S.D. Codified Laws § 58-24-10.2 — SD Code / Title 58 / Chapter 24 / Section 58-24-10.2
Rate information required to be filed prior to effective date on finding that closer supervision is required--Extension of waiting period--Approval or disapproval
Status: in_force

The director of the Division of Insurance may by order require that a particular insurer otherwise entitled to file its rates in accordance with § 58-24-10.1 , file any or all of its rates and supplementary rate information thirty days prior to their effective date, if and to the extent that he finds, after a hearing, that the protection of the interests of its insureds and the public in this state require closer supervision of its rates because of the insurer's financial condition or rating practices. He may extend the waiting period for any filing for not to exceed thirty additional days by written notice to the insurer before the first thirty - day period expires. A filing not disapproved before the expiration of the waiting period shall be deemed to meet the requirements of this chapter, subject to the possibility of subsequent disapproval under § 58-24-21 .

Source: SL 1979, ch 341, § 7.
S.D. Codified Laws § 58-38-11.2 — SD Code / Title 58 / Chapter 38 / Section 58-38-11.2
Benefits provided under alcoholism coverage--Maximum treatment periods permitted
Status: in_force

The alcoholism coverage to be offered in writing shall provide benefits on the same basis as benefits provided for the treatment of other sicknesses covered under the contract; provided, however, that the coverage by the service corporation need not exceed thirty days' care in any six - month period, and further provided that the total days' care per recipient need not exceed ninety days during the life of the contract.

Source: SL 1975, ch 314, § 2; SL 1977, ch 411, § 4; SL 1979, ch 344, § 8.
S.D. Codified Laws § 58-8-5 — SD Code / Title 58 / Chapter 8 / Section 58-8-5
Distribution of advertising matter as to advantages of doing business with unauthorized insurer as misdemeanor
Status: in_force

It is a Class 2 misdemeanor for any manufacturer, jobber, wholesaler, or retailer to distribute or to cause to be distributed any match books or other advertising matter, directly or indirectly, setting forth the advantages of or soliciting business for any insurer, insurance producer, or other person, who has not been authorized to transact insurance business in this state.

Source: SL 1966, ch 111, ch 12, § 1 (4); SL 1978, ch 359, § 2; SL 2001, ch 286, § 101.
S.D. Codified Laws § 58-26-13.1 — SD Code / Title 58 / Chapter 26 / Section 58-26-13.1
Actuarial opinion of property, casualty, and health insurers
Status: in_force

Every property and casualty and health insurer doing business in this state shall file with its annual statement an actuarial opinion which complies with the standards and procedures in the National Association of Insurance Commissioners Annual Statement Instructions: Property and Casualty, Title, Life/Accident/Health, Health Maintenance Organizations and Hospital Medical and Dental Service or Indemnity Corporations as adopted by rule promulgated by the director pursuant to chapter 1-26 .

Source: SL 1992, ch 349, § 2; SL 1993, ch 357, § 5; SL 1994, ch 375, § 3; SL 1997, ch 293, § 1.
S.D. Codified Laws § 58-6-70 — SD Code / Title 58 / Chapter 6 / Section 58-6-70
Retaliatory tax provisions--Exception
Status: in_force

If any other state or foreign country imposes any taxes, licenses, and other fees, in the aggregate, or fines, penalties, deposit requirements, or other material obligations, prohibitions, or restrictions upon South Dakota insurers, or upon the insurance producers or representatives of such insurers, which are, pursuant to the laws of that other state or country, in excess of those directly imposed upon similar insurers, or upon the insurance producers or representatives of such insurers, of that other state or country under the statutes of this state, then, so long as the laws of that other state or country continue in force or are so applied, the director of the Division of Insurance shall impose the same taxes, licenses, and other fees, in the aggregate, or fines, penalties, deposit requirements, or other material obligations, prohibitions, or restrictions of whatever kind upon the insurers, or upon the insurance producers or representatives of the insurers, of the other state or country doing business or seeking to do business in South Dakota. Any tax, license, or other fee or obligation imposed on South Dakota insurers or their insurance producers or representatives by any first or second class municipality, county, or other political subdivision or agency of the other state or country is considered to be imposed by such state or country within the meaning of this section. The time and period of payment of the retaliatory tax is the same, in all cases, as that of the gross premiums tax provided for in § 10-44-2 . No interest charges or credits may be made or allowed for the use or loss of the use of funds due to any difference in the time or period of payment used in this state and the time or period used in a foreign state or country.

This provision does not apply to that portion of a life insurance policy's annual premiums exceeding one hundred thousand dollars and to that portion of the annual consideration on an annuity contract exceeding five hundred thousand dollars.

Source: SL 1966, ch 111, ch 3, § 29 (1); SL 1982, ch 354; SL 1992, ch 60, § 2; SL 2001, ch 54, § 2; SL 2001, ch 286, § 85; SL 2008, ch 260, § 1.
S.D. Codified Laws § 58-22-5 — SD Code / Title 58 / Chapter 22 / Section 58-22-5
Licenses to individuals only--Examination waived for persons previously acting--Exemptions
Status: in_force

No license may be issued except in compliance with this chapter and none may be issued except to an individual. However, any person performing the functions of a bail bondsperson or runner, within the definition of this chapter, on July 1, 1966, is not required to take an examination, but shall be issued a license upon making the application required by this chapter, and renewals shall be granted subject to the provisions of §§ 58-22-6 , 58-22-19 , and 58-22-21 . The provisions of this chapter do not apply to the holder of a valid all lines fire and casualty insurance producer's license held prior to July 1, 1998.

A firm, partnership, association, or corporation, as such need not be licensed.

Source: SL 1966, ch 111, ch 31, § 5; SL 1998, ch 296, § 3; SL 2001, ch 286, § 131.
S.D. Codified Laws § 58-6-34 — SD Code / Title 58 / Chapter 6 / Section 58-6-34
Deposits through director--Purpose--Amounts required--Deposits in other states in lieu of deposit with director
Status: in_force

The director may not authorize any insurer to transact insurance in this state unless it makes and thereafter maintains in trust through the director for the protection of all its policyholders in the United States, a deposit of cash or securities eligible for deposit under the provisions of this title relating to deposits and administration of deposits in an amount of two hundred thousand dollars or more, except that:

(1) As to foreign insurers, in lieu of the deposit, the director shall accept the certificate in proper form of the public official having supervision over insurers in any other state to the effect that a like deposit or part thereof by the insurer is being maintained in public custody or control pursuant to law in the state in trust for the protection of the insurer's policyholders in the United States.

(2) As to alien insurers, in lieu of the deposit, the director may accept evidence that the insurer maintains within the United States by way of trust deposits with public depositories, or in trust institutions approved by the director, assets available for discharge of its United States insurance obligations. The assets shall be an amount not less than the outstanding liabilities of the insurer arising out of its insurance transactions in the United States together with a surplus equal to the greater of the following sums, the deposit required by this title to be made by a foreign insurer transacting like kinds of insurance, or three hundred thousand dollars.

Source: SL 1966, ch 111, ch 3, § 13 (2); SL 1994, ch 374.
S.D. Codified Laws § 58-6-78 — SD Code / Title 58 / Chapter 6 / Section 58-6-78
Director to supply summary statement to each legal newspaper published in each judicial circuit--Recognition of legal newspaper
Status: in_force

The director shall supply at least one such statement to each legal newspaper published in each judicial circuit, if there are a sufficient number of such statements to be published so to supply each newspaper, and no newspaper shall receive a second statement for publication until each legal newspaper in each circuit shall be furnished at least one such statement for publication. If there are insufficient statements to supply all newspapers in one year, the statements for the succeeding year shall be first supplied to those newspapers not supplied the previous year, and they shall be so supplied in each succeeding year. The publisher of any legal newspaper published in this state, who desires his publication to be recognized in the distribution of annual statements, shall each year, on or before the first day of April, furnish to the director an affidavit that the newspaper he seeks to have recognized is a legal newspaper.

Source: SL 1966, ch 111, ch 3, § 27.
S.D. Codified Laws § 58-27-53 — SD Code / Title 58 / Chapter 27 / Section 58-27-53
Maximum amount of investments or loans with one person, institution, corporation, or municipal corporation--Exceptions
Status: in_force

An insurer may not, except with the consent of the director, have any combination of investments in or loans upon the security of the obligations, property, or securities of any one person, institution, corporation, or municipal corporation aggregating an amount exceeding five percent of the insurer's assets. This restriction does not apply to the following:

(1) Bonds, notes, debentures, certificates, participations, or interest or other obligations issued by, or the payment of which is guaranteed or insured by, the United States Government or any agency or instrumentality or subdivision thereof;

(2) Obligations of the Student Loan Marketing Association, the Federal National Mortgage Association, or the Federal Home Loan Mortgage Corporation;

(3) Bonds, notes, debentures, or other obligations issued by, or the payment of which is guaranteed by, the State of South Dakota or any state as defined in subdivision 58-1-2(17); or

(4) Policy loans made under § 58-27-31 or investments made pursuant to either § 58-27-25 or 58-27-26 , or both.

Source: SL 1966, ch 111, ch 6, § 5 (1); SL 1983, ch 376, § 6; SL 1993, ch 364, § 1; SL 1997, ch 294, § 15; SL 2000, ch 245, § 1; SL 2017, ch 214, § 1.
S.D. Codified Laws § 58-10-10 — SD Code / Title 58 / Chapter 10 / Section 58-10-10
Insurance against fire, tornado, or lightning--Measure of damages where property wholly destroyed
Status: in_force

Whenever any policy of insurance is written or renewed to insure any real property in this state, including structures on land owned by a person other than the insured, against loss by fire, tornado, or lightning and the property insured is wholly destroyed, without criminal fault on the part of the insured or the insured's assigns, the amount of insurance written in the policy shall be taken conclusively to be the true value of the property insured and the true amount of loss and measure of damages, with the following conditions:

(1) This section applies only if a total fire loss occurs ninety days or more after the policy was made or written or ninety days or more after the policy limits were increased by twenty-five percent or more at the insured's request. However, within the first ninety days, payment to the insured shall be in accordance with the terms and conditions of the policy for valuation of the property absent stated amount;

(2) Subdivision (1) of this section does not apply to unchanged renewal policies, to policies with inflation adjustment limits or to policies which are being converted to replacement cost coverage from a lesser value form and upon which there is a written agreement between the company and the insured that the policy will be written on a valued basis;

(3) Builders' risk policies of insurance covering property in the process of being constructed shall be valued and settled according to the actual value of that portion of the construction completed at the time of the fire, tornado, or lightning loss;

(4) Property in the process of being newly constructed for the purpose of serving as a residence, other than property covered by a builder's risk policy, shall be valued and settled according to the terms and conditions of the policy for valuation of that portion of the construction completed at the time of the fire, tornado, or lightning loss;

(5) If two or more policies are written upon the same property interest, each insurer shall pay only that proportion of the cost of the loss that the limit of liability under its policy bears to the total amount of insurance covering the loss;

(6) Any claim for loss of an appurtenant structure or other appurtenant property covered under the policy shall be settled for actual replacement or actual cash value, depending on the policy provisions applicable to the structure or other property, unless a specific value was assigned to each structure or property prior to the loss; and

(7) This section does not apply to any claim for total loss to any building which is insured under a commercial blanket form with one amount covering two or more buildings. Any claim for total loss to a building so insured shall be settled for actual replacement or actual cash value depending on the policy provisions applicable to the building.

Source: SL 1966, ch 111, ch 22, § 5; SL 1967, ch 136; SL 1985, ch 389; SL 1995, ch 277; SL 1997, ch 285, § 1; SL 1999, ch 247, § 1; SL 2009, ch 258, § 1.
S.D. Codified Laws § 58-18A-80 — SD Code / Title 58 / Chapter 18A / Section 58-18A-80
Paying of claim where plans disagree on order of benefits
Status: in_force

If the plans cannot agree on the order of benefits within thirty calendar days after the plans have received all of the information needed to pay the claim, the plans shall immediately pay the claim in equal shares and determine their relative liabilities following payment. However, no plan is required to pay more than it would have paid had it been the primary plan.

Source: SL 2006, ch 259, § 28.
S.D. Codified Laws § 58-29B-157 — SD Code / Title 58 / Chapter 29B / Section 58-29B-157
Attachment, garnishment, levy of execution prohibited during receivership, conservatorship, or liquidation proceedings
Status: in_force

During the pendency in this or any other state of a receivership, conservatorship, or liquidation proceeding, whether called by those names or not, no action or proceeding in the nature of an attachment, garnishment, or levy of execution may be commenced or maintained in this state against the delinquent insurer or its assets.

Source: SL 1989, ch 436, § 157; SL 2008, ch 271, § 9.
S.D. Codified Laws § 58-29C-46 — SD Code / Title 58 / Chapter 29C / Section 58-29C-46
Persons provided with coverage--Policies and portions of policies not covered
Status: in_force

A. This chapter shall provide coverage for the policies and contracts specified in subpart B:

(1) To persons who, regardless of where they reside (except for nonresident certificate holders under group policies or contracts), are the beneficiaries, assignees, or payees of the persons covered under subdivision (2);

(2) To persons who are owners of or certificate holders under the policies or contracts (other than structured settlement annuities) and in each case who:

(a) Are residents; or

(b) Are not residents, but only under all of the following conditions:

(i) The member insurer that issued the policies or contracts is domiciled in this state;

(ii) The states in which the persons reside have associations similar to the association created by this chapter; and

(iii) The persons are not eligible for coverage by an association in any other state due to the fact that the insurer was not licensed in the state at the time specified in the state's guaranty association law;

(3) For structured settlement annuities specified in subpart B, subdivisions (1) and (2) of this subpart do not apply, and this chapter shall (except as provided in subdivisions (4) and (5) of this subpart) provide coverage to a person who is a payee under a structured settlement annuity (or beneficiary of a payee if the payee is deceased), if the payee:

(a) Is a resident, regardless of where the contract owner resides; or

(b) Is not a resident, but only under both of the following conditions:

(i)(I) The contract owner of the structured settlement annuity is a resident, or

(II) The contract owner of the structured settlement annuity is not a resident, but the insurer that issued the structured settlement annuity is domiciled in this state and the state in which the contract owner resides has an association similar to the association created by this chapter; and

(ii) Neither the payee (or beneficiary) nor the contract owner is eligible for coverage by the association of the state in which the payee or contract owner resides;

(4) This chapter does not provide coverage to a person who is a payee (or beneficiary) of a contract owner resident of this state, if the payee (or beneficiary) is afforded any coverage by the association of another state;

(5) This chapter is intended to provide coverage to a person who is a resident of this state and, in special circumstances, to a nonresident. In order to avoid duplicate coverage, if a person who would otherwise receive coverage under this chapter is provided coverage under the laws of any other state, the person may not be provided coverage under this chapter. In determining the application of the provisions of this paragraph in situations where a person could be covered by the association of more than one state, whether as an owner, payee, beneficiary, or assignee, this chapter shall be construed in conjunction with other state laws to result in coverage by only one association.

B. (1) This chapter shall provide coverage to the persons specified in subpart A for the policies or contracts of direct, nongroup life insurance, health insurance, or annuities, and for certificates under direct group policies and contracts, and for supplemental contracts to any of these, in each case except as limited by this chapter. Annuity contracts and certificates under group annuity contracts include allocated funding agreements, structured settlement annuities, and any immediate or deferred annuity contracts.

(2) Except as otherwise provided in subdivision (3) of this subpart, this chapter may not provide coverage for:

(a) A portion of a policy or contract not guaranteed by the member insurer, or under which the risk is borne by the policy or contract owner;

(b) A policy or contract of reinsurance, unless assumption certificates have been issued pursuant to the reinsurance policy or contract;

(c) A portion of a policy or contract to the extent that the rate of interest on which it is based, or the interest rate, crediting rate, or similar factor determined by use of an index or other external reference stated in the policy or contract employed in calculating returns or changes in value:

(i) Averaged over the period of four years prior to the date on which the member insurer becomes an impaired or insolvent insurer under this chapter, whichever is earlier, exceeds the rate of interest determined by subtracting two percentage points from Moody's Corporate Bond Yield Average averaged for that same four-year period or for such lesser period if the policy or contract was issued less than four years before the member insurer becomes an impaired or insolvent insurer under this chapter, whichever is earlier; and

(ii) On and after the date on which the member insurer becomes an impaired or insolvent insurer under this chapter, whichever is earlier, exceeds the rate of interest determined by subtracting three percentage points from Moody's Corporate Bond Yield Average as most recently available;

(d) A portion of a policy or contract issued to a plan or program of an employer, association, or other person to provide life, health, or annuity benefits to its employees, members, or others, to the extent that the plan or program is self-funded or uninsured, including benefits payable by an employer, association, or other person under:

(i) A multiple employer welfare arrangement as defined in section 3(40) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. § 1002(40));

(ii) A minimum premium group insurance plan;

(iii) A stop-loss group insurance plan; or

(iv) An administrative services only contract;

(e) A portion of a policy or contract to the extent that it provides for:

(i) Dividends or experience rating credits;

(ii) Voting rights; or

(iii) Payment of any fees or allowances to any person, including the policy or contract owner, in connection with the service to or administration of the policy or contract;

(f) A policy or contract issued in this state by a member insurer at a time when it was not licensed or did not have a certificate of authority to issue the policy or contract in this state;

(g) A portion of a policy or contract to the extent that the assessments required by § 58-29C-52 with respect to the policy or contract are preempted by federal or state law;

(h) An obligation that does not arise under the express written terms of the policy or contract issued by the member insurer to the certificate holder, contract owner or policy owner, including without limitation:

(i) Claims based on marketing materials;

(ii) Claims based on side letters, riders, or other documents that were issued by the member insurer without meeting applicable policy or contract form filing or approval requirements;

(iii) Misrepresentations of or regarding policy or contract benefits;

(iv) Extra-contractual claims; or

(v) A claim for penalties or consequential or incidental damages;

(i) A contractual agreement that establishes the member insurer's obligations to provide a book value accounting guaranty for defined contribution benefit plan participants by reference to a portfolio of assets that is owned by the benefit plan or its trustee, which in each case is not an affiliate of the member insurer;

(j) An unallocated annuity contract;

(k) A portion of a policy or contract to the extent it provides for interest or other changes in value to be determined by the use of an index or other external reference stated in the policy or contract, but which have not been credited to the policy or contract, or as to which the policy or contract owner's rights are subject to forfeiture, as of the date the member insurer becomes an impaired or insolvent insurer under this chapter, whichever is earlier. If a policy's or contract's interest or changes in value are credited less frequently than annually, for purposes of determining the values that have been credited and are not subject to forfeiture under this subsection, the interest or change in value determined by using the procedures defined in the policy or contract shall be credited as if the contractual date of crediting interest or changing values was the date of impairment or insolvency, whichever is earlier, and will not be subject to forfeiture; and

(l) A policy or contract providing any hospital, medical, prescription drug, or other health care benefits pursuant to Part C or Part D of Subchapter XVIII Chapter 7 of Title 42 of the United States Code (commonly known as Medicare Part C & D), or Subchapter XIX, Chapter 7 Title 42 of the United States Code (commonly known as Medicaid), or any regulations issued pursuant thereto.

(3) The exclusion from coverage under subsection (2)(c) of this subdivision does not apply to any portion of a policy or contract, including a rider, that provides long-term care or any other health insurance benefits.

C. The benefits that the association may become obligated to cover may in no event exceed the lesser of:

(1) The contractual obligations for which the member insurer is liable or would have been liable if it were not an impaired or insolvent insurer; or

(2)(a) With respect to one life, regardless of the number of policies or contracts:

(i) Three hundred thousand dollars in life insurance death benefits, but not more than one hundred thousand dollars in net cash surrender and net cash withdrawal values for life insurance;

(ii) For health insurance benefits:

(I) One hundred thousand dollars for coverages not described in clauses (II) and (III) below, including any net cash surrender and net cash withdrawal values;

(II) Three hundred thousand dollars for disability income insurance as defined in § 58-17-108 , and three hundred thousand dollars for long-term care insurance as defined in subdivision 58-17B-2 (6);

(III) Five hundred thousand dollars for health benefit plans; or

(iii) Two hundred fifty thousand dollars in the present value of annuity benefits, including net cash surrender and net cash withdrawal values; or

(b) With respect to each payee of a structured settlement annuity (or beneficiary or beneficiaries of the payee if deceased), two hundred fifty thousand dollars in present value annuity benefits, in the aggregate, including net cash surrender and net cash withdrawal values, if any;

(c) However, in no event may the association be obligated to cover more than (i) an aggregate of three hundred thousand dollars in benefits with respect to any one life under subsections 2(a) and 2(b) of subpart C of this section except with respect to benefits for health benefit plans under subparagraph 2(a)(ii) of this section, in which case the aggregate liability of the association may not exceed five hundred thousand dollars with respect to any one individual, or (ii) with respect to one owner of multiple nongroup policies of life insurance, whether the policy or contract owner is an individual, firm, corporation, or other person, and whether the persons insured are officers, managers, employees, or other persons, more than five million dollars in benefits, regardless of the number of policies and contracts held by the owner;

(d) The limitations set forth in this section are limitations on the benefits for which the association is obligated before taking into account either its subrogation and assignment rights or the extent to which those benefits could be provided out of the assets of the impaired or insolvent insurer attributable to covered policies. The costs of the association's obligations under this chapter may be met by the use of assets attributable to covered policies or reimbursed to the association pursuant to its subrogation and assignment rights; and

(e) For the purposes of this chapter, benefits provided by a long-term care rider to a life insurance policy or annuity contract are considered the same type of benefits as the base life insurance policy or annuity contract to which it relates.

D. In performing its obligations to provide coverage under § 58-29C-51 , the association may not be required to guarantee, assume, reinsure, reissue, or perform, or cause to be guaranteed, assumed, reinsured, reissued, or performed, the contractual obligations of the insolvent or impaired insurer under a covered policy or contract that do not materially affect the economic values or economic benefits of the covered policy or contract.

Source: SL 2003, ch 252, § 3; SL 2010, ch 240, § 1; SL 2012, ch 247, § 1, eff. Jan. 1, 2012; SL 2013, ch 252, § 1; SL 2020, ch 210, § 2.
S.D. Codified Laws § 58-7-35 — SD Code / Title 58 / Chapter 7 / Section 58-7-35
Return of deposit of foreign insurer
Status: in_force

The director shall direct the depository or custodian to return to a foreign insurer any deposit made pursuant to this title by the insurer, if:

(1) The insurer has ceased transacting business in this state, or in the United States, and the insurer is not subject to any liability in this state on account of which the deposit was held; or

(2) The deposit is no longer required by any provision of law; or

(3) The insurer, during its solvency has made a similar deposit in another state and has filed with the director the certificate or evidence thereof, under the conditions provided for in subdivisions 58-6-34(1) and (2).

Source: SL 1966, ch 111, ch 7, § 14 (3); SL 1991, ch 398, § 17.
S.D. Codified Laws § 58-5-116 — SD Code / Title 58 / Chapter 5 / Section 58-5-116
Assessment of stockholders to cure impairment of capital or surplus--Enforcement
Status: in_force

A stock insurer, upon receiving the director's notice of deficiency as set forth in § 58-5-114 , by resolution of its board of directors and subject to any limitations upon assessment contained in its articles of incorporation, may assess its stockholders for amounts necessary to cure the deficiency and provide for a reasonable amount of surplus. If a stockholder fails to pay such assessment after notice, the insurer may require the return of the original certificate of stock, deduct such assessment, and issue a new certificate for such stockholder's remaining interest. The insurer may pay for or reissue fractional shares under this section.

Source: SL 1966, ch 111, ch 16, § 36 (1).
S.D. Codified Laws § 58-17E-12 — SD Code / Title 58 / Chapter 17E / Section 58-17E-12
Duration of registration--Renewal applications
Status: in_force

Any registration is effective for one year, unless prior to its expiration the registration is renewed in accordance with this section or suspended or revoked in accordance with § 58-17E-14 . At least forty-five days before a registration expires, the discount medical plan organization shall submit a renewal application form.

Source: SL 2006, ch 257, § 11; SL 2008, ch 265, § 1.
S.D. Codified Laws § 58-16-16 — SD Code / Title 58 / Chapter 16 / Section 58-16-16
Industry fund groups--Minimum number of persons required to be insured
Status: in_force

A policy issued under § 58-16-12 must cover at date of issue at least one hundred persons; and it must cover an average of not less than three persons per employer unit unless the policy is issued to the trustees of a fund established by employers which have assumed obligations through a collective bargaining agreement and are participating in the fund either pursuant to those obligations with regard to one or more classes of their employees which are encompassed in the collective bargaining agreement or as a method of providing insurance benefits for other classes of their employees, or unless the policy is issued to the trustees of a fund established by one or more labor unions.

Source: SL 1966, ch 111, ch 24, § 1 (4) (d).
S.D. Codified Laws § 58-33A-16.1 — SD Code / Title 58 / Chapter 33A / Section 58-33A-16.1
Annuity--Recommendation--Producer responsibilities
Status: in_force

Producers must, in making a recommendation:

(1) Exercise reasonable diligence, care, and skill to:

(a) Know the consumer’s financial situation, insurance needs, and financial objectives;

(b) Understand the available recommendation options after making a reasonable inquiry into options available to the producer;

(c) Have a reasonable basis to believe the recommended option effectively addresses the consumer’s financial situation, insurance needs, and financial objectives over the life of the product as evaluated in light of the consumer profile information; and

(d) Communicate the basis or bases of the recommendation;

(2) Make reasonable efforts to obtain consumer profile information from the consumer prior to the recommendation of an annuity;

(3) Consider the types of products the producer is authorized and licensed to recommend or sell that address the consumer’s financial situation, insurance needs, and financial objectives. This does not require analysis or consideration of any products outside the authority and license of the producer or other possible alternative products or strategies available in the market at the time of the recommendation. A producer is not considered to be authorized for a product if the producers have no access to that product. The producer must be held to standards applicable to producers with similar authority and licensure; and

(4) Have a reasonable basis to believe the consumer would benefit from certain features of the annuity, such as annuitization, death or living benefit, or other insurance-related features.

Factors generally relevant in making a determination whether an annuity effectively addresses the consumer’s financial situation, insurance needs, and financial objectives include the consumer profile information, characteristics of the insurer, product costs, rates, benefits, and features. The level of importance of each factor in this section may vary depending on the facts and circumstances of a particular case, but each factor may not be considered in isolation.

Source: SL 2022, ch 186, § 7, eff. Jan. 1, 2023; SL 2023, ch 168, § 3.
S.D. Codified Laws § 58-35-40 — SD Code / Title 58 / Chapter 35 / Section 58-35-40
Assessment plan insurance--Levy of assessments before or after liability incurred--Collection of initial amount before effective date of insurance
Status: in_force

If transacting business on the assessment plan, the insurer will depend for the payment of losses and expenses principally upon assessments levied upon members either before or after such losses or expenses have been incurred. This provision shall not be construed to prevent any such insurer from collecting from each member such initial amount as it may deem proper on or before the effective date of the member's insurance; nor to prohibit the accumulation of surplus or unallocated funds.

Source: SL 1966, ch 111, ch 17, § 6 (3).
S.D. Codified Laws § 58-17H-15 — SD Code / Title 58 / Chapter 17H / Section 58-17H-15
Director to hold health carrier responsible for utilization review performance of contractor
Status: in_force

If a health carrier contracts to have a utilization review organization or other entity perform the utilization review functions required by this chapter, or applicable rules, the director shall hold the health carrier responsible for monitoring the activities of the utilization review organization or entity with which the health carrier contracts and for ensuring that the requirements of this chapter, and applicable rules, are met.

Source: SL 2011, ch 219, § 40.
S.D. Codified Laws § 58-5A-31 — SD Code / Title 58 / Chapter 5A / Section 58-5A-31
Registration requirements satisfied by duplicate copies of federal filings
Status: in_force

The provisions for filings required under the provisions of §§ 58-5A-20 to 58-5A-29 , inclusive, except for subsection 58-5A-21(2)(e), shall be satisfied by the simultaneous filing with the director of duplicate copies of all filings of an insurer or person in control of an insurer which are required by the Securities Act of 1933, the Securities Exchange Act of 1934, or the Investment Company Act of 1940, unless the director finds in any such case that the information relating to the insurer and any person controlling the insurer necessary to fairly disclose the relationship between them is not provided by such duplicate filings in which case he may by order after notice and hearing require additional filings.

Source: SL 1972, ch 267, § 25.
S.D. Codified Laws § 58-48-16 — SD Code / Title 58 / Chapter 48 / Section 58-48-16
Confidentiality of waiver application and materials
Status: in_force

Documents, materials, or other information in the possession of the division that are obtained by or disclosed to the director or any other person in the course of an insurance innovation waiver under this chapter are confidential by law and privileged; are not subject to open records, freedom of information, sunshine, or other related laws; are not subject to subpoena; and are not subject to discovery or admissible in evidence in any private civil action.

The director may use the documents, materials, or other information in the furtherance of any regulatory or legal action brought as a part of the director's official duties. The director may not otherwise make the documents, materials, or other information public without the prior written consent of the person, applicant, or participant to which it pertains.

This section does not apply to information about granted waivers published by the director pursuant to § 58-48-11 . Nothing in this section may be construed to modify the ability of a consumer to discover information in pursuit of a claim against a participant.

Source: SL 2021, ch 214, § 16.
S.D. Codified Laws § 58-2-3 — SD Code / Title 58 / Chapter 2 / Section 58-2-3
Qualifications of director
Status: in_force

The director must have had at least five years of practical experience in one or more of the types of insurance business subject to regulation by the director, or have had other professional and business experience reasonably adequate in character and scope to equip him to discharge the duties and fulfill the responsibilities of the office of director.

Source: SL 1966, ch 111, ch 2, § 3.
S.D. Codified Laws § 58-17-30.8 — SD Code / Title 58 / Chapter 17 / Section 58-17-30.8
Exclusion of benefits for injury while under the influence of alcohol or drugs prohibited--Exception for sickness or injury caused in commission of felony
Status: in_force

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

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

Source: SL 1997, ch 290, §§ 1, 7.
S.D. Codified Laws § 58-33-92 — SD Code / Title 58 / Chapter 33 / Section 58-33-92
Sale of unregistered business opportunity by insurance producer prohibited
Status: in_force

No insurance producer may offer or sell any business opportunity in this state unless the business opportunity is registered or exempt from registration under chapter 37-25A .

Source: SL 2001, ch 287, § 3.
S.D. Codified Laws § 58-5-41 — SD Code / Title 58 / Chapter 5 / Section 58-5-41
Voting rights of members of domestic mutual insurer
Status: in_force

The bylaws of a domestic mutual insurer shall provide that each member is entitled to one vote upon each matter coming to a vote at meetings of members and that a member shall have the right to vote in person or by his written proxy. Such proxy shall be for a reasonable specified period of time subject to revocation by a member at any time by written notice to the secretary of the company.

Source: SL 1966, ch 111, ch 16, § 16 (2) (a).
S.D. Codified Laws § 58-24-6 — SD Code / Title 58 / Chapter 24 / Section 58-24-6
Making of rates--Matters considered
Status: in_force

To determine whether rates are excessive, inadequate, or unfairly discriminatory, the director may consider:

(1) Past and prospective loss experience within this state;

(2) Conflagration and catastrophic hazards;

(3) Reasonable margin for the underwriting profit and contingencies;

(4) Dividends, savings, or unabsorbed premium deposits allowed or returned by insurers to their policyholders, members, or subscribers;

(5) Past and prospective expenses specially applicable to this state; and

(6) All other relevant factors within and outside this state.

The loss experience shall be on at least the most recent five - year period for which such experience is available. If South Dakota data are not adequate because of insufficient sample size, the director shall consider the loss experience or the expense data, or both, outside this state.

Source: SL 1966, ch 111, ch 15, § 3 (1) (b); SL 1990, ch 400, § 1.
S.D. Codified Laws § 58-14-16.17 — SD Code / Title 58 / Chapter 14 / Section 58-14-16.17
Diversification of ceding insurer's reinsurance program--Notice requirements
Status: in_force

A ceding insurer shall take steps to diversify the ceding insurer's reinsurance program. A domestic ceding insurer shall notify the director within thirty days after ceding to any single assuming insurer, or group of affiliated assuming insurers, more than twenty percent of the ceding insurer's gross written premium in the prior calendar year, or after the ceding insurer has determined that the reinsurance ceded to any single assuming insurer, or group of affiliated assuming insurers, is likely to exceed this limit. The notification shall demonstrate the exposure is safely managed by the domestic ceding insurer.

Source: SL 2017, ch 211, § 28.
S.D. Codified Laws § 58-41-57 — SD Code / Title 58 / Chapter 41 / Section 58-41-57
Payment of unreasonably high expenses as misdemeanor
Status: in_force

No health maintenance organization shall incur or pay for any expense of any nature which is unreasonably high in relation to the value of the service or goods provided. Violation of this section is a Class 2 misdemeanor.

Source: SL 1974, ch 321, §§ 41, 50; SDCL Supp, § 58-41-77 ; SL 1978, ch 359, § 2.
S.D. Codified Laws § 58-26-37 — SD Code / Title 58 / Chapter 26 / Section 58-26-37
Unearned premium reserve--Computation--Use of table
Status: in_force

The director may require that reserves required by § 58-26-36 shall be equal to the unearned portions of the gross premiums in force after deducting applicable reinsurance in solvent insurers as computed on each respective risk from the policy's date of issue. If the director does not so require, the portions of the gross premium in force, less applicable reinsurance in solvent insurers, to be held as an unearned premium reserve, shall be computed according to the following table:

Term for which policy was written

Reserve for unearned premium

1 Year or less

1/2

2 Years

1st Year

3/4

2nd Year

1/4

3 Years

1st Year

5/6

2nd Year

1/2

3rd Year

1/6

4 Years

1st Year

7/8

2nd Year

5/8

3rd Year

3/8

4th Year

1/8

5 Years

1st Year

9/10

2nd Year

7/10

3rd Year

1/2

4th Year

3/10

5th Year

1/10

Over 5 Years

Pro Rata

Source: SL 1966, ch 111, ch 5, § 5 (2).
S.D. Codified Laws § 58-27-33 — SD Code / Title 58 / Chapter 27 / Section 58-27-33
Improved real property defined
Status: in_force

For the purposes of § 58-27-32 , "improved real property" shall constitute only farm lands used for tillage, crop or pasture, and real estate on which permanent improvements, or improvements under construction or in process of construction, suitable for residence, institutional, commercial, or industrial use, are situated.

Source: SL 1966, ch 111, ch 6, § 27.
S.D. Codified Laws § 58-4A-14 — SD Code / Title 58 / Chapter 4A / Section 58-4A-14
Insurance fraud prevention unit fund--Assessment of insurers--Conditions--Failure to pay as grounds for administrative action
Status: in_force

The Division of Insurance shall assess each insurer holding a certificate of authority to transact the business of insurance in this state a fee of two hundred fifty dollars to be remitted and payable to the Division of Insurance to be deposited in a separate account, entitled the insurance fraud prevention unit fund. The Division of Insurance may not make an assessment until the fund falls below one hundred thousand dollars. If the fund falls below one hundred thousand dollars, the Division of Insurance shall notify each insurer of its payment obligation. Upon receipt of the notice of assessment from the Division of Insurance each insurer shall immediately make a two hundred fifty dollar payment to the fund. Failure of an insurer to submit full payment of the assessment to the division within twenty days of receipt of the notice of assessment, unless good cause is shown, may be grounds for administrative action to be taken by the division against an insurer.

Source: SL 1999, ch 241, § 14.
S.D. Codified Laws § 58-38-7 — SD Code / Title 58 / Chapter 38 / Section 58-38-7
Application for license--Form and contents--Documents accompanying
Status: in_force

Application for the license required by § 58-38-6 shall be made on forms to be approved by the director, containing such information as he shall deem necessary. Each application for such license shall be accompanied by copies of the following documents:

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

(2) Bylaws;

(3) Proposed contracts between the corporation and participating physicians and surgeons showing the terms under which medical and surgical service is to be furnished to subscribers;

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

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

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

Source: SL 1966, ch 111, ch 21, § 6.
S.D. Codified Laws § 58-14-16.33 — SD Code / Title 58 / Chapter 14 / Section 58-14-16.33
Effective date for reinsurers in reciprocal jurisdictions
Status: in_force

Credit may be taken under §§ 58-14-16.23 to 58-14-16.34, inclusive, only for reinsurance agreements entered into, amended, or renewed on or after July 1, 2021, and only with respect to losses incurred and reserves reported on or after the later of the date on which the assuming insurer has met all eligibility requirements pursuant to §§ 58-14-16.23 to 58-14-16.27 , inclusive, or the effective date of the new reinsurance agreement, amendment, or renewal. Nothing in this section alters or impairs a ceding insurer's right to take credit for reinsurance, to the extent that credit is not available under §§ 58-14-16.23 to 58-14-16.34, inclusive, as long as the reinsurance qualifies for credit under any other applicable provision of this chapter.

Source: SL 2021, ch 211, § 11.
S.D. Codified Laws § 58-30-142 — SD Code / Title 58 / Chapter 30 / Section 58-30-142
Definitions
Status: in_force

Terms used in §§ 58-30-141 to 58-30-195 , inclusive, and in §§ 58-30-209 to 58-30-218 , inclusive mean:

(1) "Agent of the insurer," any insurance producer who is compensated directly or indirectly by an insurer and sells, solicits, or negotiates any product of that insurer;

(2) "Agent of insured," any insurance producer or person who secures compensation from an insured or insurance customer only and receives no compensation directly or indirectly from an insurer for a transaction with that insured or insurance customer;

(3) "Business entity," a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity;

(3A) "Consultant," an agent of the insured who sells, solicits, or negotiates insurance on behalf of an insured or prospective insured or who assists an insured or prospective insured in the procurement of insurance;

(4) "Credit insurance," insurance that includes credit life, credit disability, credit property, credit unemployment, involuntary unemployment, mortgage life, mortgage guaranty, mortgage disability, guaranteed automobile protection insurance, and any other form of insurance offered in connection with an extension of credit that is limited to partially or wholly extinguishing that credit obligation that the director determines should be designated a form of limited line credit insurance;

(5) "Crop insurance," insurance providing protection against damage to crops from unfavorable weather conditions, fire or lightening, flood, hail, insect infestation, disease or other yield-reducing conditions or perils provided by the private insurance market, or that is subsidized by the Federal Crop Insurance Corporation, including Multi-Peril Crop Insurance;

(6) "Home state," the District of Columbia and any state or territory of the United States in which an insurance producer maintains the insurance producer's principal place of residence or principal place of business and is licensed to act as an insurance producer;

(7) "Limited lines producer," any person authorized by the director to sell, solicit, or negotiate limited lines insurance;

(8) "Negotiate," the act of conferring directly with or offering advice directly to a purchaser or prospective purchaser of a particular contract of insurance concerning any of the substantive benefits, terms, or conditions of the contract if the person engaged in that act either sells insurance or obtains insurance from insurers for purchasers;

(9) "Sell," to exchange a contract of insurance by any means, for money or its equivalent, on behalf of an insurance company;

(10) "Solicit," attempting to sell insurance or asking or urging a person to apply for a particular kind of insurance from a particular company;

(11) "Terminate," the cancellation of the relationship between an insurance producer and the insurer or the termination of an insurance producer's authority to transact insurance;

(12) "Travel insurance," a limited line of insurance as defined in §§ 58-30-209 to 58-30-217 , inclusive.

Source: SL 2001, ch 286, § 2; SL 2004, ch 295, § 3; SL 2010, ch 233, § 11; SL 2013, ch 255, § 1; SL 2014, ch 241, § 4.
S.D. Codified Laws § 58-26-87 — SD Code / Title 58 / Chapter 26 / Section 58-26-87
Actuarial report and workpapers to support actuarial opinion
Status: in_force

The actuarial report and underlying workpapers as required by the National Association of Insurance Commissioners annual statement instructions, as adopted by rules promulgated by the director pursuant to chapter 1-26 , shall be prepared to support each actuarial opinion.

Source: SL 2009, ch 271, § 42.
S.D. Codified Laws § 58-4-25 — SD Code / Title 58 / Chapter 4 / Section 58-4-25
Formal rules of pleading or evidence not observed at director's hearing
Status: in_force

Formal rules of pleading or evidence need not be observed at any hearing.

Source: SL 1966, ch 111, ch 2, § 24 (3).
S.D. Codified Laws § 58-6A-3 — SD Code / Title 58 / Chapter 6A / Section 58-6A-3
Information submitted to director
Status: in_force

Before offering insurance in this state, a risk retention group not chartered in this state shall submit to the director:

(1) A statement identifying the states in which the risk retention group is chartered and licensed as a liability insurance company, date of chartering, its principal place of business, and other information, including information on its membership, as the director of this state may require to verify that the risk retention group is qualified under this chapter;

(2) A copy of the group's plan of operations or a feasibility study and revisions of the plan or study submitted to its state of domicile. However, the provision relating to the submission of a plan of operation or a feasibility study does not apply with respect to any line or classification of liability insurance which was defined in the Product Liability Risk Retention Act of 1981, before October 27, 1986, and was offered before such date by any risk retention group which had been chartered and operating for not less than three years before such date;

(3) A statement of registration which designates the director as the group's agent for the purpose of receiving service of legal documents or process; and

(4) A copy of any material revision to the group's plan of operation or feasibility study within thirty days of the date of the approval of the revision by the director of the group's chartering state, or if no such approval is required, within thirty days of filing.

Source: SL 1987, ch 372, § 3; SL 2016, ch 232, § 15.
S.D. Codified Laws § 58-25-26 — SD Code / Title 58 / Chapter 25 / Section 58-25-26
Title insurer to maintain known claim reserve--Amount
Status: in_force

A title insurer shall establish and maintain a known claim reserve in an amount estimated to be sufficient to cover all unpaid losses, claims, and allocated loss adjustment expenses arising under title insurance policies, guaranteed certificates of title, guaranteed searches, and guaranteed abstracts of title and all unpaid losses, claims, and allocated loss adjustment expenses for which the title insurer may be liable and for which the title insurer has received notice by or on behalf of the insured, holder of a guarantee or escrow, or security depositor.

Source: SL 2002, ch 239, § 5.
S.D. Codified Laws § 58-33-86 — SD Code / Title 58 / Chapter 33 / Section 58-33-86
Prohibitions against a health insurer from using information pertaining to medical assistance eligibility
Status: in_force

Any insurer subject to this chapter who is engaged in the business of health insurance is prohibited from using information pertaining to medical assistance eligibility under Title XIX of the Social Security Act as amended to January 1, 1994, or any other state's equivalent medicaid program, as a factor in enrolling or underwriting any individual or in making payments for benefits to any individual or in making payments for benefits on behalf of a covered individual.

Source: SL 1994, ch 387, § 2.
S.D. Codified Laws § 58-30-158 — SD Code / Title 58 / Chapter 30 / Section 58-30-158
Authority of director to contract with nongovernmental entities for ministerial functions relating to insurance producer licensing
Status: in_force

In order to assist in the performance of the director's duties, the director may contract with nongovernmental entities, including the National Association of Insurance Commissioners (NAIC) or any affiliates or subsidiaries that the NAIC oversees to perform any ministerial functions, including the collection of fees, related to insurance producer licensing that the director and the nongovernmental entity may deem appropriate.

Source: SL 2001, ch 286, § 18.
S.D. Codified Laws § 58-1-37 — SD Code / Title 58 / Chapter 1 / Section 58-1-37
Oral communications and recordings--Electronic signatures
Status: in_force

Except as otherwise provided by law, if an oral communication or a recording of an oral communication from a party is reliably stored and reproduced by an insurer, the oral communication or recording qualifies as a notice or document delivered by electronic means for purposes of §§ 58-1-27 to 58-1-39 , inclusive. If a provision of applicable law requires a signature, notice, or document to be notarized, acknowledged, verified, or made under oath, the requirement is satisfied if the electronic signature of the person authorized to perform those acts, together with all other information required to be included by the provision, is attached to or logically associated with the signature, notice, or document.

Source: SL 2014, ch 230, § 11.
S.D. Codified Laws § 58-33-4 — SD Code / Title 58 / Chapter 33 / Section 58-33-4
Use of misleading name as misdemeanor
Status: in_force

No person who is not an insurer shall assume or use any name which deceptively infers or suggests that he is an insurer. Violation of this section is a Class 2 misdemeanor.

Source: SL 1966, ch 111, ch 13, § 24; SL 1978, ch 359, § 2.
S.D. Codified Laws § 58-17-78 — SD Code / Title 58 / Chapter 17 / Section 58-17-78
Required disclosure when offering individual health benefit plan
Status: in_force

In connection with the offering for sale of any individual health benefit plan to a person, a carrier shall make a reasonable disclosure, as part of its solicitation and sales materials, of:

(1) The extent to which premium rates for a specified person are established or adjusted based upon age and gender;

(2) The provisions of the individual health benefit plan concerning the carrier's right to change premium rates and the factors that affect changes in premium rates;

(3) The provisions relating to renewability of policies and contracts; and

(4) The provisions relating to any preexisting condition provision.

Source: SL 1996, ch 286, § 13.
S.D. Codified Laws § 58-29C-55 — SD Code / Title 58 / Chapter 29C / Section 58-29C-55
Detection and prevention of insurer insolvencies or impairments--Reports by board
Status: in_force

To aid in the detection and prevention of member insurer insolvencies or impairments,

A. It is the duty of the director:

(1) To notify the directors of all the other states, territories of the United States and the District of Columbia within thirty days following the action taken or the date the action occurs, when the director takes any of the following actions against a member insurer:

(a) Revocation of license;

(b) Suspension of license; or

(c) Makes a formal order that the member insurer restrict its premium writing, obtain additional contributions to surplus, withdraw from the state, reinsure all or any part of the member insurer's business, or increase capital, surplus, or any other account for the security of policy owners, contract owners, certificate holders, or creditors.

(2) To report to the board of directors when the director has taken any of the actions set forth in subdivision (1) or has received a report from any other director indicating that any action has been taken in another state. The report to the board of directors shall contain all significant details of the action taken or the report received from another director.

(3) To report to the board of directors when the director has reasonable cause to believe from an examination, whether completed or in process, of any member insurer that the insurer may be an impaired or insolvent insurer.

(4) To furnish to the board of directors the National Association of Insurance Commissioners Insurance Regulatory Information System (IRIS) ratios and listings of companies not included in the ratios developed by the National Association of Insurance Commissioners, and the board may use the information contained therein in carrying out the board's duties and responsibilities under this section. The report and the information contained therein shall be kept confidential by the board of directors until the report is made public by the director or other lawful authority.

B. The director may seek the advice and recommendations of the board of directors concerning any matter affecting the duties and responsibilities of the director regarding the financial condition of member insurers and companies seeking admission to transact insurance business in this state.

C. The board of directors may, upon majority vote, make reports and recommendations to the director upon any matter germane to the solvency, liquidation, rehabilitation, or conservation of any member insurer or germane to the solvency of any company seeking to do insurance business in this state. The reports and recommendations are not public documents.

D. The board of directors may, upon majority vote, notify the director of any information indicating a member insurer may be an impaired or insolvent insurer.

E. The board of directors may, upon majority vote, make recommendations to the director for the detection and prevention of member insurer insolvencies.

Source: SL 2003, ch 252, § 12; SL 2020, ch 210, § 7.
S.D. Codified Laws § 58-5A-67 — SD Code / Title 58 / Chapter 5A / Section 58-5A-67
Suspension, revocation, or refusal to renew license for violation
Status: in_force

If any person has committed a violation of this chapter which makes the continued operation of an insurer contrary to the interests of policyholders or the public, the director may, suspend, revoke, or refuse to renew the insurer's license or authority to do business in this state.

Source: SL 1992, ch 341, § 34.
S.D. Codified Laws § 58-29B-61.1 — SD Code / Title 58 / Chapter 29B / Section 58-29B-61.1
Liability of beneficiary of fraudulent transfer
Status: in_force

Any person receiving any property or benefit from the insurer which is a fraudulent transfer under § 58-29B-61 is personally liable and shall account to the liquidator concerning it.

Source: SL 1992, ch 351, § 9.
S.D. Codified Laws § 58-5-59 — SD Code / Title 58 / Chapter 5 / Section 58-5-59
Election of directors of domestic insurer--Qualifications
Status: in_force

Each director shall be elected from and by the members or stockholders of a domestic insurer. However, directors of a domestic insurer, which is wholly owned by one or more other corporations or other legal entities, need not be stockholders. A majority of the board of directors of a domestic insurer shall be citizens and actual bona fide residents of this state, but this requirement does not apply if the insurer is a member of an insurance holding company system and is controlled by a person who is not a resident of this state or whose principal place of business is outside this state. The provisions of this section do not apply to any insurer if in excess of one thousand persons are entitled to vote in its election of directors and a majority thereof reside outside of this state or if less than one percent of its shares outstanding are owned by residents of this state.

Source: SL 1966, ch 111, ch 16, § 21 (2); SL 1984, ch 324; SL 1985, ch 386; SL 2001, ch 270, § 1.
S.D. Codified Laws § 58-17B-13 — SD Code / Title 58 / Chapter 17B / Section 58-17B-13
Endorsement required--Cost-of-living adjustment not required
Status: in_force

Any long - term care policy offered for sale in this state shall offer as an endorsement an annual cost - of - living adjustment in daily benefits paid.

Nothing in this section requires an insurer that offers a long - term care policy which pays benefits on an expense - incurred basis or which is a life insurance policy with long - term care benefits as a part of the life policy or a rider to the life policy to offer a cost - of - living adjustment.

Source: SL 1989, ch 440, § 14; SL 1990, ch 398, § 3.
S.D. Codified Laws § 58-22-22 — SD Code / Title 58 / Chapter 22 / Section 58-22-22
Suspension of license--Investigation by director--Notice and charges--Failure to answer or deny charges, revocation of license
Status: in_force

If, after investigation, it shall appear to the satisfaction of the director that a bail bondsman or runner has been guilty of violating any of the laws of this state relating to bail bonds, the director shall, upon ten days' notice in writing to the bail bondsman or runner and to the insurer represented by him if a surety bondsman, accompanied by a copy of the charges of the unlawful conduct of such bail bondsman or runner, suspend the license of such bail bondsman or runner, unless on or before the expiration of the ten days the bail bondsman or runner shall make to the director answer to the charges. If, after the expiration of said ten days, and within twenty days thereafter, the bail bondsman or runner shall have failed to make answer or deny said charges the license of the bail bondsman or runner shall thereupon stand revoked.

Source: SL 1966, ch 111, ch 31, § 14.
S.D. Codified Laws § 58-37A-13 — SD Code / Title 58 / Chapter 37A / Section 58-37A-13
Reinsurance agreement--Ceding risks
Status: in_force

A domestic society may, by a reinsurance agreement, cede any individual risk to an insurer, other than another fraternal benefit society, having the power to make such reinsurance and authorized to do business in this state, or if not authorized, one which is approved by the director, but no society may reinsure substantially all of its insurance in force without the written permission of the director. It may take credit for the reserves on the ceded risks to the extent reinsured, but no credit may be allowed as an admitted asset or as a deduction from liability, to a ceding society for reinsurance made, ceded, renewed, or otherwise becoming effective after January 1, 1991, unless the reinsurance is payable by the assuming insurer on the basis of the liability of the ceding society under the contract or contracts reinsured without diminution because of the insolvency of the ceding society.

Notwithstanding this limitation, a society may reinsure the risks of another society in a consolidation or merger approved by the director under § 58-37A-14 .

Source: SL 1990, ch 410, § 13.
S.D. Codified Laws § 58-15-26 — SD Code / Title 58 / Chapter 15 / Section 58-15-26
Payment of claims for benefits--Private placement policies
Status: in_force

There shall be a provision that when a policy becomes a claim by the death of the insured, settlement shall be made upon receipt of due proof of death and, at the insurer's option, surrender of the policy or proof of the interest of the claimant, or both. If an insurer shall specify a particular period prior to the expiration of which settlement shall be made, such period may not exceed two months from the receipt of such proof. For any private placement policy, settlement may be made in cash or, if allowed under the policy, by distributing assets of the separate account to the claimant with the consent of the policyholder or the policyholder's designee, as long as the fair market value of the assets are independently verified at the time of disbursement by the insurer. In any private placement policy, the obligation of the insurer to settle that portion of the policy attributable to separate account assets is subject to the liquidity of such assets, and the insurer shall settle such portion of the policy as and when such assets can be, by their respective terms, either converted to cash, which may be later than two months after the insurer's receipt of due proof of death, or otherwise dispersible by the insurer.

Source: SL 1966, ch 111, ch 23, § 14; SL 2001, ch 54, § 4; SL 2003, ch 245, § 4; SL 2006, ch 252, § 5; SL 2009, ch 259, § 4; SL 2020, ch 207, § 1.
S.D. Codified Laws § 58-30-74.1 — SD Code / Title 58 / Chapter 30 / Section 58-30-74.1
Continuing appointments--Annual renewal fee
Status: in_force

Any insurance producer's appointment not terminated prior to April first of each year is subject to an annual renewal fee as stated in § 58-2-29 . The appointing insurer shall pay the renewal fee.

Source: SL 1996, ch 300, § 4; SL 2001, ch 286, § 171.
S.D. Codified Laws § 58-33A-2 — SD Code / Title 58 / Chapter 33A / Section 58-33A-2
Purpose of chapter
Status: in_force

The purpose of this chapter is to establish guidelines and permissible and impermissible standards of conduct in the solicitation of and advertising of life and health insurance in a manner which:

(1) Prevents unfair, deceptive, and misleading advertising;

(2) Is conducive to accurate presentation and description to the insurance - buying public through the advertising media and material used by insurance producers and companies;

(3) Provides for the full disclosure of the benefits, limitations, and exclusions of policies sold;

(4) Sets forth minimum standards and guidelines to assure a full and truthful disclosure to the public of all material and relevant information in the advertising of life insurance policies and annuity contracts;

(5) Requires insurers to deliver to purchasers of life insurance information which will improve the buyer's ability to select the most appropriate plan of life insurance for the buyer's needs;

(6) Improves the buyer's understanding of the basic features of the policy which has been purchased or which is under consideration;

(7) Improves the ability of the buyer to evaluate the relative costs of similar plans of life insurance;

(8) Provides reasonable standardization and simplification of terms and coverages of health insurance policies and subscriber contracts of nonprofit hospital, medical, and dental service associations to facilitate public understanding and comparison;

(9) Eliminates provisions contained in health insurance policies and subscriber contracts of nonprofit hospital, medical, and dental service associations which may be misleading or unreasonably confusing in connection either with the purchase of such coverages or with the settlement of claims; and

(10) Provides for full disclosure in the sale of life or health coverages.

Source: SL 1999, ch 240, § 2; SL 2000, ch 251, § 3; SL 2001, ch 286, § 211.
S.D. Codified Laws § 58-6A-3.3 — SD Code / Title 58 / Chapter 6A / Section 58-6A-3.3
Material service provider contracts
Status: in_force

The term of any material service provider contract with the risk retention group may not exceed five years. Any material service provider contract, or its renewal, requires the approval of the majority of the risk retention group's independent directors. The risk retention group's board of directors shall have right to terminate any service provider, audit, or actuarial contracts at any time for cause after providing adequate notice as defined in the contract. The service provider contract is deemed material if the amount to be paid for the contract is greater than or equal to five percent of the risk retention group's annual gross written premium or two percent of its surplus, whichever is greater.

Source: SL 2016, ch 232, § 5.
S.D. Codified Laws § 58-11-45 — SD Code / Title 58 / Chapter 11 / Section 58-11-45
Cancellation and nonrenewal of automobile policy or coverage--Definition of terms
Status: in_force

Terms used in §§ 58-11-46 to 58-11-54 , inclusive, mean:

(1) "Automobile collision coverage," includes all coverage of loss or damage to an automobile insured under the policy resulting from collision or upset;

(2) "Automobile liability coverage," includes only coverage of bodily injury and property damage liability, medical payments, and uninsured motorists' coverage;

(3) "Automobile physical damage coverage," includes all coverage of loss or damage to an automobile insured under the policy except loss or damage resulting from collision or upset;

(4) "Nonpayment of premium," failure of the named insured to discharge when due any of the insured's obligations in connection with the payment of premiums on a policy, or any installment of the premium, whether the premium is payable directly to the insurer or its insurance producer or indirectly under any premium finance plan or extension of credit;

(5) "Policy," an automobile liability, automobile physical damage, or automobile collision policy, or any combination thereof, delivered or issued for delivery in this state, insuring a single individual or husband and wife resident of the same household, as named insured, and under which the insured vehicles therein designated are of the following types only:

(a) A motor vehicle of the private passenger or station wagon type that is not used as a public or livery conveyance for passengers, nor rented to others; or

(b) Any other four - wheel motor vehicle with a load capacity of fifteen hundred pounds or less which is not used in the occupation, profession, or business of the insured;

However, §§ 58-11-46 to 58-11-54 , inclusive, do not apply (i) to any policy issued under an automobile assigned risk plan, or (ii) to any policy insuring more than four automobiles, or (iii) to any policy covering garage, automobile sales agency, repair shop, service station, or public parking place operation hazards;

(6) "Renewal" or "to renew," the issuance and delivery by an insurer of a policy replacing at the end of the policy period a policy previously issued and delivered by the same insurer, or the issuance and delivery of a certificate or notice extending the term of a policy beyond its policy period or term. However, any policy with a policy period or term of less than six months shall for the purpose of §§ 58-11-46 to 58-11-54 , inclusive, be considered as if written for a policy period or term of six months. Moreover, any policy written for a term longer than one year or any policy with no fixed expiration date, shall for the purpose of §§ 58-11-46 to 58-11-54 , inclusive, be considered as if written for successive policy periods or terms of one year, and such policy may be terminated at the expiration of any annual period upon giving sixty days' notice of cancellation prior to such anniversary date, and the cancellation is not subject to any other provisions of §§ 58-11-46 to 58-11-54 , inclusive.

Source: SL 1968, ch 138, § 1; SL 1974, ch 311, § 1; SL 2001, ch 286, § 103.
S.D. Codified Laws § 58-40-10.5 — SD Code / Title 58 / Chapter 40 / Section 58-40-10.5
Conversion privileges of insured's spouse upon divorce
Status: in_force

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

Source: SL 1980, ch 354.
S.D. Codified Laws § 58-27-45 — SD Code / Title 58 / Chapter 27 / Section 58-27-45
Loan on or investment in real estate mortgage on security of chattel mortgage--Limited amount
Status: in_force

In connection with a mortgage loan on the security of real estate designed and used primarily for residential purposes only, which mortgage loan was acquired pursuant to §§ 58-27-32 to 58-27-40 , inclusive, an insurer may lend or invest an amount not exceeding twenty percent of the amount loaned on or invested in such real estate mortgage on the security of a chattel mortgage to be amortized by regular periodic payments within a term of not more than five years, and representing a first and prior lien, except for taxes not then delinquent, on personal property constituting durable equipment owned by the mortgagor and kept and used in the mortgaged premises.

Source: SL 1966, ch 111, ch 6, § 29 (1).
S.D. Codified Laws § 58-40-41 — SD Code / Title 58 / Chapter 40 / Section 58-40-41
Contracts to provide coverage for prostate cancer screening
Status: in_force

Every service or indemnity - type contract issued by a nonprofit hospital service plan or organization that covers a male and that is delivered, issued for delivery, or renewed in this state, except for policies that provide coverage for specified disease or other limited benefit coverage, shall provide the following coverage for diagnostic screening for prostate cancer:

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

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

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

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

Source: SL 2001, ch 277, § 5.
S.D. Codified Laws § 58-17D-4 — SD Code / Title 58 / Chapter 17D / Section 58-17D-4
Utilization review to be administered by qualified professional
Status: in_force

Any utilization review pursuant to this chapter shall be administered by a qualified licensed health care professional. Any adverse determination shall be evaluated by an appropriately licensed and clinically qualified health care professional. Any utilization review evaluation shall use generally accepted standards for treatment of the illness, injury, or condition reviewed. Any utilization review opinion shall be signed by the professional who performed the review.

Source: SL 2002, ch 231, § 4.
S.D. Codified Laws § 58-17-2 — SD Code / Title 58 / Chapter 17 / Section 58-17-2
Persons covered by policy
Status: in_force

A policy of health insurance shall purport to insure only one person, except that a policy may insure, originally or by subsequent amendment, upon the application of an adult member of a family, who shall be deemed the policyholder, any two or more eligible members of that family, including husband, wife, dependent children, or any children under a specified age which shall not exceed nineteen years and any other person dependent upon the policyholder or any other person related to and resident in the household of the insured.

Source: SL 1966, ch 111, ch 25, § 2 (3).
S.D. Codified Laws § 58-34-39 — SD Code / Title 58 / Chapter 34 / Section 58-34-39
Computation of amounts of assessments--Ratio of deficiency to premiums earned
Status: in_force

Each subscriber's share of a deficiency for which an assessment is made, but not exceeding in any event his aggregate contingent liability as provided by this chapter, shall be computed by applying to the premium earned on the subscriber's policy or policies during the period to be covered by the assessment, the ratio of the total deficiency to the total premiums earned during such period upon all policies subject to the assessment.

Source: SL 1966, ch 111, ch 19, § 23 (2).
S.D. Codified Laws § 58-41-114 — SD Code / Title 58 / Chapter 41 / Section 58-41-114
Notice to enrollees--Disclosures
Status: in_force

The health maintenance organization shall provide notice to enrollees regarding the coverage required by § 58-41-112 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 enrollees in the next mailing to enrollees, in the yearly informational packet sent to enrollees, or by January 1, 1997, whichever is earliest.

Source: SL 1996, ch 292, § 18.
S.D. Codified Laws § 58-29B-69 — SD Code / Title 58 / Chapter 29B / Section 58-29B-69
When transfer of property other than real property deemed made or suffered
Status: in_force

For purposes of §§ 58-29B-61 and 58-29B-66 , transfer of property other than real property shall be deemed to be made or suffered when it becomes so far perfected that no subsequent lien obtainable by legal or equitable proceedings on a simple contract could become superior to the rights of the transferee.

Source: SL 1989, ch 436, § 69.
S.D. Codified Laws § 58-41-91 — SD Code / Title 58 / Chapter 41 / Section 58-41-91
Judicial review
Status: in_force

The action of the director is subject to the court of primary jurisdiction for claims of the nature and magnitude described. The court may, in disposing of the issue before it, modify, affirm, or reverse the order of the director in whole or in part.

Source: SL 1974, ch 321, § 39 (3); SL 2013, ch 256, § 34.
S.D. Codified Laws § 58-27-2 — SD Code / Title 58 / Chapter 27 / Section 58-27-2
Eligible investments by insurers--Violation as misdemeanor
Status: in_force

Insurers shall invest in or lend their funds on the security of, and shall hold as invested assets, only eligible investments as prescribed in this chapter. Violation of this section is a Class 2 misdemeanor.

Source: SL 1966, ch 111, ch 6, § 2 (1); SL 1978, ch 359, § 2.
S.D. Codified Laws § 58-29D-20 — SD Code / Title 58 / Chapter 29D / Section 58-29D-20
Delivery of written communications from insurer
Status: in_force

Any policies, certificates, booklets, termination notices, or other written communications delivered by the insurer to the administrator for delivery to insured parties or covered individuals shall be delivered by the administrator promptly after receipt of instructions from the insurer to deliver them.

Source: SL 1992, ch 352, § 20.
S.D. Codified Laws § 58-18-60 — SD Code / Title 58 / Chapter 18 / Section 58-18-60
Reasonable participation requirements for group members of purchasing organizations
Status: in_force

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

Source: SL 1994, ch 382, § 9.
S.D. Codified Laws § 58-17-171 — SD Code / Title 58 / Chapter 17 / Section 58-17-171
Payment for dental services--Credit card requirement prohibited
Status: in_force

No plan of insurance insuring dental care services may contain restrictions on methods of payment to the dentist in which the only acceptable payment method is a credit card payment.

Source: SL 2022, ch 182, § 1.
S.D. Codified Laws § 58-34-31 — SD Code / Title 58 / Chapter 34 / Section 58-34-31
Modification of subscribers' agreement or power of attorney
Status: in_force

Modifications of the terms of the subscribers' agreement or of the power of attorney of a domestic reciprocal insurer shall be made jointly by the attorney and the subscribers' advisory committee. No such modification shall be effective until approved by the director.

Source: SL 1966, ch 111, ch 19, § 11.
S.D. Codified Laws § 58-9-19 — SD Code / Title 58 / Chapter 9 / Section 58-9-19
Casualty insurance including leakage and fire extinguishing equipment insurance
Status: in_force

"Casualty insurance" includes leakage and fire extinguishing equipment insurance, insurance against loss or damage to any property or interest caused by the breakage or leakage of sprinklers, hoses, pumps, and other fire extinguishing equipment or apparatus, water pipes or containers, or by water entering through leaks or openings in buildings, and insurance against loss or damage to such sprinklers, hoses, pumps, and other fire extinguishing equipment or apparatus.

Source: SL 1966, ch 111, ch 4, § 6 (1) (i).
S.D. Codified Laws § 58-29B-29 — SD Code / Title 58 / Chapter 29B / Section 58-29B-29
Notice to persons not present at hearing--Effect on previously issued order
Status: in_force

If, at any time after the issuance of an order under § 58-29B-25 , it appears to the court that any person whose interest is or will be substantially affected by the order did not appear at the hearing and has not been served, the court may order that notice be given. An order that notice be given does not stay the effect of any order previously issued by the court.

Source: SL 1989, ch 436, § 29.
S.D. Codified Laws § 58-5A-88 — SD Code / Title 58 / Chapter 5A / Section 58-5A-88
One year period to comply with requirements following loss of qualification for exemption
Status: in_force

If an insurer that qualifies for an exemption subsequently no longer qualifies for that exemption due to changes in premium as reflected in the insurer's most recent annual statement or in the most recent annual statements of the insurers within the insurance group of which the insurer is a member, the insurer shall have one year following the year the threshold is exceeded to comply with the requirements of §§ 58-5A-81 to 58-5A-93 , inclusive.

Source: SL 2017, ch 210, § 9.
S.D. Codified Laws § 58-17H-31 — SD Code / Title 58 / Chapter 17H / Section 58-17H-31
Calculation of time period for determination for prospective and retrospective reviews
Status: in_force

For purposes of calculating the time periods within which a determination is required to be made for prospective and retrospective reviews, the time period within which the determination is required to be made begins on the date the request is received by the health carrier in accordance with the health carrier's procedures established pursuant to § 58-17H-16 . If the time period for making the determination for a prospective or retrospective review is extended due to the covered person or, if applicable, the covered person's authorized representative's failure to submit the information necessary to make the determination, the time period for making the determination shall be tolled from the date on which the health carrier sends the notification of the extension to the covered person or, if applicable, the covered person's authorized representative, until the earlier of: the date on which the covered person or, if applicable, the covered person's authorized representative, responds to the request for additional information or the date on which the specified information was to have been submitted. If the covered person or the covered person's authorized representative fails to submit the information before the end of the period of the extension, as specified in §§ 58-17H-28 and 58-17H-30 , the health carrier may deny the certification of the requested benefit.

Source: SL 2011, ch 219, § 56.
S.D. Codified Laws § 58-15-102 — SD Code / Title 58 / Chapter 15 / Section 58-15-102
Disclosure of information to assist in search
Status: in_force

An insurer may disclose the minimum necessary personal information about an insured or beneficiary to a person to whom the insurer reasonably believes may be able to assist the insurer to locate the beneficiary or a person otherwise entitled to payment of the proceeds.

Source: SL 2018, ch 280, § 9.
S.D. Codified Laws § 58-30-186 — SD Code / Title 58 / Chapter 30 / Section 58-30-186
Application of common law to action regarding insurance producer's termination
Status: in_force

The provisions of §§ 58-30-184 and 58-30-185 do not abrogate or modify any existing statutory or common law privileges or immunities.

Source: SL 2001, ch 286, § 46.
S.D. Codified Laws § 58-14-5 — SD Code / Title 58 / Chapter 14 / Section 58-14-5
Reinsurance contracts filed by ceding insurer--Cancellation or material change, duty to inform director
Status: in_force

A ceding insurer shall file copies of all reinsurance contracts with the director and shall promptly inform the director in writing of the cancellation or any other change of any of its reinsurance treaties or arrangements.

Source: SL 1966, ch 111, ch 4, § 10 (4); SL 1992, ch 344, § 16.
S.D. Codified Laws § 58-5A-41.3 — SD Code / Title 58 / Chapter 5A / Section 58-5A-41.3
Agreements regarding sharing of confidential information
Status: in_force

The director must enter into written agreements with the NAIC and any third-party consultant designated by the director governing the sharing and use of information provided pursuant to this chapter that:

(1) Specify procedures and protocols regarding the confidentiality and security of information shared with the NAIC or a third-party consultant designated by the director pursuant to this chapter, including procedures and protocols for sharing by the NAIC with any other state, federal, or international regulator. The agreement must provide that the recipient agrees in writing to maintain the confidentiality and privileged status of the documents, materials, or other information and has verified in writing the legal authority to maintain the confidentiality;

(2) Specify that ownership of information shared with the NAIC or a third-party consultant pursuant to this chapter remains with the director and that the NAIC or a third-party consultant, as designated by the director, use of the information is subject to the direction of the director;

(3) Prohibit the NAIC or a third-party consultant designated by the director from storing the information shared pursuant to this chapter in a permanent database after the underlying analysis is completed, except as for those materials reported pursuant to § 58-5A-94 ;

(4) Require prompt notice to be given to an insurer whose confidential information is in the possession of the NAIC or a third-party consultant designated by the director pursuant to this chapter and is subject to a request or subpoena issued to the NAIC for disclosure or production;

(5) Require the NAIC or a third-party consultant designated by the director to consent to intervention by an insurer in any judicial or administrative action in which the NAIC or a third-party consultant designated by the director may be required to disclose confidential information about the insurer shared with the NAIC or a third-party consultant designated by the director pursuant to this chapter; and

(6) If applicable, provide the identity of the consultant to applicable insurers for documents, materials, or information reporting pursuant to § 58-5A-97 , in the case of an agreement involving a third-party consultant.

Source: SL 2015, ch 246, § 17; SL 2024, ch 201, § 5.
S.D. Codified Laws § 58-30-144 — SD Code / Title 58 / Chapter 30 / Section 58-30-144
License not required under certain circumstances
Status: in_force

Nothing in §§ 58-30-141 to 58-30-195 , inclusive, requires an insurer to obtain an insurance producer license. In this section, the term, insurer, does not include an insurer's officers, directors, employees, subsidiaries, or affiliates.

A license as an insurance producer is not required of the following:

(1) The officer, director, or employee of an insurer or of an insurance producer, if the officer, director, or employee does not receive any commission on policies written or sold to insure risks residing, located, or to be performed in this state and:

(a) The officer's, director's, or employee's activities are executive, administrative, managerial, clerical, or a combination of these, and are only indirectly related to the sale, solicitation, or negotiation of insurance;

(b) The officer's, director's, or employee's function relates to underwriting, loss control, inspection or the processing, adjusting, investigating, or settling of a claim on a contract of insurance; or

(c) The officer, director, or employee is acting in the capacity of a special agent or agency supervisor assisting insurance producers, if the person's activities are limited to providing technical advice and assistance to licensed insurance producers and do not include the sale, solicitation, or negotiation of insurance;

(2) Any person who secures and furnishes information for the purpose of group life insurance, group property and casualty insurance, group annuities, group or blanket accident and health insurance; or for the purpose of enrolling individuals under plans, issuing certificates under plans, or otherwise assisting in administering plans; or who performs administrative services related to mass marketed property and casualty insurance, if no commission is paid to the person for the service;

(3) Any employer or association or its officers, directors, employees, or the trustees of an employee trust plan, to the extent that the employers, officers, employees, director, or trustees are engaged in the administration or operation of a program of employee benefits for the employer's or association's own employees or the employees of its subsidiaries or affiliates, which program involves the use of insurance issued by an insurer, as long as the employers, associations, officers, directors, employees, or trustees are not in any manner compensated, directly or indirectly, by the company issuing the contracts;

(4) Any employee of an insurer or an organization employed by an insurer who is engaging in the inspection, rating, or classification of risks, or in the supervision of the training of insurance producers and who is not individually engaged in the sale, solicitation, or negotiation of insurance;

(5) Any person whose activities in this state are limited to advertising without the intent to solicit insurance in this state through communications in printed publications or other forms of electronic mass media whose distribution is not limited to residents of the state, if the person does not sell, solicit, or negotiate insurance that would insure risks residing, located, or to be performed in this state;

(6) Any person who is not a resident of this state who sells, solicits, or negotiates a contract of insurance for commercial property and casualty risks to an insured with risks located in more than one state insured under that contract, if that person is otherwise licensed as an insurance producer to sell, solicit, or negotiate that insurance in the state where the insured maintains its principal place of business and the contract of insurance insures risks located in that state;

(7) Any salaried full-time employee who counsels or advises his or her employer relative to the insurance interests of the employer or of the subsidiaries or business affiliates of the employer, if the employee does not sell or solicit insurance or receive a commission;

(8) Any person engaged in the business of fur storage who delivers to customers certificates or policies providing insurance on specified furs, garments trimmed with fur, or other garments accepted for storage and who collects the premium therefor, if the person receives no commissions for such service; or

(9) Any person engaged in the sale or issuance by motor vehicle dealers licensed under chapter 32-6B of motor vehicle service contracts, extended service agreements, mechanical breakdown insurance, or insurance of the mechanical condition, or freedom from defective or worn parts or equipment of motor vehicles.

Source: SL 2001, ch 286, § 4; SL 2010, ch 241, § 1.
S.D. Codified Laws § 58-5A-56 — SD Code / Title 58 / Chapter 5A / Section 58-5A-56
Notification to director of certain transactions required
Status: in_force

A domestic insurer and any person in its insurance holding company system may not enter into transactions, including any amendment or modification of an affiliate agreement previously filed pursuant to this chapter, that is subject to any materiality standard provided in this section, unless the director has received a written notification from the insurer of the transaction at least thirty days prior to its effective date. The director has thirty days from receipt to approve or disapprove the transaction. If the director takes no action within the thirty days, the transaction is deemed approved. The director may allow less than thirty days notification if the insurer can show cause why a lesser time is necessary. Transactions of which the insurer needs to notify the director are:

(1) Sales, purchases, exchanges, loans, or extensions of credit, guarantees, or investments provided the transactions are equal to or exceed as of December thirty-first next preceding:

(a) With respect to nonlife insurers, the lesser of three percent of the insurer's admitted assets or twenty-five percent of surplus as regards policyholders; or

(b) With respect to life insurers, three percent of the insurer's admitted assets;

(2) Loans or extensions of credit by the insurer to any person that is not an affiliate, with the agreement or that the proceeds of the transactions, in whole or in substantial part, are to be used to make loans or extensions of credit to, to purchase assets of, or to make investments in any affiliate of the insurer provided the transactions are equal to or exceed as of December thirty-first next preceding:

(a) With respect to nonlife insurers, the lesser of three percent of the insurer's admitted assets or twenty-five percent of surplus as regards policyholders; or

(b) With respect to life insurers, three percent of the insurer's admitted assets;

(3) Reinsurance agreements or modifications to the agreements, including:

(a) Any reinsurance pooling agreement; and

(b) Any agreement in which the reinsurance premium or a change in the insurer's liabilities, or the projected reinsurance premium or a change in the insurer's liabilities in any of the next three years, equal or exceeds five percent of the insurer's surplus as regards policyholders as of December thirty-first next preceding, including any agreement that requires as consideration the transfer of assets from an insurer to a nonaffiliate, if an agreement or understanding exists between the insurer and nonaffiliate that any portion of the assets will be transferred to one or more affiliates of the insurer;

(4) All management agreements, service contracts, tax allocation agreements, and all cost-sharing arrangements; and

(5) Any transactions which the director determines may adversely affect the interests of the insurer's policyholders.

Source: SL 1992, ch 341, § 21; SL 2015, ch 246, § 18.
S.D. Codified Laws § 58-41-32 — SD Code / Title 58 / Chapter 41 / Section 58-41-32
Use of words descriptive of insurance, casualty, or surety business as misdemeanor--Exception
Status: in_force

No health maintenance organization or representative thereof may use in its name, contracts, or literature any of the words "insurance," "casualty," "surety," "mutual," or any other words which are descriptive of the insurance, casualty, or surety business or deceptively similar to the name or description of any insurance or surety corporation doing business in this state; provided, however, that when a health maintenance organization has contracted with an insurance company for any coverage permitted by this chapter, it may so state. Violation of this section is a Class 2 misdemeanor.

Source: SL 1974, ch 321, §§ 32 (3), 50; SDCL Supp, § 58-41-77 ; SL 1978, ch 359, § 2.
S.D. Codified Laws § 58-19-16 — SD Code / Title 58 / Chapter 19 / Section 58-19-16
Creditor requiring debtor to pay for insurance--Notice to debtor--Credit to account
Status: in_force

If a creditor requires a debtor to make any payment for credit life insurance or credit health insurance and an individual policy or group certificate of insurance is not issued, the creditor shall immediately give written notice to such debtor and shall promptly make an appropriate credit to the account.

Source: SL 1966, ch 111, ch 27, § 8 (3).
S.D. Codified Laws § 58-29B-16 — SD Code / Title 58 / Chapter 29B / Section 58-29B-16
Insurer to comply with director's requirements--Time period--Failure to comply
Status: in_force

Any insurer subject to an order under §§ 58-29B-13.1 and 58-29B-14 shall comply with the lawful requirements of the director and, if placed under supervision, shall have sixty days from the date the supervision order is served within which to comply with the requirements of the director. In the event of such insurer's failure to comply within the proper time, the director may institute proceedings under § 58-29B-31 or 58-29B-41 to have a rehabilitator or liquidator appointed, or extend the period of supervision.

Source: SL 1989, ch 436, § 16.
S.D. Codified Laws § 58-37A-15 — SD Code / Title 58 / Chapter 37A / Section 58-37A-15
Conversion into life insurance company--Plan--Approval
Status: in_force

Any fraternal benefit society incorporated under the laws of the state may reorganize and convert itself into a mutual life insurance company or into a stock life insurance company by compliance with all the requirements of the insurance laws of this state for mutual life insurance companies. A plan of conversion shall be prepared in writing by the board of directors setting forth the terms and conditions of conversion. The affirmative vote of two - thirds of all members of the supreme governing body at a regular or special meeting is necessary for the approval of the plan. No conversion may take effect unless approved by the director who may approve the plan if the director finds that the proposed change conforms to the requirements of law and is not prejudicial to the certificate holders of the society.

Source: SL 1990, ch 410, § 15.
S.D. Codified Laws § 58-17-30.9 — SD Code / Title 58 / Chapter 17 / Section 58-17-30.9
Notice that dependent is no longer eligible for coverage--Premium adjustment
Status: in_force

For any insurer that chooses to automatically cover any newborn or newly adopted child as a dependent without requiring the notice in § 58-17-30.4 and does not collect or track the demographic information on the dependent child, the insurer shall take reasonable steps to provide adequate notice of the insured's responsibility to advise the insurer when there is no longer any child eligible for dependent coverage. An insurer is considered to have taken reasonable steps if prominent disclosure of this responsibility is included in the policy or certificate, subscriber contract, evidence of coverage, or employee handbook if such are provided to all insureds and also provided to prospective insureds at the time of application for coverage. Upon receipt of a notice that a dependent is no longer eligible, the insurer shall adjust the coverage accordingly and, if applicable, return to the insured any unearned premium. This section applies to any policy or certificate subject to the provisions of chapters 58-17 and 58-18 .

Source: SL 2013, ch 247, § 1.
S.D. Codified Laws § 58-43-1 — SD Code / Title 58 / Chapter 43 / Section 58-43-1
Definition of terms
Status: in_force

Terms used in this chapter mean:

(1) "Accountant," an independent certified public accountant or accounting firm in good standing with the American Institute of Certified Public Accountants and in all states in which the accountant or firm is licensed to practice. For Canadian and British companies, an accountant is a Canadian-chartered or British-chartered accountant;

(2) "Affiliate of a person" or "Affiliated with a specific person," a person that directly or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the person specified;

(3) "Audit committee," a committee established by the board of directors of an entity for the purpose of overseeing the accounting and financial reporting processes of an insurer or group of insurers, the internal audit function of an insurer or a group of insurers, if applicable, and external audits of financial statements of the insurer or group of insurers. The audit committee of any entity that controls a group of insurers may be deemed to be the audit committee for one or more of these controlled insurers solely for the purposes of this chapter at the election of the controlling person;

(4) "Indemnification," an agreement of indemnity or a release from liability where the intent or effect is to shift or limit in any manner the potential liability of the person or firm for failure to adhere to applicable auditing or professional standards, whether or not resulting in part from knowing of other misrepresentations made by the insurer or the insurer's representatives;

(5) "Insurer," an authorized insurer as defined in subdivision 58-1-2(2);

(6) "Group of insurers," those insurers included in the reporting requirements of chapter 58-5A , or a set of insurers as identified by management, for the purpose of assessing the effectiveness of internal control over financial reporting;

(7) "Internal audit function," any person who provides independent, objective, and reasonable assurance designed to add value and improve an organization's operations and accomplish the organization's objectives by using a systematic, disciplined approach to evaluate and improve the effectiveness of each risk management, control, and governance process;

(8) "Internal control over financial reporting," a process effected by an entity's board of directors, management, and other personnel designed to provide reasonable assurance regarding the reliability of the financial statements and includes those policies and procedures that:

(a) Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of assets;

(b) Provide reasonable assurance that transactions are recorded as necessary to permit preparation of the financial statements and that receipts and expenditures are being made only in accordance with authorizations of management and directors; and

(c) Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of assets that could have a material effect on the financial statements;

(9) "SEC," the United States Securities and Exchange Commission;

(10) "Section 404," Section 404 of the Sarbanes-Oxley Act of 2002 in effect as of January 1, 2018;

(11) "Section 404 report," management's report on internal control over financial reporting as defined by the SEC and the related attestation report of the independent certified public accountant;

(12) "SOX compliant entity," an entity that either is required to be compliant with, or voluntarily is compliant with, all of the following provisions of the Sarbanes-Oxley Act of 2002 in effect as of January 1, 2018:

(a) The preapproval requirements of Section 201 (Section 10A(i) of the Securities Exchange Act of 1934);

(b) The audit committee independence requirements of Section 301 (Section 10A(m)(3) of the Securities Exchange Act of 1934); and

(c) The internal control over financial reporting requirements of Section 404 (Item 308 of SEC Regulation S-K).

Source: SL 1992, ch 357, § 1; SL 2009, ch 271, § 1; SL 2018, ch 283, § 1.
S.D. Codified Laws § 58-33-74 — SD Code / Title 58 / Chapter 33 / Section 58-33-74
Gifts for advertising or promotional programs
Status: in_force

Nothing in this chapter prohibits a licensed insurer or its officers or employees or an insurance producer from giving to insureds, prospective insureds, or others for advertising purposes or promotional programs, any article of merchandise having an invoice value of not more than one hundred dollars.

Source: SL 1992, ch 355; SL 2001, ch 286, § 210; SL 2019, ch 215, § 1.
S.D. Codified Laws § 58-33-132 — SD Code / Title 58 / Chapter 33 / Section 58-33-132
Construction with statutes regarding rebates, discounts, and special advantages
Status: in_force

Nothing in § 58-33-14 or 58-33-24 may be construed to prohibit the offering of an employer insurance assistance program by an insurance agent or an insurer to an employer if the employer insurance assistance program complies with §§ 58-33-133 and 58-33-134 .

Source: SL 2009, ch 270, § 2.
S.D. Codified Laws § 58-5A-3 — SD Code / Title 58 / Chapter 5A / Section 58-5A-3
Acquisition of control of or merger with domestic insurer--Information statement required--Approval by director required--Violation as misdemeanor
Status: in_force

No person other than the issuer may make a tender offer for or a request or invitation for tenders of, or enter into any agreement to exchange securities for, seek to acquire, or acquire, in the open market or otherwise, any voting security of a domestic insurer if, after the consummation thereof, such person would, directly or indirectly (or by conversion or by exercise of any right to acquire) be in control of such insurer, and no person may enter into an agreement to merge with or otherwise to acquire control of a domestic insurer unless, at the time any such offer, request, or invitation is made or any such agreement is entered into, or prior to the acquisition of such securities if no offer or agreement is involved, such person has filed with the director and has sent to such insurer, and such insurer has sent to its shareholders, a statement containing the information required by § 58-5A-4 and such offer, request, invitation, agreement, or acquisition has been approved by the director in the manner hereinafter prescribed.

A violation of this section is a Class 2 misdemeanor.

Source: SL 1972, ch 267, § 2; SL 1990, ch 158, § 20.
S.D. Codified Laws § 58-30-112 — SD Code / Title 58 / Chapter 30 / Section 58-30-112
Licenses are property of South Dakota--Delivery to director on termination
Status: in_force

All licenses, although issued and delivered as to the licensee insurance producer or surplus lines broker, shall, at all times, be the property of the State of South Dakota. Upon any expiration, termination, suspension, or revocation of the license, the licensee or other person having possession or custody of the license shall forthwith deliver it to the director either by personal delivery or by mail.

Source: SL 1966, ch 111, ch 9, § 35 (1); SL 2001, ch 286, § 184.
S.D. Codified Laws § 58-17E-21 — SD Code / Title 58 / Chapter 17E / Section 58-17E-21
Deposit in lieu of surety bond
Status: in_force

In lieu of the bond required by § 58-17E-20 , a registered discount medical plan organization may deposit and maintain deposited with the director, or at the discretion of the director, with any organization or trustee acceptable to the director through which a custodial or controlled account is utilized, cash, securities, or any combination of these or other measures that are acceptable to the director which at all times have a market value of not less than thirty-five thousand dollars. All income from the deposit is an asset of the discount medical plan organization.

Source: SL 2006, ch 257, § 21.
S.D. Codified Laws § 58-5-69 — SD Code / Title 58 / Chapter 5 / Section 58-5-69
Statement of ownership of insurance company filed with director--Change of ownership, time for statement
Status: in_force

Every person who is directly or indirectly the beneficial owner of more than ten percent of any class of any equity security of a domestic stock insurance company, or who is a director or an officer of such company, shall file in the office of the director of the Division of Insurance within ten days after he becomes such beneficial owner, director, or officer, a statement, in such form as the director may prescribe, of the amount of all equity securities of such company of which he is the beneficial owner. If there has been a change in ownership during any month, such person shall file within ten days after the end of such month in the office of the director a statement, in such form as the director may prescribe, indicating his ownership at the close of the calendar month and such changes in his ownership as have occurred during such calendar month.

Source: SL 1966, ch 111, ch 16, § 27 (1).
S.D. Codified Laws § 58-29B-109 — SD Code / Title 58 / Chapter 29B / Section 58-29B-109
Liquidator may request or otherwise obtain additional information or evidence
Status: in_force

At any time the liquidator may request the claimant to present information or evidence supplementary to that required under § 58-29B-107 , and may take testimony under oath, require production of affidavits or depositions, or otherwise obtain additional information or evidence.

Source: SL 1989, ch 436, § 109.
S.D. Codified Laws § 58-5-101 — SD Code / Title 58 / Chapter 5 / Section 58-5-101
Advertising through publications and broadcasts originating outside reciprocating state not prohibited
Status: in_force

Section 58-5-100 shall not prohibit advertising through publication and radio, television, and other broadcasts originating outside such reciprocating state, provided such advertising is not specifically directed to residents of such reciprocating state.

Source: SL 1966, ch 111, ch 16, § 28 (2).
S.D. Codified Laws § 58-17F-16 — SD Code / Title 58 / Chapter 17F / Section 58-17F-16
Managed care contractor to register with director
Status: in_force

Each managed care contractor, as defined in § 58-17F-1 , shall register with the director prior to engaging in any managed care business in this state. The registration shall be in a format prescribed by the director. In prescribing the form or in carrying out other functions required by §§ 58-17F-16 to 58-17F-20 , inclusive, the director shall consult with the secretary if applicable. The director or the secretary may require that the following information be submitted:

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

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

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

(4) Qualifications of review staff; and

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

Source: SL 2011, ch 219, § 16.
S.D. Codified Laws § 58-5-117 — SD Code / Title 58 / Chapter 5 / Section 58-5-117
Levy of assessment by mutual insurer to cure deficiency
Status: in_force

A mutual insurer, upon receiving the director's notice of deficiency as set forth in § 58-5-114 , shall levy such an assessment upon members as is provided for in §§ 58-5-32 to 58-5-36 , inclusive.

Source: SL 1966, ch 111, ch 16, § 36 (2).
S.D. Codified Laws § 58-13-3 — SD Code / Title 58 / Chapter 13 / Section 58-13-3
Surplus to policyholders defined
Status: in_force

"Surplus to policyholders" for the purposes of this chapter, in addition to the insurer's capital and surplus, shall be deemed to include any voluntary reserves which are not required pursuant to law, and shall be determined from the last sworn statement of the insurer on file with the director, or by the last report of examination of the insurer, whichever is the more recent at time of assumption of risk.

Source: SL 1966, ch 111, ch 4, § 11 (5).
S.D. Codified Laws § 58-3-4 — SD Code / Title 58 / Chapter 3 / Section 58-3-4
Examination of foreign or alien insurer or rating organization by insurance supervisory official of another state--Examination by director unnecessary--Accreditation of examiner
Status: in_force

In lieu of making his own examination, the director may, in his discretion, accept a full report of the last recent examination of a foreign or alien insurer, or rating organization, certified to by the insurance supervisory official of another state, territory, commonwealth, or district of the United States.

Beginning January 1, 1994, these examinations may only be accepted if the state insurance agency was at the time of the examination accredited under the National Association of Insurance Commissioners' Financial Regulation Standards and Accreditation Program or the examination is performed under the supervision of an accredited state insurance agency or with the participation of one or more examiners who are employed by an accredited state insurance agency and who, after a review of the examination work papers and report, state under oath that the examination was performed in a manner consistent with the standards and procedures required by their own state insurance agency.

Source: SL 1966, ch 111, ch 2, § 16 (3); SL 1992, ch 338, § 4.
S.D. Codified Laws § 58-5A-83 — SD Code / Title 58 / Chapter 5A / Section 58-5A-83
Submission of ORSA summary report or comparable reports to division
Status: in_force

The ORSA summary report, or any combination of reports that together contain the information described in the ORSA guidance manual, shall be submitted to the division upon the director's request. The director may request the ORSA summary report no more than annually. If the insurer is a member of an insurance group, then the insurer shall submit the report or reports required by §§ 58-5A-81 to 58-5A-93 , inclusive, if the director is the lead state director of the insurance group.

An insurer may comply with this section by providing the most recent and substantially similar reports provided by the insurer or another member of an insurance group of which the insurer is a member to the commissioner of another state or to a supervisor or regulator of a foreign jurisdiction, if that report provides information that is comparable to the information described in the ORSA guidance manual. Any such report in a language other than English must be accompanied by a translation of that report into the English language.

Source: SL 2017, ch 210, § 4.
S.D. Codified Laws § 58-5-81 — SD Code / Title 58 / Chapter 5 / Section 58-5-81
Quorum of directors during national emergency--Filling vacancies in board
Status: in_force

In the event that the board of directors of a domestic insurer has not adopted emergency bylaws, the following provisions shall become effective upon the occurrence of such a national emergency:

(1) Three directors shall constitute a quorum for the transaction of business at all meetings of the board; and

(2) Any vacancy in the board may be filled by a majority of the remaining directors, though less than a quorum, or by a sole remaining director.

Source: SL 1966, ch 111, ch 16, § 43 (3).
S.D. Codified Laws § 58-34-12 — SD Code / Title 58 / Chapter 34 / Section 58-34-12
Action on bond or to recover against deposit
Status: in_force

Action on the attorney's bond or to recover against any such deposit made in lieu thereof may be brought at any time by one or more subscribers suffering loss through a violation of its conditions or by a receiver or liquidator of the insurer. Amounts recovered on the bond shall be deposited in and become part of the insurer's funds. The total aggregate liability of the surety shall be limited to the amount of the penalty of such bond.

Source: SL 1966, ch 111, ch 19, § 14.
S.D. Codified Laws § 58-24-61 — SD Code / Title 58 / Chapter 24 / Section 58-24-61
Violation of chapter--Penalties
Status: in_force

The director may, if the director finds that any person or organization has violated any provision of this chapter, issue an order which imposes a penalty of not more than five hundred dollars for each violation, but if the director finds a violation to be willful the director may impose a penalty of not more than five thousand dollars for each violation. The penalties may be in addition to any other penalty provided by law or order of the director issued pursuant to this chapter.

Source: SL 1966, ch 111, ch 15, § 16; SL 2014, ch 239, § 21.
S.D. Codified Laws § 58-18-37 — SD Code / Title 58 / Chapter 18 / Section 58-18-37
Freedom of choice for pharmacy services
Status: in_force

No policy of group health insurance providing benefits for hospital and medical expenses delivered in this state that is offered by a commercial health insurance company, by a nonprofit medical and surgical plan corporation, by a nonprofit hospital service plan corporation, by a health maintenance organization, by a preferred provider organization, by an individual practice association or by a similar mechanism may:

(1) Deny any licensed pharmacy or licensed pharmacist as defined in § 36-11-2 the right to participate as a participating provider for any policy or plan on the same terms and conditions as are offered to any other provider of pharmacy services under the policy or plan;

(2) Prevent any person who is a party to or beneficiary of any health insurance policy from selecting a licensed pharmacy of his choice to furnish the pharmaceutical services offered under any policy or plan, provided that the pharmacy is a participating provider under the same terms and conditions of the policy or plan as those offered to any other provider of pharmacy services; or

(3) Permit or mandate any difference in coverage for or impose any different conditions, including copayment fees, whether the prescription benefits are provided through direct contact with a pharmacy or by use of an out - of - state mail order service so long as the provider selected is a participant in the plan involved.

Source: SL 1990, ch 395, § 1.
S.D. Codified Laws § 58-22-4 — SD Code / Title 58 / Chapter 22 / Section 58-22-4
License required to act as bail bondsperson or runner--Exception--Violation as felony or misdemeanor
Status: in_force

No person may act in the capacity of a bail bondsperson or runner or perform any of the functions, duties, or powers prescribed for bail bondsperson or runners under the provisions of this chapter unless that person is qualified and licensed as provided in this chapter. However, none of the provisions of this section prohibit any person, from pledging real or other property as security for a bail bond in judicial proceedings if that person does not receive, or is not promised, money or other things of value therefor. Acting in the capacity of a bail bondsperson or runner without being licensed is a Class 6 felony. Receipt of money or other things of value by any person not acting in the capacity of a bail bondsperson is a Class 2 misdemeanor.

Source: SL 1966, ch 111, ch 31, §§ 5, 27; SDCL, § 58-22-48 ; SL 1978, ch 359, § 2; SL 1998, ch 296, § 2.
S.D. Codified Laws § 58-30-196 — SD Code / Title 58 / Chapter 30 / Section 58-30-196
Influencing witness testimony in examination or investigation
Status: in_force

No insurance producer may attempt to influence a witness to decline to testify or to testify falsely or withhold any testimony, information, document, or thing in any examination or investigation by the division or hearing pursuant to Title 58 if the insurance producer has prior notice of the examination, investigation, or hearing.

Source: SL 2005, ch 276, § 1.
S.D. Codified Laws § 58-29A-57 — SD Code / Title 58 / Chapter 29A / Section 58-29A-57
Board of directors--Appointment and terms of members--Vacancies on board
Status: in_force

The board of directors of the association shall consist of seven persons, each of whom shall be appointed by the director for a term of three years and until a successor has been appointed and qualified. The director shall consult with member insurers concerning their recommendations for the board of directors. Any vacancy on the board shall be filled for the remaining period of the term by a majority vote of the remaining board members subject to the approval of the director.

Source: SL 2000, ch 247, § 4.
S.D. Codified Laws § 58-5-129 — SD Code / Title 58 / Chapter 5 / Section 58-5-129
Stock acquisition plan deemed merger--Approval required
Status: in_force

Any plan by which a stock insurer proposes to acquire a substantial or controlling stock interest in another stock insurer through an exchange of stock is deemed to be a plan of merger which requires the approval of the director of the Division of Insurance in accordance with provisions of §§ 58-5-131 to 58-5-133 , inclusive.

Source: SL 1966, ch 111, ch 16, § 38 (6).
S.D. Codified Laws § 58-6A-2 — SD Code / Title 58 / Chapter 6A / Section 58-6A-2
Charter and license of risk retention group--Approval of plan of operation or feasibility study--Revision of plan or study--Notice to National Association of Insurance Commissioners
Status: in_force

Any risk retention group seeking to be chartered in this state shall be chartered and licensed as a liability insurance company authorized by the insurance laws of this state and, except as provided in this chapter, shall comply with all of the laws, rules, and requirements applicable to such insurers chartered and licensed in this state. Before it may offer insurance in any state, each risk retention group shall also submit for approval to the director of insurance of this state a plan of operation or a feasibility study and revisions of such plan or study if the group intends to offer any additional lines of liability insurance. If any subsequent material change is made to the plan of operation or feasibility study, the risk retention group shall submit an appropriate revision to the director within ten days of any change. No group may offer any additional lines of liability insurance in this state or any other state until a revision of the plan or study is approved by the director.

When filing an application for charter, the risk retention group shall provide to the director a summary of information, including the name of the risk retention group, the identity of the initial members of the group, the identity of those persons who organized the group or who will provide administrative services or otherwise influence or control the activities of the group, the amount and nature of initial capitalization, the coverages to be afforded, and the states in which the group intends to operate. Upon receipt, the director shall forward the information to the National Association of Insurance Commissioners. Providing notification to the National Association of Insurance Commissioners is in addition, and is not sufficient, to satisfy the requirements of this chapter.

Source: SL 1987, ch 372, § 2; SL 2016, ch 232, § 14.
S.D. Codified Laws § 58-5-97 — SD Code / Title 58 / Chapter 5 / Section 58-5-97
Branch offices established by domestic insurer--Transmission of funds outside state--Deposits under custodial arrangements
Status: in_force

Sections 58-5-93 to 58-5-96 , inclusive, shall not be deemed to prohibit or prevent an insurer from:

(1) Establishing and maintaining branch offices or "regional home offices" in other states where necessary or convenient to the transaction of its business and keeping therein the detailed records and assets customary and necessary for the servicing of its insurance in the territory served by such an office, as long as such records and assets are made available for examination by the director of the Division of Insurance at his request;

(2) Having, depositing, or transmitting funds and assets of the insurer in or to jurisdictions outside of this state as reasonably and customarily required in the regular course of its business; and

(3) Making deposits under custodial arrangements as provided by §§ 58-7-18 to 58-7-25 , inclusive.

Source: SL 1966, ch 111, ch 16, § 24 (4).
S.D. Codified Laws § 58-27-91 — SD Code / Title 58 / Chapter 27 / Section 58-27-91
Obligations contracted prior to July 1, 1992
Status: in_force

A domestic insurer is not prohibited from acquiring an obligation if, before July 1, 1992, it was contractually committed to acquire and it would have been permitted to acquire but it shall notify the director of the acquisition and submit a copy of the contract.

Source: SL 1992, ch 350, § 3.
S.D. Codified Laws § 58-5-107 — SD Code / Title 58 / Chapter 5 / Section 58-5-107
Participating policyholder as member
Status: in_force

Wherever, in any statutory provision, there is use of the word "member" as applying to a mutual and stock insurance company, the same shall be construed as meaning a participating policyholder of such company and shall have no connotation of membership in such company as when used with reference to mutual insurers.

Source: SL 1966, ch 111, ch 16, § 19.
S.D. Codified Laws § 58-14-11 — SD Code / Title 58 / Chapter 14 / Section 58-14-11
Credit for reinsurance ceded to insurer maintaining trust fund for payment of valid claims--Annual report of assuming insurer
Status: in_force

Credit shall also be allowed if the reinsurance is ceded to an assuming insurer that maintains a trust fund in a qualified United States financial institution for the payment of the valid claims of the assuming insurer's United States ceding insurers, their assigns and successors in interest. The assuming insurer shall report annually to the director information substantially the same as that required to be reported on the National Association of Insurance Commissioners annual statement form by licensed insurers to enable the director to determine the sufficiency of the trust fund. The assuming insurer shall submit to examination of the assuming insurer's books and records by the director and bear the expense of examination.

Credit for reinsurance may not be granted pursuant to this section unless the form of the trust and any amendments to the trust have been approved by the commissioner of the state where the trust is domiciled, or the commissioner of another state has accepted principal regulatory oversight of the trust pursuant to the terms of the trust instrument.

Source: SL 1992, ch 344, § 5; SL 1994, ch 378; SL 2017, ch 211, § 3.
S.D. Codified Laws § 58-3-22 — SD Code / Title 58 / Chapter 3 / Section 58-3-22
Confidentiality of disclosed information--Exceptions--Access by National Association of Insurance Commissioners
Status: in_force

All working papers, recorded information, documents, and copies thereof produced by, obtained by, or disclosed to the director or any other person in the course of an examination made under this chapter are confidential and may not be made public by the director or any other person, except to the extent provided in §§ 58-3-14 , 58-3-20 , and 58-3-21 and in any administrative or court proceeding between the company and the division.

Access may also be granted to the National Association of Insurance Commissioners. The parties shall agree in writing prior to receiving the information to hold it confidential unless the prior written consent of the company to which it pertains has been obtained.

Source: SL 1992, ch 338, § 15.
S.D. Codified Laws § 58-29B-136 — SD Code / Title 58 / Chapter 29B / Section 58-29B-136
Petition to liquidate assets of foreign or alien insurer
Status: in_force

The conservator may at any time petition the court for an order under §§ 58-29B-138 to 58-29B-143 , inclusive, to liquidate assets of a foreign or alien insurer under conservation, or, if appropriate, for an order under §§ 58-29B-145 to 58-29B-150 , inclusive, to be appointed ancillary receiver.

Source: SL 1989, ch 436, § 136.
S.D. Codified Laws § 58-39-6 — SD Code / Title 58 / Chapter 39 / Section 58-39-6
Application for license--Form and contents--Documents accompanying
Status: in_force

Application for the license required by § 58-39-5 shall be made on forms to be approved by the director, containing such information as he shall deem necessary. Each application for such license shall be accompanied by copies of the following documents:

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

(2) Bylaws;

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

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

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

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

Source: SL 1966, ch 111, ch 30, § 6.
S.D. Codified Laws § 58-7-37 — SD Code / Title 58 / Chapter 7 / Section 58-7-37
Insurer subject to delinquency proceedings--Surrender of deposited assets and securities to authorized officer of court
Status: in_force

If the insurer is subject to delinquency proceedings as defined in this title, upon the order of a court of competent jurisdiction, the director shall yield the assets and securities held on deposit to the receiver, conservator, rehabilitator, or liquidator of the insurer, or to any other properly designated official.

Source: SL 1966, ch 111, ch 7, § 14 (4).
S.D. Codified Laws § 58-33-8 — SD Code / Title 58 / Chapter 33 / Section 58-33-8
Twisting as misdemeanor
Status: in_force

No person shall make or issue, or cause to be made or issued, any written or oral statement misrepresenting or making incomplete comparisons as to the terms, conditions, or benefits contained in any policy for the purpose of inducing or attempting or tending to induce a policyholder to lapse, forfeit, surrender, retain, exchange, or convert any insurance policy. Violation of this section is a Class 2 misdemeanor.

Source: SL 1966, ch 111, ch 13, § 17; SL 1978, ch 359, § 2.
S.D. Codified Laws § 58-5A-46 — SD Code / Title 58 / Chapter 5A / Section 58-5A-46
Acquisition and involved insurer defined
Status: in_force

The following definitions shall only apply to §§ 58-5A-47 to 58-5A-53 , inclusive:

(1) "Acquisition," any agreement, arrangement, or activity the consummation of which results in a person acquiring directly or indirectly the control of another person, and includes the acquisition of voting securities, assets, bulk reinsurance, and mergers; and

(2) "Involved insurer," an insurer which either acquires or is acquired, is affiliated with an acquirer or acquired or is the result of a merger.

Source: SL 1992, ch 341, § 8.
S.D. Codified Laws § 58-18C-8 — SD Code / Title 58 / Chapter 18C / Section 58-18C-8
Premiums for continuation policies
Status: in_force

The premium for a continuation policy may not be greater than one hundred twenty-five percent of the group rate under which a person is covered.

Source: SL 1998, ch 294, § 8; SL 2005, ch 270, § 5.
S.D. Codified Laws § 58-18-7.4 — SD Code / Title 58 / Chapter 18 / Section 58-18-7.4
Coverage upon application by employee or beneficiary with right to convert following notice of termination
Status: in_force

An employee or qualified beneficiary who has the right under the group policy to convert the group accident or health insurance plan shall be issued, without evidence of insurability, upon application to the company during the one hundred eighty days prior to expiration of coverage under continuation and upon payment of the appropriate premium, a policy of accident or health insurance. The conversion coverage shall provide the benefits which are available to others qualified for conversion under the policy.

Source: SL 1980, ch 354; SL 1989, ch 433, § 3; SL 2001, ch 280, § 2.
S.D. Codified Laws § 58-6-38 — SD Code / Title 58 / Chapter 6 / Section 58-6-38
Application for initial certificate of authority--Documents accompanying
Status: in_force

Every insurer applying for an initial certificate of authority shall file the following documents with the director:

(1) A certified copy of its articles of incorporation with all amendments;

(2) A certified copy of its bylaws with all amendments;

(3) A copy of its annual statement as of December thirty - first last preceding;

(4) A copy of report of last examination, if any, made of the insurer, certified by the insurance supervisory official of the state of domicile of a foreign insurer or the state of entry into the United States of an alien insurer;

(5) If a foreign or alien insurer, a certificate of the public official having supervision of insurance in the state or country of domicile, or state of entry into the United States, of such insurer, showing that it is authorized to transact the kinds of insurance proposed to be transacted in South Dakota;

(6) If an alien insurer, a copy of the appointment and authority of its United States manager;

(7) A certificate of deposit pursuant to §§ 58-6-34 and 58-6-35 ; and

(8) Such other information and documents as the director deems necessary for the protection of policyholders or to assure compliance with this title.

Source: SL 1966, ch 111, ch 3, § 15.
S.D. Codified Laws § 58-17H-29 — SD Code / Title 58 / Chapter 17H / Section 58-17H-29
Concurrent review determinations--Timing--Notification requirements
Status: in_force

For concurrent review determinations, if a health carrier has certified an ongoing course of treatment to be provided over a period of time or number of treatments:

(1) Any reduction or termination by the health carrier during the course of treatment before the end of the period or number treatments, other than by health benefit plan amendment or termination of the health benefit plan, shall constitute an adverse determination; and

(2) The health carrier shall notify the covered person of the adverse determination in accordance with § 58-17H-32 at a time sufficiently in advance of the reduction or termination to allow the covered person or, if applicable, the covered person's authorized representative, to file a grievance to request a review of the adverse determination pursuant to chapter 58-17I , and obtain a determination with respect to that review of the adverse determination before the benefit is reduced or terminated.

The health care service or treatment that is the subject of the adverse determination shall be continued without liability to the covered person until the covered person has been notified of the determination by the health carrier with respect to the internal review request made pursuant to chapter 58-17I .

Source: SL 2011, ch 219, § 54.
S.D. Codified Laws § 58-4A-2 — SD Code / Title 58 / Chapter 4A / Section 58-4A-2
Fraudulent insurance acts--Certain violations as misdemeanor--Certain violations as felony
Status: in_force

For purposes of this chapter, a person commits a fraudulent insurance act if the person:

(1) Knowingly and with intent to defraud or deceive issues or possesses fake or counterfeit insurance policies, certificates of insurance, insurance identification cards, or insurance binders;

(2) Is engaged in the business of insurance, whether authorized or unauthorized, receives money for the purpose of purchasing insurance and converts the money to the person's own benefit or for a purpose not intended or authorized by an insured or prospective insured;

(3) Willfully embezzles, abstracts, steals, misappropriates, or converts money, funds, premiums, credits, or other property of an insurer or person engaged in the business of insurance or of an insured or prospective insured;

(4) Knowingly and with intent to defraud or deceive makes any false entry of a material fact in or pertaining to any document or statement filed with or required by the Division of Insurance;

(5) Knowingly and with intent to defraud or deceive removes, conceals, alters, diverts, or destroys assets or records of an insurer or other person engaged in the business of insurance or attempts to remove, conceal, alter, divert, or destroy assets or records of an insurer or other person engaged in the business of insurance;

(6) Knowingly and with intent to defraud or deceive presents, causes to be presented, or prepares with knowledge or belief that it will be presented to or by an insurer, or any insurance producer of an insurer, any statement as part of a claim, in support of a claim, or in denial of a claim for payment or other benefit pursuant to an insurance policy knowing that the statement contains any false, incomplete, or misleading information concerning any fact or thing material to a claim;

(7) Assists, abets, solicits, or conspires with another to prepare or make any statement that is intended to be presented to or by an insurer or person in connection with or in support of any claim for payment or other benefit, or denial, pursuant to an insurance policy knowing that the statement contains any false, incomplete, or misleading information concerning any fact or thing material to the claim; or

(8) Makes any false or fraudulent representations as to the death or disability of a policy or certificate holder in any statement or certificate for the purpose of fraudulently obtaining money or benefit from an insurer.

Any violation of this section for an amount of four hundred dollars or less is a Class 2 misdemeanor. Any violation of this section for an amount in excess of four hundred dollars and less than one thousand dollars is a Class 1 misdemeanor. Any violation of this section for an amount of one thousand dollars and greater is a Class 4 felony. Any other violation of this section is a Class 1 misdemeanor.

Source: SL 1999, ch 241, § 2; SL 2001, ch 286, § 67; SL 2006, ch 130, § 20.
S.D. Codified Laws § 58-30-213 — SD Code / Title 58 / Chapter 30 / Section 58-30-213
Limitations on travel retailer's unlicensed employee or authorized representative
Status: in_force

A travel retailer's employee or authorized representative who is not licensed as an insurance producer may not:

(1) Evaluate or interpret the technical terms, benefits, or conditions of the offered travel insurance coverage;

(2) Evaluate or provide advice concerning a prospective purchaser's existing insurance coverage; or

(3) Hold oneself out as a licensed insurer, licensed producer, or insurance expert.

Source: SL 2014, ch 241, § 9.
S.D. Codified Laws § 58-30-167 — SD Code / Title 58 / Chapter 30 / Section 58-30-167
Causes for suspension, revocation, refusal to issue or renew license, or monetary penalty--Notice--Hearing--Final determination
Status: in_force

The director may suspend for not more than twelve months, or may revoke or refuse to continue, any license issued under this chapter, or any license of a surplus lines broker after a hearing. Notice of such hearing and of the charges against the licensee shall be given to the licensee and to the insurers represented by such licensee or to the appointing agent of a producer at least twenty days before the hearing. The director may suspend, revoke, or refuse to issue or renew an insurance producer's license or may accept a monetary penalty in accordance with § 58-4-28.1 or any combination thereof, for any one or more of the following causes:

(1) Providing incorrect, misleading, incomplete, or materially untrue information in the license application;

(2) Violating any insurance laws or rules, subpoena, or order of the director or of another state's insurance director, commissioner, or superintendent;

(3) Obtaining or attempting to obtain a license through misrepresentation or fraud;

(4) Withholding, misappropriating, or converting any monies or properties received in the course of doing insurance business;

(5) Intentionally misrepresenting the terms of an actual or proposed insurance contract or application for insurance;

(6) Having been convicted of a felony;

(7) Having admitted or been found to have committed any insurance unfair trade practice or fraud;

(8) Using fraudulent, coercive, or dishonest practices, or demonstrating incompetence, untrustworthiness, or financial irresponsibility in the conduct of business in this state or elsewhere;

(9) Having an insurance producer license, or its equivalent, denied, suspended, or revoked in any other state, province, district, or territory;

(10) Forging another's name to an application for insurance or to any document related to an insurance transaction;

(11) Using notes or any other reference material to complete an examination for an insurance license;

(12) Knowingly accepting insurance business from an individual who sells, solicits, or negotiates insurance and is not licensed; or

(13) Failing to comply with an administrative or court order imposing a child support obligation.

At the conclusion of the matter, the director shall send a letter to the licensee, the insurers represented by such licensee, and the appointing agent of a producer, stating the final determination of the matter.

Source: SL 2001, ch 286, § 27; SL 2002, ch 240, § 8; SL 2006, ch 263, § 1.
S.D. Codified Laws § 58-10-15 — SD Code / Title 58 / Chapter 10 / Section 58-10-15
Trust to be governed by South Dakota law
Status: in_force

An insurance contract for which an insurable interest exists under subdivision 58-10-4(6), is a life insurance policy issued for delivery to a trust governed by South Dakota law.

Source: SL 2006, ch 251, § 4.
S.D. Codified Laws § 58-24-64 — SD Code / Title 58 / Chapter 24 / Section 58-24-64
Request for hearing on order or decision--Notice--Affirmance, reversal, or modification
Status: in_force

Any insurer or rating organization aggrieved by any order or decision of the director made without a hearing, may, within thirty days after notice of the order to the insurer or organization, make written request to the director for a hearing thereon. The director shall issue a notice of hearing pursuant to chapter 1-26 within twenty days after receipt of a request and shall give not less than ten days' written notice of the time and place of the hearing. Within a reasonable time after the hearing the director shall affirm, reverse, or modify the director's previous action, specifying the reasons therefor. Pending the hearing and decision thereon the director may suspend or postpone the effective date of the director's previous action.

Source: SL 1966, ch 111, ch 15, § 17 (1); SL 2014, ch 239, § 23.
S.D. Codified Laws § 58-5-139 — SD Code / Title 58 / Chapter 5 / Section 58-5-139
Liquidation of domestic mutual insurer--Distribution of remaining assets to members
Status: in_force

Upon any liquidation of a domestic mutual insurer, its assets remaining after liquidation of its indebtedness, policy obligations, repayment of contributed or borrowed surplus, if any, and expenses of administration, shall be distributed to existing persons who were its members at any time within thirty - six months next preceding the date such liquidation was authorized or ordered, or date of last termination of the insurer's certificate of authority, whichever date is the earlier.

Source: SL 1966, ch 111, ch 16, § 42 (1).
S.D. Codified Laws § 58-27-50 — SD Code / Title 58 / Chapter 27 / Section 58-27-50
Restrictions on purposes and amount of real estate investments
Status: in_force

An insurer may invest in real estate only if used for the purposes or acquired in the manners and within the limits as follows:

(1) The land and the building thereon in which it has its principal office and such other real estate including regional home offices as shall be requisite for its convenient accommodation in the transaction of its business. Except with the consent of the director of the Division of Insurance, all such investments may not aggregate more than fifteen percent of the insurer's admitted assets;

(2) Real estate acquired in satisfaction of loans, mortgages, liens, judgments, decrees, or debts previously owing to the insurer in the course of its business;

(3) Real estate acquired in part payment of the consideration on the sale of other real estate owned by it, if such transaction does not increase the insurer's investment in real estate;

(4) Real estate acquired by gift or devise, or through merger, consolidation, or bulk reinsurance of another insurer under this title;

(5) The seller's interest in real property subject to an agreement of purchase or sale, but the sum invested in any such parcel of real estate may not exceed three - fourths of the market value of such parcel;

(6) Real estate, or any interest therein acquired or held by purchase, lease, or otherwise, other than real estate to be used primarily for agricultural, ranch, mining, development of oil or mineral resources, recreational, amusement, or club purposes, acquired as an investment for the production of income, or acquired to be improved or developed for investment purposes pursuant to an existing program therefor. The insurer may hold, improve, develop, maintain, manage, lease, sell, and convey real estate acquired by it under this section. No insurer may have at any one time invested in real estate under this subdivision an amount exceeding fifteen percent of its admitted assets, nor in any single parcel of real estate under this subdivision, an amount in excess of five percent of its admitted assets; or

(7) Additional real estate and equipment incident to real estate, if necessary or convenient for the purpose of enhancing the sale or other value of real estate previously acquired or held by the insurer under subdivision (2), (3), (4), or (6). Such real estate and equipment shall be included, together with the real estate for the enhancement of which it was acquired, for the purpose of applicable investment limits, and shall be subject to disposal at the same time and under the same conditions as applying to such enhanced real estate under §§ 58-27-70 to 58-27-72 , inclusive.

Except with the director's consent, all real estate owned by the insurer under this section, except a seller's interest specified in subdivision (5) may not at any one time exceed twenty percent of the insurer's admitted assets.

Source: SL 1966, ch 111, ch 6, § 30; SL 1983, ch 376, § 4; SL 1997, ch 294, § 9.
S.D. Codified Laws § 58-39-16 — SD Code / Title 58 / Chapter 39 / Section 58-39-16
Exemption from other insurance laws, exceptions--Fees and taxation as insurers
Status: in_force

Any dental service corporation is exempt from all provisions of the insurance laws of this state other than this chapter. However, the corporation is subject to the provisions of this title on matters of hearings, appeals, mergers, dissolutions, licensure of insurance producers, and procedures on such matters. The corporation is also subject to fees and taxation as insurers covered by this title, and to chapter 58-33 .

Source: SL 1966, ch 111, ch 30, § 2; SL 1991, ch 408, § 2; SL 2001, ch 286, § 223.
S.D. Codified Laws § 58-4-5 — SD Code / Title 58 / Chapter 4 / Section 58-4-5
Enforcement proceedings instituted by director
Status: in_force

The director shall institute such suits or other legal proceedings as may be required for the enforcement of any provisions of this title.

Source: SL 1966, ch 111, ch 2, § 12 (1).
S.D. Codified Laws § 58-29E-15 — SD Code / Title 58 / Chapter 29E / Section 58-29E-15
Discrimination prohibited--340B entity--Exclusions
Status: in_force

Neither a pharmacy benefit manager nor a pharmacy benefit manager affiliate may, directly or indirectly, discriminate against a 340B entity or a pharmacy under contract with a 340B entity, on the basis that the 340B entity or a pharmacy under contract with a 340B entity participates in the 340B drug discount program by imposing terms or conditions that differ from a similarly situated entity that does not participate in the 340B drug discount program.

Discriminatory acts include:

(1) Reimbursing a 340B entity at a rate lower than that paid for the same drug to a pharmacy that has a similar prescription volume but is not a 340B entity;

(2) Assessing a fee or cost, imposing a charge back, or imposing any other adjustment against a 340B entity, on the ground that the 340B entity participates in the 340B drug discount program;

(3) Restricting access by a 340B entity to a pharmacy network on the ground that the 340B entity participates in the 340B drug discount program;

(4) Requiring that a 340B entity contract with a specific pharmacy or health coverage plan as a condition of participating in a pharmacy network;

(5) Imposing a new restriction or an additional charge on a patient who elects to receive a prescription drug through a 340B entity;

(6) Restricting the method by which a 340B entity may dispense or deliver 340B drugs;

(7) Auditing a 340B entity, as provided for under § 58-29F-1 , more frequently than similarly situated entities that do not participate in the 340B drug discount program;

(8) Refusing to provide reimbursement or coverage for 340B drugs that are part of a formulary;

(9) Basing prescription drug benefit coverage or formulary decisions on:

(a) The 340B status of a drug, including price or availability; or

(b) Whether a dispensing pharmacy participates in 340B drug pricing;

(10) Imposing on a 340B entity any requirement or restriction that interferes with the entity’s ability to maximize the value of the discounts obtained through participation in the 340B drug discount program; and

(11) Imposing on a 340B entity any contractual terms and conditions that differ from those imposed on a similarly situated entity that is not a 340B entity.

Source: SL 2019, ch 213, § 4; SL 2024, ch 203, § 4, eff. Jan. 1, 2025.
S.D. Codified Laws § 58-34-25 — SD Code / Title 58 / Chapter 34 / Section 58-34-25
Eligibility to become subscriber
Status: in_force

Individuals, partnerships, associations, and corporations, public or private, of this state, hereby designated as subscribers, are authorized to exchange reciprocal or interinsurance contracts with each other, or with individuals, partnerships, associations, and corporations, public or private, of other states and countries, providing indemnity among themselves for any loss which may be insured against by the reciprocal insurer to which they are subscribers; except, that public corporations of this state may so insure only in an insurer which has a surplus of three hundred thousand dollars or more and under an insurance contract as to which such an insured has no contingent liability.

Source: SL 1966, ch 111, ch 19, § 19 (1).
S.D. Codified Laws § 58-29E-18 — SD Code / Title 58 / Chapter 29E / Section 58-29E-18
Duties--Pharmacy benefit manager
Status: in_force

A pharmacy benefit manager shall:

(1) Provide each pharmacy in a pharmacy network with reasonable access to each maximum allowable cost list to which the pharmacy is subject;

(2) Update a maximum allowable cost list, within seven calendar days from the date of any increase, at or above ten percent, in the price charged for a prescription drug on the list by one or more wholesale distributors doing business in this state;

(3) Update the maximum allowable cost list, within seven calendar days from the date of any change in the methodology, or any change in the value of a variable applied in the methodology, on which the maximum allowable cost list is based; and

(4) Provide a process under which each pharmacy in a pharmacy network may receive prompt notice of any change in a maximum allowable cost list to which the pharmacy is subject.

Source: SL 2023, ch 166, § 16.
S.D. Codified Laws § 58-29B-144 — SD Code / Title 58 / Chapter 29B / Section 58-29B-144
Domiciliary receiver, conservator, or liquidator of insurer domiciled in reciprocal state--Title vested--Date of vesting
Status: in_force

The domiciliary receiver, conservator, or liquidator of an insurer domiciled in a reciprocal state shall, except as to special deposits and security on secured claims under § 58-29B-149 , be vested by operation of law with the title to all of the assets, property, contracts, and rights of action, insurance producers' balances, and all of the books, accounts, and other records of the insurer located in this state. The date of vesting shall be the date of the filing of the petition for receivership, conservatorship, or liquidation, as the case may be, if that date is specified by the domiciliary law for the vesting of property in the domiciliary state. Otherwise, the date of vesting shall be the date of entry of the order directing possession to be taken. The domiciliary receiver, conservator, or liquidator may immediately recover balances due from insurance producers and obtain possession of the books, accounts, and other records of the insurer located in this state. The domiciliary receiver, conservator, or liquidator also may recover all other assets of the insurer located in this state, subject to §§ 58-29B-145 to 58-29B-150 , inclusive.

Source: SL 1989, ch 436, § 144; SL 2001, ch 286, § 148; SL 2008, ch 271, § 2.
S.D. Codified Laws § 58-24-72 — SD Code / Title 58 / Chapter 24 / Section 58-24-72
Promulgation of rules
Status: in_force

The director may promulgate rules, pursuant to chapter 1-26 , to carry out the provisions of §§ 58-24-68 to 58-24-74 , inclusive, to ensure that insurers make policyholders aware of their exempt status and that insurers keep separate records of exempt policies. The rules may include certification, record keeping, and notices.

Source: SL 2004, ch 307, § 5.
S.D. Codified Laws § 58-6-1 — SD Code / Title 58 / Chapter 6 / Section 58-6-1
Certificate of authority required for transaction of insurance business--Exceptions--Violation as misdemeanor
Status: in_force

No person may act as an insurer and no insurer or its insurance producers, attorneys, subscribers, or representatives may directly transact insurance in this state except as authorized by a subsisting certificate of authority issued to the insurer by the director, except as to such transactions as are expressly otherwise provided for in this title. Any violation of this section is a Class 2 misdemeanor.

Source: SL 1966, ch 111, ch 3, § 1 (1); SL 1978, ch 359, § 2; SL 2001, ch 286, § 75.
S.D. Codified Laws § 58-41-73 — SD Code / Title 58 / Chapter 41 / Section 58-41-73
Physician-patient privileges
Status: in_force

A health maintenance organization shall be entitled to claim any statutory privileges against such disclosure which the provider who furnished such information to the health maintenance organization is entitled to claim.

Source: SL 1974, ch 321, § 36 (5).
S.D. Codified Laws § 58-24-71 — SD Code / Title 58 / Chapter 24 / Section 58-24-71
Third-party consultant disclosure requirements
Status: in_force

If a third - party consultant is retained by the exempt commercial policyholder to act as the policyholder's risk manager when a quote for insurance is delivered to the policyholder, the consultant shall disclose, in writing, the existence of any commission, fee, or contingency arrangement the third - party consultant has with the insurer.

Source: SL 2004, ch 307, § 4.
S.D. Codified Laws § 58-29B-113 — SD Code / Title 58 / Chapter 29B / Section 58-29B-113
Contingent claims allowed
Status: in_force

A claim may be allowed even if contingent, if it is filed in accordance with §§ 58-29B-103 to 58-29B-106 , inclusive. It may be allowed and may participate in all distributions declared after it is filed to the extent that it does not prejudice the orderly administration of the liquidation.

Source: SL 1989, ch 436, § 113.
S.D. Codified Laws § 58-17H-48 — SD Code / Title 58 / Chapter 17H / Section 58-17H-48
Notification of adverse determination--Requirements
Status: in_force

If a health carrier's determination with respect to §§ 58-17H-40 to 58-17H-47 , inclusive, is an adverse determination, the health carrier shall provide notice of the adverse determination in accordance with this section. A notification of an adverse determination under this section shall, in a manner calculated to be understood by the covered person, set forth:

(1) Information sufficient to identify the benefit request or claim involved, including the date of service, if applicable, the health care provider, the claim amount, if applicable, the diagnosis code and its corresponding meaning and the treatment code and its corresponding meaning;

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

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

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

(5) A description of the health carrier's internal review procedures established pursuant to chapter 58-17I , including any time limits applicable to those procedures;

(6) A description of the health carrier's expedited review procedures established pursuant to §§ 58-17I-12 to 58-17I-16 , inclusive;

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

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

(9) If applicable, instructions for requesting:

(a) A copy of the rule, guideline, protocol, or other similar criterion relied upon in making the adverse determination in accordance with subdivision (7) of this section; or

(b) The written statement of the scientific or clinical rationale for the adverse determination in accordance with subdivision (8) of this section; and

(10) A statement explaining the availability of and the right of the covered person, as appropriate, to contact the Division of Insurance at any time for assistance or, upon completion of the health carrier's grievance procedure process as provided under chapter 58-17I , to file a civil suit in a court of competent jurisdiction.

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

Source: SL 2011, ch 219, § 73.
S.D. Codified Laws § 58-17-74 — SD Code / Title 58 / Chapter 17 / Section 58-17-74
Provisions for premium rates for individual health benefit plans
Status: in_force

Premium rates for individual health benefit plans subject to §§ 58-17-66 to 58-17-87 , inclusive, are subject to the following provisions:

(1) Any new policy issued after the effective date of §§ 58-17-66 to 58-17-87 , inclusive, is subject to the provisions of §§ 58-17-66 to 58-17-87 , inclusive;

(2) The index rate for a rating period for any class of individual business may not exceed the index rate for any other class of individual business by more than twenty percent;

(3) For a class of business, the premium rates charged during a rating period to individuals with similar case characteristics for the same or similar coverage, or the rates that could be charged to such individuals under the rating system for that class of business, may not vary from the index rate by more than thirty percent of the index rate;

(4) An adjustment applied to a single block of business may not exceed the adjustment applied to all blocks of business by more than fifteen percent due to the claim experience or health status of that block of business;

(5) Any adjustment in rates for claim experience and duration of coverage may not be charged to specific individual policyholders. Any such adjustment shall be applied uniformly to the rates charged for any person and dependents of the person within each class of business;

(6) Premium rates for individual health benefit plans shall comply with the requirements of §§ 58-17-66 to 58-17-87 , inclusive;

(7) Each carrier shall apply rating factors consistently with respect to all persons in a class of business. Rating factors shall produce premiums for identical persons which differ only by the amounts attributable to plan design;

(8) No carrier may use characteristics other than age, gender, lifestyle, family composition, and geographic area without prior approval of the director. The maximum rating differential based solely on age may not exceed a factor of 5:1; and

(9) All rate adjustments based on geographic area shall reflect actual differences in the health care costs of the respective areas.

The rating provisions of subdivisions (1), (2), (3), (4), and (6) of this section do not apply to individual health benefit plans issued by a carrier to qualifying individuals on a guaranteed issue basis. However, the rate for any individual covered on a guaranteed issue basis may not exceed two and one half times the base rate of the class of business with the lowest index rate.

Source: SL 1996, ch 286, § 9; SL 2008, ch 263, § 1.
S.D. Codified Laws § 58-24-27 — SD Code / Title 58 / Chapter 24 / Section 58-24-27
Assigned risks--Reasonable rate modifications
Status: in_force

Agreements may be made among insurers with respect to the equitable apportionment among them of insurance which may be afforded applicants who are in good faith entitled to but who are unable to procure such insurance through ordinary methods, and such insurers may agree among themselves on the use of reasonable rate modifications for such insurance, such agreements and rate modifications to be subject to the approval of the director.

Source: SL 1966, ch 111, ch 15, § 15.
S.D. Codified Laws § 58-9-6 — SD Code / Title 58 / Chapter 9 / Section 58-9-6
Marine and transportation insurance defined--Vehicles--Goods transported
Status: in_force

"Marine and transportation insurance" includes insurance against any kind of loss or damage to vessels, craft, aircraft, cars, automobiles, and vehicles of every kind, as well as all goods, freights, cargoes, merchandise, effects, disbursements, profits, moneys, bullion, precious stones, securities, choses in action, evidences of debt, valuable papers, bottomry, and respondentia interests and all other kinds of property and interests therein, in respect to, appertaining to or in connection with any and all risks or perils of navigation, transit, or transportation, including war risks, on or under any seas or other waters, on land or in the air, or while being assembled, packed, crated, baled, compressed, or similarly prepared for shipment or while awaiting the same or during any delays, storage, transshipment, or reshipment incident thereto, including marine builder's risks and all personal property floater risks.

Source: SL 1966, ch 111, ch 4, § 5 (1) (a).
S.D. Codified Laws § 58-29B-53 — SD Code / Title 58 / Chapter 29B / Section 58-29B-53
Duties of insurance producer upon notice of liquidation
Status: in_force

Every person who receives notice in the form prescribed in § 58-29B-51 that an insurer which the person represents is the subject of a liquidation order shall, within five days of the notice, give written notice of the liquidation order by first class mail to the last known address contained in the insurance producer's records to each policyholder or other person named in any policy issued through the insurance producer by the insurer. A policy is deemed issued through an insurance producer if the insurance producer has a property interest in the expiration of the policy at any time during the life of the policy, unless the ownership of the expiration of the policy has been transferred to another. The written notice shall include the name and address of the insurer, the name and address of the insurance producer, identification of the policy impaired, and the nature of the impairment including termination of coverage, as described in § 58-29B-47 . Each insurance producer obligated to give notice under this section shall file a report of compliance with the liquidator within five days of the receipt of the notice from the liquidator.

Source: SL 1989, ch 436, § 53; SL 2001, ch 286, § 145.
S.D. Codified Laws § 58-16-9 — SD Code / Title 58 / Chapter 16 / Section 58-16-9
Labor union groups--Amounts based upon plan precluding individual selection
Status: in_force

The amounts of insurance under a policy issued under § 58-16-7 must be based upon some plan precluding individual selection either by the members or by the union.

Source: SL 1966, ch 111, ch 24, § 1 (3) (d).
S.D. Codified Laws § 58-27-79 — SD Code / Title 58 / Chapter 27 / Section 58-27-79
Name in which investments held
Status: in_force

A company's investments shall be held in its own name or the name of its nominee. However, this provision does not apply under the circumstances outlined in §§ 58-27-80 to 58-27-83 , inclusive.

Source: SL 1983, ch 377, § 2.
S.D. Codified Laws § 58-6A-19.2 — SD Code / Title 58 / Chapter 6A / Section 58-6A-19.2
Notice of unprotected risk when liability insurance obtained from insurer not admitted in this state or risk retention group
Status: in_force

Any purchasing group which obtains liability insurance from an insurer not admitted in this state or a risk retention group shall inform each of the members of such group which have a risk resident or located in this state that such risk is not protected by an insurance insolvency guaranty fund in this state and that such risk retention group or such insurer may not be subject to all insurance laws and regulations of this state.

Source: SL 1988, ch 392, § 10.
S.D. Codified Laws § 58-26-96 — SD Code / Title 58 / Chapter 26 / Section 58-26-96
Qualified actuary engaged by director or by official of another state
Status: in_force

The director may engage a qualified actuary, at the expense of the company, to perform an actuarial examination of the company and opine on the appropriateness of any reserve assumption or method used by the company, or to review and opine on a company's compliance with any requirement set forth in this chapter. The director may rely upon the opinion, regarding provisions contained within this chapter, of a qualified actuary engaged by the insurance supervisory official of another state, district or territory of the United States. As used in this section, the term, engage, includes employment and contracting.

Source: SL 2015, ch 254, § 30.
S.D. Codified Laws § 58-14-16.34 — SD Code / Title 58 / Chapter 14 / Section 58-14-16.34
Application of reciprocal jurisdiction laws
Status: in_force

Nothing in §§ 58-14-16.23 to 58-14-16.34 , inclusive:

(1) Limits or in any way alters the capacity of parties to a reinsurance agreement to agree on requirements for security or other terms in that reinsurance agreement except as expressly prohibited by this chapter or other applicable law;

(2) Authorizes an assuming insurer to withdraw or reduce the security provided under any reinsurance agreement except as permitted by the terms of the agreement; or

(3) Limits or alters the capacity of parties to any reinsurance agreement to renegotiate the agreement.

Source: SL 2021, ch 211, § 12.
S.D. Codified Laws § 58-6-50 — SD Code / Title 58 / Chapter 6 / Section 58-6-50
Notice to insurance producers of suspension, revocation, or refusal to renew certificate--Insurance Producers' authority
Status: in_force

Upon suspending or revoking or refusing to renew the insurer's certificate of authority, the director shall forthwith give, by registered or certified mail, notice thereof to the insurer's insurance producers in this state of record in the department, and shall likewise suspend or revoke the authority of the insurance producers to represent the insurer.

Source: SL 1966, ch 111, ch 3, § 20 (2); SL 1982, ch 28, § 18; SL 2001, ch 286, § 77.
S.D. Codified Laws § 58-17J-1 — SD Code / Title 58 / Chapter 17J / Section 58-17J-1
Definitions
Status: in_force

Terms used in this chapter mean:

(1) "Health benefit plan," any hospital or medical expense policy or certificate, hospital or medical service plan, nonprofit hospital, medical-surgical health service corporation contract or certificate, provider sponsored integrated health delivery network, self-insured plan or plan provided by multiple employer welfare arrangements, health maintenance organization subscriber contract of more than six-month duration, or any health benefit plan that affects the rights of a South Dakota insured and bears a reasonable relation to South Dakota, whether delivered or issued for delivery in South Dakota. The term does not include specified disease, hospital indemnity, fixed indemnity, accident only, credit, dental, vision, Medicare supplement, long-term care or disability income insurance, coverage issued as a supplement to liability insurance, workers' compensation or similar insurance, automobile medical payment insurance, or any plan or coverage exempted from state regulation by the Employee Retirement Income Security Act of 1974 (ERISA), 29 U.S.C. 18;

(2) "Health insurer," any entity within the definitions set forth in subdivisions 58-17F-1(11), (12), and (15), any entity offering a health benefit plan as defined by § 58-17F-2 , all self-insurers or multiple employer welfare arrangements, and self-insured employer-organized associations. The term does not include any entity exempted from state regulation by the Employee Retirement Income Security Act of 1974 (ERISA), 29 U.S.C. 18;

(3) "Health care provider," any individual or entity within the scope of the definition of health care provider as defined by subdivision 58-17F-1(9).

Source: SL 2015, ch 278 (Initiated Measure 17), § 2, eff. Nov. 13, 2014.
S.D. Codified Laws § 58-1-19 — SD Code / Title 58 / Chapter 1 / Section 58-1-19
Health benefit plans to issue uniform prescription drug information card--Exception--Director to prescribe format and contents
Status: in_force

Any health benefit plan that provides coverage for prescription drugs or devices on an outpatient basis, or administers such a plan, including third - party administrators for self - insured plans and state - administered plans, shall issue to its primary insured a card or other technology containing uniform prescription drug information. The director of the Division of Insurance shall prescribe the format and elements of information for the uniform prescription drug information card or technology and shall consider the format and elements of information approved by the National Council for Prescription Drug Programs (NCPDP) and the required and conditional or situational fields and the most recent pharmacy identification card or technology implementation guide produced by NCPDP. A health benefit plan is not required to issue a pharmacy identification card separate from another identification card issued to an insured under the health benefit plan if the identification card contains the elements of information required by the Division of Insurance.

Source: SL 2001, ch 266, § 1.
S.D. Codified Laws § 58-3-3 — SD Code / Title 58 / Chapter 3 / Section 58-3-3
Applicant for initial certificate of authority to do insurance business in state--Examination by director
Status: in_force

The director shall examine each insurer or rating organization receiving an initial certificate of authority to do business in this state within one year from the date of the licensure except those qualifying under §§ 58-3-4 and 58-6-13 .

Source: SL 1966, ch 111, ch 2, § 16 (2); SL 1992, ch 338, § 3.
S.D. Codified Laws § 58-41-2 — SD Code / Title 58 / Chapter 41 / Section 58-41-2
Organizations subject to chapter
Status: in_force

As used in this chapter a health maintenance organization is a corporation organized under Title 47, controlled and operated as provided in this chapter, which provides, either directly or through arrangements with providers or other persons, comprehensive health maintenance services, or arranges for the provision of such services, to enrollees on the basis of a fixed prepaid sum without regard to the frequency or extent of services furnished to any particular enrollee. A health maintenance organization may be organized pursuant to this chapter on a limited health service basis. Nothing in this chapter prohibits a health maintenance organization holding a certificate of authority in this state from issuing contracts to enrollees on a preferred provider, exclusive provider, or closed panel basis. Nothing in this chapter requires a licensed pharmacy benefit manager to obtain a certificate of authority as a health maintenance organization provided that the pharmacy benefit manager does not assume insurance risk directly from an insured.

Source: SL 1974, ch 321, § 2 (3); SL 1985, ch 393, § 1; SL 2013, ch 256, § 2.
S.D. Codified Laws § 58-5-21 — SD Code / Title 58 / Chapter 5 / Section 58-5-21
Insurance applications and surplus required for original certificate of authority to domestic mutual insurer
Status: in_force

Upon application for an original certificate of authority, the insurer must be otherwise qualified therefor under this title, and must have received and accepted bona fide applications as to substantial insurable subjects for insurance coverage of the kind of insurance proposed to be transacted, must have collected in cash the full premium therefor at a rate not less than that usually charged by other insurers for comparable coverages, must have surplus funds deposited as of the date such insurance coverages are to become effective, or, in lieu of such applications, premiums and surplus, deposit and thereafter maintain surplus, all in accordance with that part of the following schedule which applies to the kind of insurance the insurer proposes to transact and subject to the provisions of §§ 58-6-19 to 58-6-22 , inclusive:

SCHEDULE

(a)

(b)

(c)

(d)

(e)

(f)

(g)

(h)

Kind of Insurance

Minimum No.

of applicants

accepted

Minimum No.

of subjects

covered

Minimum

premium

collected

Minimum

amount of

insurance

each subject

Maximum

amount of

insurance

each subject

Minimum

surplus funds

deposited

Deposit of

surplus in

lieu of (b)

through (g)

Life

500

500

annual

$1,000

$ 2,500

$150,000

$200,000

Health

500

500

quarterly

10

25

150,000

200,000

(weekly indem.)

(weekly indem.)

Life and ‎ Health

750

750

same as individual lines above

300,000

400,000

Property

100

250

annual

1,000

3,000

150,000

200,000

Casualty

250

500

annual

1,000

10,000

150,000

200,000

Casualty with

Workmen's Compensation

‎ ‎ 250

‎ ‎ 1,500

‎ ‎ quarterly

‎ ‎ 1,000

‎ ‎ 10,000

‎ ‎ 200,000

‎ ‎ 300,000

Marine and Transportation

100

250

annual

1,000

10,000

150,000

200,000

Surety

250

250

annual

1,000

10,000

150,000

200,000

Multiple Lines

250

500

same as individual lines above

300,000

400,000

Source: SL 1966, ch 111, ch 16, § 9
S.D. Codified Laws § 58-27-77 — SD Code / Title 58 / Chapter 27 / Section 58-27-77
Immediate disposal of ineligible investment unlawfully acquired
Status: in_force

The insurer shall forthwith dispose of any ineligible investment unlawfully acquired by it, and the director may suspend or revoke the insurer's certificate of authority if the insurer fails to dispose of the investment within such reasonable time as the director may, by his order, specify.

Source: SL 1966, ch 111, ch 6, § 33 (2).
S.D. Codified Laws § 58-2-20 — SD Code / Title 58 / Chapter 2 / Section 58-2-20
Procurement of loan secured by mortgage on real estate permitted to division personnel
Status: in_force

Sections 58-2-18 and 58-2-19 shall not be construed to prohibit the director or any employee from procuring a loan secured by a mortgage on real estate which mortgage and loan would be a proper investment under the provisions of this title.

Source: SL 1966, ch 111, ch 2, § 8.
S.D. Codified Laws § 58-17F-8 — SD Code / Title 58 / Chapter 17F / Section 58-17F-8
Health carrier to monitor provider ability, capacity, and authority--Financial capability to be monitored in capitated plans
Status: in_force

The health carrier shall monitor, on an ongoing basis, the ability, clinical capacity, and legal authority of its providers to furnish all contracted benefits to covered persons. In the case of capitated plans, the health carrier shall also monitor the financial capability of the provider.

Source: SL 2011, ch 219, § 8.
S.D. Codified Laws § 58-29A-61 — SD Code / Title 58 / Chapter 29A / Section 58-29A-61
Tax exemption of association
Status: in_force

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

Source: SL 2000, ch 247, § 8.
S.D. Codified Laws § 58-24-65 — SD Code / Title 58 / Chapter 24 / Section 58-24-65
Rehearing and appeal from order of director
Status: in_force

Any order or decision of the director in proceedings arising under this chapter shall be subject to rehearing and review on appeal in the same manner and by the same procedure as provided by chapter 1-26 , and such procedure shall be exclusive of all other remedies.

Source: SL 1966, ch 111, ch 15, § 17 (2).
S.D. Codified Laws § 58-18-43 — SD Code / Title 58 / Chapter 18 / Section 58-18-43
Late enrollee determined
Status: in_force

For the purposes of this chapter, a late enrollee is an eligible employee or dependent who requests enrollment in a health benefit plan of an employer following the initial enrollment period during which the individual is entitled to enroll under the terms of the health benefit plan, if the initial enrollment period is a period of at least thirty days. However, no eligible employee or dependent may be considered a late enrollee if:

(1) The individual:

(a) Was covered under creditable coverage at the time of the initial enrollment;

(b) Lost coverage under creditable coverage as a result of termination of employment or eligibility, reduction of hours, the involuntary termination of the creditable coverage, death of a spouse, legal separation, or divorce; and

(c) Requests enrollment within sixty - three days after termination of the creditable coverage;

(2) The individual is employed by an employer that offers multiple health benefit plans and the individual elects a different plan during an open enrollment period;

(3) A court has ordered coverage be provided for a spouse or minor or dependent child under a covered employee's health benefit plan and request for enrollment is made within thirty days after issuance of the court order; or

(4) Child custody has changed by agreement of the parties to a child custody agreement or to a child custody order which agreement has not yet been included in a court order.

Source: SL 1994, ch 383, § 2; SL 1997, ch 289, § 7.
S.D. Codified Laws § 58-19-37 — SD Code / Title 58 / Chapter 19 / Section 58-19-37
Civil forfeiture for violations of orders of director
Status: in_force

In addition to any other penalty provided by law, any person, firm, or corporation which violates an order of the director after it has become final, and while such order is in effect, shall, upon proof thereof to the satisfaction of the court, forfeit and pay to the State of South Dakota a sum not to exceed two hundred fifty dollars which may be recovered in a civil action, except that if such violation is found to be willful, the amount of such penalty shall be a sum not to exceed one thousand dollars.

Source: SL 1966, ch 111, ch 27, § 13.
S.D. Codified Laws § 58-17G-7 — SD Code / Title 58 / Chapter 17G / Section 58-17G-7
Promulgation of rules
Status: in_force

The director may, after consultation with the secretary, promulgate, pursuant to chapter 1-26 , reasonable rules to protect the public in its purchase of network health insurance products and to achieve the goals of this chapter, by assuring quality of health care to the public that purchases network products. The rules may include:

(1) Definition of terms;

(2) Contents of reports and filings;

(3) Record keeping;

(4) Setting of quality criteria based upon type of network; and

(5) Quality assurance plans or quality improvement plans or both.

Source: SL 2011, ch 219, § 27.
S.D. Codified Laws § 58-5A-81 — SD Code / Title 58 / Chapter 5A / Section 58-5A-81
Maintenance of risk management framework
Status: in_force

An insurer shall maintain a risk management framework to assist the insurer with identifying, assessing, monitoring, managing, and reporting on its material and relevant risks. This requirement may be satisfied if the insurance group, of which the insurer is a member, maintains a risk management framework applicable to the operations of the insurer.

Source: SL 2017, ch 210, § 2.
S.D. Codified Laws § 58-5-87 — SD Code / Title 58 / Chapter 5 / Section 58-5-87
Domestic insurer--Management and exclusive agency contracts, time for disapproval by director--Disapproval in writing, statement of grounds
Status: in_force

The contract shall be deemed approved unless disapproved by the director within twenty days after date of filing, subject to such reasonable extension of time as the director may require by notice given within such twenty days. Any disapproval shall be delivered to the insurer in writing, stating the grounds therefor.

Source: SL 1966, ch 111, ch 16, § 23 (1).
S.D. Codified Laws § 58-17-89 — SD Code / Title 58 / Chapter 17 / Section 58-17-89
Shorter hospital stay permitted--Follow-up visit within forty-eight hours required
Status: in_force

If the treating physician determines that the mother and the newborn meet medical criteria contained in Guidelines for Perinatal Care, Third Edition, of the American Academy of Pediatrics and the American College of Obstetricians and Gynecologists as in effect on January 1, 1996, a health insurance policy may provide coverage for a shorter length of hospital inpatient stay for services related to maternity and newborn care than is required in § 58-17-88 if the coverage includes one follow - up visit in the first forty - eight hours after discharge to verify the condition of the mother and newborn.

Source: SL 1996, ch 292, § 2.
S.D. Codified Laws § 58-15-43.12 — SD Code / Title 58 / Chapter 15 / Section 58-15-43.12
Insurance plans to conform to minimum standards of nonforfeiture laws
Status: in_force

In the case of any plan of life insurance which provides for future premium determination, the amounts of which are to be determined by the insurer based on then estimates of future experience, or in the case of any plan of life insurance which is of such a nature that minimum values cannot be determined by the methods described in §§ 58-15-31 to 58-15-38 , inclusive, and §§ 58-15-43.1 to 58-15-43.11 , inclusive, then the director of the Division of Insurance must be satisfied that the benefits provided under the plan are substantially as favorable to policy holders and insureds as the minimum benefits otherwise required by those sections. Further, the director must be satisfied that the benefits and the pattern of premiums of that plan do not mislead prospective policyholders or insureds. In addition the cash surrender values and paid - up nonforfeiture benefits provided by the plan may not be less than the minimum values and benefits required for the plan computed by a method consistent with the principles of this chapter, as determined by regulations promulgated by the director.

Source: SL 1982, ch 357, § 16.
S.D. Codified Laws § 58-32-16.1 — SD Code / Title 58 / Chapter 32 / Section 58-32-16.1
Certain unauthorized insurers to submit annual report
Status: in_force

On or before April first, each unauthorized insurer writing insurance business in South Dakota shall annually file with the director, on a form approved by the director, a true statement of all insurance business written in South Dakota in the preceding calendar year.

Source: SL 1990, ch 407, § 1.
S.D. Codified Laws § 58-18A-76 — SD Code / Title 58 / Chapter 18A / Section 58-18A-76
Plan providing benefits as services
Status: in_force

A secondary plan that provides benefits in the form of services may recover the reasonable cash value of the services from the primary plan, to the extent that benefits for the services are covered by the primary plan and have not already been paid or provided by the primary plan. Nothing in this section requires a plan to reimburse a covered person in cash for the value of services provided by a plan that provides benefits in the form of services.

Source: SL 2006, ch 259, § 24.
S.D. Codified Laws § 58-22-2 — SD Code / Title 58 / Chapter 22 / Section 58-22-2
Qualifications of surety for release of person on bail
Status: in_force

Each and every surety for the release of a person on bail shall be qualified as:

(1) An insurer and represented by a surety bondsman or bondsmen; or

(2) A professional bondsman properly qualified and approved by the director; or

(3) A natural person who has reached the age of twenty - one years, a citizen of the United States and a bona fide resident of South Dakota for a period of one year immediately last past and who holds record title to property in South Dakota acceptable to the proper authority approving the bail bond.

Source: SL 1966, ch 111, ch 31, § 4.
S.D. Codified Laws § 58-11-29 — SD Code / Title 58 / Chapter 11 / Section 58-11-29
Binders or other contracts for temporary insurance--Terms--Fraudulent statement as misdemeanor
Status: in_force

Binders or other contracts for temporary insurance may be made orally or in writing, and shall be deemed to include all the usual terms of the policy as to which the binder was given together with such applicable endorsements as are designated in the binder, except as superseded by the clear and express terms of the binder. Any insurance producer or surplus lines broker who knowingly makes any false or fraudulent material statement on a binder, certificate of insurance, or other document offered as proof of insurance is guilty of a Class 1 misdemeanor for each offense.

Source: SL 1966, ch 111, ch 22, § 24 (1); SL 1990, ch 394; SL 2001, ch 286, § 102.
S.D. Codified Laws § 58-5-153 — SD Code / Title 58 / Chapter 5 / Section 58-5-153
Determining whether to report material nonrenewals, cancellations, or revisions on a nonconsolidated or consolidated basis
Status: in_force

Insurers shall report all material nonrenewals, cancellations, or revisions of ceded reinsurance agreements on a nonconsolidated basis unless the insurer is part of a consolidated group of insurers which utilizes a pooling arrangement or one hundred percent reinsurance agreement that affects the solvency and integrity of the insurer's reserves and the insurer ceded substantially all of its direct and assumed business to the pool. An insurer is deemed to have ceded substantially all of its direct and assumed business to a pool if the insurer has less than one million dollars of total direct plus assumed written premiums during a calendar year that are not subject to a pooling arrangement and the net income of the business not subject to the pooling arrangement represents less than five percent of the insurer's capital and surplus.

Source: SL 1995, ch 275, § 10.
S.D. Codified Laws § 58-18A-58 — SD Code / Title 58 / Chapter 18A / Section 58-18A-58
Contracts and coverages included within definition of plan
Status: in_force

For the purposes of this chapter, the term, plan, includes:

(1) Group and nongroup insurance contracts and subscriber contracts;

(2) Uninsured arrangements of group or group-type coverage;

(3) Group and nongroup coverage through closed panel plans;

(4) Group-type contracts;

(5) The medical care components of long-term care contracts, such as skilled nursing care;

(6) The medical benefits coverage in automobile no fault and traditional automobile fault type contracts;

(7) Medicare or other governmental benefits, as permitted by law, except for the medical assistance program. That part of the definition of plan may be limited to the hospital, medical, and surgical benefits of the governmental program; and

(8) Group and nongroup insurance contracts and subscriber contracts that pay or reimburse for the cost of dental care.

Source: SL 2006, ch 259, § 6; SL 2007, ch 290, § 1; SL 2015, ch 253, § 1.
S.D. Codified Laws § 58-11A-3 — SD Code / Title 58 / Chapter 11A / Section 58-11A-3
Reading ease--Printing--Style--Index or table of contents
Status: in_force

In addition to any other requirements of law, no policy forms, except as stated in § 58-11A-4 , may be delivered or issued for delivery in this state on or after the dates such forms must be approved under this chapter, unless:

(1) The text achieves a minimum score of forty on the Flesch Reading Ease Test or an equivalent score on any other comparable test;

(2) It is printed, except for specification pages, schedules, and tables, in not less than ten point type, one point leaded;

(3) The style, arrangement, and overall appearance of the policy give no undue prominence to any portion of the text of this policy or to any endorsements or riders; and

(4) It contains a table of contents or an index of the principal sections of the policy if the policy has more than three thousand words printed on three or fewer pages of text or if the policy has more than three pages, regardless of the number of words.

Source: SL 1981, ch 360, § 3.
S.D. Codified Laws § 58-5A-37 — SD Code / Title 58 / Chapter 5A / Section 58-5A-37
Examination of insurers and affiliates
Status: in_force

Subject to the limitations contained in this section and §§ 58-5A-38 to 58-5A-40 , inclusive, and in addition to the powers which the director has under the provision of this title relating to the examination of insurers, the director may examine any registered insurer and the insurer's affiliates to ascertain the financial condition of the insurer, including enterprise risk to the insurer by the ultimate controlling party, or by any entity or combination of entities within the insurance holding company system, or by the insurance holding company on a consolidated basis.

Source: SL 1972, ch 267, § 31; SL 2015, ch 246, § 12.
S.D. Codified Laws § 58-18-83 — SD Code / Title 58 / Chapter 18 / Section 58-18-83
Policies to provide coverage for diabetes supplies, equipment and education--Exceptions--Conditions and limitations
Status: in_force

Every group health insurance policy, including a certificate that is subject to approval pursuant to § 58-11-12 , delivered, issued for delivery, or renewed in this state, except for policies that provide coverage for special 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 policy.

Source: SL 1999, ch 252, § 3; SL 2000, ch 244, § 2.
S.D. Codified Laws § 58-27-46 — SD Code / Title 58 / Chapter 27 / Section 58-27-46
"Durable equipment" defined
Status: in_force

For the purposes of § 58-27-45 , the term "durable equipment" shall include only mechanical refrigerators, air conditioning equipment, mechanical laundering machines, heating and cooking stoves and ranges, and, in addition, in the case of apartment houses, motels and hotels, room furniture and furnishings.

Source: SL 1966, ch 111, ch 6, § 29 (2).
S.D. Codified Laws § 58-41-100 — SD Code / Title 58 / Chapter 41 / Section 58-41-100
Membership of voluntary health insurance purchasing organizations
Status: in_force

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

Source: SL 1994, ch 382, § 2.
S.D. Codified Laws § 58-30-209.3 — SD Code / Title 58 / Chapter 30 / Section 58-30-209.3
Travel administrators
Status: in_force

Notwithstanding any other provisions of chapter 58-30 , no person may act or represent oneself as a travel administrator for travel insurance in this state unless that person:

(1) Is a licensed property and casualty insurance producer in this state for activities permitted under that producer license;

(2) Holds a valid managing general agent license in this state; or

(3) Holds a valid third-party administrator license in this state.

An insurer is responsible for the acts of a travel administrator administering travel insurance underwritten by the insurer, and is responsible for ensuring that the travel administrator maintains all books and records relevant to the insurer to be made available by the travel administrator to the director upon request.

Source: SL 2022, ch 185, § 4.
S.D. Codified Laws § 58-1-45 — SD Code / Title 58 / Chapter 1 / Section 58-1-45
Alternative delivery method for policies--Record
Status: in_force

An insurer may comply with the policy delivery requirements of §§ 58-15-8.2 , 58-15-59.2 , 58-17-11.1 , 58-17A-8.1 , and 58-28-24.2 by one of the following alternative delivery methods:

(1) Via first-class mail using an intelligent mail barcode or another similar tracking method used or approved by the United States Postal Service; or

(2) Via commercial delivery service using a tracking method approved by the division.

An insurer utilizing an alternative delivery method must retain a record evidencing delivery of the policy for five years.

Source: SL 2024, ch 200, § 1.
S.D. Codified Laws § 58-2-17 — SD Code / Title 58 / Chapter 2 / Section 58-2-17
Compensation of personnel
Status: in_force

The compensation of all such personnel employed or contracted for by the Department of Labor and Regulation shall be fixed by the department subject to the approval of the Bureau of Human Resources and Administration.

Source: SL 1966, ch 111, ch 2, § 4 (9); revised pursuant to SL 1973, ch 23, § 6; SL 2003, ch 272 (Ex. Ord. 03-1), § 20; SL 2011, ch 1 (Ex. Ord. 11-1), § 162, eff. Apr. 12, 2011; SL 2012, ch 23, § 102; SL 2024, ch 1 (Ex. Ord. 24-1), § 35, eff. Apr. 8, 2024.
S.D. Codified Laws § 58-29F-2 — SD Code / Title 58 / Chapter 29F / Section 58-29F-2
Definitions
Status: in_force

Term used in this chapter mean:

(1) "Entity," a pharmacy benefits manager or any person or organization that represents these companies, groups, or organizations in any capacity;

(2) "Plan sponsor," the employer in the case of an employee benefit plan established or maintained by a single employer or the employee organization in the case of a plan established or maintained by an employee organization, an association, joint board, trustee, committee, or other similar group that establishes or maintains the plan.

Source: SL 2013, ch 254, § 2.