S.D. Codified Laws § 58-33-83 — SD Code / Title 58 / Chapter 33 / Section 58-33-83
Refund of unearned life and health insurance premiums on canceled policy--Exceptions
Status: in_force

If any life insurance policy or health insurance policy is canceled before its renewal date or expiration date, other than by the death of the insured, and the insured has paid premiums in advance on the policy, the insurer shall refund to the owner of the policy the unearned portion of the premiums paid beyond the end of the month in which the cancellation occurred.

A cancellation of an automatic bank draft authorization does not constitute a request for cancellation of the policy. In the event of a cancellation of an automatic bank draft authorization without a request for cancellation of the policy, all applicable grace periods shall be provided.

This section applies to all life insurance policies, except group life insurance policies, and to all health insurance policies, except medicare supplement policies as defined in § 58-17A-1 and long term care policies as defined in § 58-17B-2 .

Source: SL 1994, ch 372, § 3; SL 1995, ch 291; SL 2010, ch 244, § 1.
S.D. Codified Laws § 58-17H-30.2 — SD Code / Title 58 / Chapter 17H / Section 58-17H-30.2
Retroactive denial of paid claim--Payment amount
Status: in_force

A payment remitted by the provider to the health carrier, as provided for in § 58-17H-30.1 , must be in the amount originally paid by the carrier and may not include any additional fees, penalties, or interest.

Source: SL 2026, ch 200, § 2.
S.D. Codified Laws § 58-37A-1 — SD Code / Title 58 / Chapter 37A / Section 58-37A-1
Fraternal benefit society defined
Status: in_force

Any incorporated society, order, or supreme lodge, without capital stock, including one exempted under the provisions of subdivision 58-37A-38(2), whether incorporated or not, conducted solely for the benefit of its members and their beneficiaries and not for profit, operated on a lodge system with ritualistic form of work, having a representative form of government, and which provides benefits in accordance with this chapter, is a fraternal benefit society for the purposes of this chapter.

Source: SL 1990, ch 410, § 1.
S.D. Codified Laws § 58-17E-24 — SD Code / Title 58 / Chapter 17E / Section 58-17E-24
Pro rata reimbursement of charges upon cancellation of membership
Status: in_force

If the discount medical plan organization cancels a membership for any reason other than nonpayment of fees by the member, the discount medical plan organization shall make a pro rata reimbursement of all periodic charges to the member.

Source: SL 2006, ch 257, § 24.
S.D. Codified Laws § 58-33A-5 — SD Code / Title 58 / Chapter 33A / Section 58-33A-5
Outline of coverage to accompany all health insurance policies or subscriber contracts--Acknowledgment of receipt or certificate of delivery
Status: in_force

In order to provide for full and fair disclosure in the sale of health insurance policies or subscriber contracts of a nonprofit hospital, medical, or dental service association, no such policy or contract may be delivered or issued for delivery in this state unless the outline of coverage described in § 58-33A-6 either accompanies the policy or is delivered to the applicant at the time application is made and an acknowledgment of receipt or certificate of delivery of such outline is provided the insurer. If the policy has been sold through an insurance producer, the outline of coverage shall be delivered at the time of application. If the policy is issued on a basis other than that applied for, the outline of coverage properly describing the policy or contract shall accompany the policy or contract.

Source: SL 1999, ch 240, § 5; SL 2001, ch 286, § 214.
S.D. Codified Laws § 58-30-84 — SD Code / Title 58 / Chapter 30 / Section 58-30-84
Travel insurance vending machines, approval by director
Status: in_force

An insurance producer licensed as to limited lines insurance or limited lines credit insurance may solicit applications for and issue policies of personal travel accident insurance by means of mechanical vending machines and kiosks supervised by the insurance producer and placed at airports, railroad stations, bus stations, and similar places where transportation tickets are sold to the traveling public, if the director finds:

(1) That the policy to be so sold provides reasonable coverage and benefits, is reasonably suited for sale and issuance through vending machines, and that use of such a machine therefor in a particular proposed location would be of material convenience to the public;

(2) That the type of vending machine and kiosk proposed to be used is reasonably suitable and practical for the purpose;

(3) That reasonable means are provided for informing the prospective purchaser of any such policy of the coverage and restrictions of the policy; and

(4) That reasonable means are provided for refund to the applicants of money inserted in defective machines and for which no insurance, or a less amount than paid for, is actually received.

Source: SL 1966, ch 111, ch 9, § 25 (1); SL 2001, ch 286, § 172.
S.D. Codified Laws § 58-25-12 — SD Code / Title 58 / Chapter 25 / Section 58-25-12
Issuance of contract, policy, or guarantee of insurance contrary to filings prohibited--Special risks excepted--Misdemeanor
Status: in_force

No insurer shall make or issue any contract, policy, or guarantee of insurance except in accordance with filings approved as provided in § 58-25-10 , except as to special or unusual risks for which no filing has been provided in §§ 58-25-7 and 58-25-8 . Violation of this section is a Class 2 misdemeanor.

Source: SL 1966, ch 111, ch 14, § 3 (6); SL 1978, ch 359, § 2.
S.D. Codified Laws § 58-18A-67 — SD Code / Title 58 / Chapter 18A / Section 58-18A-67
Coordination of benefits only available to secondary plans
Status: in_force

A plan may take into consideration the benefits paid or provided by another plan only if, under the provisions of §§ 58-18A-53 to 58-18A-83 , inclusive, it is secondary to that other plan.

Source: SL 2006, ch 259, § 15.
S.D. Codified Laws § 58-18A-61 — SD Code / Title 58 / Chapter 18A / Section 58-18A-61
Promulgation of rules concerning coordination of health plan benefits
Status: in_force

The director shall promulgate rules pursuant to chapter 1-26 to carry out the provisions of §§ 58-18A-53 to 58-18A-83 , inclusive. In promulgating any rules, the director shall give great weight to any national standards that may exist for the coordination of benefits for plans. The rules are limited to:

(1) Definition of terms;

(2) Sample policy provisions; and

(3) Disclosure requirements.

Source: SL 2006, ch 259, § 9.
S.D. Codified Laws § 58-41-54 — SD Code / Title 58 / Chapter 41 / Section 58-41-54
Contracts with insurance companies and nonprofit health service plan corporations authorized--Limitations
Status: in_force

A health maintenance organization may, subject to the limitations of subdivision 58-41-17(5) and of § 58-41-19 , contract with insurance companies and nonprofit health service plan corporations for insurance, indemnity, or reimbursement of its cost of providing health care services for enrollees or against the risks incurred by the health maintenance organization and may contract with insurance companies and nonprofit health service plan corporations to insure or cover the enrollees' costs and expenses in the health maintenance organization, including the customary prepayment amount and any copayment obligations. If contracts are made with insurance companies or nonprofit health service plan corporations, such companies or corporations must be authorized to transact business in this state.

Source: SL 1974, ch 321, §§ 13, 14.
S.D. Codified Laws § 58-27-51 — SD Code / Title 58 / Chapter 27 / Section 58-27-51
Maximum investments in other assets--Exceptions
Status: in_force

Notwithstanding the aggregate limitations set forth in chapter 58-27 , an insurer may exceed such limitations if it does not invest, in the aggregate, an amount in excess of fifty percent of its capital and surplus in excess of four hundred thousand dollars, if such investment otherwise complies with chapter 58-27 . The provisions of this section do not apply to the exceptions set forth in § 58-27-53 or 58-27-57 .

Source: SL 1966, ch 111, ch 6, § 23; SL 1974, ch 317; SL 1983, ch 376, § 5; SL 1985, ch 390; SL 1997, ch 294, § 10; SL 2000, ch 245, § 2; SL 2001, ch 284, § 2.
S.D. Codified Laws § 58-27-35 — SD Code / Title 58 / Chapter 27 / Section 58-27-35
Deduction of sum owing on real property but not due or delinquent--Reserved rights not included in fair value of property
Status: in_force

If under any of the exceptions set forth in § 58-27-34 there is any sum owing but not due or delinquent, the total amount of such sum shall be deducted from the amount which otherwise might be loaned on the property. The value of any mineral, oil, timber, or similar right reserved shall not be included in the fair value of the property.

Source: SL 1966, ch 111, ch 6, § 28 (2).
S.D. Codified Laws § 58-22-53 — SD Code / Title 58 / Chapter 22 / Section 58-22-53
Posting of bond under bondsperson's own license for licensee's release prohibited
Status: in_force

No bail bondsperson may post a corporate surety bond under the bondsperson's own license for the licensee's release from incarceration.

Source: SL 2016, ch 233, § 1.
S.D. Codified Laws § 58-6-79 — SD Code / Title 58 / Chapter 6 / Section 58-6-79
Publication requirements do not apply to fraternal or benevolent life association transactions nor to mutual insurance companies or associations
Status: in_force

Nothing in §§ 58-6-76 to 58-6-78 , inclusive, which relates to the publication of statements shall relate to any fraternal or benevolent life association transacting business in this state, nor to any mutual insurance company or association organized under the laws of this state.

Source: SL 1966, ch 111, ch 3, § 27.
S.D. Codified Laws § 58-11-25 — SD Code / Title 58 / Chapter 11 / Section 58-11-25
Unauthorized facsimile signature does not invalidate policy--Estoppel by issuance of surety bond with facsimile signature
Status: in_force

No insurance contract heretofore or hereafter issued and which is otherwise valid shall be rendered invalid by reason of the apparent execution thereof on behalf of the insurer by the imprinted facsimile signature of an individual not authorized so to execute as of the date of the policy.

Any company which issues a bond as surety with facsimile signature under the law of this state shall, in any proceeding to enforce the liability which it has assumed to incur, be estopped to deny its corporate power to execute such instrument or assume such liability.

Source: SL 1966, ch 111, ch 22, § 20 (3); SL 1980, ch 170, § 2.
S.D. Codified Laws § 58-5-56 — SD Code / Title 58 / Chapter 5 / Section 58-5-56
Amendment of articles of incorporation at meeting of stockholders or members--Notice of meeting
Status: in_force

No meeting of stockholders or members shall amend the insurer's articles of incorporation unless such amendment to the articles of incorporation is included in the notice of such meeting, which notice must be given by mail at least thirty days prior to such meeting, to those entitled to vote, at their respective addresses appearing upon the corporate records.

Source: SL 1966, ch 111, ch 16, § 18 (2).
S.D. Codified Laws § 58-9-33 — SD Code / Title 58 / Chapter 9 / Section 58-9-33
Title insurance defined
Status: in_force

"Title insurance" is the insurance of owners of property or others having an interest therein or liens or encumbrances thereon, against loss by encumbrance, or defective titles, or invalidity, or adverse claim to title.

Source: SL 1966, ch 111, ch 4, § 8.
S.D. Codified Laws § 58-30-218 — SD Code / Title 58 / Chapter 30 / Section 58-30-218
Promulgation of rules on training for travel retailer employees
Status: in_force

The director may promulgate rules, pursuant to chapter 1-26 , relating to the program of instruction or training as set forth in subdivision 58-30-211(5).

Source: SL 2014, ch 241, § 14.
S.D. Codified Laws § 58-12-11 — SD Code / Title 58 / Chapter 12 / Section 58-12-11
Payments under life or health insurance policy or annuity contract discharge insurer
Status: in_force

Whenever the proceeds of or payments under a life or health insurance policy or annuity contract heretofore or hereafter issued become payable in accordance with the terms of such policy or contract, or the exercise of any right or privilege thereunder, payment thereof by the insurer in accordance therewith or in accordance with any written assignment thereof shall fully discharge the insurer from all claims under the policy or contract unless, before payment is made, the insurer has received at its home office written notice by or on behalf of some other person that such other person claims to be entitled to such payment or some interest in the policy or contract.

Source: SL 1966, ch 111, ch 22, § 28.
S.D. Codified Laws § 58-23A-2 — SD Code / Title 58 / Chapter 23A / Section 58-23A-2
Reports of malpractice claims required of insurers--Frequency
Status: in_force

Each insurance company engaged in issuing professional medical malpractice insurance in this state shall file with the State Division of Insurance a report of all claims for medical malpractice made against any of its insureds and received by it since its last report. Such reports shall be made to the division not less than semiannually on dates determined by the division.

Source: SL 1976, ch 316, §§ 1, 3.
S.D. Codified Laws § 58-18-7.11 — SD Code / Title 58 / Chapter 18 / Section 58-18-7.11
Continuation or conversion policy not required under certain circumstances
Status: in_force

No insurer may be required to offer or renew a continuation or conversion policy covering any person if:

(1) The person is covered for similar benefits by another individual or group policy;

(2) Similar benefits are provided for or available to such person, by reason of any state or federal law, except any person who becomes entitled to Medicare on or before continuation is elected or who is covered under another group plan on or before continuation is elected;

(3) The benefits under sources of the kind referred to in subdivision (1) for such person or benefits provided or available under sources of the kind referred to in subdivision (2) for such person, together with the continued or converted policy's benefits, would result in overinsurance according to the insurer's standards for overinsurance;

(4) There has been fraud or material misrepresentation in applying for any benefits under continued or converted policy;

(5) The person failed to pay any required contribution;

(6) There has been cancellation of all similar insurance policies in the entire state;

(7) For cause on the same basis, the plan could terminate the coverage of a similarly situated active employee;

(8) The person was terminated from employment for gross misconduct; or

(9) The group health insurance policy is terminated by an insurer as a result of the group not meeting an insurer's participation or eligibility requirements.

Source: SL 1984, ch 326, § 7; SL 1989, ch 433, § 9; SL 2001, ch 280, § 12; SL 2009, ch 265, § 1; SL 2015, ch 249, § 31.
S.D. Codified Laws § 58-1-26 — SD Code / Title 58 / Chapter 1 / Section 58-1-26
Retention of records
Status: in_force

Any insurer, nonprofit, surgical, dental or hospital plan, a health maintenance organization, or any other person required to be licensed or registered under this title shall retain all books and records that are subject to examination pursuant to chapter 58-3 for a period of not less than five years.

Source: SL 2002, ch 241, § 2.
S.D. Codified Laws § 58-2-19 — SD Code / Title 58 / Chapter 2 / Section 58-2-19
Interests of personnel in insurance transactions prohibited--Misdemeanor
Status: in_force

The director or any examiner, assistant, or employee of the division shall not be financially interested, directly or indirectly, in any insurer, insurance agency, or insurance transaction except as a policyholder or claimant under a policy; except, that as to such matters wherein a conflict of interests does not exist on the part of any such individual, the Department of Labor and Regulation may employ or retain from time to time insurance actuaries, attorneys, or other technicians who are independently practicing their professions even though similarly employed or retained by insurers or others. Violation of this section is a Class 2 misdemeanor.

Source: SL 1966, ch 111, ch 2, § 8; SL 1978, ch 359, § 2; SL 2003, ch 272, § 20; SL 2011, ch 1 (Ex. Ord. 11-1 ), § 162, eff. Apr. 12, 2011.
S.D. Codified Laws § 58-38-3 — SD Code / Title 58 / Chapter 38 / Section 58-38-3
Articles of incorporation and amendments--Approval by director--Filing with secretary of state
Status: in_force

The articles of incorporation of every such corporation, and amendments thereto, shall be submitted to the director, whose approval thereof shall be endorsed thereon before the same are filed with the secretary of state; provided, however, that if the articles of incorporation of any such corporation shall have been filed with the secretary of state prior to July 1, 1966, the approval thereof by the director shall be evidenced by a separate instrument in writing filed with the secretary of state.

Source: SL 1966, ch 111, ch 21, § 3.
S.D. Codified Laws § 58-14-4 — SD Code / Title 58 / Chapter 14 / Section 58-14-4
Credit not allowable as an asset or deduction from liability to ceding insurer--Exceptions--Payments
Status: in_force

No credit may be allowed, as an asset or as a deduction from liability, to any ceding insurer for reinsurance unless the reinsurance contract provides, in substance, that in the event of the insolvency of the ceding insurer, the reinsurance is payable under a contract reinsured by the reinsurer on the basis of reported claims allowed in the liquidation proceeding or proof of payment of the claim by a guaranty association without diminution because of the insolvency of the ceding insurer. Such payments shall be made directly to the ceding insurer or to its domiciliary liquidator unless:

(1) The contract or other written agreement specifically provides another payee of such reinsurance in the event of the insolvency of the ceding insurer; or

(2) The reinsurer, with the consent of the direct insured, has assumed such policy obligations of the ceding insurer as direct obligations of the reinsurer to the payees under such policies and in substitution for the obligations of the ceding insurer to such payees. The consent of the liquidator is required for any such assumption of policy obligations effected after an order of liquidation.

Source: SL 1966, ch 111, ch 4, § 10 (3); SL 1992, ch 344, § 15; SL 2005, ch 274, § 3.
S.D. Codified Laws § 58-5-138.1 — SD Code / Title 58 / Chapter 5 / Section 58-5-138.1
Compensation of officer, insurance producer, or employee of converting mutual insurer prohibited
Status: in_force

No director, officer, insurance producer, or employee of any mutual insurer party to a reorganization or conversion to a corporation with capital stock may receive any fee, commission, compensation, or other valuable consideration for that participation except as set forth in the reorganization or conversion plan.

Source: SL 1984, ch 325, § 2; SL 2001, ch 286, § 74.
S.D. Codified Laws § 58-17A-3.1 — SD Code / Title 58 / Chapter 17A / Section 58-17A-3.1
Preexisting conditions provision prohibited in replacement policy--Exception
Status: in_force

A policy or certificate of insurance providing medicare supplement benefits which is sold to a consumer to replace an existing, in - force medicare supplement policy may not contain any provision limiting payment of benefits due to preexisting conditions of the insured except, if there is any time period remaining relating to the exclusion of coverage for preexisting conditions as specified in the underlying policy, that remaining waiting period for coverage of preexisting conditions shall apply to the new policy unless the policy otherwise provides a lesser waiting period. The waiver applies to all time periods applicable to preexisting conditions, waiting periods, elimination periods, and probationary periods in the new medicare supplement.

Source: SL 1989, ch 432, § 1; SL 1997, ch 291, § 2.
S.D. Codified Laws § 58-38-21 — SD Code / Title 58 / Chapter 38 / Section 58-38-21
Notice required by medical and surgical plan corporation for rate increase
Status: in_force

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

Source: SL 1989, ch 434, § 2.
S.D. Codified Laws § 58-7-3 — SD Code / Title 58 / Chapter 7 / Section 58-7-3
Credit of other deposit against reserve deposit
Status: in_force

A domestic insurer may credit toward the deposit the amount of any other deposit of the insurer required by the director for the protection of its policyholders.

Source: SL 1966, ch 111, ch 7, § 1 (3); SL 1991, ch 398, § 2.
S.D. Codified Laws § 58-18B-2 — SD Code / Title 58 / Chapter 18B / Section 58-18B-2
Chapter applicable to small employer benefit plans
Status: in_force

This chapter is applicable to any health benefit plan which provides coverage to two or more employees of a small employer and policies which meet the following criteria:

(1) Any portion of the premium or benefits is paid by or on behalf of the small employer; or

(2) The health benefit plan is treated by the employer or any of the eligible employees or dependents as part of a plan or program for the purposes of section 125 or section 106 of the United States Internal Revenue Code as of January 1, 1995.

This chapter does not apply to any employer plan with only one employee. Any employer plan with only one employee, even if the employer pays a portion or all of the premium, may be sold as individual policies subject to the provisions of chapter 58-17 . If a plan covering one employee is sold as an individual plan and new employees are added which brings the number of employees to at least two but not more than fifty, then the individual carrier may nonrenew the coverage or accept those new employees and bring the plan into compliance with the applicable provisions of chapters 58-18 and 58-18B .

Source: SL 1991, ch 402, § 2; SL 1995, ch 281, § 2; SL 1996, ch 298; SL 1998, ch 292, § 1.
S.D. Codified Laws § 58-17I-13 — SD Code / Title 58 / Chapter 17I / Section 58-17I-13
Transmission of necessary information for certain expedited reviews
Status: in_force

In an expedited review that is not an initial determination for benefits, all necessary information, including the health carrier's decision, shall be transmitted between the health carrier and the covered person or, if applicable, the covered person's authorized representative, by telephone, facsimile, or the most expeditious method available.

Source: SL 2011, ch 219, § 85.
S.D. Codified Laws § 58-6A-21 — SD Code / Title 58 / Chapter 6A / Section 58-6A-21
Penalty for violation
Status: in_force

Any risk retention group which violates any provision of this chapter is subject to fines and penalties applicable to licensed insurers generally, including revocation of its license or the right to do business in this state.

Source: SL 1987, ch 372, § 21.
S.D. Codified Laws § 58-3-21 — SD Code / Title 58 / Chapter 3 / Section 58-3-21
Disclosure of contents of examination report to insurance department or law enforcement agencies--Confidentiality
Status: in_force

The director is not prohibited from disclosing the contents of an examination report, preliminary examination report or results, or any matter or documentation relating thereto, to the insurance department of this or any other state or country, or to law enforcement officials of this or any other state or agency of the federal government at any time, if the agency or office receiving the report or matters relating thereto agrees in writing to hold it confidential and in a manner consistent with this chapter. Any examination report, preliminary examiners report or results or any material or documentation relating thereto received by the director from another jurisdiction is confidential unless otherwise indicated by that jurisdiction.

Source: SL 1992, ch 338, § 14.
S.D. Codified Laws § 58-40-20.1 — SD Code / Title 58 / Chapter 40 / Section 58-40-20.1
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 hospital service plan corporation that covers a female and that is delivered, issued for delivery, or renewed in this state, except for a contract that provides coverage for specified disease or other limited benefit coverage, shall provide coverage for screening 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, § 16.
S.D. Codified Laws § 58-13-2 — SD Code / Title 58 / Chapter 13 / Section 58-13-2
Subject of insurance defined
Status: in_force

A "subject of insurance" for the purposes of this chapter, as to insurance against fire and hazards other than windstorm, earthquake, or other catastrophe hazards, includes all properties insured by the same insurer which are customarily considered by underwriters to be subject to loss or damage from the same fire or the same occurrence of such other hazard insured against.

Source: SL 1966, ch 111, ch 4, § 11 (2).
S.D. Codified Laws § 58-19-45 — SD Code / Title 58 / Chapter 19 / Section 58-19-45
Test of reasonableness of benefits to premium charged--Prima facie evidence--Restriction on commissions
Status: in_force

With regard to credit unemployment insurance, the basic test of the reasonableness of the relation of benefits to the premium charged shall be the development of an anticipated loss ratio of claims incurred to premiums earned of at least fifty percent. If the total current expected expenses, including acquisition expenses, exceed fifty percent of the premium dollar, this shall be considered prima facie evidence that a company intends to write credit business at a loss ratio which is not in compliance with this rule. Commissions, including retrospective premium refunds, bonuses, or acquisition expenses, may not exceed forty percent. If any company is not in compliance with this rule, it shall show just cause why the premium rates as filed should not be disapproved.

Source: SL 1987, ch 380, § 7.
S.D. Codified Laws § 58-15-87 — SD Code / Title 58 / Chapter 15 / Section 58-15-87
Cash surrender benefits--Calculation of minimum--Death benefit
Status: in_force

For contracts that provide cash surrender benefits, the cash surrender benefits available prior to maturity may not be less than the present value as of the date of surrender of that portion of the maturity value of the paid - up annuity benefit that would be provided under the contract at maturity arising from considerations paid prior to the time of cash surrender reduced by the amount appropriate to reflect any prior withdrawals from or partial surrenders of the contract, such present value being calculated on the basis of an interest rate not more than one percent higher than the interest rate specified in the contract for accumulating the net considerations to determine maturity value, decreased by the amount of any indebtedness to the company on the contract, including interest due and accrued, and increased by any existing additional amounts credited by the company to the contract. In no event may any cash surrender benefit be less than the minimum nonforfeiture amount at that time. The death benefit under such contracts shall be at least equal to the cash surrender benefit.

Source: SL 2004, ch 299, § 6.
S.D. Codified Laws § 58-5-66 — SD Code / Title 58 / Chapter 5 / Section 58-5-66
Compensation of officers and employees of domestic insurer
Status: in_force

No officer or employee of a domestic insurer shall be compensated unreasonably and the compensation of any director or officer of such insurer shall not be calculated, directly or indirectly, as a percentage of profits, premiums collected, or insurance written by the insurer without the approval of the director of the Division of Insurance.

Source: SL 1966, ch 111, ch 16, § 23 (3).
S.D. Codified Laws § 58-30-176 — SD Code / Title 58 / Chapter 30 / Section 58-30-176
Appointment of insurance producer or business entity as agent of insurer--Submission of notice of appointment
Status: in_force

To appoint an insurance producer or business entity as its agent, the appointing insurer shall file, in a format approved by the director, a notice of appointment within fifteen days from the date the agency contract is executed or the first insurance application is submitted. An insurer may also elect to appoint an insurance producer to all or some insurers within the insurer's holding company system or group by the filing of a single appointment request. The insurer is responsible for the acts of its representatives and insurance producers, including those acts where the insurance producer has solicited, sold, or negotiated insurance on behalf of that insurer prior to the date of appointment.

Source: SL 2001, ch 286, § 36.
S.D. Codified Laws § 58-5A-47 — SD Code / Title 58 / Chapter 5A / Section 58-5A-47
Application of §§58-5A-46to58-5A-53--Exceptions
Status: in_force

The provisions of §§ 58-5A-46 to 58-5A-53 , inclusive, apply to any acquisition in which there is a change in control of an insurer authorized to do business in this state except the following:

(1) A purchase of securities solely for investment purposes as long as the securities are not used by voting or otherwise to lessen the competition in any insurance market in this state to the detriment of policyholders or consumers. If a purchase of securities results in a presumption of control pursuant to subdivision 58-5A-1(2), it is not solely for investment purposes unless the director or commissioner of the insurer's state of domicile accepts a disclaimer of control or affirmatively finds that control does not exist and the disclaimer or affirmative finding is communicated by the domiciliary director or commissioner to the director of this state;

(2) The acquisition of any person by another person if both persons are neither directly nor through affiliates primarily engaged in the business of insurance, if pre-acquisition notification is filed with the director in accordance with the provisions of § 58-5A-48 thirty days prior to the proposed effective date of the acquisition. Pre-acquisition notification is not required for exclusion from this subdivision if the acquisition would otherwise be excluded from this subdivision by any other subdivision of this section;

(3) The acquisition of already affiliated persons;

(4) An acquisition if, as an immediate result of the acquisition,

(a) In no market would the combined market share of the involved insurers exceed five percent of the total market;

(b) There would be no increase in any market share; or

(c) In no market would the combined market share of the involved insurers exceed twelve percent of the total market, and the market share increase by more than two percent of the total market.

For the purpose of this subdivision, a market means direct written insurance premium in this state for a line of business as contained in the annual statement required to be filed by insurers licensed to do business in this state;

(5) An acquisition for which a pre-acquisition notification would be required pursuant to this section due solely to the resulting effect on the ocean marine insurance line of business; and

(6) An acquisition of an insurer whose domiciliary director or commissioner affirmatively finds that the insurer is in failing condition; there is a lack of feasible alternatives to improving the condition; the public benefits of improving the insurer's condition through the acquisition exceed the public benefits that would arise from not lessening competition; and the findings are communicated by the domiciliary director or commissioner to the director of this state.

Source: SL 1992, ch 341, § 9; SL 2015, ch 246, § 23.
S.D. Codified Laws § 58-29B-127 — SD Code / Title 58 / Chapter 29B / Section 58-29B-127
Distributions by liquidator under court direction--Manner of payment
Status: in_force

Under the direction of the court, the liquidator shall pay distributions in a manner that will assure the proper recognition of priorities and a reasonable balance between the expeditious completion of the liquidation and the protection of unliquidated and undetermined claims, including third party claims. Distribution of assets in kind may be made at valuations set by agreement between the liquidator and creditor and approved by the court.

Source: SL 1989, ch 436, § 127.
S.D. Codified Laws § 58-18B-25 — SD Code / Title 58 / Chapter 18B / Section 58-18B-25
Considerations in applying minimum participation requirements--Premium discounts
Status: in_force

In applying minimum participation requirements with respect to a small employer, a small employer carrier may consider employees or dependents who have creditable coverage in determining whether the applicable percentage of participation is met. If any employee or dependent with other creditable coverage is to be considered towards calculating the applicable percentage of participation, the employee or dependent shall be counted as participating in the plan.

A carrier may provide up to a twenty percent discount for any small employer who achieves a one hundred percent participation rate in the prior year. The discount may be less than the base rate by a factor up to twenty percent. However, no discount below the base rate may be used in determining the index rate for that class of business.

Source: SL 1995, ch 281, § 19; SL 1997, ch 289, § 17; SL 2001, ch 279, § 4; SL 2005, ch 271, § 1.
S.D. Codified Laws § 58-5-133 — SD Code / Title 58 / Chapter 5 / Section 58-5-133
Disapproval of merger or consolidation--Notice to insurer
Status: in_force

If the director does not approve any such plan and agreement, he shall notify the insurer in writing, specifying his reasons therefor.

Source: SL 1966, ch 111, ch 16, § 38 (4).
S.D. Codified Laws § 58-20-31 — SD Code / Title 58 / Chapter 20 / Section 58-20-31
Promulgation of rules governing self-insurance associations
Status: in_force

The department may promulgate rules governing associations pursuant to chapter 1-26 concerning:

(1) Application, financial, annual reports, or other forms to be created by the department under §§ 58-20-25 to 58-20-40 , inclusive;

(2) Financial requirements of the department for approving and maintaining a certificate;

(3) Requiring an application fee not to exceed two thousand dollars; and

(4) Requiring the association to process and act upon claims in accordance with the guidelines applicable for domestic insurance companies.

Source: SL 1995, ch 282, § 7.
S.D. Codified Laws § 58-14-16.8 — SD Code / Title 58 / Chapter 14 / Section 58-14-16.8
Obligations assumed from United States ceding insurers to be secured consistent with rating
Status: in_force

A certified reinsurer shall secure obligations assumed from United States ceding insurers under §§ 58-14-16.9 to 58-14-16.13 , inclusive, at a level consistent with the certified reinsurer's rating. The director may promulgate rules, pursuant to chapter 1-26 , to establish standards under §§ 58-14-16.9 to 58-14-16.13 , inclusive.

Source: SL 2017, ch 211, § 19.
S.D. Codified Laws § 58-15-31 — SD Code / Title 58 / Chapter 15 / Section 58-15-31
Nonforfeiture benefits in policies issued under standard nonforfeiture law
Status: in_force

In the case of policies issued on or after the operative date of §§ 58-15-31 to 58-15-43 , inclusive, as defined in § 58-15-42 , no policy of life insurance, except as stated in § 58-15-41 , may be delivered or issued for delivery in this state unless it contains in substance the following provisions, or corresponding provisions which in the opinion of the director of the Division of Insurance are at least as favorable to the defaulting or surrendering policyholder as are the minimum requirements specified in §§ 58-15-31 to 58-15-43 , inclusive, and are essentially in compliance with § 58-15-43.13 :

(1) That, in the event of default in any premium payment, the insurer will grant, upon proper request not later than sixty days after the due date of the premium in default, a paid - up nonforfeiture benefit on a plan stipulated in the policy, effective as of such due date, of such amount as may be specified in § 58-15-34 . In lieu of such stipulated paid - up nonforfeiture benefit, the insurer may substitute, upon proper request not later than sixty days after the due date of the premium in default, an actuarially equivalent alternative paid - up nonforfeiture benefit which provides a greater amount or longer period of death benefits or, if applicable, a greater amount or earlier payment of endowment benefits;

(2) That, upon surrender of the policy within sixty days after the due date of any premium payment in default after premiums have been paid for at least three full years in the case of ordinary insurance or five full years in the case of industrial insurance, the insurer will pay, in lieu of any paid - up nonforfeiture benefit, a cash surrender value of such amount as may be specified in § 58-15-33 ;

(3) That a specified paid - up nonforfeiture benefit shall become effective as specified in the policy unless the person entitled to make such election elects another available option not later than sixty days after the due date of the premium in default;

(4) That, if the policy shall have become paid up by completion of all premium payments or if it is continued under any paid - up nonforfeiture benefit which became effective on or after the third policy anniversary in the case of ordinary insurance or the fifth policy anniversary in the case of industrial insurance, the insurer will pay, upon surrender of the policy within thirty days after any policy anniversary, a cash surrender value of such amount as may be specified in § 58-15-33 ;

(5) In the case of policies which cause on a basis guaranteed in the policy unscheduled changes in benefits or premiums, or which provide an option for changes in benefits or premiums other than a change to a new policy, a statement of the mortality table, interest rate and method used in calculating cash surrender values and the paid - up nonforfeiture benefits available under the policy. In the case of all other policies, a statement of the mortality table and interest rate used in calculating the cash surrender values and the paid - up nonforfeiture benefits available under the policy, together with a table showing the cash surrender value, if any, and paid - up nonforfeiture benefit, if any, available under the policy on each policy anniversary, either during the first twenty policy years or during the term of the policy, whichever is shorter, such values and benefits to be calculated upon the assumption that there are no dividends or paid - up additions credited to the policy and that there is no indebtedness to the insurer on the policy; and

(6) A statement that the cash surrender values and the paid - up nonforfeiture benefits available under the policy are not less than the minimum values and benefits required by or pursuant to the insurance laws of the state in which the policy is delivered; an explanation of the manner in which the cash surrender values and the paid - up nonforfeiture benefits are altered by the existence of any paid - up additions credited to the policy or any indebtedness to the insurer on the policy; if a detailed statement of the method of computation of the values and benefits shown in the policy is not stated therein, a statement that such method of computation has been filed with the insurance supervisory official of the state in which the policy is delivered; and a statement of the method to be used in calculating the cash surrender value and paid - up nonforfeiture benefit available under the policy or any policy anniversary beyond the last anniversary for which such values and benefits are consecutively shown in the policy.

Source: SL 1966, ch 111, ch 23, § 28 (1); SL 1982, ch 357, § 1.
S.D. Codified Laws § 58-29D-32.1 — SD Code / Title 58 / Chapter 29D / Section 58-29D-32.1
Notice of denial of application or renewal--Request for hearing--Hearing on suspension or revocation--Notice
Status: in_force

If the director denies an application or annual renewal for a license or registration, the director shall notify the applicant or licensee and advise, in writing, the applicant or licensee of the reason for the denial. The applicant or licensee may make a written request to the director within thirty days of the date of the denial for a hearing to determine the reasonableness of the director's action. A notice of hearing shall be issued within thirty days of receipt of a written request.

The director shall suspend for not more than twelve months, or may revoke or refuse to continue, any license or registration issued under this chapter after a hearing. Notice of such hearing and of the charges against the licensee or registrant pursuant to § 58-29D-31 shall be given at least twenty days before a hearing. Notice of hearing shall be issued within twenty days of the director's suspension under § 58-29D-32 which shall include the reasons for suspension and may include grounds for revocation under § 58-29D-31 . Any hearing under § 58-29D-32 shall be held within thirty days of the date of the director's suspension.

Any hearing under the provisions of this section shall be held pursuant to chapter 1-26 . Nothing in this section or § 58-29D-31 applies to a renewal which is lapsed pursuant to § 58-29D-30 .

Source: SL 2013, ch 253, § 4.
S.D. Codified Laws § 58-33-37 — SD Code / Title 58 / Chapter 33 / Section 58-33-37
False application as misdemeanor--False claim or proof of loss as misdemeanor or felony
Status: in_force

Any person who knowingly makes any false or fraudulent statement or representation with reference to any application for insurance is guilty of a Class 1 misdemeanor. Any person who knowingly presents or causes to be presented a false or fraudulent claim for the purpose of obtaining any money or benefit, or who submits any proof in support of such a claim for the payment of a loss upon a contract of insurance, or who prepares, makes, or subscribes a false or fraudulent account, certificate, affidavit or proof of loss, or other document or writing, with intent that the same may be presented or used in support of such a claim, is guilty of a Class 2 misdemeanor if such claim is for an amount of four hundred dollars or less; a Class 1 misdemeanor if such claims is for an amount greater than four hundred dollars and less than one thousand dollars; and a Class 4 felony if such claim is one thousand dollars or greater.

Source: SL 1966, ch 111, ch 13, § 23; SL 1977, ch 416, § 2; SL 1999, ch 241, § 18; SL 2006, ch 130, § 21.
S.D. Codified Laws § 58-18C-5 — SD Code / Title 58 / Chapter 18C / Section 58-18C-5
Exercising continuation rights--Option to decrease benefits
Status: in_force

Any employee may exercise the right to continuation within thirty days of receipt of due notice of termination of coverage of the group and upon payment of premiums from the date of termination.

Any insurer providing continuation coverage pursuant to § 58-18C-1 shall offer to all beneficiaries who are eligible to elect to continue coverage the option to decrease benefits of the continued coverage. The options shall include, at a minimum, those coverage options that would have been otherwise available to employees or dependents who initially enrolled into the coverage if the options decrease coverage or a carrier may offer a standardized plan to all those eligible for continuation that contains similar benefits to the beneficiaries prior coverage but at a higher deductible or other reduced benefit features.

Source: SL 1998, ch 294, § 5; SL 2005, ch 270, § 3; SL 2008, ch 266, § 2.
S.D. Codified Laws § 58-18B-28 — SD Code / Title 58 / Chapter 18B / Section 58-18B-28
Requirements lifted from small employer carrier in financially impaired condition
Status: in_force

No small employer carrier may be required to provide coverage to small employers pursuant to § 58-18B-20 , for any period of time for which the director determines that requiring the acceptance of small employers in accordance with the provisions of § 58-18B-20 , would place the small employer carrier in a financially impaired condition.

Source: SL 1995, ch 281, § 23.
S.D. Codified Laws § 58-7-25 — SD Code / Title 58 / Chapter 7 / Section 58-7-25
Effect of deposit in foreign state
Status: in_force

If any domestic insurer is required to deposit with a public officer of any foreign state or any agency of that state any securities or assets for security of policyholders, to the extent that those securities or assets are admissible for that purpose under this chapter, and upon approval by the director that by the deposit the insurer's policyholders are as adequately secured as if such deposit had been made under this chapter, the deposit in the foreign state shall have the same effect as if made with the director. If any change is made in the deposit, the insurer shall be required to immediately notify the director of the change.

Source: SL 1966, ch 111, ch 7, § 5 (8); SL 1991, ch 398, § 14.
S.D. Codified Laws § 58-9-25 — SD Code / Title 58 / Chapter 9 / Section 58-9-25
Casualty insurance including entertainments insurance
Status: in_force

"Casualty insurance" includes entertainments insurance, insurance indemnifying the producer of any motion picture, television, radio, theatrical, sport, spectacle, entertainment, or similar production, event, or exhibition against loss from interruption, postponement, or cancellation thereof due to death, accidental injury, or sickness of performers, participants, directors, or other principals.

Source: SL 1966, ch 111, ch 4, § 6 (1) (o).
S.D. Codified Laws § 58-11A-9 — SD Code / Title 58 / Chapter 11A / Section 58-11A-9
Law permitting issuance of policies after form on file for specified period
Status: in_force

Nothing in this chapter may be construed to negate any law of this state permitting the issuance of any policy form after it has been on file for the time period specified.

Source: SL 1981, ch 360, § 9.
S.D. Codified Laws § 58-17F-7 — SD Code / Title 58 / Chapter 17F / Section 58-17F-7
Health carrier to ensure provider proximity to covered persons
Status: in_force

The health carrier shall establish and maintain adequate arrangements to ensure reasonable proximity of participating providers to the business or personal residence of covered persons.

Source: SL 2011, ch 219, § 7.
S.D. Codified Laws § 58-18A-65 — SD Code / Title 58 / Chapter 18A / Section 58-18A-65
Prohibition on reduction of benefits for coverage not qualifying as plan
Status: in_force

No plan may use a COB provision, or any other provision, that allows it to reduce its benefits with respect to any other coverage its insured may have that does not meet the definition of a plan as provided by §§ 58-18A-53 to 58-18A-83 , inclusive.

Source: SL 2006, ch 259, § 13.
S.D. Codified Laws § 58-26-72 — SD Code / Title 58 / Chapter 26 / Section 58-26-72
Weighting factors
Status: in_force

The weighting factors referred to in the formulas stated in § 58-26-71 are given in the following tables:

(1) Weighting factors for life insurance:

Guarantee, Duration (Years)

Weighting Factors

10 or less

.50

More than 10, but not more than 20

.45

More than 20

.35

For life insurance, the guarantee duration is the maximum number of years the life insurance can remain in force on a basis guaranteed in the policy or under options to convert to plans of life insurance with premium rates or nonforfeiture values or both which are guaranteed in the original policy;

(2) Weighting factor for single premium immediate annuities and for annuity benefits involving life contingencies arising from other annuities with cash settlement options and guaranteed interest contracts with cash settlement options: .80

(3) Weighting factors for other annuities and for guaranteed interest contracts, except as stated in subdivision (2) above, shall be as specified in tables (a), (b), and (c) below, according to the rules and definitions in (d), (e), and (f) below:

(a) For annuities and guaranteed interest contracts valued on an issue year basis:

Guarantee Duration (Years)

Weighting Factor for Plan Type

A

B

C

5 or less

.80

.60

.50

More than 5, but not more than 10

.75

.60

.50

More than 10, but not more than 20

.65

.50

.45

More than 20

.45

.35

.35

(b) For annuities and guaranteed interest contracts valued on a change in fund basis, the factors shown in (a) above increased by:

Plan Type

A

B

C

.15

.25

.05

(c) For annuities and guaranteed interest contracts valued on an issue year basis other than those with no cash settlement options which do not guarantee interest on considerations received more than one year after issue or purchase and for annuities and guaranteed interest contracts valued on a change in fund basis which do not guarantee interest rates on considerations received more than twelve months beyond the valuation date, the factors shown in table (a) or derived in table (b) increased by:

Plan Type

A

B

C

.05

.05

.05

(d) For other annuities with cash settlement options and guaranteed interest contracts with cash settlement options, the guarantee duration is the number of years for which the contract guarantees interest rates in excess of the calendar year statutory valuation interest rate for life insurance policies with guarantee duration in excess of twenty years. For other annuities with no cash settlement options and for guaranteed interest contracts with no cash settlement options, the guaranteed duration is the number of years from the date of issue or date of purchase to the date annuity benefits are scheduled to commence.

(e) Plan type as used in the above tables is defined as follows:

(i) Plan Type A: At any time policyholder may withdraw funds only (1) with an adjustment to reflect changes in interest rates or asset values since receipt of the funds by the insurance company, or (2) without adjustment but in installments over five years or more, or (3) as an immediate life annuity, or (4) no withdrawal permitted.

(ii) Plan Type B: Before expiration of the interest rate guarantee, policyholder may withdraw funds only (1) with an adjustment to reflect changes in interest rates or asset values since receipt of the funds by the insurance company, or (2) without adjustment but in installments over five years or more or (3) no withdrawal permitted. At the end of interest rate guarantee, funds may be withdrawn without adjustment in a single sum or installments over less than five years.

(iii) Plan Type C: Policyholder may withdraw funds before expiration of interest rate guarantee in a single sum or installments over less than five years either (1) without adjustment to reflect changes in interest rates or asset values since receipt of the funds by the insurance company, or (2) subject only to a fixed surrender charge stipulated in the contract as a percentage of the fund.

(f) A company may elect to value guaranteed interest contracts with cash settlement options and annuities with cash settlement options on either an issue year basis or on a change in fund basis. Guaranteed interest contracts with no cash settlement options and other annuities with no cash settlement options must be valued on an issue year basis. As used in §§ 58 - 26 - 71 to 58 - 26 - 74, inclusive, an issue year basis of valuation refers to a valuation basis under which the interest rate used to determine the minimum valuation standard for the entire duration of the annuity or guaranteed interest contract is the calendar year valuation interest rate for the year of issue or year of purchase of the annuity or guaranteed interest contract, and the change in fund basis of valuation refers to a valuation basis under which the interest rate used to determine the minimum valuation standard applicable to each change in the fund held under the annuity or guaranteed interest contract is the calendar year valuation interest rate for the year of the change in the fund.

Source: SL 1995, ch 284, § 28.
S.D. Codified Laws § 58-34-30 — SD Code / Title 58 / Chapter 34 / Section 58-34-30
Powers of advisory committee
Status: in_force

The advisory committee of a domestic reciprocal insurer shall:

(1) Supervise the finances of the insurer;

(2) Supervise the insurer's operations to such extent as to assure conformity with the subscribers' agreement and power of attorney;

(3) Procure the audit of the accounts and records of the insurer and of the attorney at the expense of the insurer; and

(4) Have such additional powers and functions as may be conferred by the subscribers' agreement.

Source: SL 1966, ch 111, ch 19, § 20 (3).
S.D. Codified Laws § 58-27-25 — SD Code / Title 58 / Chapter 27 / Section 58-27-25
Insurer acquiring controlling interest in another stock insurer--Limitation as to amount
Status: in_force

An insurer may acquire and hold the controlling interest in the outstanding voting stock of another stock insurer formed under the laws of this or another state. All stocks under this section shall be subject to the limitation as to amount as provided in § 58-27-27 .

Source: SL 1966, ch 111, ch 6, § 15 (2).
S.D. Codified Laws § 58-20-35 — SD Code / Title 58 / Chapter 20 / Section 58-20-35
Annual report of affairs of self-insurance associations
Status: in_force

Each year after an association has been granted a certificate, the association shall file with the department an annual report of its affairs and operations during the last preceding calendar year. The report shall be made in such form and shall contain such information as the department may require in order to protect the public interest and the interests of the members of the association. An association shall provide a copy of its last fiscal year CPA audit of its operations to the department if requested.

Source: SL 1995, ch 282, § 11.
S.D. Codified Laws § 58-17H-40 — SD Code / Title 58 / Chapter 17H / Section 58-17H-40
Urgent care requests--Written procedures required for receipt and determination of requests
Status: in_force

Each health carrier shall establish written procedures, in accordance with §§ 58-17H-40 to 58-17H-48 , inclusive, for receiving benefit requests from covered persons or their authorized representatives and for making and notifying covered persons or their authorized representatives of expedited utilization review and benefit determinations with respect to urgent care requests and concurrent review urgent care requests.

Source: SL 2011, ch 219, § 65.
S.D. Codified Laws § 58-27-27 — SD Code / Title 58 / Chapter 27 / Section 58-27-27
Maximum amount of investments in stock of majority owned subsidiary, or another insurer or wholly owned subsidiary
Status: in_force

The insurer's investments in the stock of its majority owned subsidiary insurance corporation under § 58-27-26 , together with its investments in insurance stocks under § 58-27-25 , may not at any time exceed the amount of the investing insurer's surplus, if a life insurer, or its surplus to policyholders if other than a life insurer. Any investment in a noninsurance majority owned corporation under § 58-27-26 is subject to the limitations under § 58-5A-73 .

Source: SL 1966, ch 111, ch 6, § 16; SL 1969, ch 130; SL 1994, ch 385.
S.D. Codified Laws § 58-30-157 — SD Code / Title 58 / Chapter 30 / Section 58-30-157
Notification of change of address by insurance producer
Status: in_force

A licensee shall inform the director in a form or format prescribed by the director of a change of address within thirty days of the change.

Source: SL 2001, ch 286, § 17.
S.D. Codified Laws § 58-37A-27 — SD Code / Title 58 / Chapter 37A / Section 58-37A-27
License to transact business--Annual expiration and renewal--License fee--Copy of license as evidence
Status: in_force

Societies which are now authorized to transact business in this state, and all societies hereafter licensed, may continue their business until May 1, 1991. The authority of these societies and all societies hereafter licensed, may thereafter be renewed annually, but in all cases to terminate on the first day of the succeeding May. However, a license issued shall continue in effect until the new license is issued or specifically refused. A fraternal benefit society making application for a certificate of authority or original license to transact business in this state shall pay a five hundred dollar license fee to the state. A fraternal benefit society receiving premiums, as defined in subdivision 10-44-1(5), in an amount less than two hundred thousand dollars shall pay a one hundred dollar annual renewal license fee to the state. A fraternal benefit society receiving premiums, as defined in subdivision 10-44-1(5), in an amount of two hundred thousand dollars or more shall pay a five hundred dollar annual renewal license fee to the state. A certified copy or duplicate of the license is prima facie evidence that the licensee is a fraternal benefit society within the meaning of this chapter.

Source: SL 1990, ch 410, § 27.
S.D. Codified Laws § 58-43-16.12 — SD Code / Title 58 / Chapter 43 / Section 58-43-16.12
Coercion, manipulation, or fraudulent influence of accountant prohibited
Status: in_force

No officer or director of an insurer, or any other person acting under the direction thereof, shall directly or indirectly take any action to coerce, manipulate, mislead, or fraudulently influence any accountant engaged in the performance of an audit pursuant to this chapter if that person knew or should have known that the action, if successful, could result in rendering the insurer's financial statements materially misleading.

These actions include:

(1) To issue or reissue a report on an insurer's financial statements that is not warranted in the circumstances (due to material violations of statutory accounting principles prescribed by the director, generally accepted auditing standards, or other professional or regulatory standards);

(2) To fail to perform audit, review, or other procedures required by generally accepted auditing standards or other professional standards;

(3) To fail to withdraw an issued report; or

(4) To fail to communicate matters to an insurer's audit committee.

Source: SL 2009, ch 271, § 27.
S.D. Codified Laws § 58-25-14 — SD Code / Title 58 / Chapter 25 / Section 58-25-14
Exchange of information and experience data--Consultation as to rate-making
Status: in_force

In order to further more equitable establishment and adjustment of rates and premiums and forms of contracts, policies, or guarantees of insurance, the director and every insurer may exchange information and experience data with each other, and with the insurance supervisory officials and insurers in other states and with national organizations and associations and may consult and cooperate with them in respect to rate - and premium - making and forms of contracts, policies, and guarantees of insurance.

Source: SL 1966, ch 111, ch 14, § 3 (8).
S.D. Codified Laws § 58-15-26.2 — SD Code / Title 58 / Chapter 15 / Section 58-15-26.2
Computation of interest
Status: in_force

Interest payable pursuant to § 58-15-26.1 shall be computed from the date of death of the insured until the date of payment and shall be at the rate of four percent per annum or not less than the current rate of interest on death proceeds left on deposit with the insurer under an interest settlement option, whichever rate is greater. For any private placement policy, the interest shall be computed commencing the latter of sixty days succeeding the date of death of the insured or the date proof of death has been received by the insurer in good order until the date of payment. In any private placement policy, the obligation of the insurer to pay interest on that portion of the policy attributable to separate account assets may only be computed as and when such assets are, by their respective terms, either converted to cash or otherwise dispersible by the insurer.

Source: SL 1987, ch 375, § 2; SL 2001, ch 54, § 5; SL 2003, ch 245, § 5; SL 2009, ch 259, § 5.
S.D. Codified Laws § 58-15-108 — SD Code / Title 58 / Chapter 15 / Section 58-15-108
Compliance with unclaimed property act
Status: in_force

Notwithstanding the provisions of this chapter, if an insurer fails to locate a beneficiary following a beneficiary search, the insurer shall report and remit the proceeds pursuant to chapter 43-41B .

Any insurer subject to §§ 58-15-94 to 58-15-108 , inclusive, shall comply with all applicable requirements in chapter 43-41B .

Source: SL 2018, ch 280, § 15.
S.D. Codified Laws § 58-11-36 — SD Code / Title 58 / Chapter 11 / Section 58-11-36
Assignment of policies
Status: in_force

A policy may be assignable or not assignable, as provided by its terms. Subject to its terms relating to assignability, any life or health policy, whether heretofore or hereafter issued, under the terms of which the beneficiary may be changed upon the sole request of the insured or owner, may be assigned either by pledge or transfer of title, by an assignment executed by the insured or owner alone and delivered to the insurer, whether or not the pledgee or assignee is the insurer. Any such assignment shall entitle the insurer to deal with the assignee as the owner or pledgee of the policy in accordance with the terms of the assignment, until the insurer has received at its home office written notice of termination of the assignment or pledge, or written notice by or on behalf of some other person claiming some interest in the policy in conflict with the assignment.

Source: SL 1966, ch 111, ch 22, § 27.
S.D. Codified Laws § 58-41-17 — SD Code / Title 58 / Chapter 41 / Section 58-41-17
Issuance or denial of certificate--Fee--Conditions for issuance
Status: in_force

The director of the Division of Insurance shall issue or deny a certificate of authority to any person filing an application pursuant to this chapter. Issuance of a certificate of authority shall be granted upon payment of the application fee prescribed in § 58-41-26 if the director is satisfied that the following conditions are met:

(1) The persons responsible for the conduct of the affairs of the applicant are competent, trustworthy, and possess good reputations;

(2) The health maintenance organization's proposed plan of operation meets the requirements of § 58-41-12 ;

(3) The health maintenance contract constitutes an appropriate mechanism whereby the health maintenance organization will effectively provide or arrange for the provision of comprehensive health maintenance services on a prepaid basis, through insurance or otherwise, except to the extent of reasonable requirements for copayments;

(4) The health maintenance organization is financially responsible and may reasonably be expected to meet its obligations to enrollees and prospective enrollees;

(5) The health maintenance organization will assume full financial risk on a prospective basis for the provision of comprehensive health maintenance services, including hospital care;

(6) The enrollees will be afforded an opportunity to participate in matters of policy and operation pursuant to §§ 58-41-23 and 58-41-24 ; and

(7) Nothing in the proposed method of operation, as shown by the information submitted pursuant to §§ 58-41-4 to 58-41-10 , inclusive, or by independent investigation, is contrary to the public interest.

A certificate of authority may be denied only after compliance with the requirements of §§ 58-41-87 to 58-41-90 , inclusive.

Source: SL 1974, ch 321, § 10; SL 1985, ch 393, § 15; SL 2013, ch 256, § 8.
S.D. Codified Laws § 58-46-13 — SD Code / Title 58 / Chapter 46 / Section 58-46-13
Privileges--Applicable law
Status: in_force

Any captive insurance company formed under the provisions of this chapter has the privileges and is subject to the provisions of title 47 or title 55, as applicable to the entity under which it is formed and is otherwise relevant, as well as the applicable provisions contained in this chapter. In the event of conflict between the provisions of this chapter and those of title 47 or title 55, the provisions of this chapter control.

Source: SL 1996, ch 287, § 13; SL 2013, ch 257, § 12; SL 2014, ch 245, § 2.
S.D. Codified Laws § 58-19-22 — SD Code / Title 58 / Chapter 19 / Section 58-19-22
Delivery to debtor of policy or certificate after acceptance of insurance
Status: in_force

Upon acceptance of the insurance by the insurer and within thirty days of the date upon which the indebtedness is incurred, the insurer shall cause the individual policy or group certificate of insurance to be delivered to the debtor.

Source: SL 1966, ch 111, ch 27, § 6 (4).
S.D. Codified Laws § 58-29B-92 — SD Code / Title 58 / Chapter 29B / Section 58-29B-92
Failure to appear and serve objections on or before return day of order--Procedure on timely appearance
Status: in_force

If a member does not appear and serve duly verified objections upon the liquidator on or before the return day of the order to show cause under § 58-29B-90 , the court shall make an order adjudging the member liable for the amount of the assessment against him, pursuant to § 58-29B-89 , together with costs, and the liquidator shall have a judgment against the member therefor. If on or before such return day, the member appears and serves duly verified objections upon the liquidator, the director may hear and determine the matter or may appoint a referee to hear it and make such order as the facts warrant. In the event that the director determines that such objections do not warrant relief from assessment, the member may request the court to review the matter and vacate the order to show cause.

Source: SL 1989, ch 436, § 92.
S.D. Codified Laws § 58-43-15 — SD Code / Title 58 / Chapter 43 / Section 58-43-15
Accountant's action upon awareness of new facts subsequent to filing audited report
Status: in_force

If the accountant, subsequent to the date of the audited financial report filed pursuant to this chapter becomes aware of facts which might affect his report, the accountant shall take the action prescribed in volume 1, section AU 561 of the professional standards of the American Institute of Certified Public Accountants.

Source: SL 1992, ch 357, § 15.
S.D. Codified Laws § 58-18-49 — SD Code / Title 58 / Chapter 18 / Section 58-18-49
Carrier's offer of coverage to employer--Coverage of all eligible employees
Status: in_force

If an employer carrier offers coverage to an employer, the employer carrier shall offer coverage to all of the eligible employees of an employer and their dependents. An employer carrier may not offer coverage to only certain individuals in an employer group or to only part of the group, except in the case of late enrollees.

Source: SL 1994, ch 383, § 9; SL 1995, ch 281, § 21.
S.D. Codified Laws § 58-27-15.1 — SD Code / Title 58 / Chapter 27 / Section 58-27-15.1
Credit Union accounts
Status: in_force

To the extent that such an account is insured by the National Credit Union Share Insurance Fund (NCUSIF), or any successor organizations, an insurer may invest in member accounts of federal or state - chartered credit unions.

Source: SL 1997, ch 294, § 6.
S.D. Codified Laws § 58-47-8 — SD Code / Title 58 / Chapter 47 / Section 58-47-8
Vendor permitted to collect charges for portable electronics insurance--Funds held in trust for insurer--Vendor compensation
Status: in_force

Any charges for portable electronics insurance coverage may be billed and collected by the vendor of portable electronics. Each charge to the enrolled customer for coverage that is not included in the cost associated with the purchase or lease of portable electronics or related services shall be separately itemized on the enrolled customer's bill. If the portable electronics insurance coverage is included with the purchase or lease of portable electronics or related services, the vendor shall clearly and conspicuously disclose to the enrolled customer that the portable electronics insurance coverage is included with the portable electronics or related services. A vendor billing and collecting these charges is not required to maintain these funds in a segregated account if the vendor is authorized by the insurer to hold these funds in an alternative manner and remits such amounts to the supervising entity within sixty days of receipt. All funds received by a vendor from an enrolled customer for the sale of portable electronics insurance shall be considered funds held in trust by the vendor in a fiduciary capacity for the benefit of the insurer. A vendor may receive compensation for billing and collection services.

Source: SL 2012, ch 251, § 8.
S.D. Codified Laws § 58-17I-7 — SD Code / Title 58 / Chapter 17I / Section 58-17I-7
Review of adverse determination--Time for filing--Designation and notice of reviewers--Scope of review
Status: in_force

Within one hundred eighty days after the date of receipt of a notice of an adverse determination sent pursuant to chapter 58-17H , any covered person or the covered person's authorized representative may file a grievance with the health carrier requesting a first level review of the adverse determination. The health carrier shall provide the covered person with the name, address, and telephone number of a person or organizational unit designated to coordinate the first level review on behalf of the health carrier. In providing for a first level review under this section, the health carrier shall ensure that the review conducted in a manner under this section to ensure the independence and impartiality of the individuals involved in making the first level review decision. In ensuring the independence and impartiality of individuals involved in making the first level review decision, no health carrier may make decisions related to such individuals regarding hiring, compensation, termination, promotion or other similar matters based upon the likelihood that the individual will support the denial of benefits.

The health carrier shall designate one or more health care providers who have appropriate training and experience in the field of medicine involved in the medical judgment to evaluate the adverse determination. No health care provider may have been involved in the initial adverse determination. In conducting the review, a reviewer shall take into consideration all comments, documents, records, and other information regarding the request for services submitted by the covered person or the covered person's authorized representative, without regard to whether the information was submitted or considered in making the initial adverse determination.

Source: SL 2011, ch 219, § 79.
S.D. Codified Laws § 58-17-30.5 — SD Code / Title 58 / Chapter 17 / Section 58-17-30.5
Coverage for inpatient alcoholism treatment required
Status: in_force

Any insurer which delivers or issues for delivery in this state any insurance policy under this chapter which provides coverage on an expense incurred basis shall offer, in writing, to include in such policy or contract issued or renewed on or after July 1, 1979, coverage for the inpatient treatment of alcoholism in licensed hospitals and residential primary treatment facilities approved by the State of South Dakota which are carrying out an approved program pursuant to the diagnosis and recommendation of a doctor of medicine. When coverage for inpatient treatment is included in any policy, such coverage shall include inpatient treatment at any South Dakota approved inpatient alcoholism treatment facility.

Source: SL 1977, ch 410, § 2; SL 1979, ch 344, § 1.
S.D. Codified Laws § 58-19-1 — SD Code / Title 58 / Chapter 19 / Section 58-19-1
Purpose of chapter
Status: in_force

The purpose of this chapter is to promote the public welfare by regulating credit life insurance, credit health insurance, credit unemployment insurance, and credit property including group personal property coverages authorized through credit cards. Nothing in this chapter is intended to prohibit or discourage reasonable competition. The provisions of this chapter shall be liberally construed.

Source: SL 1966, ch 111, ch 27, § 1; SL 1987, ch 380, § 9; SL 2001, ch 281, § 1.
S.D. Codified Laws § 58-41-31 — SD Code / Title 58 / Chapter 41 / Section 58-41-31
Direct payments to enrollees prohibited
Status: in_force

No health maintenance organization or representative thereof may by a health maintenance contract or evidence of coverage provide for the reimbursement of an enrollee other than through a policy of insurance, except to refund payments made by or on behalf of an enrollee.

Source: SL 1974, ch 321, § 32 (4).
S.D. Codified Laws § 58-43-16.22 — SD Code / Title 58 / Chapter 43 / Section 58-43-16.22
Compliance of foreign insurers
Status: in_force

Each foreign insurer shall comply with this chapter for the year ending December 31, 2010, and each year thereafter, unless the director permits otherwise.

Source: SL 2009, ch 271, § 37.
S.D. Codified Laws § 58-32-13 — SD Code / Title 58 / Chapter 32 / Section 58-32-13
Suspension or revocation of surplus line license affects all other licenses
Status: in_force

Upon suspending or revoking a broker's surplus line license, the director shall also suspend or revoke all other licenses of the same individual under this title.

Source: SL 1966, ch 111, ch 11, § 13 (3).
S.D. Codified Laws § 58-8-17 — SD Code / Title 58 / Chapter 8 / Section 58-8-17
Exemptions from unauthorized insurers process provisions
Status: in_force

The provisions of §§ 58-8-6 to 58-8-19 , inclusive, shall not apply to any action, suit or proceeding against any unauthorized foreign or alien insurer arising out of a contract of:

(1) Reinsurance of the liability of an admitted insurer;

(2) Insurance against perils of navigation, transit, or transportation upon hulls, freights, or disbursements, or other ship owner interest; upon goods, wares, merchandise, and all other personal property and interests therein, in course of exportation from or importation into any country, or transportation coastwise, including transportation by land or water from point of origin to final destination and including war risks; and marine builder's risks, dry docks and marine railways, including insurance of ship repairer's liability, and protection and indemnity insurance, but excluding insurance covering bridges or tunnels;

(3) Aircraft insurance;

(4) Insurance on property or operations of railroads engaged in interstate commerce;

(5) Insurance in accordance with the surplus line law;

(6) Insurance against legal liability arising out of the ownership, operation, or maintenance of any property having a permanent situs outside of this state;

(7) Insurance against loss of or damage to any property having a permanent situs outside this state; or

(8) Where such contract contains a provision designating the director to be its true and lawful attorney upon whom may be served all lawful process in any action, suit, or proceeding instituted by or on behalf of an insured or beneficiary arising out of any contract or where the insurer enters a general appearance in any such action, suit, or proceeding.

Source: SL 1966, ch 111, ch 12, § 11.
S.D. Codified Laws § 58-5A-95 — SD Code / Title 58 / Chapter 5A / Section 58-5A-95
Group capital calculation--Annual filing exemptions
Status: in_force

Insurance holding company systems described in this section are exempt from filing the group capital calculation provided in § 58-5A-94 :

(1) An insurance holding company system that:

(a) Has only one insurer within its holding company structure;

(b) Only writes business in its domestic state;

(c) Is only licensed in its domestic state; and

(d) Assumes no business from any other insurer;

(2) An insurance holding company system that is required to perform a group capital calculation specified by the United States Federal Reserve Board. The lead state director or commissioner must request the calculation from the Federal Reserve Board under the terms of information sharing agreements in effect. If the Federal Reserve Board cannot share the calculation with the lead state director or commissioner, the insurance holding company system is not exempt from the group capital calculation filing;

(3) An insurance holding company system whose non-U.S. group-wide supervisor is located within a reciprocal jurisdiction, as described in § 58-14-16.23 , that recognizes the U.S. state regulatory approach to group supervision and group capital; or

(4) An insurance holding company system that provides information to the lead state that meets the requirements for accreditation under the NAIC financial standards and accreditation program, either directly or indirectly through the group-wide supervisor, who has determined the information is satisfactory to allow the lead state to comply with the NAIC group supervision approach, as detailed in the NAIC financial analysis handbook, and whose non-U.S. group-wide supervisor that is not in a reciprocal jurisdiction recognizes and accepts, as specified by the director in regulation, the group capital calculation as the world-wide group capital assessment for U.S. insurance groups who operate in that jurisdiction.

If the lead state director or commissioner determines that an insurance holding company system no longer meets one or more of the requirements for an exemption from filing the group capital calculation under this section, the insurance holding company system must file the group capital calculation at the next annual filing date unless given an extension by the lead state director or commissioner based on reasonable grounds shown.

The lead state director or commissioner has the discretion to exempt the ultimate controlling person from filing the annual group capital calculation or to accept a limited group capital filing or report in accordance with criteria as specified by the director in rules promulgated pursuant to chapter 1-26 .

Source: SL 2024, ch 201, § 8.
S.D. Codified Laws § 58-7-36 — SD Code / Title 58 / Chapter 7 / Section 58-7-36
Return of deposit upon merger or consolidation of insurer
Status: in_force

Upon the merger or consolidation of an insurer that has made a deposit in this state, the director may, after preserving the interests of South Dakota policyholders, direct the depository or custodian to return the deposit to the resulting or surviving corporation, or to any person it may designate for that purpose, if the resulting or surviving corporation is or becomes authorized to transact an insurance business in this state.

Source: SL 1966, ch 111, ch 7, § 14(3); SL 1988, ch 393; SL 1991, ch 398, § 18.
S.D. Codified Laws § 58-17-48 — SD Code / Title 58 / Chapter 17 / Section 58-17-48
Liability and workers' compensation insurance--Inapplicability of health insurance provisions
Status: in_force

Nothing in §§ 58-17-1 to 58-17-47 , inclusive, shall apply to or affect any policy of liability or workers' compensation and employers liability insurance.

Source: SL 1966, ch 111, ch 25, § 1 (1).
S.D. Codified Laws § 58-33-5 — SD Code / Title 58 / Chapter 33 / Section 58-33-5
Misrepresentation or false advertising of policies as misdemeanor
Status: in_force

No person shall make, issue, circulate, or cause to be made, issued, or circulated, any estimate, circular, or statement misrepresenting the terms of any policy issued or to be issued or the benefits or advantages promised thereby or the dividends or share of the surplus to be received thereon, or make any false or misleading statement as to the dividends or share of surplus previously paid on similar policies, or make any misleading representation or any misrepresentation as to the financial condition of any insurer, or as to the legal reserve system upon which any life insurer operates, or use any name or title of any policy or class of policies misrepresenting the true nature thereof. Violation of this section is a Class 2 misdemeanor.

Source: SL 1966, ch 111, ch 13, § 6; SL 1978, ch 359, § 2.
S.D. Codified Laws § 58-30-95 — SD Code / Title 58 / Chapter 30 / Section 58-30-95
Director as attorney for service of process on nonresident insurance producer
Status: in_force

Each licensed nonresident insurance producer shall appoint the director as the insurance producer's attorney to receive service of legal process issued against the agent in this state upon causes of action arising within this state out of transactions under the license.

Source: SL 1966, ch 111, ch 9, § 31 (1); SL 1978, ch 365, § 24; SL 2001, ch 286, § 176.
S.D. Codified Laws § 58-41-23 — SD Code / Title 58 / Chapter 41 / Section 58-41-23
Composition of governing body--Consumer representation
Status: in_force

The governing body of any health maintenance organization may include enrollees, providers, or other individuals. However, after a health maintenance organization has been authorized under this chapter for one year, at least twenty percent of the governing body of a health maintenance organization shall be composed of consumers. A consumer, is any person other than a person whose occupation involves the administration of health activities or the providing of health services.

Source: SL 1974, ch 321, §§ 2 (9), 16; SL 1985, ch 393, § 5; SL 2014, ch 244, § 1.
S.D. Codified Laws § 58-25-10 — SD Code / Title 58 / Chapter 25 / Section 58-25-10
Filing of rates and policies--Approval or disapproval by director
Status: in_force

Any filing made pursuant to §§ 58-25-7 to 58-25-9 , inclusive, shall be approved by the director, unless he finds that such filing does not meet the requirements of this chapter or shall otherwise be contrary to law. As soon as reasonably possible after the filing has been made, the director shall, in writing, approve or disapprove the same; provided, however, that, if such filing has not been disapproved by the director within fifteen days from the date of filing, or within thirty days if such period be extended in writing by the director during the first fifteen days, it shall be deemed approved, and the rates, contracts, or other subject matter of such filing may be put into effect by the insurer at the expiration of such waiting period. In the event the director disapproves any filing, he shall specify in what respect he finds that such filing does not meet the requirements of this chapter or is otherwise contrary to law.

Source: SL 1966, ch 111, ch 14, § 3 (4).
S.D. Codified Laws § 58-11-9.11 — SD Code / Title 58 / Chapter 11 / Section 58-11-9.11
Increase in automobile insurance premiums due to certain alcohol-related offenses by a minor prohibited
Status: in_force

No automobile insurer may increase the premium rate as a result of a conviction, adjudication of delinquency or revocation under § 32-12-52.4 .

Source: SL 1990, ch 250, § 2.
S.D. Codified Laws § 58-38-16 — SD Code / Title 58 / Chapter 38 / Section 58-38-16
Foreign corporation--Transaction of business in state
Status: in_force

A nonprofit medical and surgical service plan 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 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 insurer may be served with the same effect as if a domestic insurer served in this state, such appointment to stipulate that any lawful process against such insurer served on such agent shall be of the same legal force and validity as if served on the insurer, and that the authority shall continue in force as long as any liability remains outstanding against such insurer 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 insurer; or in case of insurers 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 medical and surgical service to the subscribers with at least twenty physicians and surgeons 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 insurers transacting or doing business in this state.

Source: SL 1966, ch 111, ch 21, § 11; SL 1986, ch 22, § 40.
S.D. Codified Laws § 58-29B-66 — SD Code / Title 58 / Chapter 29B / Section 58-29B-66
Preference defined
Status: in_force

A preference is a transfer of any of the property of an insurer to or for the benefit of a creditor, for or on account of an antecedent debt, made or suffered by the insurer within one year before the filing of a successful petition for liquidation under this chapter, the effect of which transfer may be to enable the creditor to obtain a greater percentage of this debt than another creditor of the same class would receive. If a liquidation order is entered while the insurer is already subject to a rehabilitation order, then such transfers shall be deemed preferences if made or suffered within one year before the filing of the successful petition for rehabilitation, or within two years before the filing of the successful petition for liquidation, whichever time is shorter.

Source: SL 1989, ch 436, § 66.
S.D. Codified Laws § 58-34-44 — SD Code / Title 58 / Chapter 34 / Section 58-34-44
Subscriber not liable until final judgment against insurer
Status: in_force

No action shall lie against any subscriber upon any obligation claimed against the insurer until a final judgment has been obtained against the insurer and remains unsatisfied for thirty days.

Source: SL 1966, ch 111, ch 19, § 22 (1).
S.D. Codified Laws § 58-18-78 — SD Code / Title 58 / Chapter 18 / Section 58-18-78
Notice to employees or members--Disclosures
Status: in_force

The group health insurer shall provide notice to employees or members regarding the coverage required by §§ 58-18-76 and 58-18-77 in accordance with rules adopted by the director of the Division of Insurance pursuant to chapter 1-26 . The notice shall be in writing and prominently positioned in any literature or correspondence. The notice shall be transmitted to employees or members in the next mailing to employees or members, in the yearly informational packet sent to employees or members, or by January 1, 1997, whichever is earliest.

Source: SL 1996, ch 292, § 6.
S.D. Codified Laws § 58-30-167.2 — SD Code / Title 58 / Chapter 30 / Section 58-30-167.2
Revocation of license for failure to respond
Status: in_force

If the director has reasonable evidence that a licensed insurance producer has violated any provision of this title and the licensed producer has also violated subdivision 58-33-66 (1) for failing to respond to division inquiries regarding the same, the director may, after sufficient notice, revoke the producer's license by an order of the director without a hearing. An order under this section must include the applicable provisions of § 58-4-16 and chapter 1-26 for final agency decisions and must be accompanied by exhibits demonstrating the alleged violations.

For purposes of this section, the term "sufficient notice" means:

(1) The producer is provided notice of the alleged violations at the producer's last reported mailing address on file with the director; and

(2) The producer is provided a second notice at the producer's last reported mailing address on file with the director stating the producer is in violation of § 58-33-66 and must respond to avoid administrative action by the division.

Source: SL 2024, ch 204, § 1.
S.D. Codified Laws § 58-29A-78 — SD Code / Title 58 / Chapter 29A / Section 58-29A-78
Maximum assessment in relation to net premiums
Status: in_force

No member insurer may be assessed in any year on any account an amount greater than two percent of that member insurer's net direct written premiums for the preceding calendar year on the kinds of insurance in the account.

Source: SL 2000, ch 247, § 25.
S.D. Codified Laws § 58-41-99 — SD Code / Title 58 / Chapter 41 / Section 58-41-99
Formation of voluntary health insurance purchasing organizations
Status: in_force

Notwithstanding the provisions of chapter 47-34A and §§ 47-15-2 and 47-22-4 , any organization may form for the purposes of purchasing group health insurance on a voluntary basis. For purposes of §§ 58-41-99 to 58-41-109 , inclusive, an organization means any nonprofit organization or nonprofit corporation formed under South Dakota law.

Source: SL 1994, ch 382, § 1; SL 2021, ch 210, § 24.
S.D. Codified Laws § 58-34-41 — SD Code / Title 58 / Chapter 34 / Section 58-34-41
Offset of claim for unearned premium against assessment prohibited
Status: in_force

No subscriber shall have an offset against any assessment for which he is liable, on account of any claim for unearned premium or losses payable.

Source: SL 1966, ch 111, ch 19, § 23 (4).
S.D. Codified Laws § 58-35-29 — SD Code / Title 58 / Chapter 35 / Section 58-35-29
Property insurable by farm mutual
Status: in_force

A farm mutual insurer shall only insure the following described property against loss or damage by fire or other casualty:

(1) Farm dwellings and buildings, including the usual contents therein, livestock, farm machinery, growing crops, and other forms of farm property;

(2) Dwellings designed for occupancy by not over two families, including the usual contents thereof, and private structures;

(3) Churches, schools, and community buildings including the usual contents thereof;

(4) The usual and customary possessions of the occupants of multi - family dwellings; and

(5) Personal property used in a solely - owned business activity conducted on the insured premises, including property held for resale if the insured property is covered by reinsurance.

For purposes of this chapter any policy written by a farm mutual insurer is considered a personal lines policy.

Source: SL 1966, ch 111, ch 17, § 3 (1); SL 1979, ch 341, § 24; SL 1992, ch 60, § 2; SL 1993, ch 370, § 1; SL 2004, ch 297, § 3.
S.D. Codified Laws § 58-25-11 — SD Code / Title 58 / Chapter 25 / Section 58-25-11
Finding of director that prior approved filing does not comply with law--Hearing on request--Affirmance or modification of prior action
Status: in_force

If at any time after the approval of a filing, the director should find that the filing does not meet the requirements of §§ 58-25-7 to 58-25-10 , inclusive, or is otherwise contrary to law, or if any party having an interest in such filing should make complaint in writing, setting forth specific and reasonable causes for complaint to the director, or if any insurer, upon notice of disapproval by the director of a filing pursuant to this section, should so request, the director shall hold a hearing within thirty days and shall give notice of the hearing in writing to all parties in interest. The director may confirm, modify, change or rescind any previous action, if warranted by the facts shown at the hearing.

Source: SL 1966, ch 111, ch 14, § 3 (5).
S.D. Codified Laws § 58-29B-35 — SD Code / Title 58 / Chapter 29B / Section 58-29B-35
Rehabilitator's plan for transformation--Application and grounds for approval--Procedure upon approval
Status: in_force

If the rehabilitator determines that reorganization, consolidation, conversion, reinsurance, merger, sale, or other transformation of the insurer is appropriate, he shall prepare a plan to effect such changes. Upon application of the rehabilitator for approval of the plan, and after such notice and hearings as the court may prescribe, the court may either approve or disapprove the plan proposed, or may modify it and approve it as modified. Any plan approved under this section shall be, in the judgment of the court, fair and equitable to all parties concerned. If the plan is approved, the rehabilitator shall carry out the plan. In the case of a life insurer, the plan proposed may include the imposition of liens upon the policies of the company, if all rights of shareholders are first relinquished. A plan for a life insurer may also propose imposition of a moratorium upon loan and cash surrender rights under policies, for such period and to such an extent as may be necessary. The rehabilitator may under §§ 58-29B-61 to 58-29B-65 , inclusive, avoid fraudulent transfers.

Source: SL 1989, ch 436, § 35; SL 1991, ch 404, § 4.
S.D. Codified Laws § 58-10-1 — SD Code / Title 58 / Chapter 10 / Section 58-10-1
Application to all insurance and annuity contracts--Exceptions
Status: in_force

Chapters 58-10 to 58-12 , inclusive, apply as to all insurance contracts and annuity contracts, other than:

(1) Reinsurance;

(2) Policies or contracts not issued for delivery in this state or not delivered in this state, except as provided in §§ 58-11-12 to 58-11-20 , inclusive.

Source: SL 1966, ch 111, ch 22, § 1 (1), (2); SL 1967, ch 129, § 6.
S.D. Codified Laws § 58-26-68 — SD Code / Title 58 / Chapter 26 / Section 58-26-68
Tables used for annuities and pure endowments purchased under group contracts prior to July 1, 1978--Interest
Status: in_force

The tables that shall be used for all annuities and pure endowments purchased prior to July 1, 1978, under group annuity and pure endowment contracts, excluding any disability and accidental death benefits purchased under the contracts are: the 1971 Group Annuity Mortality Table or any modification of this table approved by the director, and six percent interest.

Source: SL 1995, ch 284, § 24.
S.D. Codified Laws § 58-5C-5 — SD Code / Title 58 / Chapter 5C / Section 58-5C-5
Admission of foreign insurer to solicit applications and do business in state--Reports--Taxation--Supervision
Status: in_force

Any mutual insurer organized under laws substantially similar to this chapter in another state, for the purpose of transacting the kind of business described in this chapter may upon application and without prior operating experience or examination be admitted to solicit applications, and if the necessary number is obtained, do business in the state if the director finds such admission is in the public interest; and shall thereafter make all reports and be subject to taxation, examination, and supervision by the director of insurance to the same extent and in the same manner as are other foreign insurers.

Source: SL 1977, ch 405, § 5.
S.D. Codified Laws § 58-8-6 — SD Code / Title 58 / Chapter 8 / Section 58-8-6
Unauthorized insurers--Purposes of Process Act
Status: in_force

The purpose of §§ 58-8-6 to 58-8-19 , inclusive, is to subject certain insurers to the jurisdiction of the courts of this state in suits by or on behalf of insureds or beneficiaries under insurance contracts. The Legislature declares that it is a subject of concern that many residents of this state hold policies of insurance issued or delivered in this state by insurers not authorized to do business in this state, thus presenting to such residents the often insuperable obstacle of resorting to distant forums for the purpose of asserting legal rights under such policies. In furtherance of such state interest, the Legislature herein provides a method of substituted service of process upon such insurers and declares that in so doing it exercises its power to protect its residents and to define, for the purpose of this statute, what constitutes doing business in this state, and also exercises powers and privileges available to the state by virtue of Public Law 15, 79th Congress of the United States, Chapter 20, 1st Sess., S. 340, as amended, which declares that the business of insurance and every person engaged therein shall be subject to the laws of the several states.

Source: SL 1966, ch 111, ch 12, § 3.
S.D. Codified Laws § 58-14-43 — SD Code / Title 58 / Chapter 14 / Section 58-14-43
Restrictions on brokers connected to a firm or association
Status: in_force

No person may act as a broker in this state if the broker maintains an office either directly or as a member or employee of a firm or association, or an officer, director, or employee of a corporation:

(1) In this state, unless the broker is a licensed producer in this state; or

(2) In another state, unless the broker is a licensed producer in this state or another state having a law substantially similar to this law or the broker is licensed in this state as a nonresident reinsurance intermediary.

Source: SL 1994, ch 379, § 3.
S.D. Codified Laws § 58-17A-11 — SD Code / Title 58 / Chapter 17A / Section 58-17A-11
Premiums to be adjusted to produce a loss ratio conforming with minimum standards--Form of adjustments
Status: in_force

Every issuer providing medicare supplement insurance or benefits to a resident of this state shall make premium adjustments as are necessary to produce an expected loss ratio under a policy or certificate as will conform with minimum loss ratio standards for medicare supplement policies and certificates which is expected to result in a loss ratio at least as great as that originally anticipated in the rates used to produce current premiums by the issuer. No premium adjustment which would modify the loss ratio experience under the policy other than the adjustments described herein may be made with respect to a policy at any time other than upon its renewal date. Premium adjustments shall be in the form of refunds or premium credits and shall be made no later than upon renewal if a credit is given, or within sixty days of the renewal date if a refund is provided to the premium payer.

Source: SL 1989, ch 431, § 5; SL 1992, ch 347, § 12.
S.D. Codified Laws § 58-28-26 — SD Code / Title 58 / Chapter 28 / Section 58-28-26
Factors considered by director in examining variable contracts
Status: in_force

In connection with § 58-28-25 , the director shall consider among other things:

(1) The history and financial condition of the insurer;

(2) The character, responsibility, and fitness of the officers and directors of the insurer; and

(3) The law and regulation under which the insurer is authorized in the state of domicile to issue variable contracts.

Source: SL 1966, ch 111, ch 6, § 36 (9) as added by SL 1967, ch 131; SDCL, § 58-28-10; SL 1971, ch 266, § 3.
S.D. Codified Laws § 58-26-49 — SD Code / Title 58 / Chapter 26 / Section 58-26-49
Form and substance of actuary's opinion
Status: in_force

Each opinion required by §§ 58-26-47 and 58-26-48 shall be governed by the following provisions:

(1) A memorandum, in form and substance acceptable to the director as specified by rules promulgated pursuant to chapter 1-26 , shall be prepared to support each actuarial opinion;

(2) If the insurance company fails to provide a supporting memorandum at the request of the director within a period specified or the director determines that the supporting memorandum provided by the insurance company fails to meet the standards prescribed by the rules or is otherwise unacceptable to the director, 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 memorandum as is required by the director.

Source: SL 1995, ch 284, § 5.
S.D. Codified Laws § 58-35-25 — SD Code / Title 58 / Chapter 35 / Section 58-35-25
Directors--Election--Term of office
Status: in_force

Directors of a farm mutual insurer shall be elected by its members by ballot for terms not to exceed three years, and shall hold office until their respective successors are elected and qualified.

Source: SL 1966, ch 111, ch 17, § 18 (1).
S.D. Codified Laws § 58-15-15.4 — SD Code / Title 58 / Chapter 15 / Section 58-15-15.4
Insurance policy loan--Definition of terms
Status: in_force

For purposes of §§ 58-15-15.5 to 58-15-15.12 , inclusive:

(1) The rate of interest on policy loans permitted under §§ 58-15-15.5 to 58-15-15.12 , inclusive, includes the interest rate charged on reinstatement of policy loans for the period during and after any lapse of a policy;

(2) The term "policy loan" includes any premium loan made under a policy to pay one or more premiums that were not paid to the life insurer as they fell due;

(3) The term "policyholder" includes the owner of the policy or the person designated to pay premiums as shown on the records of the life insurer; and

(4) The term "policy" includes certificates issued by a fraternal benefit society and annuity contracts which provide for policy loans.

Source: SL 1982, ch 358, § 1.
S.D. Codified Laws § 58-29D-28 — SD Code / Title 58 / Chapter 29D / Section 58-29D-28
Notice of administrator's change in circumstance
Status: in_force

An administrator shall immediately notify the director of any material change in its ownership, control, or other fact or circumstance affecting its qualification for a license in this state.

Source: SL 1992, ch 352, § 28.
S.D. Codified Laws § 58-12-22 — SD Code / Title 58 / Chapter 12 / Section 58-12-22
Information from insurer's database to Department of Social Services--Data match against recipients--Disclosure--Liability
Status: in_force

Within sixty days of a request from the department, the department and an insurer shall negotiate an acceptable format for the transmission of information from the insurer's database of policy holders, sponsors, subscribers, covered individuals in South Dakota, and coverage dates. The format must include the data elements, medium, frequency of reporting, any costs of the insurer to be reimbursed, and procedures that will be followed when a data match is found. The Department of Social Services shall match the name, address, date of birth, and social security number if available, of the insured's policyholders, sponsors, subscribers, and covered individuals against the medicaid eligible recipients and recipients of support enforcement services as defined in subdivision 25-7A-1 (19).

Upon discovery of a match, the department may incorporate the following information into its recipient database:

(1) The name, address, date of birth, social security number if available, and the unique health care identification number of the covered individual;

(2) The name, address, date of birth, social security number if available, policy number, and group identification number of the policyholder, sponsor, or subscriber;

(3) The name and address of the employer if it is an employer-employee benefit plan;

(4) Types of covered services under the plan or policy;

(5) Coverage effective date and termination of coverage date for each covered individual; and

(6) The name and address of the claim administrator for the policy or plan.

The department may not use or disclose any information provided by the insurer other than as permitted or required by law. The insurer may not be held liable for the release of insurance coverage information to the department or the director by any party when done so under the authority of §§ 58-12-22 to 58-12-28 , inclusive.

Source: SL 2005, ch 263, § 1; SL 2021, ch 210, § 5.
S.D. Codified Laws § 58-15-53 — SD Code / Title 58 / Chapter 15 / Section 58-15-53
Use of prohibited policy provision which is more favorable to insured
Status: in_force

Nothing contained in §§ 58-15-45 to 58-15-51 , inclusive, shall prohibit any provision which in the opinion of the director is more favorable to the policyholder than a provision permitted by said sections.

Source: SL 1966, ch 111, ch 23, § 26 (4).
S.D. Codified Laws § 58-30-69 — SD Code / Title 58 / Chapter 30 / Section 58-30-69
Examination not required for travel insurance
Status: in_force

Applicants for limited license as to travel insurance under subdivision 58-30-68(4) are exempt from examination, as provided in § 58-30-52 , and the fee for each such license, including issuance thereof and the appointment by the insurer, shall be in the amount specified in § 58-2-29 .

Source: SL 1966, ch 111, ch 9, § 18 (2); SL 2014, ch 241, § 3.
S.D. Codified Laws § 58-47-7 — SD Code / Title 58 / Chapter 47 / Section 58-47-7
Training program for vendor employees and representatives
Status: in_force

The administration of the sale of portable electronics insurance includes the development of a training program for employees and authorized representatives of the vendors. The training shall be delivered to employees and authorized representatives of vendors who are directly engaged in the activity of selling or offering portable electronics insurance. The training may be provided in electronic form. However, if conducted in an electronic form, the supervising entity shall implement a supplemental education program regarding the portable electronics insurance product that is conducted and overseen by a licensed producer of the supervising entity. Each employee and authorized representative shall receive basic instruction about the portable electronics insurance offered to customers and the disclosures required under § 58-47-4 .

Source: SL 2012, ch 251, § 7.
S.D. Codified Laws § 58-29D-30 — SD Code / Title 58 / Chapter 29D / Section 58-29D-30
Annual renewal of administrator--Fee--Lapse of license or registration
Status: in_force

Each administrator licensed or registered shall file an annual renewal for the preceding calendar year with the director on or before July first of each year, or within such extension of time as the director for good cause may grant. The renewal shall be in the form and contain such matters as the director prescribes and shall be verified by at least two officers of the administrator. The annual renewal shall include the complete names and addresses of all insurers with which the administrator had an agreement during the preceding fiscal year. At the time of filing its annual renewal, the administrator shall pay a filing fee of two hundred fifty dollars. Failure to file such renewal shall result in lapsing of the license or registration of the administrator.

Source: SL 1992, ch 352, § 30; SL 1999, ch 255, § 1; SL 2012, ch 248, § 1.
S.D. Codified Laws § 58-3-12.4 — SD Code / Title 58 / Chapter 3 / Section 58-3-12.4
Confidentiality of draft examination report
Status: in_force

Each draft examination report described in § 58-3-12.2 is confidential. No draft examination report may be released except pursuant to a court order.

Source: SL 2014, ch 232, § 3.
S.D. Codified Laws § 58-17F-5 — SD Code / Title 58 / Chapter 17F / Section 58-17F-5
Health carrier to maintain provider network sufficient to assure services without unreasonable delay--Emergency services--Determination of sufficiency
Status: in_force

A health carrier providing a managed care plan shall maintain a network that is sufficient in numbers and types of providers to assure that all services to covered persons will be accessible without unreasonable delay. In the case of emergency services, covered persons shall have access twenty-four hours a day, seven days a week. Sufficiency shall be determined in accordance with the requirements of this section, and may be established by reference to any reasonable criteria used by the carrier, including: provider-covered person ratios by specialty; primary care provider-covered person ratios; geographic accessibility; waiting times for appointments with participating providers; hours of operation; and the volume of technological and specialty services available to serve the needs of covered persons requiring technologically advanced or specialty care.

Source: SL 2011, ch 219, § 5.
S.D. Codified Laws § 58-30-208 — SD Code / Title 58 / Chapter 30 / Section 58-30-208
Revocation of rental car company license
Status: in_force

If a rental car company violates any provision of §§ 58-30-197 to 58-30-207 , inclusive, the director may revoke or suspend the license of a rental car company or take other action as authorized under this title.

Source: SL 2001, ch 272, § 12; SDCL § 58-9-45; SL 2010, ch 233, § 2.
S.D. Codified Laws § 58-27-32 — SD Code / Title 58 / Chapter 27 / Section 58-27-32
Real estate mortgages and deeds of trust
Status: in_force

An insurer may invest any of its funds in bonds, notes, or other evidences of indebtedness which are secured by first mortgages or deeds of trust on improved unencumbered real property located in the United States.

Source: SL 1966, ch 111, ch 6, § 24 (1).
S.D. Codified Laws § 58-29B-42 — SD Code / Title 58 / Chapter 29B / Section 58-29B-42
Order of liquidation--Contents--Title vested in liquidator--Effect of filing or recording
Status: in_force

An order to liquidate the business of a domestic insurer shall contain appointment of the director and his successors in office as liquidator and shall direct the liquidator forthwith to take possession of the assets of the insurer and to administer them under the general supervision of the court. The liquidator shall be vested by operation of law with the title to all property, contracts, and rights of action and all of the books and records of the insurer ordered liquidated, wherever located, as of the entry of the final order of liquidation. The filing or recording of the order with the clerk of the circuit court of Hughes County and the register of deeds of the county in which its principal office or place of business is located, or, in the case of real estate with the register of deeds of the county where the property is located, shall impart the same notice as a deed, bill of sale, or other evidence of title duly filed or recorded with that register of deeds would have imparted.

Source: SL 1989, ch 436, § 42.
S.D. Codified Laws § 58-17E-41 — SD Code / Title 58 / Chapter 17E / Section 58-17E-41
Signature on contract required prior to receipt of consideration--Disclosure of information--Exception
Status: in_force

No person subject to registration pursuant to § 58-17E-9 may receive personal information, money, or other consideration for enrollment in a plan or program until the consumer has signed a contract or agreement with the person and no later than at the time the contract is signed, provides, at a minimum, the following information, disclosed in a clear and conspicuous manner:

(1) The name, true address, telephone number, and website address of the registered person who is responsible for customer service;

(2) A detailed description of the plan or program, including the goods and services covered and all exemptions and discounts that apply to each category thereof;

(3) All costs associated with the plan or program, including any sign-up fee and any recurring costs;

(4) An internet website that is updated regularly or a paper copy where the consumer can access the names and addresses of all current participating providers in the consumer's area;

(5) A statement of the consumer's right to return the plan or program within thirty days of its delivery to the person or agent through whom it was purchased and to have all costs of the plan or program, excluding a nominal process fee refunded if, after examination of the plan or program, the purchaser is not satisfied with it for any reason;

(6) A statement of the consumer's right to terminate the plan or program at any time by providing written notice or other notice, the form to be used for the termination notice, and the address where the notice is to be sent if different than the address provided in subdivision (1); and

(7) Notice that the consumer is not obligated to make any further payments under the plan or program, nor is the consumer entitled to any benefits under the plan or program for any period of time after the last month for which payment has been made;

(8) That the plan is not insurance;

(9) That the range of discounts for medical or ancillary services provided under the plan will vary depending on the type of provider and medical or ancillary service received;

(10) That the plan does not make payments to providers for the medical or ancillary services received under the discount medical plan;

(11) That the plan member is obligated to pay for all medical or ancillary services, but will receive discount from those providers that have contracted with the discount medical plan organization.

The requirement that the contract or agreement be signed prior to any money or consideration being obtained does not apply to a transaction in which payment by the consumer is made by credit card or by means of a telephonic transaction so long as the disclosures required by this section are provided to the consumer by way of postal mail, facsimile, or electronic mail within ten business days of the consumer's enrollment.

Source: SL 2005, ch 269, § 3; SDCL, § 58-17C-106 ; SL 2006, ch 257, § 45.
S.D. Codified Laws § 58-32-27 — SD Code / Title 58 / Chapter 32 / Section 58-32-27
Evidence of insurance--Certificate, execution, content
Status: in_force

Upon placing a surplus line coverage, the broker shall promptly issue and deliver to the insured evidence of the insurance consisting either of the policy as issued by the insurer or, if such policy is not then available, the surplus line broker's certificate of insurance. Such a certificate shall be executed by the broker and shall show the description and location of the subject of the insurance, coverage, conditions and term of the insurance, the premium and rate charged and taxes collected from the insured, and the name and address of the insured and insurer. If the direct risk is assumed by more than one insurer, the certificate shall state the name and address and proportion of the entire direct risk assumed by each such insurer.

Source: SL 1966, ch 111, ch 11, § 8 (1).
S.D. Codified Laws § 58-18C-1 — SD Code / Title 58 / Chapter 18C / Section 58-18C-1
Continuation of coverage after employer ceases operations, fails to pay premiums, or cancels coverage--Persons covered--Time
Status: in_force

Every policy of group health insurance providing benefits for hospital or medical expenses delivered or issued for delivery in this state, by a commercial health insurance company, by a nonprofit medical and surgical service plan corporation, by a nonprofit hospital service plan corporation, by a health maintenance organization, or by any other similar mechanism shall, in addition to the provisions required by law, include the right of each employee, upon their employer ceasing operations and the termination of the policy or contract, to have the coverage continue for themselves and their eligible dependents, effective as of the date of loss of the previous group coverage, for a period of twelve months for which the employee shall be financially responsible. In addition, if an employer either fails to submit premium payment to the insurance company resulting in loss of coverage to its employees or cancels the coverage and does not notify the employees of such loss of coverage, the employees and their dependents are then eligible for continuation pursuant to this section if election is made within sixty days of the date of their being notified of the loss of coverage. The employer shall provide notice of any nonpayment of premiums or cancellation of coverage to employees as soon as reasonably possible but no later than ten days after the date of cancellation. If the employer fails to notify the employees and their dependents of the termination of coverage within ten days, the employees and dependents may not be denied coverage by the insurer provided timely election is made after actual receipt of notice. Whether notice is provided or not, the election period for continuation of coverage may expire ninety days from the date the group coverage terminated. Any premiums due for the continuation of coverage may be required to be paid by the employee or dependent as a condition of providing continuation coverage.

Any former employee who is under continuation coverage at the time an employer ceases operation and terminates the policy, or fails to make premium payments resulting in loss of coverage, or cancels the insurance without notice, is eligible to remain on continuation coverage for the remainder of the continuation term or twelve months, whichever is less, if timely election is made and continuation payments received.

For purposes of this section, the phrase, employer ceasing operations, means that the business has closed or discontinued its business operations or, in the case of a sole proprietorship or an owner-operated business, the sale of such business that results in the purchaser establishing its own taxpayer identification number.

Source: SL 1998, ch 294, § 1; SL 2001, ch 280, § 1; SL 2005, ch 270, § 10; SL 2008, ch 267, § 1.
S.D. Codified Laws § 58-5A-101 — SD Code / Title 58 / Chapter 5A / Section 58-5A-101
Insurer records and data held by affiliate--Property of insurer
Status: in_force

All records and data of the insurer held by an affiliate are and remain the property of the insurer, are subject to control of the insurer, must be identifiable, and must be segregated or readily capable of segregation, at no additional cost to the insurer, from all other persons’ records and data. This includes all records and data that are otherwise the property of the insurer, in any form maintained, including claims and claim files, policyholder lists, application files, litigation files, premium records, rate books, underwriting manuals, personnel records, and financial records or similar records within the possession, custody, or control of the affiliate. At the request of the insurer, the affiliate must provide the receiver a complete set of all records of any type that pertain to the insurer’s business, obtain access to the operating systems on which the data is maintained, obtain the software that runs those systems either through assumption of licensing agreements or otherwise, and restrict the use of the data by the affiliate if it is not operating the insurer’s business. The affiliate must provide a waiver of any landlord lien or other encumbrance to give the insurer access to all records and data in the event of the affiliate’s default under a lease or other agreement.

Source: SL 2024, ch 201, § 14.
S.D. Codified Laws § 58-5A-91 — SD Code / Title 58 / Chapter 5A / Section 58-5A-91
Powers and duties of director regarding ORSA
Status: in_force

In order to assist in the performance of the director's regulatory duties regarding ORSA, the director:

(1) May, upon request, share documents, materials, or other ORSA-related information, including the confidential and privileged documents, materials, or information subject to § 58-5A-90 , including proprietary and trade secret documents and other materials with state, federal, and international financial regulatory agencies, including members of any supervisory college, with the NAIC or any third-party consultants designated by the director, if the recipient agrees in writing to maintain the confidentiality and privileged status of the ORSA-related documents, materials, or other information and has verified in writing the legal authority to maintain confidentiality;

(2) May receive documents, materials, or other ORSA-related information, including otherwise confidential and privileged documents, materials, or information, including proprietary and trade secret information or documents, from regulatory officials of other foreign or domestic jurisdictions, including members of any supervisory college, or from the NAIC and shall maintain as confidential or privileged any documents, materials, or information received with notice or the understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the document, material, or information; and

(3) Shall enter into a written agreement with the NAIC or a third-party consultant governing sharing and use of information provided pursuant to §§ 58-5A-81 to 58-5A-93 , inclusive, consistent with this subdivision that shall:

(a) Specify procedures and protocols regarding the confidentiality and security of information shared with the NAIC or a third-party consultant pursuant to §§ 58-5A-81 to 58-5A-93 , inclusive, including procedures and protocols for sharing by the NAIC with other state regulators from states in which the insurance group has domiciled insurers. The agreement shall provide that the recipient agrees in writing to maintain the confidentiality and privileged status of the ORSA-related documents, materials, or other information and has verified in writing the legal authority to maintain confidentiality;

(b) Specify that ownership of information shared with the NAIC or a third-party consultant pursuant to §§ 58-5A-81 to 58-5A-93 , inclusive, remains with the director and the use of the information by the NAIC or a third-party consultant is subject to the direction of the director;

(c) Prohibit the NAIC or third-party consultant from storing the information shared pursuant to §§ 58-5A-81 to 58-5A-93 , inclusive, in a permanent database after the underlying analysis is completed;

(d) Require prompt notice to be given to an insurer whose confidential information in the possession of the NAIC or a third-party consultant pursuant to §§ 58-5A-81 to 58-5A-93 , inclusive, when subject to a request or subpoena to the NAIC or a third-party consultant for disclosure or production;

(e) Require the NAIC or a third-party consultant to consent to intervention by an insurer in any judicial or administrative action in which the NAIC or a third-party consultant may be required to disclose confidential information about the insurer shared with the NAIC or a third-party consultant pursuant to §§ 58-5A-81 to 58-5A-93 , inclusive; and

(f) In the case of an agreement involving a third-party consultant, provide for the insurer's written consent.

Source: SL 2017, ch 210, § 12.
S.D. Codified Laws § 58-27-98 — SD Code / Title 58 / Chapter 27 / Section 58-27-98
Promulgation of rules
Status: in_force

The director may promulgate rules, pursuant to chapter 1-26 , for determining the quality and quantity of investments and assets.

Source: SL 1992, ch 350, § 10.
S.D. Codified Laws § 58-6-21 — SD Code / Title 58 / Chapter 6 / Section 58-6-21
Reciprocal insurer--Transaction of life or title insurance prohibited
Status: in_force

A reciprocal insurer may not transact life or title insurance.

Source: SL 1966, ch 111, ch 3, § 9 (2); SL 1996, ch 290.
S.D. Codified Laws § 58-24-54 — SD Code / Title 58 / Chapter 24 / Section 58-24-54
Advisory organization filing requirements
Status: in_force

Each advisory organization shall file with the director the requirements of § 58-24-35 and an agreement that the director may examine the advisory organization in accordance with the provisions of § 58-24-59 .

Source: SL 1966, ch 111, ch 15, § 10 (2); SL 2014, ch 239, § 16.
S.D. Codified Laws § 58-40-19 — SD Code / Title 58 / Chapter 40 / Section 58-40-19
Citation of chapter
Status: in_force

This chapter may be cited as the Hospital Service Plan Law.

Source: SL 1966, ch 111, ch 21, § 13.
S.D. Codified Laws § 58-12-3 — SD Code / Title 58 / Chapter 12 / Section 58-12-3
Attorney fees--Recovery in action against self-insured employer or insurer failing to pay loss--Other remedies not barred
Status: in_force

In all actions or proceedings hereafter commenced against any employer who is self-insured, or insurance company, including any reciprocal or interinsurance exchange, on any policy or certificate of any type or kind of insurance, if it appears from the evidence that such company or exchange has refused to pay the full amount of such loss, and that such refusal is vexatious or without reasonable cause, the Department of Labor and Regulation, the trial court and the appellate court, shall, if judgment or an award is rendered for plaintiff, allow the plaintiff a reasonable sum as an attorney's fee to be recovered and collected as a part of the costs, provided, however, that when a tender is made by such insurance company, exchange or self-insurer before the commencement of the action or proceeding in which judgment or an award is rendered and the amount recovered is not in excess of such tender, no such costs shall be allowed. The allowance of attorney fees hereunder shall not be construed to bar any other remedy, whether in tort or contract, that an insured may have against the same insurance company or self-insurer arising out of its refusal to pay such loss.

Source: SL 1966, ch 111, ch 32, § 7; SL 1971, ch 264; SL 1972, ch 262; SL 1976, ch 311; SL 1988, ch 397; SL 2011, ch 1 (Ex. Ord. 11-1 ), § 33, eff. Apr. 12, 2011.
S.D. Codified Laws § 58-33-36 — SD Code / Title 58 / Chapter 33 / Section 58-33-36
Illegal dealing in premiums and improper charges as misdemeanors
Status: in_force

No person may willfully collect as premium or charge for insurance any sum in excess of or less than the premium or charge applicable to such insurance, and as specified in the policy in accordance with the applicable classifications and rates as filed with and approved by the director; or, in cases where classifications, premiums, or rates are not required by this title to be so filed and approved, such premiums and charges may not be in excess of or less than those specified in the policy and as fixed by the insurer. Any violation of this section is a Class 2 misdemeanor. This section does not prohibit the charging and collection, by surplus line brokers licensed under chapter 58-32 , of the amount of applicable state and federal taxes in addition to the premium required by the insurer. Nor does it prohibit the charging and collection, by a life insurer, of amounts actually to be expended for medical examination of an applicant for life insurance or for reinstatement of a life insurance policy.

Source: SL 1966, ch 111, ch 13, § 20 (2); SL 1978, ch 359, § 2; SL 2001, ch 286, § 205.
S.D. Codified Laws § 58-35-56 — SD Code / Title 58 / Chapter 35 / Section 58-35-56
Annual statement--Presentation at meeting of members
Status: in_force

The annual statement of the insurer, as required to be filed with the director under § 58-35-54 , shall be presented at the next annual meeting.

Source: SL 1966, ch 111, ch 17, § 16.
S.D. Codified Laws § 58-5-111 — SD Code / Title 58 / Chapter 5 / Section 58-5-111
Repayment of loan by domestic insurer
Status: in_force

Any loan pursuant to § 58-5-108 or substantial portion thereof shall be repaid by the insurer, upon the director's prior approval, when no longer reasonably necessary for the purpose originally intended.

Source: SL 1966, ch 111, ch 16, § 34 (4).
S.D. Codified Laws § 58-5-74 — SD Code / Title 58 / Chapter 5 / Section 58-5-74
Registered and closely held securities exempt from insider trading restrictions
Status: in_force

The provisions of §§ 58-5-69 to 58-5-73 , inclusive, shall not apply to equity securities of a domestic stock insurance company if:

(1) Such securities shall be registered, or shall be required to be registered, pursuant to section 12 of the Securities Exchange Act of 1934, as amended, or if

(2) Such domestic stock insurance company shall not have any class of its equity securities held of record by one hundred or more persons on the last business day of the year next preceding the year in which equity securities of the company would be subject to the provisions of §§ 58-5-69 to 58-5-73 , inclusive, except for the provisions of this subdivision (2).

Source: SL 1966, ch 111, ch 16, § 27 (7).
S.D. Codified Laws § 58-7-29 — SD Code / Title 58 / Chapter 7 / Section 58-7-29
Deposit exceeding requirements--Release to insurer upon request--Release during insolvency of insurer
Status: in_force

An insurer may so deposit and have on deposit assets or securities in an amount exceeding its deposit required or otherwise permitted under this title, for the purpose of absorbing fluctuations in the value of assets and securities deposited, and to facilitate the exchange and substitution of such assets and securities. During the solvency of the insurer any such excess shall be released to the insurer upon its request. During the insolvency of the insurer such excess deposit shall be released only as provided in § 58-7-37 .

Source: SL 1966, ch 111, ch 7, § 11.
S.D. Codified Laws § 58-3-17 — SD Code / Title 58 / Chapter 3 / Section 58-3-17
Order adopting examination report as final decision--Service--Affidavit of receipt
Status: in_force

Each order entered pursuant to subdivision 58-3-12(1) shall be in accordance with chapter 1-26 . The order shall be accompanied by findings of fact and conclusions of law and constitutes a final decision. The order shall be served upon the company by certified mail, together with a copy of the adopted examination reports. The order shall include the provisions of this section. The company shall then serve its directors. Within thirty days of the issuance of the adopted report, the company shall file affidavits executed by each of its directors stating that it has received a copy of the adopted report and related orders.

Source: SL 1992, ch 338, § 10; SL 2010, ch 234, § 1.
S.D. Codified Laws § 58-29A-97 — SD Code / Title 58 / Chapter 29A / Section 58-29A-97
Liability of insureds for unpaid assessments
Status: in_force

In the case of an insolvent insurer operating on a plan with assessment liability, payments of claims of the association may not operate to reduce the liability of insureds to the receiver, liquidator, or statutory successor for unpaid assessments.

Source: SL 2000, ch 247, § 44.
S.D. Codified Laws § 58-14-35 — SD Code / Title 58 / Chapter 14 / Section 58-14-35
Restrictions on agent
Status: in_force

The agent may not:

(1) Cede retrocessions on behalf of the reinsurer. However, the agent or broker may cede facultative retrocessions pursuant to obligatory facultative agreements if the contract with the reinsurer contains reinsurance underwriting guidelines for the retrocessions. The guidelines shall include a list of reinsurers with which automatic agreements are in effect, and for each reinsurer, the coverages and amounts or percentages that may be reinsured, and commission schedules;

(2) Commit the reinsurer to participate in reinsurance syndicates;

(3) Employing another agent or broker who is not lawfully licensed to transact the type of reinsurance for which he is appointed;

(4) Without prior approval of the reinsurer, pay or commit the reinsurer to pay a claim, net of retrocessions, that exceeds the lesser of an amount specified by the reinsurer or one percent of the reinsurer's policyholder's surplus as of December thirty - first of the last complete calendar year;

(5) Collect any payment from a retrocessionaire or commit the reinsurer to any claim settlement with a retrocessionaire, without prior approval of the reinsurer. If prior approval is given, a report shall be promptly forwarded to the reinsurer;

(6) Appoint a sub - agent; or

(7) Jointly employ an individual who is employed by the reinsurer unless the agent is under common control with the reinsurer subject to chapter 58-5A .

Source: SL 1992, ch 345, § 12.
S.D. Codified Laws § 58-29C-45 — SD Code / Title 58 / Chapter 29C / Section 58-29C-45
Purpose of chapter--Creation of association
Status: in_force

A. The purpose of this chapter is to protect, subject to certain limitations, the persons specified in subpart A of § 58-29C-46 against failure in the performance of contractual obligations, under life, health, and annuity policies, plans, or contracts specified in subpart B of § 58-29C-46 , because of the impairment or insolvency of the member insurer that issued the policies, plans, or contracts.

B. To provide this protection, an association of member insurers is organized to pay benefits and to continue coverages as limited by this chapter, and members of the association are subject to assessment to provide funds to carry out the purpose of this chapter.

Source: SL 2003, ch 252, § 2; SL 2020, ch 210, § 1.
S.D. Codified Laws § 58-16-10 — SD Code / Title 58 / Chapter 16 / Section 58-16-10
Labor union groups--Minimum number of members required
Status: in_force

A policy issued under § 58-16-7 must cover at least twenty - five members at date of issue.

Source: SL 1966, ch 111, ch 24, § 1 (3) (c).
S.D. Codified Laws § 58-30-177 — SD Code / Title 58 / Chapter 30 / Section 58-30-177
Verification of eligibility of insurance producer for appointment as agent of insurer
Status: in_force

Upon receipt of the notice of appointment, the director shall verify within a reasonable time, not to exceed thirty days, that the insurance producer is eligible for appointment. If the insurance producer is determined to be ineligible for appointment, the director shall notify the insurer within five days of its determination.

Source: SL 2001, ch 286, § 37.
S.D. Codified Laws § 58-29B-96 — SD Code / Title 58 / Chapter 29B / Section 58-29B-96
Course of action upon violation of §58-29B-95--Director's options
Status: in_force

Upon satisfactory evidence of a violation of § 58-29B-95 , the director may pursue either one or both of the following courses of action; suspend, revoke, or refuse to renew the licenses of such offending party or parties or impose a penalty of not more than one thousand dollars for each and every act in violation of § 58-29B-95 , by the party or parties.

Source: SL 1989, ch 436, § 96.
S.D. Codified Laws § 58-17H-58 — SD Code / Title 58 / Chapter 17H / Section 58-17H-58
Utilization review organization or health carrier--Health care service review--Prior authorization requirement elimination
Status: in_force

A utilization review organization or health carrier shall annually review each health care service for which a health benefit plan requires prior authorization and shall eliminate the prior authorization requirement for any health care service if prior authorization requests are routinely approved with such frequency as to demonstrate that the prior authorization requirement does not promote health care quality or reduce health care spending, to a degree that justifies the plan's administrative costs associated with the prior authorization requirement.

Source: SL 2026, ch 201, § 2.
S.D. Codified Laws § 58-14-23 — SD Code / Title 58 / Chapter 14 / Section 58-14-23
Qualified United States financial institution defined for eligibility to act as fiduciary of a trust
Status: in_force

A qualified United States financial institution means, for purposes of those provisions of this chapter specifying those institutions that are eligible to act as a fiduciary of a trust, an institution that:

(1) Is organized or, in the case of a United States branch or agency office of a foreign banking organization, licensed under the laws of the United States or any state thereof, and has been granted authority to operate with fiduciary powers; and

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

Source: SL 1992, ch 344, § 22; SL 1995, ch 278.
S.D. Codified Laws § 58-11-63 — SD Code / Title 58 / Chapter 11 / Section 58-11-63
Regulation of form and content of policies, policy forms, standards, and procedures for filings, cancellation, and nonrenewal of policies
Status: in_force

The division may promulgate rules pursuant to chapter 1-26 to establish specific requirements for the regulation of the form and content of policies and policy forms, standards, and procedures for filings, and the cancellation and nonrenewal of policies as found in this chapter. The requirements may include:

(1) Definition of terms used in the rules;

(2) Standards for the issuance of waivers;

(3) Standards for determining what are substantially similar provisions as provided by § 58-11-7 ;

(4) Filing, content, requirements, and procedures for policy forms;

(5) Standards for orders for exemption;

(6) Binder requirements;

(7) Procedures and requirements for cancellation and nonrenewal of policies;

(8) Operation requirements of the assigned risk plan including approval of plan rules;

(9) Replacement of coverage and calculation of refunds; and

(10) Procedures for collection of applicable fees by the director.

Source: SL 1994, ch 377.
S.D. Codified Laws § 58-17-111 — SD Code / Title 58 / Chapter 17 / Section 58-17-111
Minimum standards--Exceptions
Status: in_force

Except for overhead expense, buy - sell coverage, or other similar business disability income insurance coverage, a disability income insurance policy shall meet the following minimum standards:

(1) Provide that periodic payments that are payable at ages after sixty - two and reduced solely on the basis of age are at least fifty percent of the amounts payable immediately prior to age sixty - two or in the case of an employer group plan that has twenty or more employees, that periodic payments are actuarially equivalent regardless of age;

(2) Contain an elimination period no greater than:

(a) Ninety days in the case of coverage providing a benefit of one year or less;

(b) One hundred eighty days in the case of coverage providing a benefit of more than one year but not greater than two years;

(c) Three hundred sixty - five days in the case of coverage providing a benefit of more than two years but not greater than five years; or

(d) Seven hundred thirty days in the case of coverage providing a benefit greater than five years resulting from sickness or injury;

(3) Provide a maximum benefit period of at least six months for long - term disability income insurance and at least twelve weeks for short - term disability income insurance. However, in the case of a policy covering disability arising out of pregnancy, childbirth, or miscarriage, the maximum benefit period may be one month, except if the plan is an employer plan with fifteen or more employees, then the maximum benefit period for pregnancy, childbirth, or miscarriage may not be less than the maximum benefit period for other covered disabilities;

(4) Include no reduction in benefits because of any cost of living increase in social security or similar benefits during a benefit period;

(5) Require only one elimination period if a policy provides total disability income benefits and partial disability income benefits.

A long - term disability income insurance policy may have longer elimination periods if the policy is issued in conjunction with or supplemental to a limited duration self - insured or other short - term disability income policy. The provisions of this section do not apply to an employer plan if at least fifty percent of the covered employee's disability income benefits are subject to federal income taxes.

Source: SL 2001, ch 276, § 4.
S.D. Codified Laws § 58-15-43.7 — SD Code / Title 58 / Chapter 15 / Section 58-15-43.7
Substandard policy--Calculation of adjusted premiums and present value
Status: in_force

Notwithstanding any other provisions of §§ 58-15-43.1 to 58-15-43.11 , inclusive, to the contrary, in the case of a policy issued on a substandard basis which provides reduced graded amounts of insurance so that, in each policy year, the policy has the same tabular mortality cost as an otherwise similar policy issued on the standard basis which provides higher uniform amounts of insurance, adjusted premiums, and present values for such substandard policy may be calculated as if it were issued to provide the higher uniform amounts of insurance on the standard basis.

Source: SL 1982, ch 357, § 11.
S.D. Codified Laws § 58-5-62 — SD Code / Title 58 / Chapter 5 / Section 58-5-62
Guarantee by insurer of any financial obligation of its officers, directors, stockholders, or members prohibited
Status: in_force

No insurer shall guarantee any financial obligation of any of its officers, directors, stockholders, or members.

Source: SL 1966, ch 111, ch 16, § 22 (2).
S.D. Codified Laws § 58-22-7 — SD Code / Title 58 / Chapter 22 / Section 58-22-7
License fee submitted to director--Fingerprints and photograph of applicant
Status: in_force

A license fee of thirty dollars shall be submitted to the director with each application for license as bail bondsperson.

The applicant shall also furnish with the application, a complete set of the applicant's fingerprints and a recent credential - size full face photograph of the applicant. The applicant's fingerprints shall be certified by an authorized law enforcement officer.

Source: SL 1966, ch 111, ch 31, § 8; SL 1998, ch 296, § 5.
S.D. Codified Laws § 58-4-40 — SD Code / Title 58 / Chapter 4 / Section 58-4-40
Authority of director in determining insurer's financial condition
Status: in_force

In making a determination of an insurer's financial condition, the director may:

(1) Disregard any credit or amount receivable resulting from transactions with a reinsurer which is insolvent, impaired, or subject to a delinquency proceeding;

(2) Make appropriate adjustments to asset values attributable to investments in or transactions with parents, subsidiaries, or affiliates;

(3) Refuse to recognize the stated value of accounts receivable if the ability to collect receivables is highly speculative in view of the age of the account or the financial condition of the debtor;

(4) Increase the insurer's liability in an amount equal to any contingent liability, pledge, or guarantee not otherwise included if there is a substantial risk that the insurer will be called upon to meet the obligation undertaken within the next twelve - month period; or

(5) Consider the harm to policyholders, creditors, the public, and the company itself.

Source: SL 1992, ch 339, § 2.
S.D. Codified Laws § 58-18-63 — SD Code / Title 58 / Chapter 18 / Section 58-18-63
Minimum loss ratio for employer health benefit plans--Application of section
Status: in_force

Premium rates for employer health benefit plans shall produce a minimum lifetime loss ratio of not less than seventy - five percent. The director may promulgate rules pursuant to chapter 1-26 which modify the minimum loss ratio required based upon the specific plan design or other objective and pertinent criteria. An insurer is not required to meet the minimum loss ratio on each policy issued. An insurer which does not make a filing specifying the blocks of business for which it will meet the minimum loss ratio requirements of this section will be required to meet the minimum loss ratio requirement in the aggregate on its entire employer block of business in this state. This section does not apply to any insurer which is required to comply with § 58-17-64 .

Source: SL 1994, ch 381, § 1; SL 1995, ch 280.
S.D. Codified Laws § 58-15-4 — SD Code / Title 58 / Chapter 15 / Section 58-15-4
Standard provisions required in policy of life insurance, exceptions
Status: in_force

No policy of life insurance, other than group and pure endowments with or without return of premiums or of premiums and interest, shall be delivered or issued for delivery in this state unless it contains in substance all of the applicable provisions required by §§ 58-15-7 to 58-15-29 , inclusive.

Source: SL 1966, ch 111, ch 23, § 3 (1).
S.D. Codified Laws § 58-5A-103 — SD Code / Title 58 / Chapter 5A / Section 58-5A-103
Affiliate of certain domestic insurers--Jurisdiction of insurer's appointees
Status: in_force

Any affiliate that is party to an agreement or contract with a domestic insurer that is referenced in subdivision 58-5A-56 (4) is subject to the jurisdiction of any supervision, seizure, conservatorship or receivership proceedings against the insurer and to the authority of any supervisor, conservator, rehabilitator, or liquidator for the insurer appointed pursuant to chapter 58-29B for the purpose of interpreting, enforcing, and overseeing the affiliate’s obligations under the agreement or contract to perform services for the insurer that:

(1) Are an integral part of the insurer’s operations, including management, administrative, accounting, data processing, marketing, underwriting, claims handling, investment, or any other similar functions; or

(2) Are essential to the insurer’s ability to fulfill its obligations under insurance policies.

The director may require that an agreement or contract referenced in subsection 58-5A-21 (2)(e), for the provision of services described in subdivisions (1) and (2) of this section, specify that the affiliate consents to the jurisdiction as set forth in this section.

Source: SL 2024, ch 201, § 16.
S.D. Codified Laws § 58-27-31 — SD Code / Title 58 / Chapter 27 / Section 58-27-31
Policy loans by life insurer--Maximum amount
Status: in_force

A life insurer may lend to its policyholder upon pledge of the policy as collateral security, any sum not exceeding the cash surrender value of the policy; or may lend against pledge or assignment of any of its supplementary contracts or other contracts or obligations, so long as the loan is adequately secured by such pledge or assignment.

Source: SL 1966, ch 111, ch 6, § 19.
S.D. Codified Laws § 58-15-58 — SD Code / Title 58 / Chapter 15 / Section 58-15-58
Standard provisions of annuity and endowment contracts inapplicable to deferred annuities under life insurance policies
Status: in_force

Section 58-15-57 shall not apply to contracts for deferred annuities included in, or upon the lives of beneficiaries under, life insurance policies.

Source: SL 1966, ch 111, ch 23, § 18 (2).
S.D. Codified Laws § 58-10-12 — SD Code / Title 58 / Chapter 10 / Section 58-10-12
Transfer of property interest between joint insureds
Status: in_force

A transfer of interest by one of several partners, joint owners, or owners in common, who are jointly insured, to the others, does not avoid an insurance of property even though it has been agreed that the insurance shall cease upon an alienation of the thing insured.

Source: SL 1966, ch 111, ch 22, § 8.
S.D. Codified Laws § 58-33-136 — SD Code / Title 58 / Chapter 33 / Section 58-33-136
Value-added products or services not discriminatory--Description
Status: in_force

Nothing in this chapter may be construed as including within the definition of discrimination or rebates, the offer or provision by insurers or producers, by or through employees, affiliates, or third-party representatives, of value-added products or services at no or reduced cost when the products or services are not specified in the policy of insurance if the value-added product or service:

(1) Relates to the policy of insurance;

(2) Is primarily designed to satisfy one or more of the following:

(a) Provide loss mitigation or loss control;

(b) Reduce claim costs or claim settlement costs;

(c) Provide education about liability risks or risk of loss to persons or property;

(d) Monitor or assess risk, identify sources of risk, or develop strategies for eliminating or reducing risk;

(e) Enhance health;

(f) Enhance financial wellness through items such as education or financial planning services;

(g) Provide post-loss services;

(h) Incent behavioral changes to improve the health or reduce the risk of death or disability of a consumer; or

(i) Assist in the administration of the employee or retiree benefit insurance coverage;

(3) Has a cost to the insurer or producer offering the value-added product or service that is reasonable compared to the consumer's premiums or insurance coverage for the contract class;

(4) Is accompanied with contact information regarding the value-added product or service at the time of offering or enrollment to assist the consumer with questions; and

(5) Is based on documented objective criteria and offered in a manner that is not unfairly discriminatory, the documentation criteria of which is maintained by the insurer or producer and available upon request by the division.

Source: SL 2023, ch 167, § 1.
S.D. Codified Laws § 58-27-47 — SD Code / Title 58 / Chapter 27 / Section 58-27-47
Acquisition of chattel mortgage--Separate appraisal of included items to determine fair market value--Maximum amount of loan
Status: in_force

Prior to the acquisition of a chattel mortgage under § 58-27-45 , items of property to be included therein shall be separately appraised by a qualified appraiser and the fair market value thereof determined. No such chattel mortgage loan shall exceed in amount the same ratio of loan to the value of the property as is applicable to the companion loan on the real property.

Source: SL 1966, ch 111, ch 6, § 29 (3).
S.D. Codified Laws § 58-11-9.4 — SD Code / Title 58 / Chapter 11 / Section 58-11-9.4
Underinsured motorist coverage to be available with liability policies--Limitation of coverage--Exception
Status: in_force

No motor vehicle liability policy of insurance may be issued or delivered in this state with respect to any motor vehicle registered or principally garaged in this state, except for snowmobiles, unless underinsured motorist coverage is provided therein at a face amount equal to the bodily injury limits of the policy. However, the coverage required by this section may not exceed the limits of one hundred thousand dollars because of bodily injury to or death of one person in any one accident and, subject to the limit for one person, three hundred thousand dollars because of bodily injury to or death of two or more persons in any one accident, unless additional coverage is requested by the insured. Any policy insuring government owned vehicles may not be required to provide underinsured motorist coverage.

Source: SL 1975, ch 315, § 1; SL 1981, ch 359, § 1; SL 1986, ch 418, § 1; SL 1988, ch 394, § 1; SL 1989, ch 424; SL 1997, ch 286, § 2.
S.D. Codified Laws § 58-34-32 — SD Code / Title 58 / Chapter 34 / Section 58-34-32
Kinds of business transacted--Life or title insurance excepted
Status: in_force

A reciprocal insurer may, upon qualifying therefor as provided for by this title, transact any kinds of business defined by this title, other than life or title insurance.

Source: SL 1966, ch 111, ch 19, § 4 (1).
S.D. Codified Laws § 58-18A-79 — SD Code / Title 58 / Chapter 18A / Section 58-18A-79
Subrogation distinguished
Status: in_force

COB differs from subrogation. Provisions for one may be included in health care benefits contracts without compelling the inclusion or exclusion of the other.

Source: SL 2006, ch 259, § 27.
S.D. Codified Laws § 58-43-16.5 — SD Code / Title 58 / Chapter 43 / Section 58-43-16.5
Nonindependence of audit committee member for reasons outside the member's control
Status: in_force

If a member of the audit committee ceases to be independent for reasons outside the member's reasonable control, that person, with notice by the responsible entity to the director, may remain an audit committee member of the responsible entity until the earlier of the next annual meeting of the responsible entity or one year from the occurrence of the event that caused the member to be no longer independent.

Source: SL 2009, ch 271, § 20, eff. Jan. 1, 2010.
S.D. Codified Laws § 58-11-9.8 — SD Code / Title 58 / Chapter 11 / Section 58-11-9.8
Adding of uninsured motorist coverage limits for multiple vehicles prohibited
Status: in_force

Regardless of the number of policies involved, vehicles involved, persons covered, claims made, vehicles or premiums shown on the insured's policy, or premiums paid, in no event may the limit of liability for uninsured motorist coverage for two or more of the insured's motor vehicles be added together to determine the limit of insurance coverage available to an injured person for any one accident.

Source: SL 1986, ch 417, § 3.
S.D. Codified Laws § 58-17-34 — SD Code / Title 58 / Chapter 17 / Section 58-17-34
Earnings of insured--Policy provision for adjustment of benefits
Status: in_force

There may be a provision as follows: "Relation of earnings to insurance: If the total monthly amount of loss of time benefits promised for the same loss under all valid loss of time coverage upon the insured, whether payable on a weekly or monthly basis, shall exceed the monthly earnings of the insured at the time disability commenced or his average monthly earnings for the period of two years immediately preceding a disability for which claim is made, whichever is the greater, the insurer will be liable only for such proportionate amount of such benefits under this policy as the amount of such monthly earnings or such average monthly earnings of the insured bears to the total amount of monthly benefits for the same loss under all such coverage upon the insured at the time such disability commences and for the return of such part of the premiums paid during such two years as shall exceed the prorata amount of the premiums for the benefits actually paid hereunder; but this shall not operate to reduce the total monthly amount of benefits payable under all such coverage upon the insured below the sum of two hundred dollars or the sum of the monthly benefits specified in such coverages, whichever is the lesser, nor shall it operate to reduce benefits other than those payable for loss of time."

Source: SL 1966, ch 111, ch 25, § 19 (1).
S.D. Codified Laws § 58-16-31 — SD Code / Title 58 / Chapter 16 / Section 58-16-31
Standard provisions required for group life insurance policies, exceptions
Status: in_force

No policy of group life insurance shall be delivered in this state unless it contains in substance the provisions set forth in §§ 58-16-32 to 58-16-42 , inclusive, or provisions which in the opinion of the director are more favorable to the persons insured, or at least as favorable to the persons insured and more favorable to the policyholder, provided, however, that §§ 58-16-38 to 58-16-42 , inclusive, shall not apply to policies issued to a creditor to insure debtors of such creditor; that the standard provisions required for individual life insurance policies shall not apply to group life insurance policies; and that if the group life insurance policy is on a plan of insurance other than the term plan, it shall contain a nonforfeiture provision which in the opinion of the director is equitable to the insured persons and to the policyholder, but nothing herein shall be construed to require that group life insurance policies contain the same nonforfeiture provisions as are required for individual life insurance policies.

Source: SL 1966, ch 111, ch 24, § 3.
S.D. Codified Laws § 58-38-43 — SD Code / Title 58 / Chapter 38 / Section 58-38-43
Diabetes coverage not required of certain plans and policies
Status: in_force

The provisions of § 58-38-42 do not apply to any plan, policy, or contract that provides coverage only for:

(1) Specified disease;

(2) Hospital indemnity;

(3) Fixed indemnity;

(4) Accident - only;

(5) Credit;

(6) Dental;

(7) Vision;

(8) Prescription drug;

(9) Medicare supplement;

(10) Long - term care;

(11) Disability income insurance;

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

(13) Workers' compensation or similar insurance;

(14) Automobile medical payment insurance;

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

(16) Individual nonmajor medical insurance.

Source: SL 1999, ch 252, § 8.
S.D. Codified Laws § 58-14-4.2 — SD Code / Title 58 / Chapter 14 / Section 58-14-4.2
Liquidator of insolvent ceding insurer to provide notice to reinsurer of claim against ceding insurer--Investigation and election to interpose defense
Status: in_force

The reinsurance agreement may provide that the domiciliary liquidator of an insolvent ceding insurer shall give written notice to the reinsurer of the pendency of a claim against such ceding insurer on the contract reinsured within a reasonable time after such claim is filed in the liquidation proceeding. During the pendency of such claim, any reinsurer may investigate such claim and interpose, at its own expense, in the proceeding where such claim is to be adjudicated any defenses that it deems available to the ceding insurer or its liquidator. Such expense may be filed as a claim against the insolvent ceding insurer as a Class 6 claim pursuant to § 58-29B-124 to the extent of a proportionate share of the benefit that may accrue to the ceding insurer solely as result of the defense undertaken by the reinsurer. If two or more reinsurers are involved in the same claim and a majority in interest elect to interpose a defense to such claim, the expense shall be apportioned in accordance with the terms of the reinsurance agreement as though such expense had been incurred by the ceding insurer.

Source: SL 2005, ch 274, § 5.
S.D. Codified Laws § 58-29B-89 — SD Code / Title 58 / Chapter 29B / Section 58-29B-89
Court to levy assessments--Amount
Status: in_force

Upon the basis of the report provided in § 58-29B-88 , including any supplements and amendments thereto, the court may levy one or more assessments against all members of the insurer who are subject to assessment. Subject to any applicable legal limits on assessability, the aggregate assessment shall be for the amount that the sum of the probable liabilities, the expenses of administration, and the estimated cost of collection of the assessment, exceeds the value of existing assets, with due regard being given to assessments that cannot be collected economically.

Source: SL 1989, ch 436, § 89.
S.D. Codified Laws § 58-16-29 — SD Code / Title 58 / Chapter 16 / Section 58-16-29
Payment to policyholder as reduction of indebtedness
Status: in_force

The insurance under § 58-16-23 shall be payable to the policyholder. Such payment shall reduce or extinguish the unpaid indebtedness of the debtor to the extent of such payment.

Source: SL 1966, ch 111, ch 24, § 1 (2) (e).
S.D. Codified Laws § 58-17-15 — SD Code / Title 58 / Chapter 17 / Section 58-17-15
Time limit on certain defenses--Application of section
Status: in_force

There shall be a provision as follows: "Time limit on certain defenses: (1) After two years from the date of issue of this policy no misstatements, except fraudulent misstatements, made by the applicant in the application for such policy shall be used to void the policy or to deny a claim for loss incurred or disability, as defined in the policy, commencing after the expiration of such two-year period."

The foregoing policy provision may not be construed to affect any legal requirement for avoidance of a policy or denial of a claim during such initial two-year period, nor to limit the application of §§ 58-17-32 to 58-17-39 , inclusive, in the event of misstatement with respect to age or occupation or other insurance. This section only applies to excepted benefits. This section does not apply to any long-term care insurance policy or certificate.

Source: SL 1966, ch 111, ch 25, § 5; SL 2011, ch 216, § 4.
S.D. Codified Laws § 58-17-17 — SD Code / Title 58 / Chapter 17 / Section 58-17-17
Grace period on premiums required in policy
Status: in_force

There shall be a provision as follows: "Grace period: A grace period of __________ (insert a number not less than seven days for weekly premium policies, ten days for monthly premium policies and thirty - one days for all other policies) days will be granted for the payment of each premium falling due after the first premium, during which grace period the policy shall continue in force." If a claim arises under the policy during such period of grace the amount of any proportionate premium due or overdue for the grace period may be deducted from the policy proceeds but such deduction shall not renew the policy or further extend the grace period. Claims arising during a grace period shall be compensable whether or not a renewal premium has been tendered or accepted subject to any other policy defenses.

A policy which gives the policyholder the right to select any one of two or more modes of premium payment by remitting an amount stated in the policy for that particular mode of payment, without requiring any formal request on the part of the policyholder for changing the mode of premium payment, shall provide a grace period of thirty - one days.

Source: SL 1966, ch 111, ch 25, § 6; SL 1977, ch 407, § 1.
S.D. Codified Laws § 58-41-117 — SD Code / Title 58 / Chapter 41 / Section 58-41-117
Policies to provide coverage for diabetes supplies, equipment, and education--Exceptions--Conditions and limitations
Status: in_force

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

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

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

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

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

Source: SL 1999, ch 252, § 11.
S.D. Codified Laws § 58-16-46 — SD Code / Title 58 / Chapter 16 / Section 58-16-46
Interest not required where beneficiary elects to receive other than lump sum payment
Status: in_force

The provisions of § 58-16-44 do not require the payment of interest in any case in which the beneficiary elects in writing delivered to the insurer to receive the proceeds of or payments under a life insurance policy by any means other than a lump sum payment.

Source: SL 1987, ch 375, § 3.
S.D. Codified Laws § 58-6-13 — SD Code / Title 58 / Chapter 6 / Section 58-6-13
Foreign insurance companies--Compliance with requirements for admissions to do business in state--Waiver
Status: in_force

No foreign insurance company may be admitted to do business in the State of South Dakota until it has fully complied with the following requirements, in addition to such other requirements as may be specifically provided:

(1) Such company shall have had two continuous calendar years of operating experience as of the date of application to do business in this state; and

(2) Shall have been examined within the sixty months next preceding the date of application to do business in this state; and

(3) Shall fully satisfy any retaliatory requirements imposed by the laws and regulations which the applying company's state of incorporation imposes upon South Dakota insurance companies seeking admission to such state.

Subdivisions (1) and (2) do not apply to a company which is a wholly owned subsidiary, or which is the successor in interest, through merger or consolidation, of an insurer which is an authorized insurer in this state or to a company which satisfies the director that it is in fact a continuation of an older organization. The director may waive the provisions of subdivisions (1) and (2) if a special need or circumstance, as determined by the director, can be demonstrated.

Source: SL 1966, ch 111, ch 3, § 7; SL 1988, ch 389; SL 2023, ch 164, § 1.
S.D. Codified Laws § 58-6-48 — SD Code / Title 58 / Chapter 6 / Section 58-6-48
Suspension of certificate on commencement of delinquency proceedings
Status: in_force

The director may without advance notice or a hearing thereon, immediately suspend the certificate of authority of any insurer as to which proceedings for receivership, conservatorship, rehabilitation, or other delinquency proceedings, have been commenced in any state by the public insurance supervisory official of such state.

Source: SL 1966, ch 111, ch 3, § 19 (3).
S.D. Codified Laws § 58-43-17 — SD Code / Title 58 / Chapter 43 / Section 58-43-17
Letter from accountant stating accountant's independent status, background, compliance with chapter and licensing
Status: in_force

The accountant shall furnish the insurer for inclusion in the filing of the annual audited financial report a letter stating:

(1) That the accountant is independent with respect to the insurer and conforms to the standards of his profession as contained in the Code of Professional Ethics and Pronouncements of the American Institute of Certified Public Accountants and to chapter 36-20A and rules promulgated under the chapter;

(2) The background and experience in general, and the experience in audits of insurers of the staff assigned to the engagement and whether each is an independent certified public accountant. Nothing in this section prohibits the accountant from utilizing the staff as he deems appropriate if such use is consistent with the standards prescribed by generally accepted auditing standards;

(3) That the accountant understands the annual audited financial report and his opinion thereon will be filed in compliance with this chapter and that the director will be relying on this information in the monitoring and regulation of the financial position of insurers;

(4) That the accountant consents to the requirements of §§ 58-43-18 and 58-43-19 and that the accountant consents and agrees to make available for review by the director, his designee or his appointed agent, the workpapers, as defined in §§ 58-43-18 and 58-43-19 ;

(5) A representation that the accountant is properly licensed by an appropriate state licensing authority and is a member in good standing in the American Institute of Certified Public Accountants;

(6) A representation that the accountant is in compliance with the requirements of §§ 58-43-9 to 58-43-12 , inclusive, of this chapter.

Source: SL 1992, ch 357, § 17.
S.D. Codified Laws § 58-29E-6 — SD Code / Title 58 / Chapter 29E / Section 58-29E-6
Disclosure of rebates and other revenues--Confidentiality
Status: in_force

Except for utilization information, a third-party payor shall maintain information disclosed in response to a request under § 58-29E-4 as confidential and proprietary information, and may not use that information for any other purpose or disclose that information to any other person, except as provided in this chapter or in the pharmacy benefit management services contract between the parties.

A third-party payor that discloses information, in violation of this section, is subject to an action for injunctive relief and is liable for any damages that are the direct and proximate result of the disclosure.

Nothing in this section prohibits a third-party payor from disclosing confidential or proprietary information to the director, upon request. Information obtained by the director in accordance with this section is confidential and privileged, and is not open to public inspection or disclosure.

Source: SL 2004, ch 311, § 6; SL 2023, ch 166, § 6.
S.D. Codified Laws § 58-29D-34 — SD Code / Title 58 / Chapter 29D / Section 58-29D-34
Promulgation of rules
Status: in_force

The director may promulgate rules pursuant to chapter 1-26 to provide for the enforcement and administration necessary to administer this chapter.

Source: SL 1992, ch 352, § 34.
S.D. Codified Laws § 58-30-165 — SD Code / Title 58 / Chapter 30 / Section 58-30-165
Temporary insurance producer license
Status: in_force

The director may issue a temporary insurance producer license for a period not to exceed one hundred eighty days without requiring an examination if the director determines that the temporary license is necessary for the servicing of an insurance business in the following cases:

(1) To the surviving spouse or court - appointed personal representative of a licensed insurance producer who dies or becomes mentally or physically disabled to allow adequate time for the sale of the insurance business owned by the insurance producer or for the recovery or return of the insurance producer to the business or to provide for the training and licensing of new personnel to operate the insurance producer's business;

(2) To a member or employee of a business entity licensed as an insurance producer, upon the death or disability of an individual designated in the business entity application or the license;

(3) To the designee of a licensed insurance producer entering active service in the armed forces of the United States of America; or

(4) In any other circumstance where the director determines that the public interest will be best served by the issuance of this license.

Source: SL 2001, ch 286, § 25.
S.D. Codified Laws § 58-17-158 — SD Code / Title 58 / Chapter 17 / Section 58-17-158
Authorization, prior approval, and other care management requirements--Annual maximum benefit
Status: in_force

Coverage for an applied behavior analysis may be subject to pre-authorization, prior approval, and other care management requirements including limits on the number of individual visits a person may make for applied behavior analysis subject to the general care management provisions of the plan, and may be subject to dollar limits, deductibles, copayments, or coinsurance provisions that apply to other medical or surgical services covered under the policy. The coverage for applied behavior analysis shall provide an annual maximum benefit that may not be less than the following:

(1) Through age 6 $36,000

(2) Age 7 through age 13 $25,000

(3) Age 14 through age 18 $12,500

Source: SL 2015, ch 250, § 5.
S.D. Codified Laws § 58-29F-3 — SD Code / Title 58 / Chapter 29F / Section 58-29F-3
Time for disclosing proposed change in pharmacy audit terms
Status: in_force

The pharmacy benefits manager shall disclose an amendment to the pharmacy audit terms in a contract between a pharmacy and a pharmacy benefits manager to the pharmacy at least sixty days prior to the effective date of the proposed change.

Source: SL 2013, ch 254, § 3.
S.D. Codified Laws § 58-47-14 — SD Code / Title 58 / Chapter 47 / Section 58-47-14
Term of portable electronics license--Renewal
Status: in_force

A portable electronics license issued under this chapter is valid for one year unless suspended or revoked by the division. A license may be renewed upon expiration for another one-year period upon application of the vendor and payment of the fees as set forth in § 58-2-29 .

Source: SL 2012, ch 251, § 14.
S.D. Codified Laws § 58-17H-49 — SD Code / Title 58 / Chapter 17H / Section 58-17H-49
Promulgation of rules
Status: in_force

The director may, after consultation with the secretary, promulgate rules, pursuant to chapter 1-26 , to carry out the provisions of this chapter. The rules shall provide for a timely administration of utilization review by the public and assure that utilization review decisions are made in a fair and clinically acceptable manner. The rules may include the following:

(1) Definition of terms;

(2) Timing, form, and content of reports;

(3) Application of clinical criteria as it relates to utilization review;

(4) Written determinations; and

(5) Utilization review procedures.

The director may promulgate rules, pursuant to chapter 1-26 , pertaining to claims for group disability income plans. The rules shall be consistent with applicable federal requirements included in 29 CFR Part 2560 as amended to January 1, 2011.

Source: SL 2011, ch 219, § 74.
S.D. Codified Laws § 58-35-3 — SD Code / Title 58 / Chapter 35 / Section 58-35-3
State mutual insurer defined
Status: in_force

An insurer authorized to insure property throughout the state, but including personal property temporarily removed therefrom, is a "state mutual insurer."

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

Terms used in this chapter mean:

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

(2) "Consumer," someone in the general public who may or may not be a covered person or a purchaser of health care, including employers;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(18) "Quality assessment," the measurement and evaluation of the quality and outcomes of medical care provided to individuals, groups, or populations;

(19) "Quality improvement," the effort to improve the processes and outcomes related to the provision of care within the health plan; and

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

Source: SL 2011, ch 219, § 22.
S.D. Codified Laws § 58-16-4 — SD Code / Title 58 / Chapter 16 / Section 58-16-4
Supplemental life coverage
Status: in_force

Supplemental life coverage may be purchased at the employee's option subject to the underwriting criteria of the insurer.

Source: SL 1966, ch 111, ch 24, § 1 (1) (d); SL 1998, ch 288, § 1; SL 2008, ch 262, § 1.
S.D. Codified Laws § 58-22-35 — SD Code / Title 58 / Chapter 22 / Section 58-22-35
Bail bondsperson or runner acting as attorney prohibited--Misdemeanor
Status: in_force

No bail bondsperson or runner may participate in the capacity of an attorney at a trial or hearing of one on whose bond such bail bondsperson or runner is surety. Violation of this section is a Class 1 misdemeanor.

Source: SL 1966, ch 111, ch 31, §§ 15 (5), 27; SDCL, § 58-22-48 ; SL 1978, ch 359, § 2; SL 1998, ch 296, § 25.
S.D. Codified Laws § 58-9-2 — SD Code / Title 58 / Chapter 9 / Section 58-9-2
Life insurance defined
Status: in_force

"Life insurance" is insurance on human lives. Life insurance includes also the granting of endowment benefits, additional benefits in event of death or dismemberment by accident or accidental means, additional benefits in event of the insured's disability, and optional modes of settlement of proceeds of life insurance. Life insurance does not include workers' compensation coverages.

Source: SL 1966, ch 111, ch 4, § 2.
S.D. Codified Laws § 58-15-15.13 — SD Code / Title 58 / Chapter 15 / Section 58-15-15.13
Private placement policy defined
Status: in_force

A private placement policy is a variable annuity contract or a variable life insurance policy that is:

(1) Issued exclusively to a person who is an accredited investor or a qualified purchaser, as such terms are defined in the federal Securities Act of 1933 or the federal Investment Company Act of 1940, or in regulations promulgated under either such statute; and

(2) Offered for sale and sold in a transaction that is exempt from registration under the federal Securities Act of 1933.

Source: SL 2006, ch 252, § 1; SL 2014, ch 229, § 2.
S.D. Codified Laws § 58-12-20 — SD Code / Title 58 / Chapter 12 / Section 58-12-20
Time limits for processing clean claims--Time limit for additional information required
Status: in_force

Each clean claim shall be paid to the person entitled thereto, denied, or settled within thirty calendar days after receipt by the carrier if submitted electronically and within forty - five calendar days after receipt by the carrier and if the claim is payable under the plan. If the resolution of an otherwise clean claim requires additional information, the carrier shall, within thirty calendar days after receipt of the claim, give the provider, policyholder, insured, or patient, as appropriate, a full explanation of what additional information is needed in order to determine eligibility or adjudicate the claim. The person receiving a request for additional information shall submit all additional information requested by the carrier within thirty calendar days after receipt of such request.

Source: SL 2001, ch 273, § 2.
S.D. Codified Laws § 58-24-4 — SD Code / Title 58 / Chapter 24 / Section 58-24-4
Making of rates--Provisions governing
Status: in_force

Rates shall be made in accordance with the provisions of §§ 58-24-5 to 58-24-8 , inclusive.

Source: SL 1966, ch 111, ch 15, § 3 (1).
S.D. Codified Laws § 58-5A-79 — SD Code / Title 58 / Chapter 5A / Section 58-5A-79
Expenses of director's participation in supervisory college
Status: in_force

Each registered insurer subject to §§ 58-5A-78 to 58-5A-80 , inclusive, is liable for and shall pay the reasonable expenses of the director's participation in a supervisory college, including reasonable travel expenses. A supervisory college may be convened as either a temporary or permanent forum for communication and cooperation between the regulators charged with the supervision of the insurer or its affiliates, and the director may establish a regular assessment to the insurer for the payment of these expenses.

Source: SL 2015, ch 246, § 20.
S.D. Codified Laws § 58-29E-3 — SD Code / Title 58 / Chapter 29E / Section 58-29E-3
Performance of duties--Good faith
Status: in_force

Each pharmacy benefit manager shall perform its duties in good faith and with fair dealing toward the third-party payor.

Source: SL 2004, ch 311, § 3; SL 2023, ch 166, § 3.
S.D. Codified Laws § 58-33-9 — SD Code / Title 58 / Chapter 33 / Section 58-33-9
False entry with intent to deceive--Omission of true entry--Misdemeanor
Status: in_force

No persons shall make any false entry in any book, report, or statement of any insurer with intent to deceive any agent or examiner lawfully appointed to examine into its condition or into any of its affairs, or any public official to whom such insurer is required by law to report, or who has authority by law to examine into its condition or into any of its affairs, or, with like intent, willfully omit to make a true entry of any material fact pertaining to the business of such insurer in any book, report, or statement of such insurer. Violation of this section is a Class 2 misdemeanor.

Source: SL 1966, ch 111, ch 13, § 10 (2); SL 1978, ch 359, § 2.
S.D. Codified Laws § 58-10-13 — SD Code / Title 58 / Chapter 10 / Section 58-10-13
Trust defined
Status: in_force

For purposes of subdivision 58-10-4(6), the term, trust, includes any trust, including a business trust, and the term, beneficiary, includes the interest of any beneficiary in a trust, including a beneficial owner of a business trust.

Source: SL 2006, ch 251, § 2.
S.D. Codified Laws § 58-32-48 — SD Code / Title 58 / Chapter 32 / Section 58-32-48
Negotiations, application, or premium payment bringing independently procured coverages within jurisdiction
Status: in_force

Any insurance in an unauthorized insurer procured through negotiations or an application in whole or in part occurring or made within or from within this state, or for which premiums in whole or in part are remitted directly or indirectly from within this state, shall be deemed to be insurance procured or continued or renewed in this state within the intent of § 58-32-47 .

Source: SL 1966, ch 111, ch 11, § 22 (2).
S.D. Codified Laws § 58-17-146.1 — SD Code / Title 58 / Chapter 17 / Section 58-17-146.1
Certain contract terms voidable by dentist
Status: in_force

Any assignment or other contractual term in an agreement between an insurer and a dentist that purports to share, transfer, or assign contractual discounts to a third party insurer or entity, without relinquishing the insurer's rights, is severable and voidable at the dentist's option at the time the agreement is executed by the dentist. The third party access provision of the agreement shall be clearly identified.

For purposes of this section, a third party insurer or entity does not include an insurer or entity operating under the same brand licensee program as the contracting insurer.

Source: SL 2021, ch 212, § 1.
S.D. Codified Laws § 58-26-73 — SD Code / Title 58 / Chapter 26 / Section 58-26-73
Reference interest rate defined
Status: in_force

Reference interest rate referred to in § 58-26-71 is defined as follows:

(1) For all life insurance, the lesser of the average over a period of thirty - six months and the average over a period of twelve months, ending on June thirtieth of the calendar year next preceding the year of issue, of the Monthly Average of the Composite Yield on Seasoned Corporate Bonds, as published by Moody's Investors Service, Inc.;

(2) For single premium immediate annuities and for annuity benefits involving life contingencies arising from other annuities with cash settlement options and guaranteed interest contracts with cash settlement options, the average over a period of twelve months, ending on June thirtieth of the calendar year of issue or year of purchase, of the Monthly Average of the Composite Yield on Seasoned Corporate Bonds, as published by Moody's Investors Service, Inc.;

(3) For other annuities with cash settlement options and guaranteed interest contracts with cash settlement options, valued on a year of issue basis, except as stated in subdivision (2), with guarantee duration in excess of ten years, the lesser of the average over a period of thirty - six months and the average over a period of twelve months, ending on June thirtieth of the calendar year of issue or purchase, of the Monthly Average of the Composite Yield on Seasoned Corporate Bonds, as published by Moody's Investors Service, Inc.;

(4) For other annuities with cash settlement options and guaranteed interest contracts with cash settlement options, valued on a year of issue basis, except as stated in subdivision (2), with guarantee duration of ten years or less, the average over a period of twelve months, ending on June thirtieth of the calendar year of issue or purchase, of the Monthly Average of the Composite Yield on Seasoned Corporate Bonds, as published by Moody's Investors Service, Inc.;

(5) For other annuities with no cash settlement options and for guaranteed interest contracts with no cash settlement options, the average over a period of twelve months, ending on June thirtieth of the calendar year of issue or purchase, of the Monthly Average of the Composite Yield on Seasoned Corporate Bonds, as published by Moody's Investors Service, Inc.;

(6) For other annuities with cash settlement options and guaranteed interest contracts with cash settlement options, valued on a change in fund basis, except as stated in subdivision (2), the average over a period of twelve months, ending on June thirtieth of the calendar year of the change in the fund, of the Monthly Average of the Composite Yield on Seasoned Corporate Bonds, as published by Moody's Investors Service, Inc.

Source: SL 1995, ch 284, § 29.
S.D. Codified Laws § 58-29B-82 — SD Code / Title 58 / Chapter 29B / Section 58-29B-82
Transfers by insurer to attorney for services within four months of filing petition--Examination by court
Status: in_force

If an insurer shall, directly or indirectly, within four months before the filing of a successful petition for liquidation under this chapter, or at any time in contemplation of a proceeding to liquidate it, pay money or transfer property to an attorney - at - law for services rendered or to be rendered, the transaction may be examined by the court on its own motion or shall be examined by the court on petition of the liquidator and shall be held valid only to the extent of a reasonable amount to be determined by the court, and the excess may be recovered by the liquidator for the benefit of the estate. However, if the attorney is in a position of influence in the insurer or an affiliate thereof, payment of any money or the transfer of any property to the attorney - at - law for services rendered or to be rendered shall be governed by the provision of subdivision 58-29B-67(4).

Source: SL 1989, ch 436, § 82.
S.D. Codified Laws § 58-11-14 — SD Code / Title 58 / Chapter 11 / Section 58-11-14
Continuation of use of prior filings until otherwise prescribed
Status: in_force

Every form of insurance document and every rate or other filing lawfully in use immediately prior to July 1, 1966, may continue to be so used until the director otherwise prescribes pursuant to this title.

Source: SL 1966, ch 111, ch 22, § 13 (5).
S.D. Codified Laws § 58-26-38 — SD Code / Title 58 / Chapter 26 / Section 58-26-38
Unearned premium reserve--Computation on a prorata basis
Status: in_force

In lieu of computation according to the table in § 58-26-37 , the insurer at its option may compute all of the reserves required by § 58-26-36 on a monthly or more frequent prorata basis.

Source: SL 1966, ch 111, ch 5, § 5 (3).
S.D. Codified Laws § 58-7-8 — SD Code / Title 58 / Chapter 7 / Section 58-7-8
Certificates of deposit--Eligible securities--Purpose of deposits
Status: in_force

All such deposits required under §§ 58-6-33 to 58-6-35 , inclusive, for authority to transact insurance in this state shall consist of certificates of deposit, or any combination of securities of the kinds described in §§ 58-27-9 , 58-27-11 , 58-27-12 , 58-27-14 , and 58-27-15 . Deposits made in this state under §§ 58-6-33 to 58-6-35 , inclusive, shall be held for the purpose stated in § 58-6-34 .

Source: SL 1966, ch 111, ch 7, §§ 3 (1), 4 (1).
S.D. Codified Laws § 58-26-5 — SD Code / Title 58 / Chapter 26 / Section 58-26-5
Real property acquired pursuant to mortgage loan or contract for sale--Restriction as to valuation
Status: in_force

Real property acquired pursuant to a mortgage loan or contract for sale, in the absence of a recent appraisal deemed by the director to be reliable, shall not be valued at an amount greater than the unpaid principal of the defaulted loan or contract at the date of such acquisition, together with any taxes and expenses paid or incurred in connection with such acquisition, and the cost of improvements thereafter made by the insurer and any amounts thereafter paid by the insurer on assessments levied for improvements in connection with the property.

Source: SL 1966, ch 111, ch 5, § 14 (1).
S.D. Codified Laws § 58-41-111 — SD Code / Title 58 / Chapter 41 / Section 58-41-111
Application of chapter to provider contracting with licensed health maintenance organization
Status: in_force

Any medical provider who enters into a contract for medical services with a licensed health maintenance organization or a health insurer licensed pursuant to this title is not required to be licensed pursuant to this chapter.

Source: SL 1995, ch 294, § 2.
S.D. Codified Laws § 58-5A-1 — SD Code / Title 58 / Chapter 5A / Section 58-5A-1
Definitions
Status: in_force

Terms used in this chapter mean:

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

(2) "Control," including "controlling," "controlled by," and "under common control with," the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract other than a commercial contract for goods or nonmanagement services, or otherwise, unless the power is solely the result of an official position with, or a corporate office held by, the person. Control is presumed to exist if any person, directly or indirectly, owns, controls, holds with the power to vote, or holds proxies representing, ten percent or more of the voting securities of any other person. This presumption may be rebutted by a showing made in the manner provided by § 58-5A-29 that control does not exist in fact;

(3) "Enterprise risk," any activity, circumstance, event, or series of events involving one or more affiliates of an insurer that, if not remedied promptly, is likely to have a material adverse effect upon the financial condition or liquidity of the insurer or its insurance holding company system as a whole, including anything that may cause the insurer's risk-based capital to fall into company action level or may cause the insurer to be in hazardous financial condition pursuant to chapter 58-4 ;

(4) "Group-wide supervisor," the regulatory official authorized to engage in conducting and coordinating group-wide supervision activities who is determined or acknowledged by the director under the provisions of §§ 58-5A-80.1 to 58-5A-80.8 , inclusive, to have sufficient significant contacts with the internationally active insurance group;

(5) "Insurance group," for the purposes of conducting an ORSA, those insurers and affiliates included within an insurance holding company system;

(6) "Insurance holding company system," any two or more affiliated persons, one or more of which is an insurer;

(7) "Insurer," a company qualified and licensed by the director of the Division of Insurance to transact the business of insurance in this state. For ORSA purposes, the term, insurer, does not include agencies, authorities or instrumentalities of the United States, its possessions or territories, the Commonwealth of Puerto Rico, the District of Columbia, or a state or political subdivision of a state;

(8) "Internationally active insurance group," an insurance holding company system that includes an insurer registered under chapter 58-5A and that:

(a) Writes premiums in at least three countries;

(b) Writes at least ten percent of its total gross premium outside the United States; and

(c) Based on a three-year rolling average, has total assets in the insurance holding company system of at least fifty billion dollars or the total gross written premiums of the insurance holding company system are at least ten billion dollars;

(9) "NAIC," the National Association of Insurance Commissioners;

(10) "NAIC liquidity stress test framework," the NAIC publication that includes a history of the NAIC's development of regulatory liquidity stress testing, the scope criteria applicable for a specific data year, the liquidity stress test instructions, and reporting templates for a specific data year as approved by the NAIC and adopted by the director pursuant to rules promulgated under chapter 1-26 ;

(11) "ORSA guidance manual," the version of the NAIC own risk and solvency assessment guidance manual as adopted by the director for use in South Dakota by administrative rule;

(12) "ORSA summary report," a confidential high-level summary of an insurer or insurance group's ORSA;

(13) "Own risk and solvency assessment" or "ORSA," a confidential internal assessment, appropriate to the nature, scale, and complexity of an insurer or insurance group, conducted by that insurer or insurance group of the material and relevant risks associated with the insurer or insurance group's current business plan and the sufficiency of capital resources to support those risks;

(14) "Security holder" of a specified person is one who owns any security of the person, including common stock, preferred stock, debt obligations, and any other security convertible into or evidencing the right to acquire any of the foregoing;

(15) "Scope criteria," the designated exposure bases along with minimum magnitudes thereof for the specified data year, used to establish a preliminary list of insurers considered scoped into the NAIC liquidity stress test framework for that data year as detailed in the NAIC liquidity stress test framework;

(16) "Subsidiary of a specified person," any affiliate controlled by a person directly, or indirectly, through one or more intermediaries;

(17) "Voting security," any security convertible into or evidencing a right to acquire a voting security.

Source: SL 1972, ch 267, § 1; SL 1992, ch 341, § 1; SL 2015, ch 246, § 1; SL 2017, ch 210, § 1; SL 2020, ch 213, § 1; SL 2024, ch 201, § 1.