified jurisdictions, the director shall provide a thoroughly documented justification with criteria to be developed in administrative rules promulgated by the director, pursuant to chapter 1-26 , to establish criteria for determining the qualifications of the jurisdictions.

United States jurisdictions that meet the requirements for accreditation under the National Association of Insurance Commissioners financial standards and accreditation program shall be recognized as qualified jurisdictions.

Source: SL 2017, ch 211, § 17.
S.D. Codified Laws § 58-4A-8 — SD Code / Title 58 / Chapter 4A / Section 58-4A-8
Operational costs of unit
Status: in_force

Any costs associated with the administration and operation of the insurance fraud prevention unit, including salaries and the costs set forth in §§ 58-4A-5 and 58-4A-6 , shall be paid from the insurance fraud prevention unit fund. All disbursements from the insurance fraud prevention unit fund shall be continuously appropriated.

Source: SL 1999, ch 241, § 8.
S.D. Codified Laws § 58-32-2 — SD Code / Title 58 / Chapter 32 / Section 58-32-2
Broker defined
Status: in_force

"Broker" as used in this chapter means a surplus line broker duly licensed as such under this chapter.

Source: SL 1966, ch 111, ch 11, § 3 (1).
S.D. Codified Laws § 58-18B-6 — SD Code / Title 58 / Chapter 18B / Section 58-18B-6
Disclosure in solicitation and sales materials
Status: in_force

Each small employer carrier shall make reasonable disclosure in solicitation and sales materials provided to small employers of the following:

(1) The extent to which premium rates for a specific small employer are established or adjusted due to the claim experience, health status or duration of coverage of the employees or dependents of the small employer;

(2) The provisions concerning the carrier's right to change premium rates and the factors, including case characteristics, which affect changes in premium rates;

(3) A description of the class of business in which the small employer is or will be included, including the applicable grouping of plans; and

(4) The provisions relating to renewability of coverage.

Source: SL 1991, ch 402, § 6.
S.D. Codified Laws § 58-29A-77 — SD Code / Title 58 / Chapter 29A / Section 58-29A-77
Apportionment of assessments among members--Notice of assessment
Status: in_force

The assessments of each member insurer shall be in the proportion that the net direct written premiums of the member insurer for the preceding calendar year on the kinds of insurance in the account bears to the net direct written premiums of all member insurers for the preceding calendar year on the kinds of insurance in the account. The assessment is due not less than thirty days after prior written notice to the member insurer and shall accrue interest at ten percent per annum on and after the due date.

Source: SL 2000, ch 247, § 24.
S.D. Codified Laws § 58-48-2 — SD Code / Title 58 / Chapter 48 / Section 58-48-2
Grounds for innovation waiver
Status: in_force

Subject to §§ 58-48-3 to 58-48-5, inclusive, the director may grant an insurance innovation waiver with respect to requirements imposed by any insurance law, regulation, or bulletin to enable a person to obtain limited access to the insurance market in this state to test an innovative insurance product or service without obtaining a license or other authorization that might otherwise be required or without coming into full compliance with any insurance law, regulation, or bulletin. To receive a waiver, an applicant shall demonstrate to the director's satisfaction that:

(1) The application of the law, regulation, or bulletin would inhibit the introduction of an innovative or more efficient insurance product or service that the applicant intends to test during the period for which the proposed waiver is granted;

(2) The public policy goals of the law, regulation, or bulletin will be or have been achieved by other means;

(3) The waiver will not unreasonably increase risk to consumers or create unreasonable unfair competition in the insurance market; and

(4) The waiver is in the public interest.

Source: SL 2021, ch 214, § 2.
S.D. Codified Laws § 58-33-60 — SD Code / Title 58 / Chapter 33 / Section 58-33-60
Notice of cancellation required--Time--Contents
Status: in_force

A notice of cancellation of insurance coverage by an insurer shall be mailed or delivered by the insurer to the named insured at least twenty days before the effective cancellation date and shall be accompanied by a written explanation of the specific reasons for the cancellation.

Source: SL 1985, ch 392, § 2; SL 1999, ch 259, § 2.
S.D. Codified Laws § 58-29B-161 — SD Code / Title 58 / Chapter 29B / Section 58-29B-161
Ancillary receiver's failure to transfer certain assets
Status: in_force

If an ancillary receiver in another state or foreign country, whether called by that name or not, fails to transfer to the domiciliary liquidator in this state any assets within his control other than special deposits, diminished only by the expenses of the ancillary receivership, if any, the claims filed in the ancillary receivership, other than special deposit claims or secured claims, shall be placed in the class of claims under subdivision 58-29B-124(7).

Source: SL 1989, ch 436, § 161.
S.D. Codified Laws § 58-41-108 — SD Code / Title 58 / Chapter 41 / Section 58-41-108
Purchasing organizations exempt from antitrust provisions
Status: in_force

Any organization formed pursuant to §§ 58-41-99 to 58-41-109 , inclusive, is exempt from the antitrust provisions under chapter 37-1 .

Source: SL 1994, ch 382, § 10.
S.D. Codified Laws § 58-48-14 — SD Code / Title 58 / Chapter 48 / Section 58-48-14
Termination for failure--Termination by director
Status: in_force

If an innovative insurance product or service fails before the termination of a testing period as provided in an applicable waiver, the participant shall immediately notify the director and report on actions taken by the participant to ensure consumers have not been harmed as a result of the failure.

The director may terminate an insurance innovation waiver for cause and with reasonable notice to the participant. Nothing in this chapter restricts the director's application of chapters 58-4 and 58-29B as regards participants.

Source: SL 2021, ch 214, § 14.
S.D. Codified Laws § 58-5-148 — SD Code / Title 58 / Chapter 5 / Section 58-5-148
Information required in report of material acquisition or disposition of assets
Status: in_force

The following information shall be disclosed in any report of a material acquisition or disposition of assets:

(1) Date of the transaction;

(2) Manner of acquisition or disposition;

(3) Description of the assets involved;

(4) Nature and amount of the consideration given or received;

(5) Purpose of, or reason for, the transaction;

(6) Manner by which the amount of consideration was determined;

(7) Gain or loss recognized or realized as a result of the transaction; and

(8) Name of any person from whom the assets were acquired or to whom the assets were disposed.

Source: SL 1995, ch 275, § 5.
S.D. Codified Laws § 58-40-6 — SD Code / Title 58 / Chapter 40 / Section 58-40-6
Application for license--Form and contents--Documents accompanying
Status: in_force

Application for the certificate of authority or license required by § 58-40-5 shall be made on forms to be approved by the director, containing such information as he shall deem necessary. Each application for such certificate or license shall be accompanied by copies of the following documents:

(1) Certified copy of its charter or certificate of incorporation;

(2) Bylaws;

(3) Proposed contracts between the corporation and participating hospitals showing terms under which hospital service is to be furnished to subscribers;

(4) Contracts to be issued to subscribers showing the benefits to which they are entitled;

(5) A table of the rates to be charged to the subscribers;

(6) Financial statement of the corporation including the amounts of contribution paid or agreed to be paid to the corporation for working capital and the names of each contributor and the terms of each contribution.

Source: SL 1966, ch 111, ch 21, § 18.
S.D. Codified Laws § 58-40-35 — SD Code / Title 58 / Chapter 40 / Section 58-40-35
Shorter hospital stay permitted--Follow-up visit within forty-eight hours required
Status: in_force

If the treating physician determines that the mother and the newborn meet medical criteria contained in Guidelines for Perinatal Care, Third Edition, of the American Academy of Pediatrics and the American College of Obstetricians and Gynecologists as in effect on January 1, 1996, a service or indemnity - type contract issued by a nonprofit hospital service plan corporation may provide coverage for a shorter length of hospital inpatient stay for services related to maternity and newborn care than is required in § 58-40-34 if the coverage includes one follow - up visit in the first forty - eight hours after discharge to verify the condition of the mother and newborn.

Source: SL 1996, ch 292, § 14.
S.D. Codified Laws § 58-15-85 — SD Code / Title 58 / Chapter 15 / Section 58-15-85
Minimum values based on minimum nonforfeiture amounts--Minimum nonforfeiture amounts defined
Status: in_force

The minimum values as specified in §§ 58-15-86 to 58-15-89 , inclusive, and 58-15-91 of any paid - up annuity, cash surrender, or death benefits available under an annuity contract shall be based upon minimum nonforfeiture amounts as defined in this section:

(1) The minimum nonforfeiture amount at any time at or prior to the commencement of any annuity payments shall be equal to an accumulation up to such time at rates of interest as indicated in the second paragraph of this section of considerations (as hereinafter defined) paid prior to such time, decreased by the sum of the following:

(a) Any prior withdrawals from or partial surrenders of the contract accumulated at rates of interest as indicated in the second paragraph of this section; and

(b) An annual contract charge of fifty dollars accumulated at rates of interest as indicated in second paragraph of this section;

(c) Any premium tax paid by the company for the contract, accumulated at rates of interest as indicated in second paragraph of this section; and

(d) The amount of any indebtedness to the company on the contract, including interest due and accrued;

(2) The net considerations for a given contract year used to define the minimum nonforfeiture amount shall be an amount equal to eighty - seven and one - half percent of the gross considerations credited to the contract during that contract year.

The interest rate used in determining minimum nonforfeiture amounts shall be an annual rate of interest determined as the lesser of three percent per annum and the following, which shall be specified in the contract if the interest rate will be reset:

(1) The five - year constant maturity treasury rate reported by the Federal Reserve as of a date, or average over a period, rounded to the nearest one - twentieth of one percent, specified in the contract no longer than fifteen months prior to the contract issue date or redetermination date pursuant to this section;

(2) Reduced by one hundred twenty - five basis points;

(3) Where the resulting interest rate is not less than fifteen-hundredths of one percent; and

(4) The interest rate shall apply for an initial period and may be redetermined for additional periods.

The redetermination date, basis, and period, if any, shall be stated in the contract. The basis is the date or average over a specified period that produces the value of the five - year constant maturity treasury rate to be used at each redetermination date.

During the period or term that a contract provides substantive participation in an equity indexed benefit, it may increase the reduction described above by up to an additional one hundred basis points to reflect the value of the equity index benefit. The present value at the contract issue date, and at each redetermination date thereafter, of the additional reduction may not exceed the market value of the benefit. The director may require a demonstration that the present value of the additional reduction does not exceed the market value of the benefit. Lacking such a demonstration that is acceptable to the director, the director may disallow or limit the additional reduction.

The director may promulgate rules pursuant to chapter 1-26 to implement the provisions of this section and to provide for further adjustments to the calculation of minimum nonforfeiture amounts for contracts that provide substantive participation in an equity index benefit and for other contracts that the director determines adjustments are justified.

Source: SL 2004, ch 299, § 4; SL 2022, ch 181, § 1.
S.D. Codified Laws § 58-17-2.1 — SD Code / Title 58 / Chapter 17 / Section 58-17-2.1
Health insurance on a franchise plan
Status: in_force

Health insurance on a franchise plan is hereby declared to be that form of health insurance issued to:

(1) Three or more employees of any corporation, copartnership, or individual employer or any governmental corporation, agency, or department thereof; or

(2) Ten or more members of any trade, occupational, or professional association, or of a labor union, or of any other association having had an active existence for at least two years where such association or union has a constitution or bylaws and is formed in good faith for purposes other than that of obtaining insurance; where such persons, with or without their dependents, are issued the same form of an individual policy varying only as to amounts and kinds of coverage applied for by such persons, under an arrangement whereby the premiums on such policies may be paid to the insurer periodically by the employer, with or without payroll deductions, or by the association for its members, or by some designated person acting on behalf of such employer or association or by the insured directly to the insurer, if permitted by the insurer. The term, employees, as used in this section may be deemed to include the officers, managers, and employees and retired employees of the employer and the individual proprietor or partnership.

Health insurance may be marketed on a franchise basis to members or employees of an employer, labor union, or association. Except as provided for by § 58-18B-2 , health insurance marketed on a franchise basis may have the individual's premiums paid by the employer, labor union, or association. Marketing a policy on a franchise basis does not exempt any policy from any applicable requirement under this title except as provided in § 58-33-13 .

Source: SL 1966, ch 111, ch 25, § 30 as added by SL 1968, ch 137; SL 2000, ch 241, §§ 1, 2.
S.D. Codified Laws § 58-38-22.1 — SD Code / Title 58 / Chapter 38 / Section 58-38-22.1
Service and indemnity-type contracts required to cover occult breast cancer screening
Status: in_force

Each service or indemnity-type contract issued by a nonprofit medical and surgical service plan corporation that covers a female and that is delivered, issued for delivery, or renewed in this state, except for a contract that provides coverage for specified disease or other limited benefit coverage, shall provide coverage for screening 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, § 14.
S.D. Codified Laws § 58-18A-71 — SD Code / Title 58 / Chapter 18A / Section 58-18A-71
Plan covering person as active employee
Status: in_force

The plan that covers a person as an active employee that is, an employee who is neither laid off nor retired or as a dependent of an active employee is the primary plan. The plan covering that same person as a retired or laid-off employee or as a dependent of a retired or laid-off employee is the secondary plan.

If the other plan does not have the provisions of this section, and as a result, the plans do not agree on the order of benefits, the provisions of this section do not apply.

This section does not apply if the provisions in § 58-18A-69 can determine the order of benefits.

Source: SL 2006, ch 259, § 19.
S.D. Codified Laws § 58-19-7 — SD Code / Title 58 / Chapter 19 / Section 58-19-7
Agricultural credit transaction commitments--Amount of insurance
Status: in_force

Notwithstanding the provisions of § 58-19-6 , insurance on agricultural credit transaction commitments may be written for the amount of the portion of such commitment that has not been advanced by the creditor.

Source: SL 1966, ch 111, ch 27, § 4 (2).
S.D. Codified Laws § 58-30-115.2 — SD Code / Title 58 / Chapter 30 / Section 58-30-115.2
Renewal of limited or restricted licenses
Status: in_force

Any licensee meeting the exception pursuant to subdivision 58-30-115(3) shall renew the license pursuant to § 58-30-121 .

Source: SL 2009, ch 269, § 1; SL 2015, ch 260, § 9.
S.D. Codified Laws § 58-47-15 — SD Code / Title 58 / Chapter 47 / Section 58-47-15
Penalties for violation of chapter
Status: in_force

If a vendor of portable electronics or its employee or authorized representative violates any provision of this chapter, the director may do any of the following:

(1) After notice and hearing, impose penalties permitted under this section that the director deems necessary and reasonable to carry out the purpose of this chapter, including, but not limited to:

(a) Suspending or revoking the privilege of transacting portable electronics insurance pursuant to this chapter at specific business locations where violations have occurred; and

(b) Suspending or revoking the ability of individual employees or authorized representatives to act under the license;

(2) Permit an applicant or licensee to elect in writing to pay a specified money penalty within a specified time in lieu of a license suspension or other permitted action. The money penalty may not exceed five hundred dollars per violation or five thousand dollars in aggregate.

Source: SL 2012, ch 251, § 16.
S.D. Codified Laws § 58-33A-27 — SD Code / Title 58 / Chapter 33A / Section 58-33A-27
Records regarding recommendations
Status: in_force

Each insurer, general agent, independent agency and producer shall maintain or be able to make available to the director records of the information collected from the consumer, disclosures made to the consumer, including summaries of oral disclosures, and other information used in making the recommendations that were the basis for insurance transactions for five years after the insurance transaction is completed by the insurer. An insurer is permitted, but is not required, to maintain documentation on behalf of a producer.

Any record required to be maintained by §§ 58-33A-13 to 58-33A-27 , inclusive, may be maintained in paper, photographic, microprocess, magnetic, mechanical or electronic media or by any process that accurately reproduces the actual document.

Source: SL 2008, ch 273, § 15; SL 2022, ch 186, § 29, eff. Jan. 1, 2023.
S.D. Codified Laws § 58-27-94 — SD Code / Title 58 / Chapter 27 / Section 58-27-94
Limit on amount invested in medium or lower grade obligations
Status: in_force

No domestic insurer may invest more than an aggregate of one percent of its admitted assets in medium grade obligations issued, guaranteed, or insured by any one institution nor may it invest more than one - half of one percent of its admitted assets in lower grade obligations issued, guaranteed, or insured by any one institution. In no event, however, may a domestic insurer invest more than one percent of its admitted assets in any medium or lower grade obligations issued, guaranteed, or insured by any one institution.

Source: SL 1992, ch 350, § 6.
S.D. Codified Laws § 58-7-6 — SD Code / Title 58 / Chapter 7 / Section 58-7-6
Authorized deposits of insurers
Status: in_force

The following deposits of insurers shall be accepted and held, and are subject to the provisions of this chapter:

(1) Deposits required under this title for authority to transact insurance business in this state;

(2) Deposits of domestic insurers if made pursuant to the laws of other states, provinces, and countries as requirement for authority to transact insurance in that state, province, or country;

(3) Deposits of reserves made by domestic insurers;

(4) Deposits in additional amounts as are permitted to be made under § 58-7-29 .

Source: SL 1966, ch 111, ch 7, § 2; SL 1991, ch 398, § 3.
S.D. Codified Laws § 58-29D-14 — SD Code / Title 58 / Chapter 29D / Section 58-29D-14
Fiduciary capacity of administrator--Accounting of underwriting transactions
Status: in_force

All insurance charges or premiums collected by an administrator on behalf of or for an insurer or insurers, and the return of premiums received from that insurer or insurers, shall be held by the administrator in a fiduciary capacity. Such funds shall be immediately remitted to the person or persons entitled to them or shall be deposited promptly in a fiduciary account established and maintained by the administrator in a federally or state insured financial institution. The written agreement between the administrator and the insurer shall provide for the administrator to periodically render an accounting to the insurer detailing all transactions performed by the administrator pertaining to the business underwritten by the insurer.

Source: SL 1992, ch 352, § 14.
S.D. Codified Laws § 58-29A-104 — SD Code / Title 58 / Chapter 29A / Section 58-29A-104
Unfair trade practice to advertise protection given by chapter
Status: in_force

It is unfair trade practice for any insurer or insurance producer to in any manner make use of the protection given policyholders by this chapter as a reason for buying insurance from the insurer or insurance producer.

Source: SL 2000, ch 247, § 51; SL 2001, ch 286, § 138.
S.D. Codified Laws § 58-11-68 — SD Code / Title 58 / Chapter 11 / Section 58-11-68
Filer to indicate location of each requirement on policy form filing
Status: in_force

A filer shall submit a copy of the document with a policy form filing, indicating the location within the policy form or supplemental documents for each requirement contained in the document, and certifying that the policy form meets all requirements of state law.

Source: SL 2008, ch 261, § 5.
S.D. Codified Laws § 58-5A-63 — SD Code / Title 58 / Chapter 5A / Section 58-5A-63
Transactions or contracts entered into without approval--Cease and desist order by director
Status: in_force

If any insurer subject to this chapter or any director, officer, employee, or agent has engaged in any transaction or entered into a contract which is subject to §§ 58-5A-32 , 58-5A-34 , 58-5A-35 , 58-5A-56 , 58-5A-58 , and 58-5A-59 and which would not have been approved had approval been requested, the director may order the insurer to cease and desist immediately any further activity under that transaction or contract. After notice and hearing, the director may also order the insurer to void any contracts and restore the status quo if the action is in the best interest of the policyholders, creditors, or the public.

Source: SL 1992, ch 341, § 30.
S.D. Codified Laws § 58-17-58 — SD Code / Title 58 / Chapter 17 / Section 58-17-58
Waiver of required deductible or co-payment for charitable purposes permitted
Status: in_force

However, a person may waive any required deductible or co - payment for charitable purposes if:

(1) The person who provides the health care determines that the services are necessary for the immediate health and welfare of the insured;

(2) The waiver is made on a case - by - case basis and the person who provides the health care determines that payment of the deductible or co - payment would create a substantial financial hardship for the insured; and

(3) The waiver is not a regular business practice of the person who provides the health care.

Source: SL 1989, ch 429, § 2.
S.D. Codified Laws § 58-41-102 — SD Code / Title 58 / Chapter 41 / Section 58-41-102
Purchasing organization's notice of premium charge
Status: in_force

The organization may provide not less than forty - five days advance notice of any benefit or premium change to its members.

Source: SL 1994, ch 382, § 4.
S.D. Codified Laws § 58-24-33 — SD Code / Title 58 / Chapter 24 / Section 58-24-33
Exchange of information and experience data with other states--Consultation as to rate-making
Status: in_force

In order to further uniform administration of rate regulatory laws, the director and every insurer and rating organization may exchange information and experience data with insurance supervisory officials, insurers, and rating organizations in other states and may consult with them with respect to rate - making and the application of rating systems.

Source: SL 1966, ch 111, ch 15, § 13 (3).
S.D. Codified Laws § 58-26-102 — SD Code / Title 58 / Chapter 26 / Section 58-26-102
Confidential information defined
Status: in_force

For purposes of this chapter, confidential information, means:

(1) A memorandum in support of an opinion submitted pursuant to §§ 58-26-46 to 58-26-55.1 , inclusive, and any other document, material, and other information, including all working papers, and copies thereof, created, produced, or obtained by or disclosed to the director or any other person in connection with such memorandum;

(2) All documents, materials, and other information, including all working papers, and copies thereof, created, produced, or obtained by or disclosed to the director or any other person in the course of an examination made pursuant to § 58-26-96 ; provided that if an examination report or other material prepared in connection with an examination made pursuant to chapter 58-3 is not held as private and confidential information pursuant to chapter 58-3 , an examination report or other material prepared in connection with an examination made pursuant to § 58-26-96 is not confidential information to the same extent as if such examination report or other material had been prepared pursuant to chapter 58-3 ;

(3) Any reports, documents, materials, and other information developed by a company in support of, or in connection with, an annual certification by the company pursuant to subdivision 58-26-99(2) evaluating the effectiveness of the company's internal controls with respect to a principle-based valuation and any other documents, materials, and other information, including all working papers, and copies thereof, created, produced, or obtained by or disclosed to the director or any other person in connection with such reports, documents, materials, and other information;

(4) Any principle-based valuation report developed pursuant to subdivision 58-26-99(3) and any other documents, materials, and other information, including all working papers, and copies thereof, created, produced, or obtained by or disclosed to the director or any other person in connection with such report; and

(5) Any documents, materials, data, and other information submitted by a company pursuant to § 58-26-101 , collectively, "experience data," and any other documents, materials, data, and other information, including all working papers, and copies thereof, created or produced in connection with such experience data, in each case that include any potentially company-identifying or personally identifiable information, that is provided to or obtained by the director together with any experience data, the experience materials, and any other documents, materials, data, and other information, including all working papers, and copies thereof, created, produced, or obtained by or disclosed to the director or any other person in connection with such experience materials.

Source: SL 2015, ch 254, § 36.
S.D. Codified Laws § 58-14-29 — SD Code / Title 58 / Chapter 14 / Section 58-14-29
Written contract between agent or broker and insurer or reinsurer
Status: in_force

Any transaction between an agent or broker and the insurer or reinsurer that it represents may only be entered into pursuant to a written contract, specifying the responsibilities of each party. The contract shall, at a minimum, provide that:

(1) The insurer or reinsurer may terminate the contract for cause upon written notice to the agent or broker. A reinsurer may immediately suspend the authority of the agent or broker to assume or cede business during the pendency of any dispute regarding the cause for termination. Within thirty days of the termination of the contract with an agent or broker, the insurer or reinsurer shall provide written notification of the termination to the director;

(2) The agent or broker shall render accounts to the insurer and reinsurer accurately detailing all transactions, including information necessary to support all commissions, charges and other fees received by, or owed to, the agent or broker, and remit all funds due to the insurer or reinsurer within thirty days of receipt;

(3) All funds collected for the insurer's or reinsurer's account shall be held by the agent or broker in a fiduciary capacity in a bank which is a qualified United States financial institution. The agent may retain no more than three months estimated claims payments and allocated loss adjustment expenses. The agent shall maintain a separate bank account for each reinsurer that it represents;

(4) The agent or broker shall comply with §§ 58-14-30 and 58-14-31 ;

(5) The agent or broker shall comply with the written standards established by the insurer or reinsurer for the cession or retrocession of all risks; and

(6) The broker shall disclose to the insurer any relationship with any reinsurer to which business will be ceded or retroceded.

Source: SL 1992, ch 345, § 6; SL 1994, ch 379, § 2.
S.D. Codified Laws § 58-33-127 — SD Code / Title 58 / Chapter 33 / Section 58-33-127
Practices regarding Servicemembers' Group Life Insurance or Veterans' Group Life Insurance considered false, misleading, deceptive, or unfair
Status: in_force

The following acts or practices by an insurer or insurance producer regarding Servicemembers' Group Life Insurance (SGLI) or Veterans' Group Life Insurance (VGLI) are declared to be false, misleading, deceptive, or unfair:

(1) Making any representation regarding the availability, suitability, amount, cost, exclusions, or limitations to coverage provided to a service member or dependents by SGLI or VGLI, which is false, misleading, or deceptive;

(2) Making any representation regarding conversion requirements, including the costs of coverage, or exclusions or limitations to coverage of SGLI or VGLI to private insurers which is false, misleading or deceptive; or

(3) Suggesting, recommending, or encouraging a service member to cancel or terminate his or her SGLI policy or issuing a life insurance policy which replaces an existing SGLI policy unless the replacement takes effect upon or after the service member's separation from the United States Armed Forces.

Source: SL 2008, ch 272, § 11.
S.D. Codified Laws § 58-29B-118 — SD Code / Title 58 / Chapter 29B / Section 58-29B-118
Several claims founded upon one policy--Disposition--Prohibited claims
Status: in_force

If several claims founded upon one policy are filed, whether by third parties or as claims by the insured under § 58-29B-116 or 58-29B-128 , and the aggregate allowed amount of the claims to which the same limit of liability in the policy is applicable exceeds that limit, each claim as allowed shall be reduced in the same proportion so that the total equals the policy limit. Claims by the insured shall be evaluated as in § 58-29B-117 . If any insured's claim is subsequently reduced under § 58-29B-117 , the amount thus freed shall be apportioned ratably among the claims which have been reduced under this section. No claim may be presented under § 58-29B-116 or this section, if it is or may be covered by any guaranty association or foreign guaranty association.

Source: SL 1989, ch 436, § 118.
S.D. Codified Laws § 58-6-36 — SD Code / Title 58 / Chapter 6 / Section 58-6-36
Deposit of title insurer--Amount required
Status: in_force

No title insurer shall be authorized to transact business in this state unless it deposits and maintains on deposit in this state through the director, cash or securities eligible for deposit as set forth in the chapter hereof relating to deposits and administration of deposits, in the amount of one hundred thousand dollars; except, that the deposit of a domestic title insurer which was lawfully transacting such business in this state under laws in force immediately prior to July 1, 1966, shall be in an amount determined as follows:

(1) Twenty - five thousand dollars, plus

(2) Twenty - five hundred dollars for each five thousand or terminal fraction thereof of population in excess of one hundred thousand of aggregate population of those counties of South Dakota in which the insurer transacts business, if the insurer transacts business in more than one county of South Dakota;

Source: SL 1966, ch 111, ch 3, § 14 (1).
S.D. Codified Laws § 58-27-107 — SD Code / Title 58 / Chapter 27 / Section 58-27-107
Ratification of investment
Status: in_force

Any investment satisfying the provisions of § 58-27-53 , 58-27-57 , 58-27-103 , 58-27-104 , or 58-27-105 entered into before January 1, 1993, is hereby ratified.

Source: SL 1993, ch 364, § 7; SL 1997, ch 294, § 29.
S.D. Codified Laws § 58-6-42 — SD Code / Title 58 / Chapter 6 / Section 58-6-42
Annual reissuance of certificate not required--Annual renewal fee--Expiration of certificate
Status: in_force

The certificate of authority issued by the director to an insurer shall not require annual reissuance but shall remain in force as long as the insurer pays the annual renewal fee provided in § 58-2-29 on or before the thirtieth day of April of each year and as long as the insurer continues to meet the other requirements of this title, unless the license is otherwise revoked, suspended, or withdrawn.

Source: SL 1966, ch 111, ch 3, § 17; SL 1967, ch 129, § 2.
S.D. Codified Laws § 58-33-48 — SD Code / Title 58 / Chapter 33 / Section 58-33-48
Definition of terms
Status: in_force

When used in §§ 58-33-47 to 58-33-57 , inclusive:

(1) "Residents" shall mean and include any person, partnership or corporation, domestic, alien or foreign.

(2) "Unfair Trade Practice Act" shall mean §§ 58-33-1 to 58-33-46.1 , inclusive, relating to unfair methods of competition and unfair and deceptive acts and practices in the business of insurance.

Source: SL 1966, ch 111, ch 13, § 27.
S.D. Codified Laws § 58-3-7.4 — SD Code / Title 58 / Chapter 3 / Section 58-3-7.4
Insurer's claim files subject to examination--File maintenance requirements
Status: in_force

Each insurer's claim files for policies or certificates are subject to examination pursuant to chapter 58-3 by the director of insurance. To aid in the examination:

(1) The insurer shall maintain claim data that is accessible and retrievable for examination. An insurer shall be able to provide the claim number, line of coverage, date of loss, and date of payment of the claim, date of denial, or date closed without payment. This claim data shall be available for all open and closed files for five years;

(2) Detailed documentation shall be contained in each claim file in order to permit reconstruction of the insurer's activities relative to each claim;

(3) Each relevant document within the claim file shall be noted as to date received, date processed, or date mailed. Dated correspondence is sufficient to document the date mailed for the purposes of this subdivision;

(4) For those insurers that do not maintain hard copy files, claim files shall be accessible from a computer, microfilm, Cathode Ray Tube (CRT), micrographics, or other similar electronic means and be capable of duplication to hard copy; and

(5) Claim information obtained in a telephone conversation or personal interview with any source which is used in the claim determination shall be documented in the claim file.

Source: SL 1997, ch 283, § 5; SL 2009, ch 257, § 1.
S.D. Codified Laws § 58-6-41 — SD Code / Title 58 / Chapter 6 / Section 58-6-41
Kinds of insurance specified in certificate--Limitations within class
Status: in_force

The certificate, if issued, shall specify the kinds of insurance the insurer is authorized to transact in South Dakota. At the insurer's request, the director may issue a certificate of authority limited to particular types of insurance or insurance coverages within the scope of a kind of insurance as defined in this title.

Source: SL 1966, ch 111, ch 3, § 16 (2).
S.D. Codified Laws § 58-6-77 — SD Code / Title 58 / Chapter 6 / Section 58-6-77
Time for publication of summary statement by director--Publication in judicial circuits
Status: in_force

The director shall cause the publication of such statements to be made within sixty days from the end of the limit of time provided by law for filing such annual statements. The director shall, thereafter, provide for publication of the annual statements in such judicial circuits as shall be occupied by the appointment of an insurance producer after the first statements have been assigned.

Source: SL 1966, ch 111, ch 3, § 27; SL 2001, ch 286, § 87.
S.D. Codified Laws § 58-25-4 — SD Code / Title 58 / Chapter 25 / Section 58-25-4
Unfair discrimination in rates prohibited
Status: in_force

Rates shall not discriminate unfairly between risks involving essentially the same hazards and expense elements.

Source: SL 1966, ch 111, ch 14, § 2 (2).
S.D. Codified Laws § 58-30-91 — SD Code / Title 58 / Chapter 30 / Section 58-30-91
Records to be maintained by insurance producer--Violation as misdemeanor
Status: in_force

The insurance producer shall keep at the insurance producer's place of business records pertaining to transactions under the insurance producer's license and the licenses of the insurance producer's soliciting insurance producers, for a period of at least five years after completion of such transactions. Such records shall show, as to each policy, the name and address of the insured, the form, number, and term of the policy, the general subject of the insurance, and the general nature of the coverage. Nothing in this section precludes a home, zone, or regional office of the insurer from maintaining such business records in lieu of an insurance producer maintaining the records so long as the insurance producer receives compensation substantially in the form of a salary or produces seventy-five percent or more of his or her insurance business, based on gross premiums written, with one insurer or group of insurers subject to common management or ownership.

Any violation of this section is a Class 2 misdemeanor.

Source: SL 1966, ch 111, ch 9, § 26 (3); SL 1978, ch 359, § 2; SL 2001, ch 286, § 175; SL 2009, ch 268, § 1.
S.D. Codified Laws § 58-35-17 — SD Code / Title 58 / Chapter 35 / Section 58-35-17
Certificate of authority to insure against hail--Required qualifications to obtain
Status: in_force

When applying for an original certificate of authority to insure growing crops against loss by hail, the insurer must be otherwise qualified therefor under this title, and it must have received applications for such insurance from not less than one hundred persons owning in the aggregate not less than five thousand acres of grain; and each such applicant must have given to the insurer the obligations referred to in § 58-35-41 , or paid the premium required subject to the insurer qualifying to transact insurance.

Source: SL 1966, ch 111, ch 17, § 11 (3).
S.D. Codified Laws § 58-2-30 — SD Code / Title 58 / Chapter 2 / Section 58-2-30
Disposition of money received by director
Status: in_force

All fees received by the director from any source whatever, except as provided in § 58-3-15 not later than the fifth day of the succeeding month, shall be paid into the state treasury and by the state treasurer deposited in the insurance operating fund according to § 4-4-4.3 . All other money received by the director from any source whatever, except as provided in § 58-3-15 not later than the fifth day of the succeeding month, shall be paid into the state treasury and by the state treasurer deposited in the general fund.

Source: SL 1966, ch 111, ch 2, § 28; SL 1989, ch 48, § 4.
S.D. Codified Laws § 58-6A-3.5 — SD Code / Title 58 / Chapter 6A / Section 58-6A-3.5
Written policy in plan of operation
Status: in_force

The risk retention group's board of directors shall adopt a written policy in the plan of operation as approved by the board that requires the board to:

(1) Assure that all owners and insureds of the risk retention group receive evidence of ownership interest;

(2) Develop a set of governance standards applicable to the risk retention group;

(3) Oversee the evaluation of the risk retention group's management including the performance of the managing general underwriter or any other party responsible for underwriting, determination of rates, collection of premiums, adjusting or settling a claim, or the preparation of a financial statement;

(4) Review and approve the amount to be paid for each material service provider; and

(5) Review and approve, at least annually:

(a) The risk retention group's goals and objectives relevant to the compensation of officers and service providers;

(b) The officers' and service providers' performance in light of those goals and objectives; and

(c) The continued engagement of the officers and material service providers.

Source: SL 2016, ch 232, § 7.
S.D. Codified Laws § 58-30-204 — SD Code / Title 58 / Chapter 30 / Section 58-30-204
Expiration of rental car insurance endorsee license
Status: in_force

An endorsee's authorization to offer, sell, or solicit rental car insurance expires when the endorsee's employment with the rental car company is terminated.

Source: SL 2001, ch 272, § 8; SDCL § 58-9-41; SL 2010, ch 233, § 2.
S.D. Codified Laws § 58-46-26 — SD Code / Title 58 / Chapter 46 / Section 58-46-26
Application of Title 58
Status: in_force

No provisions of Title 58, other than those contained in this chapter or contained in specific references contained in this chapter, apply to captive insurance companies.

Source: SL 1996, ch 287, § 26.
S.D. Codified Laws § 58-34-8 — SD Code / Title 58 / Chapter 34 / Section 58-34-8
Bond of attorney in fact--Filing with and approval by director
Status: in_force

Concurrently with the filing of the application provided for in § 58-34-7 , the attorney of a domestic reciprocal insurer shall file with the director a bond in favor of the State of South Dakota for the benefit of all persons damaged as a result of a breach of the conditions of his bond as set forth in § 58-34-9 . The bond shall be executed by the attorney and by an authorized corporate surety, and shall be subject to the director's approval.

Source: SL 1966, ch 111, ch 19, § 12 (1).
S.D. Codified Laws § 58-35-60 — SD Code / Title 58 / Chapter 35 / Section 58-35-60
Merger of farm mutual insurers--Plan of merger
Status: in_force

Any two or more farm mutual corporations authorized to transact business pursuant to this chapter may merge into one farm mutual corporation pursuant to a plan of merger as provided in this section and §§ 58-35-61 to 58-35-74 , inclusive. The board of directors of each corporation, shall, by resolution adopted by each such board, approve a plan of merger setting forth:

(1) A statement that the merger is advisable;

(2) The names of the corporations proposing to merge, and the name of the corporation into which they propose to merge, to be known as the surviving corporation;

(3) The terms and conditions of the proposed merger;

(4) The names of the surviving corporation's first board of directors;

(5) The surviving corporation's principal office;

(6) The manner and basis of converting the assets and liabilities of each corporation into the assets, liabilities, or obligations or other securities of the surviving corporation or of any other corporation, or, in whole or in part, into cash or other property;

(7) A statement of any changes in the articles of incorporation of the surviving corporation to be affected by the merger;

(8) That the board of directors approves the merger of the corporation into the surviving corporation; and

(9) Any other provisions with respect to the proposed merger that are necessary or desirable.

Source: SL 1995, ch 293, § 1.
S.D. Codified Laws § 58-44-13 — SD Code / Title 58 / Chapter 44 / Section 58-44-13
Time limit for compliance
Status: in_force

Controlled insurers and controlling brokers who are not in compliance with §§ 58-44-3 to 58-44-7 , inclusive, on July 1, 1992, shall have sixty days to come into compliance and shall comply with § 58-44-8 beginning with all policies written or renewed on or after September 30, 1992.

Source: SL 1992, ch 358, § 13.
S.D. Codified Laws § 58-16-12.1 — SD Code / Title 58 / Chapter 16 / Section 58-16-12.1
Classes of industry permitted to form groups
Status: in_force

For purposes of this chapter industry shall include, but not be limited to, the following classes, and individuals employed in one or more of such classes may establish a fund:

(1) Agriculture;

(2) Commerce;

(3) Construction;

(4) Manufacturing;

(5) Retail;

(6) Service;

(7) Transportation; and

(8) Wholesale.

Source: SDCL, § 58-16-12 as added by SL 1974, ch 314.
S.D. Codified Laws § 58-29C-62 — SD Code / Title 58 / Chapter 29C / Section 58-29C-62
Use of existence of association for sales, solicitation, or inducement to purchase insurance prohibited--Summary document of purposes and limitations of chapter--Disclaimer
Status: in_force

A. No person, including a member insurer, agent, or affiliate of a member insurer may make, publish, disseminate, circulate, or place before the public, or cause directly or indirectly, to be made, published, disseminated, circulated, or placed before the public, in any newspaper, magazine, or other publication, or in the form of a notice, circular, pamphlet, letter, or poster, or over any radio station or television station, or in any other way, any advertisement, announcement, or statement, written or oral, which uses the existence of the Life and Health Insurance Guaranty Association of this state for the purpose of sales, solicitation, or inducement to purchase any form of insurance covered by the South Dakota Life and Health Insurance Guaranty Association chapter. However, this section does not apply to the South Dakota Life and Health Insurance Guaranty Association or any other entity which does not sell or solicit insurance.

B. Within one hundred eighty days of July 1, 2003, the association shall prepare a summary document describing the general purposes and current limitations of the chapter and complying with subpart C of this section. This document shall be submitted to the director for approval. At the expiration of the sixtieth day after the date on which the director approves the document, a member insurer may not deliver a policy or contract to a policy owner, contract owner, or certificate owner unless the summary document is delivered to the policy owner, contract owner, or certificate holder at the time of delivery of the policy or contract. The document shall also be available upon request by a policy owner, contract owner, or certificate holder. The distribution, delivery, or contents or interpretation of this document does not guarantee that either the policy or the contract or the policy owner, contract owner, or certificate holder is covered in the event of the impairment or insolvency of a member insurer. The description document shall be revised by the association as amendments to the chapter may require. Failure to receive this document does not give the policy owner, contract owner, certificate holder, or insured any greater rights than those stated in this chapter.

C. The document prepared under subpart B shall contain a clear and conspicuous disclaimer on its face. The director shall establish the form and content of the disclaimer. The disclaimer shall:

(1) State the name and address of the Life and Health Insurance Guaranty Association and insurance department;

(2) Prominently warn the policy owner, contract owner, or certificate holder that the Life and Health Insurance Guaranty Association may not cover the policy or, if coverage is available, it shall be subject to substantial limitations and exclusions and conditioned on continued residence in this state;

(3) State the types of policies or contracts for which guaranty funds will provide coverage;

(4) State that the member insurer and the member insurer's agents are prohibited by law from using the existence of the Life and Health Insurance Guaranty Association for the purpose of sales, solicitation, or inducement to purchase any form of insurance;

(5) State that the policy owner, contract owner, or certificate holder should not rely on coverage under the Life and Health Insurance Guaranty Association when selecting an insurer;

(6) Explain rights available and procedures for filing a complaint to allege a violation of any provisions of this chapter; and

(7) Provide other information as directed by the director including sources for information about the financial condition of insurers provided that the information is not proprietary and is subject to disclosure under that state's public records law.

D. A member insurer shall retain evidence of compliance with subpart B as long as the policy or contract for which the notice is given remains in effect.

Source: SL 2003, ch 252, § 19; SL 2013, ch 252, § 11; SL 2020, ch 210, § 9.
S.D. Codified Laws § 58-17E-18 — SD Code / Title 58 / Chapter 17E / Section 58-17E-18
Consent orders
Status: in_force

In lieu of suspending or revoking a discount medical plan organization's registration pursuant to § 58-17E-14 , if the discount medical plan organization has been found to have violated any provision of this chapter, the director may enter into a consent order pursuant to § 58-4-28.1 .

Source: SL 2006, ch 257, § 17.
S.D. Codified Laws § 58-5A-94 — SD Code / Title 58 / Chapter 5A / Section 58-5A-94
Group capital calculation--Annual filing required--Promulgation of rules
Status: in_force

Except as provided in this section and in § 58-5A-95 , the ultimate controlling person of every insurer subject to registration must concurrently file with the registration an annual group capital calculation as directed by the lead state director or commissioner. The report must be completed in accordance with the NAIC group capital calculation instructions as posted on the website of the division. The instructions may permit the lead state director or commissioner to allow a controlling person that is not the ultimate controlling person to file the group capital calculation. The report must be filed with the lead state director or commissioner of the insurance holding company system as determined by the director in accordance with the procedures within the financial analysis handbook as adopted by the director pursuant to rules promulgated under chapter 1-26 . The director may promulgate rules pursuant to chapter 1-26 to establish requirements, standards, criteria, exemptions, instructions, and limitations for the group capital calculation and related filings.

Source: SL 2024, ch 201, § 7.
S.D. Codified Laws § 58-5A-93 — SD Code / Title 58 / Chapter 5A / Section 58-5A-93
Promulgation of rules regarding ORSA
Status: in_force

The director shall promulgate rules, pursuant to chapter 1-26 , to carry out ORSA including:

(1) Adoption of the NAIC ORSA guidance manual;

(2) Definition of terms;

(3) Fees; and

(4) Timing, form, and content of reports.

Source: SL 2017, ch 210, § 14.
S.D. Codified Laws § 58-5A-49 — SD Code / Title 58 / Chapter 5A / Section 58-5A-49
Action by director when acquisition lessens competition--Promulgation of rules establishing competitive standards
Status: in_force

The director may enter an order under § 58-5A-67 or 58-5A-69 with respect to an acquisition if there is substantial evidence that the effect of the acquisition lessens competition in any line of insurance in this state to the detriment of consumers or tends to create a monopoly or if the insurer fails to file adequate information in compliance with § 58-5A-48 . The director may promulgate rules pursuant to chapter 1-26 to establish criteria and factors for competitive standards. The director may disapprove the acquisition or act to prevent the acquisition by invoking the laws of this state.

Source: SL 1992, ch 341, § 11.
S.D. Codified Laws § 58-6-45 — SD Code / Title 58 / Chapter 6 / Section 58-6-45
Hearing required on refusal to issue, suspension or revocation of certificate
Status: in_force

Except in cases of insolvency or impairment of required capital or surplus, or suspension or revocation by another state as referred to in subdivision 58-6-44(4), the director shall so refuse, suspend, or revoke the certificate of authority only after a hearing granted to the insurer thereon, unless the insurer waives such hearing in writing.

Source: SL 1966, ch 111, ch 3, § 18 (2).
S.D. Codified Laws § 58-11A-5 — SD Code / Title 58 / Chapter 11A / Section 58-11A-5
Certificate concerning reading ease--Additional information--Evaluation of attachments to policy
Status: in_force

Filings subject to this chapter shall be accompanied by a certificate signed by an officer of the insurer stating that it meets the minimum reading ease score on the test used or stating that the score is lower than the minimum required by § 58-11A-3 but should be approved in accordance with § 58-11A-7 . To confirm the accuracy of any certification, the director of the Division of Insurance may require the submission of further information to verify the certification in question. At the option of the insurer, riders, endorsements, applications, and other forms made a part of the policy may be scored as separate forms or as part of the policy with which they may be used.

Source: SL 1981, ch 360, § 5.
S.D. Codified Laws § 58-24-63 — SD Code / Title 58 / Chapter 24 / Section 58-24-63
Written order of director for imposition of penalty and suspension of license--Hearing, notice, findings
Status: in_force

No penalty shall be imposed and no license shall be suspended or revoked except upon a written order of the director, stating his findings, made after a hearing held upon not less than ten days' written notice to such person or organization specifying the alleged violation.

Source: SL 1966, ch 111, ch 15, § 16.
S.D. Codified Laws § 58-5-52 — SD Code / Title 58 / Chapter 5 / Section 58-5-52
Special meetings of stockholders or members called by secretary on request of directors, stockholders, or members--Failure of secretary to issue call
Status: in_force

At any time, upon written request of not less than one - third of the directors, or of any stockholders or members holding in the aggregate one - fifth of the voting power of all stockholders or members, it shall be the duty of the secretary to call a special meeting of stockholders or members to be held at such time as the secretary may fix, not less than ten nor more than sixty days after the receipt of the request. If the secretary fails to issue such call, the directors, stockholders, or members making the request may do so.

Source: SL 1966, ch 111, ch 16, § 18 (5).
S.D. Codified Laws § 58-33-116 — SD Code / Title 58 / Chapter 33 / Section 58-33-116
Inapplicability to arrangements not issued to person in state or solicited in state
Status: in_force

Nothing in §§ 58-33-93 to 58-33-116 , inclusive, applies to an admitted insurer, nonadmitted insurer, or a MEWA if the arrangement is neither issued to a person in this state nor solicited in this state. For purposes of this section, the phrase, issued to a person, does not include providing a certificate of coverage, evidence of coverage, or other similar documents to an employee, participant, or dependent showing coverage under an employer's health benefit plan or arrangement.

Source: SL 2007, ch 292, § 24.
S.D. Codified Laws § 58-17-21 — SD Code / Title 58 / Chapter 17 / Section 58-17-21
Notice of claim--Provision required in policy
Status: in_force

There shall be a provision as follows: "Notice of claim: Written notice of claim must be given to the insurer within twenty days after the occurrence or commencement of any loss covered by the policy, or as soon thereafter as is reasonably possible. Notice given by or on behalf of the insured or the beneficiary to the insurer at __________ (insert the location of such office as the insurer may designate for the purpose), or to any authorized insurance producer of the insurer, with information sufficient to identify the insured, shall be deemed notice to the insurer."

Source: SL 1966, ch 111, ch 25, § 8; SL 2001, ch 286, § 118.
S.D. Codified Laws § 58-30-170 — SD Code / Title 58 / Chapter 30 / Section 58-30-170
Authority of director to impose penalty or remedy
Status: in_force

The director retains the authority to enforce the provisions of and impose any penalty or remedy authorized by §§ 58-30-141 to 58-30-195 , inclusive, and Title 58 against any person who is under investigation for or charged with any violation of §§ 58-30-141 to 58-30-195 , inclusive, or Title 58 even if the person's license or registration has been surrendered or has lapsed by operation of law.

Source: SL 2001, ch 286, § 30.
S.D. Codified Laws § 58-5-158 — SD Code / Title 58 / Chapter 5 / Section 58-5-158
Subsidiary investment to be counted as admitted asset
Status: in_force

Notwithstanding § 58-4-43 or any other provision of Title 58, a qualified education loan insurer's subsidiary investment permitted under § 58-5-157 shall be counted fully as an admitted asset on the qualified education loan insurer's balance sheet and may not be disregarded as an admitted asset by the director of the Division of Insurance in enforcing the provisions of §§ 58-4-39 to 58-4-43 , inclusive, and chapter 58-29B , and any rule promulgated to implement such provisions.

Source: SL 1998, ch 287, § 5.
S.D. Codified Laws § 58-46-17 — SD Code / Title 58 / Chapter 46 / Section 58-46-17
Review of company financial condition--Compliance
Status: in_force

At least once in five years and whenever the director determines it to be prudent, the director shall examine each captive insurance company to ascertain its financial condition and whether it has complied with the provisions of this chapter. Chapter 58-3 applies to any examination conducted under this section.

Source: SL 1996, ch 287, § 17.