S.D. Codified Laws § 58-35-71 — SD Code / Title 58 / Chapter 35 / Section 58-35-71
Liabilities and obligations of surviving or new corporation
Status: in_force

If a merger or consolidation has been effected pursuant to this chapter:

(1) The surviving or new corporation is thenceforth responsible and liable for all the liabilities and obligations of each of the corporations so merged; and

(2) Any claim existing or action or proceeding pending by or against any of the corporations may be prosecuted as if the merger had not taken place, or the surviving or new corporation may be substituted in its place.

Neither the rights of creditors nor any liens upon the property of any such corporation may be impaired by the merger or consolidation.

Source: SL 1995, ch 293, § 12.
S.D. Codified Laws § 58-46-6 — SD Code / Title 58 / Chapter 46 / Section 58-46-6
Examination, investigation, and processing of application--Fees
Status: in_force

Each captive insurance company shall pay to the director a nonrefundable fee of two thousand dollars for examining, investigating, and processing its application for certificate of authority. Two or more captive insurance companies under common ownership or control shall pay this fee for each application submitted to the director for a certificate of authority. A sponsored captive insurance company shall pay an additional one thousand dollars for each protected cell application. However, no additional fee is required for the first protected cell application submitted by a sponsored captive insurance company. The director may retain legal, financial, and examination services from outside the department. The reasonable cost of the services may be charged against the applicant with notice to the applicant. The provisions of chapter 58-3 apply to examinations, investigations, and processing conducted under the authority of this chapter.

Source: SL 1996, ch 287, § 6; SL 2013, ch 257, § 5; SL 2016, ch 234, § 1.
S.D. Codified Laws § 58-4-50 — SD Code / Title 58 / Chapter 4 / Section 58-4-50
Definitions
Status: in_force

Terms used in §§ 58-4-50 to 58-4-54 , inclusive, mean:

(1) "Return information," any information collected, prepared or received by the division which relates to a return, including the nature or amount of a taxpayer's income, receipts, deductions, net worth, tax liability, or deficiencies, or any part of any written determination or background file documents relating to such information. The term does not include data in a form which cannot be associated with or otherwise identify, directly or indirectly, a particular taxpayer;

(2) "Returns," all tax returns, tax reports or claims for refund which are filed with the division.

Source: SL 2012, ch 242, § 2.
S.D. Codified Laws § 58-11-27 — SD Code / Title 58 / Chapter 11 / Section 58-11-27
Combination policy--Contents
Status: in_force

Two or more insurers may, with the approval of the director, issue a combination policy which shall contain provisions substantially as follows:

(1) That the insurers executing the policy shall be severally liable for the full amount of any loss or damage, according to the terms of the policy, or for specified percentages or amounts thereof, aggregating the full amount of insurance under the policy; and

(2) That service of process, or of any notice or proof of loss required by such policy, upon any of the insurers executing the policy, shall constitute service upon all such insurers.

Source: SL 1966, ch 111, ch 22, § 21 (2).
S.D. Codified Laws § 58-17B-11 — SD Code / Title 58 / Chapter 17B / Section 58-17B-11
Contents of certificate
Status: in_force

A certificate issued pursuant to a group long - term care insurance policy which policy is delivered or issued for delivery in this state shall include:

(1) A description of the principal benefits and coverage provided in the policy;

(2) A statement of the principal exclusions, reductions and limitations contained in the policy; and

(3) A statement that the group master policy determines governing contractual provision.

Source: SL 1989, ch 440, § 12.
S.D. Codified Laws § 58-17E-33 — SD Code / Title 58 / Chapter 17E / Section 58-17E-33
Marketing of product--Agreement
Status: in_force

A discount medical plan organization may market directly or contract with other marketers for the distribution of its product. The discount medical plan organization shall have an executed written agreement with a marketer prior to the marketer's marketing, promoting, selling, or distributing the discount medical plan.

Source: SL 2006, ch 257, § 33.
S.D. Codified Laws § 58-25-3 — SD Code / Title 58 / Chapter 25 / Section 58-25-3
Reasonableness and adequacy of rates
Status: in_force

Rates shall be reasonable and adequate for the class of risks to which they apply.

Source: SL 1966, ch 111, ch 14, § 2 (1).
S.D. Codified Laws § 58-17B-3 — SD Code / Title 58 / Chapter 17B / Section 58-17B-3
Minimum requirements for individual policy
Status: in_force

An individual policy delivered or issued for delivery may not contain provisions less favorable to the insured than "guaranteed renewable" for life.

Source: SL 1989, ch 440, § 3.
S.D. Codified Laws § 58-41-51.2 — SD Code / Title 58 / Chapter 41 / Section 58-41-51.2
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 § 58-17-44 — SD Code / Title 58 / Chapter 17 / Section 58-17-44
Foreign or alien insurer--Policy provision required by home state
Status: in_force

Any policy of a foreign or alien insurer, when delivered or issued for delivery to any person in this state, may contain any provision which is not less favorable to the insured or the beneficiary than the provisions of this chapter and which is prescribed or required by the law of the state or country under which the insurer is organized.

Source: SL 1966, ch 111, ch 25, § 26 (1).
S.D. Codified Laws § 58-4A-7 — SD Code / Title 58 / Chapter 4A / Section 58-4A-7
Civil penalties--Disposition of penalties collected--Civil action in lieu of criminal prosecution
Status: in_force

If the insurance fraud prevention unit or its designees initiate civil action against any person and that person is found by a court of competent jurisdiction to have committed a fraudulent insurance act as set forth in § 58-4A-2 , that person is subject to a civil penalty not to exceed five thousand dollars for the first violation, ten thousand dollars for the second violation, and fifteen thousand dollars for each subsequent violation. Civil penalties paid under this section shall be deposited in the insurance fraud prevention unit fund. An action under this section may be in lieu of criminal prosecution under the laws of this state.

Source: SL 1999, ch 241, § 7; SL 2013, ch 245, § 4.
S.D. Codified Laws § 58-41-42 — SD Code / Title 58 / Chapter 41 / Section 58-41-42
Evidence of coverage to be approved before use--Violation as misdemeanor
Status: in_force

No evidence of coverage or amendment thereto shall be issued or delivered to any person in this state until a copy of the form of the evidence of coverage or amendment thereto has been filed with and approved by the director. Violation of this section is a Class 2 misdemeanor.

Source: SL 1974, ch 321, §§ 20, 50; SDCL Supp, § 58-41-77 ; SL 1978, ch 359, § 2.
S.D. Codified Laws § 58-20-7 — SD Code / Title 58 / Chapter 20 / Section 58-20-7
Right of employees to enforce liability of insurance carrier--Inclusion of provision in policy
Status: in_force

Every policy of insurance issued by a stock insurer or by a mutual insurer shall contain a provision setting forth the right of the employees to enforce in their own names, either by at any time filing a separate claim or by at any time making the insurance carrier a party to the original claims, the liability of the insurance carrier in whole or in part for the payment of such compensation.

Source: SL 1966, ch 111, ch 29, § 7.
S.D. Codified Laws § 58-29B-17 — SD Code / Title 58 / Chapter 29B / Section 58-29B-17
Hearings--Notice and procedure
Status: in_force

The notice of hearing under § 58-29B-13.1 and any order issued pursuant to that section shall be served upon the insurer pursuant to the applicable rules of civil or administrative procedure. The notice of hearing shall state the time and place of hearing, and the conduct, condition, or ground upon which the director would base his order. Unless mutually agreed between the director and the insurer, the hearing shall occur no less than ten days nor more than thirty days after notice is served and shall be in Hughes County or such other location as may be designated by the director. All hearings shall be private, unless the insurer requests a public hearing.

Source: SL 1989, ch 436, § 17.
S.D. Codified Laws § 58-28-23 — SD Code / Title 58 / Chapter 28 / Section 58-28-23
Contract to state procedure for determining amount of variable benefits
Status: in_force

Any contract providing benefits payable in variable amounts delivered or issued for delivery in this state shall contain a statement of the essential features of the procedures to be followed by the insurer in determining the dollar amount of such variable benefits.

Source: SL 1966, ch 111, ch 6, § 36 (4) as added by SL 1967, ch 131; SDCL, § 58-28-4; SL 1971, ch 266, § 2.
S.D. Codified Laws § 58-46-11 — SD Code / Title 58 / Chapter 46 / Section 58-46-11
Organizers
Status: in_force

A captive insurance company shall have at least three organizers of whom at least one shall be a resident of this state.

Source: SL 1996, ch 287, § 11; SL 2013, ch 257, § 10.
S.D. Codified Laws § 58-38-8 — SD Code / Title 58 / Chapter 38 / Section 58-38-8
Issuance of license--Matters considered by director
Status: in_force

The director shall issue a license upon being satisfied on the following points:

(1) That the applicant is established as a bona fide nonprofit medical and surgical service corporation;

(2) That the contracts between the applicant and the participating physicians and surgeons obligate each physician and surgeon to render service to which each subscriber may be entitled under the contract issued to the subscribers;

(3) That the rates to be charged and benefits to be provided are fair and reasonable;

(4) That amounts provided as working capital of the corporation are repayable only out of earned income over and above operating expenses, physicians and surgeons expenses, and such reserve as the director may deem adequate; and

(5) That the amount of money actually available for working capital be sufficient to carry all acquisition costs and operating expenses for a reasonable period of time from the date of the issuance of the certificate.

Source: SL 1966, ch 111, ch 21, § 6.
S.D. Codified Laws § 58-37A-35 — SD Code / Title 58 / Chapter 37A / Section 58-37A-35
Appointment of director as attorney for service of process--Copy forwarded to secretary of society--Time for filing answer--Fee paid by plaintiff
Status: in_force

Any society authorized to do business in this state shall appoint in writing the director to be its attorney upon whom all lawful process in any action or proceeding against it may be served and shall agree in writing that any lawful process against it which is served on the attorney shall be of the same legal force and validity as if served upon the society and that the authority shall continue in force so long as any liability remains outstanding in this state. Copies of this appointment, certified by the director, are sufficient evidence of it and shall be admitted in evidence with the same force and effect as the original was admitted.

Service shall only be made upon the director, or if absent, upon the person in charge of the director's office. It shall be made in duplicate and shall constitute sufficient service upon the society. If legal process against a society is served upon the director, the director shall immediately forward one of the duplicate copies by registered mail, prepaid, directed to the secretary or corresponding officer. No service may require a society to file its answer, pleading, or defense in less than thirty days from the date of mailing the copy of the service to a society. No legal process may be served upon a society except in the manner provided in this section. At the time of serving any process upon the director, the plaintiff, or complainant in the action shall pay to the director a fee as set forth in subsection 58-2-29(12)(c).

Source: SL 1990, ch 410, § 35.
S.D. Codified Laws § 58-17-54 — SD Code / Title 58 / Chapter 17 / Section 58-17-54
Reimbursement provisions applicable to all healing arts licensees--Self-insurance plans for public employees--Restrictions on policy limitations
Status: in_force

Notwithstanding any provision of any policy of insurance subject to the general provisions of this title, if a policy or contract provides for reimbursement for any service which may be legally performed by a person licensed in this state for the practice of medicine, surgery, anesthesia by a certified registered nurse anesthetist licensed under chapter 36-9 , psychology, dentistry, osteopathy, social work by an independent social worker licensed under § 36-26-17 , optometry, chiropractic, or podiatry, the reimbursement under that policy or contract may not be denied if the service is rendered by a person so licensed. The provisions of this section apply to all practitioners licensed pursuant to chapters 36-4A and 36-9A after July 1, 1980, and to any plan of self - insurance for public employees. Reimbursement may be denied to a policyholder treating himself or any member of his family residing in his household. However, reimbursement for durable medical equipment, pharmaceuticals, and prosthetic devices may not be denied if within policy coverages.

No policy, certificate, or contract may exclude or limit reimbursement for any lawful diagnostic or treatment service by a licensee under chapter 36-5 if the exclusion or limitation is based wholly or in part on any requirement that the service be performed in a place of service not normally used by the licensee.

A policy, certificate, or contract may only limit or make optional the reimbursement for any lawful diagnostic or treatment service by a licensee under chapters 36-4 and 36-5 if the limitation is based on a rational basis which is not solely related to the license under, or practices authorized by, chapter 36-5 or is not dependent upon a method of classification, categorization or description based directly or indirectly upon differences in terminology used by different licensees in describing human ailments or in the diagnosis or treatment of human ailments.

This section does not require reimbursement for any method or service not necessary, not reasonable or not generally accepted by the peers of the particular licensed health care provider.

Source: SL 1970, ch 273; SL 1980, ch 355, § 2; SL 1981, ch 24, § 6; SL 1982, ch 363, § 2; SL 1986, ch 419, § 1; SL 1988, ch 402; SL 1989, ch 427; SL 1993, ch 360.
S.D. Codified Laws § 58-41-35.7 — SD Code / Title 58 / Chapter 41 / Section 58-41-35.7
Contracts required to cover occult breast cancer screening
Status: in_force

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

The provisions of this section apply only to plans that are not grandfathered pursuant to 75 Fed. Reg. 116 (2010) to be codified at 26 C.F.R. §§ 54 and 602, 29 C.F.R. § 2590, and 45 C.F.R. § 147.

Source: SL 2011, ch 216, § 17.
S.D. Codified Laws § 58-5A-6 — SD Code / Title 58 / Chapter 5A / Section 58-5A-6
Information required of corporations, officers, directors and certain owners of voting securities--Violation as misdemeanor
Status: in_force

If any partner, member, or person is a corporation or the person required to file the statement referred to in § 58-5A-3 is a corporation, the director may require that the information called for by subdivisions 58-5A-4(1) to (14), inclusive, shall be given with respect to a corporation, each officer and director of the corporation, and each person who is directly or indirectly the beneficial owner of more than ten percent of the outstanding voting securities of the corporation.

A violation of this section is a Class 2 misdemeanor.

Source: SL 1972, ch 267, § 5; SL 1990, ch 158, § 23; SL 2015, ch 246, § 5.
S.D. Codified Laws § 58-33-22 — SD Code / Title 58 / Chapter 33 / Section 58-33-22
Increase in health insurance benefits by maintaining policy in force permitted
Status: in_force

Nothing in §§ 58-33-14 and 58-33-15 shall be construed as including within the definition of discrimination or rebates, issuance of health insurance policies which provide for increases in benefits to policyholders who maintain their policies continuously in force without lapse for specified periods.

Source: SL 1966, ch 111, ch 13, § 15 (6).
S.D. Codified Laws § 58-4-48 — SD Code / Title 58 / Chapter 4 / Section 58-4-48
Minimum levels of risk-based capital required--Administrative rules
Status: in_force

Any life and health and property and casualty insurer, and any insurer subject to chapters 58-37A , 58-38 , 58-39 , 58-40 , and 58-41 , domiciled in this state shall maintain minimum levels of risk - based capital to transact the business of insurance in this state. Each life and health and property and casualty domestic insurer, and any insurer subject to chapters 58-37A , 58-38 , 58-39 , 58-40 , and 58-41 , shall file with the director, on or before March first of each year, a report disclosing the insurer's level of risk - based capital. Any foreign life and health and property and casualty insurer, and any insurer subject to chapters 58-37A , 58-38 , 58-39 , 58-40 , and 58-41 , shall file a similar report upon the request of the director. The director of the Division of Insurance may promulgate rules, pursuant to chapter 1-26 , regarding the filing of risk - based capital reports, the establishment of various minimum levels of risk - based capital requirements, the criteria and standards for which an insurer shall be required to submit a risk - based capital plan, the director's authority to revise or adopt the insurer's risk - based capital report or plan, the opportunity for hearing regarding the director's decision to revise an insurer's risk - based capital report or plan, the director's authority to require corrective actions, the confidentiality of risk - based capital reports and plans, and the exemption of certain insurers from the requirements of this section. The director may promulgate rules, pursuant to chapter 1-26 , concerning the filing of risk - based capital reports to assist the director in the evaluation of the hazardous financial condition of an insurer pursuant to § 58-4-39 .

Source: SL 1996, ch 289; SL 2001, ch 269, § 1.
S.D. Codified Laws § 58-14-12.1 — SD Code / Title 58 / Chapter 14 / Section 58-14-12.1
Trust fund requirements for group including incorporated and individual unincorporated underwriters
Status: in_force

In the case of a group including incorporated and individual unincorporated underwriters, the trust in § 58-14-11 shall consist of a trusteed account in an amount not less than the respective underwriters' several liabilities attributable to business ceded by United States domiciled ceding insurers to any underwriter in the group. Notwithstanding the other provisions of this chapter, the trust in § 58-14-11 for reinsurance ceded under reinsurance agreements with an inception date on or before June 30, 1993, and not amended or renewed after that date, shall consist of a trusteed account in an amount not less than the respective underwriters' several insurance and reinsurance liabilities attributable to business written in the United States. In addition to these trusts, the group shall maintain in trust a trusteed surplus of which one hundred million dollars shall be held jointly for the benefit of United States domiciled ceding insurers of any member of the group for all years of account.

The incorporated members of the group with a trust under § 58-14-11 may not be engaged in any business other than underwriting as a member of the group and shall be subject to the same level of regulation and solvency control by the group's domiciliary regulator as are the unincorporated members.

Within ninety days after its financial statements are due to be filed with the group's domiciliary regulator, the group shall provide to the director an annual certification by the group's domiciliary regulator of the solvency of each underwriter member or, if a certification is unavailable, financial statements, prepared by independent public accountants, of each underwriter member of the group.

Source: SL 2017, ch 211, § 6.
S.D. Codified Laws § 58-26-2 — SD Code / Title 58 / Chapter 26 / Section 58-26-2
Valuation of bonds or other evidences of debt--Method of calculation
Status: in_force

All bonds or other evidences of debt having a fixed term and rate of interest held by an insurer may, if amply secured and not in default as to principal or interest, be valued as follows:

(1) If purchased at par, at the par value;

(2) If purchased above or below par, on the basis of the purchase price adjusted so as to bring the value to par at maturity and so as to yield in the meantime the effective rate of interest at which the purchase was made, or in lieu of such method, according to such accepted method of valuation as is approved by the director;

(3) Purchase price shall in no case be taken at a higher figure than the actual market value at the time of purchase, plus actual brokerage, transfer, postage, or express charges paid in the acquisition of such securities;

(4) Unless otherwise provided by valuation established or approved by the director, no such security shall be carried at above the call price for the entire issue during any period within which the security may be so called.

The director shall have full discretion in determining the method of calculating values according to the rules set forth in this section.

Source: SL 1966, ch 111, ch 5, § 12.
S.D. Codified Laws § 58-1-14 — SD Code / Title 58 / Chapter 1 / Section 58-1-14
Notice of nonrenewal of policy must be mailed sixty days prior to renewal date--Exceptions
Status: in_force

Notice of refusal to renew an insurance policy as defined in §§ 58-9-5 to 58-9-30 , inclusive, 58-9-32 and 58-9-33 is not effective unless mailed or delivered by the insurer to the named insured at least sixty days before the effective renewal date. The policy provisions control if the policy provides for a notice of refusal to renew that exceeds sixty days. This section does not apply to the cancellation and nonrenewal of automobile policies or coverages as defined in § 58-11-45 or to a policy of homeowner's insurance. This section also does not apply to any other personal lines policy. A notice of refusal to renew any other personal lines policy is not effective unless mailed or delivered by the insurer to the named insured at least thirty days before the effective renewal date. A notice of nonrenewal is not required if the policyholder is transferred to an insurer that is a member of the same insurance group as the previous insurer and notice of such transfer is given in the form adopted by rule by the Division of Insurance pursuant to chapter 1-26 .

Source: SL 1983, ch 372, § 1; SL 1985, ch 384; SL 1986, ch 414, §§ 1, 2; SL 2001, ch 264, § 1; SL 2002, ch 228, § 1; SL 2003, ch 244, § 1.
S.D. Codified Laws § 58-35-58 — SD Code / Title 58 / Chapter 35 / Section 58-35-58
Provisions exclusive
Status: in_force

Nothing in the insurance laws of this state shall be deemed to apply to or govern either directly or indirectly domestic farm mutual insurers except as contained or referred to in this chapter.

Source: SL 1966, ch 111, ch 17, § 1 (3).
S.D. Codified Laws § 58-35-73 — SD Code / Title 58 / Chapter 35 / Section 58-35-73
Dissolution of farm mutual insurer
Status: in_force

A farm mutual insurer may dissolve under the applicable procedures prescribed by the statutes of this state applying to corporations for profit and be subject to any additional requirements found in chapter 58-35 .

Source: SL 1995, ch 293, § 14.
S.D. Codified Laws § 58-11-5 — SD Code / Title 58 / Chapter 11 / Section 58-11-5
Standard or uniform provisions of insurance contracts--Waiver of required use by director
Status: in_force

Insurance contracts shall contain such standard or uniform provisions as are required by the applicable provisions of this title pertaining to contracts of particular kinds of insurance. The director may waive the required use of a particular provision in a particular insurance policy form if he finds such provision unnecessary for the protection of the insured and inconsistent with the purposes of the policy.

Source: SL 1966, ch 111, ch 22, § 15 (1).
S.D. Codified Laws § 58-5A-15 — SD Code / Title 58 / Chapter 5A / Section 58-5A-15
Mergers and consolidations exempt from information and approval requirements
Status: in_force

The provisions of §§ 58-5A-3 to 58-5A-13 , inclusive, shall not apply to any transaction which is subject to the provisions of chapter 58-5 and dealing with the merger or consolidation of two or more insurers.

Source: SL 1972, ch 267, § 11 (2).
S.D. Codified Laws § 58-5-68 — SD Code / Title 58 / Chapter 5 / Section 58-5-68
Equity security defined
Status: in_force

The term "equity security" when used in §§ 58-5-69 to 58-5-78 , inclusive, means any stock or similar security; or any security convertible, with or without consideration, into such a security, or carrying any warrant or right to subscribe to or purchase such a security; or any such warrant or right; or any other security which the director of the Division of Insurance shall deem to be of similar nature and consider necessary or appropriate, by such rules and regulations as he may prescribe in the public interest or for the protection of investors, to treat as an equity security.

Source: SL 1966, ch 111, ch 16, § 27 (6).
S.D. Codified Laws § 58-6-7 — SD Code / Title 58 / Chapter 6 / Section 58-6-7
Eligibility of insurer for certificate of authority--Necessity for maintenance of required reserves
Status: in_force

No insurer shall be authorized to transact insurance in this state which does not maintain reserves as required by the chapter of this title relating to assets and liabilities, applicable to the kinds of insurance transacted by such insurer, wherever transacted in the United States.

Source: SL 1966, ch 111, ch 3, § 4 (1).
S.D. Codified Laws § 58-1-31 — SD Code / Title 58 / Chapter 1 / Section 58-1-31
Content and timing requirements unaffected
Status: in_force

Nothing in §§ 58-1-27 to 58-1-39 , inclusive, affects any requirement related to content or timing of any notice or document otherwise required pursuant to applicable law.

Source: SL 2014, ch 230, § 5.
S.D. Codified Laws § 58-4-41 — SD Code / Title 58 / Chapter 4 / Section 58-4-41
Director's order to hazardous insurer
Status: in_force

If the director determines that the continued operation of an insurer licensed to transact business in this state may be hazardous to the policyholders, the creditors, or the general public, then the director may issue an order stating the reasons for the determination and requiring the insurer to:

(1) Reduce the total amount of present and potential liability for policy benefits by reinsurance;

(2) Reduce, suspend, or limit the volume of business being accepted or renewed;

(3) Reduce general insurance and commission expenses by specified methods;

(4) Increase the insurer's capital and surplus;

(5) Suspend or limit the declaration and payment of dividend by an insurer to its stockholders or to its policyholders;

(6) File reports in a form acceptable to the director concerning the market value of an insurer's assets;

(7) Limit or withdraw from certain investments or discontinue certain investment practices to the extent the director deems necessary;

(8) Document the adequacy of premium rates in relation to the risks insured;

(9) File, in addition to regular annual statements, interim financial reports on the form adopted by the national association of insurance commissioners or in a format as promulgated by the director;

(10) Correct corporate governance practice deficiencies, and adopt and utilize governance practices acceptable to the director;

(11) Provide a business plan to the director in order to continue to transact business in the state; or

(12) Notwithstanding any other provision of law limiting the frequency or amount of premium rate adjustments, adjust rates for any nonlife insurance product written by the insurer that the director determines necessary to improve the financial condition of the insurer.

If the insurer is a foreign insurer, the director's order may be limited to the extent provided by statute.

Source: SL 1992, ch 339, § 3; SL 2013, ch 244, § 1.
S.D. Codified Laws § 58-7-16 — SD Code / Title 58 / Chapter 7 / Section 58-7-16
Record by director of assets deposited
Status: in_force

The director shall keep a record of the assets and securities comprising each deposit, showing as far as practical the amount and market value of each item.

Source: SL 1966, ch 111, ch 7, § 6 (2); SL 1991, ch 398, § 8.
S.D. Codified Laws § 58-15-18 — SD Code / Title 58 / Chapter 15 / Section 58-15-18
Loan value of policy--Indebtedness deducted
Status: in_force

The loan value of the policy shall be at least equal to the amount required by § 58-15-16 or 58-15-17 , provided that the insurer may deduct, either from such loan value or from the proceeds of the loan, any existing indebtedness not already deducted in determining such amount including any interest then accrued but not due, any unpaid balance of the premium for the current policy year, and interest on the loan to the end of the current policy year.

Source: SL 1966, ch 111, ch 23, § 9.
S.D. Codified Laws § 58-27-111 — SD Code / Title 58 / Chapter 27 / Section 58-27-111
Joint venture and limited partnership investments
Status: in_force

Notwithstanding direct investment limitations applicable to real estate, securities, and other assets as provided in this chapter, an insurer may become a limited partner in a limited partnership or invest in a joint venture with equity interests in real estate, securities, or other assets. Investments made under this section are treated as a permitted investment under §§ 58-27-51 , 58-27-51.1 , and 58-27-51.2 , and within the limitations imposed by those sections. An insurer may not invest more than five percent of its admitted assets in any one limited partnership or joint venture. Determination of the amount an insurer has invested in limited partnerships or joint ventures for the purposes of this section shall be based on the cost of such investments to the insurer. Any investment satisfying the provisions of this section and entered into before July 1, 1997, is hereby ratified.

Source: SL 1997, ch 294, § 33.
S.D. Codified Laws § 58-7-27 — SD Code / Title 58 / Chapter 7 / Section 58-7-27
Decline in market value of deposited assets--Deposit of additional assets or securities
Status: in_force

If for any reason the current market value of such assets and securities falls below the amount of deposit required of the insurer under this title, the insurer shall promptly deposit other or additional assets or securities eligible for deposit and in amount sufficient to cure the deficiency. If the insurer has failed to cure the deficiency within thirty days after receipt of notice thereof by registered or certified mail from the director, the director shall forthwith without further notice revoke the insurer's certificate of authority.

Source: SL 1966, ch 111, ch 7, § 13 (2).
S.D. Codified Laws § 58-18B-15 — SD Code / Title 58 / Chapter 18B / Section 58-18B-15
Provisions for premium rates
Status: in_force

Premium rates for health benefit plans subject to this chapter are subject to the following provisions:

(1) Adjustments in rates for claim experience, health status, and duration of coverage may not be charged to individual employees or dependents. Any such adjustments shall be applied uniformly to the rates charged for all employees and dependents of the small employer;

(2) A small employer carrier may utilize industry as a case characteristic in establishing premium rates, if the highest rate factor associated with any industry classification does not exceed the lowest rate factor associated with any industry classification by more than fifteen percent;

(3) Small employer carriers shall apply rating factors, including case characteristics, consistently with respect to all small employers in a class of business;

(4) For the purposes of this section, a health benefit plan that utilizes a restricted provider network is not considered similar coverage to a health benefit plan that does not utilize such a network, if utilization of the restricted provider network results in substantial differences in claims costs; and

(5) No small employer carrier may use case characteristics, other than age, gender, industry, family composition, and group size without prior approval of the director.

Source: SL 1995, ch 281, § 8.
S.D. Codified Laws § 58-33-117 — SD Code / Title 58 / Chapter 33 / Section 58-33-117
Definitions
Status: in_force

Terms in this section and §§ 58-33-118 to 58-33-130 , inclusive, mean:

(1) "Active duty," full-time duty in the active military service of the United States and includes members of the reserve component (National Guard and Reserve) while serving under published orders for active duty or full-time training. The term does not include members of the reserve component who are performing active duty or active duty for training under military calls or orders specifying periods of less than thirty-one calendar days;

(2) "Armed forces of the United States," all components of the Army, Navy, Air Force, Space Force, Marine Corps, and Coast Guard;

(3) "Department of Defense (DoD) personnel," all active duty service members and all civilian employees, including nonappropriated fund employees and special government employees, of the Department of Defense;

(4) "Door to door," a solicitation or sales method whereby an insurance producer proceeds randomly or selectively from household to household without prior specific appointment;

(5) "General advertisement," an advertisement having as its sole purpose the promotion of the reader's or viewer's interest in the concept of insurance, or the promotion of the insurer or the insurance producer;

(6) "Known" or "knowingly," the insurance producer or insurer had actual awareness, or in the exercise of ordinary care should have known, at the time of the act or practice complained of, that the person solicited:

(a) Is a service member; or

(b) Is a service member with a pay grade of E-4 or below;

(7) "Military installation," any federally owned, leased, or operated base, reservation, post, camp, building, or other facility to which service members are assigned for duty, including barracks, transient housing, and family quarters;

(8) "MyPay," a defense finance and accounting service internet-based system that enables service members to process certain discretionary pay transactions or provide updates to personal information data elements without using paper forms;

(9) "Service member," any active duty officer (commissioned and warrant) or enlisted member of the armed forces of the United States;

(10) "Side fund," a fund or reserve that is part of or otherwise attached to a life insurance policy (excluding individually issued annuities) by rider, endorsement or other mechanism which accumulates premium or deposits with interest or by other means. The term does not include:

(a) Accumulated value or cash value or secondary guarantees provided by a universal life policy;

(b) Cash values provided by a whole life policy which are subject to standard nonforfeiture law for life insurance; or

(c) A premium deposit fund which:

(i) Contains only premiums paid in advance which accumulate at interest;

(ii) Imposes no penalty for withdrawal;

(iii) Does not permit funding beyond future required premiums;

(iv) Is not marketed or intended as an investment; and

(v) Does not carry a commission, either paid or calculated;

(11) "Specific appointment," a prearranged appointment agreed upon by both parties and definite as to place and time.

Source: SL 2008, ch 272, § 1; SL 2023, ch 109, § 23.
S.D. Codified Laws § 58-14-33 — SD Code / Title 58 / Chapter 14 / Section 58-14-33
Additional provisions of contract
Status: in_force

In addition to standards set forth in § 58-14-29 , the contract shall provide:

(1) That the reinsurer and insurer shall have access and the right to copy and audit all accounts and records maintained by the agent or broker related to its business in a form usable by the insurer and reinsurer;

(2) That the contract cannot be assigned in whole or in part by the agent or broker;

(3) That the agent or broker shall comply with the written underwriting and rating standards established by the insurer for the acceptance, rejection or cession of all risks;

(4) That the rates, terms, and purposes of commissions, charges, and other fees which the agent or broker may levy against the reinsurer;

(5) Whether the agent has the authority to settle claims;

(6) If the contract provides for a sharing of interim profits by the agent, that interim profits for property business may not be paid until one year after the end of each underwriting period. Interim profits for casualty business may not be paid for five years after the end of each underwriting period or a later period set by the director for specified lines of casualty insurance. No interim profits may be paid for until the adequacy of reserves on remaining claims has been verified pursuant to § 58-14-36 ;

(7) That the agent or broker shall annually provide the insurer or reinsurer with a statement of its financial condition prepared by an independent certified accountant;

(8) That the reinsurer shall at least semi - annually conduct an on - site review of the underwriting and claims processing operations of the agent;

(9) That the agent shall disclose to the reinsurer any relationship it has with any insurer prior to ceding or assuming any business with the insurer pursuant to the contract; and

(10) That within the scope of its actual or apparent authority, the acts of the agent or broker shall be deemed to be the acts of the reinsurer or insurer on whose behalf it is acting.

Source: SL 1992, ch 345, § 10.
S.D. Codified Laws § 58-5-60 — SD Code / Title 58 / Chapter 5 / Section 58-5-60
Directors of domestic insurer--Terms of office
Status: in_force

The term of a director shall extend until his successor has been elected and has qualified.

Source: SL 1966, ch 111, ch 16, § 21 (3).
S.D. Codified Laws § 58-35-19 — SD Code / Title 58 / Chapter 35 / Section 58-35-19
Fees for certificate of authority
Status: in_force

The insurer shall pay to the director the fees specified in § 58-2-29 for each issuance and renewal of its certificate of authority.

Source: SL 1966, ch 111, ch 17, § 12 (2).
S.D. Codified Laws § 58-43-24 — SD Code / Title 58 / Chapter 43 / Section 58-43-24
Promulgation of rules by director
Status: in_force

The director may promulgate rules, pursuant to chapter 1-26 , regarding the filing and form of the audited annual financial report, qualifications and waiver of any requirements of the accountant, good cause, consolidated and combined audits, internal control reports, workpapers and exemptions from the requirements of this chapter.

Source: SL 1992, ch 357, § 24.
S.D. Codified Laws § 58-17H-1 — SD Code / Title 58 / Chapter 17H / Section 58-17H-1
Definitions
Status: in_force

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

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

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

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

(d) A rescission of coverage determination;

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

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

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

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

(6) "Clinical practice guidelines," a systematically developed statement to assist decision making by health care professionals and patient decisions about appropriate health care for specific clinical circumstances and conditions;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(26) "Pharmaceutical sample," a unit of a prescription drug that is not intended to be sold and is intended to promote the sale of the drug;

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

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

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

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

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

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

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

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

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

(34) "Step therapy override exception," a step therapy protocol should be overridden in favor of coverage of the prescription drug selected by a health care professional within the applicable time frames in § 58-17H-55 and in compliance with chapter 58-17H . This determination is based on a review of the covered person's or health care professional's request for an override, along with supporting rationale and documentation;

(35) "Step therapy protocol," a protocol or program that establishes a specific sequence in which prescription drugs are covered under a pharmacy or medical benefit by a health carrier, a health benefit plan, or a utilization review organization for a specified medical condition and medically appropriate for a health carrier, a health benefit plan, or utilization review organization, including self-administered drugs and drugs administered by a health care professional; and

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

Source: SL 2011, ch 219, § 28; SL 2020, ch 209, § 1.
S.D. Codified Laws § 58-17H-5 — SD Code / Title 58 / Chapter 17H / Section 58-17H-5
Health carrier to provide emergency services coverage without requiring prior authorization--Standards for coverage of emergency services
Status: in_force

If conducting utilization review or making a benefit determination for emergency services, a health carrier that provides benefits for services in an emergency department of a hospital shall comply with the provisions of §§ 58-17H-5 to 58-17H-13 , inclusive. A health carrier shall cover emergency services necessary to screen and stabilize a covered person and may not require prior authorization of such services if a prudent layperson would have reasonably believed that an emergency medical condition existed even if the emergency services are provided on an out of-network basis. A health carrier shall cover emergency services whether the health care provider furnishing the services is a participating provider with respect to such services. If the emergency services are provided out-of-network, the services shall be covered without imposing any administrative requirement or limitation on coverage that is more restrictive than the requirements or limitations that apply to emergency services received from network providers. Emergency services are provided out-of-network by complying with the cost sharing requirements set forth in §§ 58-17H-7 to 58-17H-10 , inclusive, and without regard to any other term or condition of coverage other than the exclusion of or coordination of benefits, an affiliation or waiting periods as permitted under section 2704 of the Public Health Service Act, as amended to January 1, 2011, or cost sharing requirements as set forth in §§ 58-17H-6 to 58-17H-10 , inclusive.

Source: SL 2011, ch 219, § 30.
S.D. Codified Laws § 58-20-30 — SD Code / Title 58 / Chapter 20 / Section 58-20-30
Examination of self-insurance association's activities and records
Status: in_force

The department may examine the affairs, transactions, accounts, records, assets, and liabilities of any association created under §§ 58-20-25 to 58-20-40 , inclusive, as deemed reasonably necessary.

Source: SL 1995, ch 282, § 6.
S.D. Codified Laws § 58-23-4 — SD Code / Title 58 / Chapter 23 / Section 58-23-4
Primary and excess coverage on vehicle loaned by automobile service agency
Status: in_force

When an automobile insurance policy is in force for anyone engaged in the business of selling, repairing, servicing, storing, or parking motor vehicles and the person or organization allows the use of a vehicle with or without consideration to any other person or organization and the vehicle is involved in an accident out of which bodily injury or property damage to third persons or damage to the insured vehicle arises, the following automobile insurance policies shall be applicable:

(1) In the event no other automobile insurance policy is in force at the time of the accident for the person or organization using the vehicle, the coverage provided by the motor vehicle owner's automobile policy shall extend to the borrower in the event the owner's automobile insurance policy extends coverage to said borrower.

(2) In the event that another automobile insurance policy is in force for the person or organization using the vehicle, any coverage provided by the motor vehicle owner's automobile insurance policy shall be excess coverage only but limited by the terms of the owner's applicable automobile insurance policy. The coverages in the policy afforded the person or organization using the vehicle shall be primary.

Source: SL 1970, ch 275, § 1; SL 1978, ch 363, § 1.
S.D. Codified Laws § 58-6-60 — SD Code / Title 58 / Chapter 6 / Section 58-6-60
Notice to insurer and insurance producers of refusal, suspension, or revocation of certificate
Status: in_force

Upon refusal, suspension, or revocation of an insurer's certificate of authority, the director shall forthwith give notice thereof by registered or certified mail to the insurer and to its insurance producers in this state of record in the director's office.

Source: SL 1966, ch 111, ch 3, § 25 (1); SL 1982, ch 28, § 18; SL 2001, ch 286, § 79.
S.D. Codified Laws § 58-38-32 — SD Code / Title 58 / Chapter 38 / Section 58-38-32
Rates for group health insurance issued to purchasing organizations
Status: in_force

Any insurer issuing group health insurance pursuant to §§ 58-38-25 to 58-38-35 , inclusive, is subject to all of the provisions of chapter 58-18B relating to rates.

Source: SL 1994, ch 382, § 8.
S.D. Codified Laws § 58-6A-8 — SD Code / Title 58 / Chapter 6A / Section 58-6A-8
Examination by director
Status: in_force

Any risk retention group shall submit to an examination by the director to determine its financial condition if the director of the jurisdiction in which the group is chartered has not initiated an examination or does not initiate an examination within sixty days after a request by the director of this state. Any such examination shall be coordinated to avoid unjustified repetition and conducted in an expeditious manner in accordance with the National Association of Insurance Commissioners' Examiners Handbook.

Source: SL 1987, ch 372, § 8.
S.D. Codified Laws § 58-16-19 — SD Code / Title 58 / Chapter 16 / Section 58-16-19
Payment of premium on extended group coverage
Status: in_force

The premium for insurance under § 58-16-18 shall be paid by the policyholder, either from the employer's or union's funds or funds contributed by the employer or union, or from funds contributed by the insured employees or members, or from both. If any part of the premium is to be derived from funds, contributed by the insured employees or members, the insurance with respect to spouses and children may be placed in force only if at least seventy - five percent of the then eligible employees or members, excluding any as to whose family members evidence of insurability is not satisfactory to the insurer, elected to make the required contribution. If no part of the premium is to be derived from funds contributed by the employees or members, all eligible employees or members, excluding any as to whose family members evidence of insurability is not satisfactory to the insurer, must be insured with respect to their spouses and children.

Source: SL 1966, ch 111, ch 24, § 2 (1).
S.D. Codified Laws § 58-33A-13 — SD Code / Title 58 / Chapter 33A / Section 58-33A-13
Definitions
Status: in_force

Terms used in §§ 58-33A-14 to 58-33A-27 , inclusive, mean:

(1) "Annuity," an annuity that is an insurance product under state law that is individually solicited, whether the product is classified as an individual or group annuity;

(2) "Cash compensation," any discount, concession, fee, service fee, commission, sales charge, loan, override, or cash benefit received by a producer in connection with the recommendation or sale of an annuity from an insurer, intermediary, or directly from the consumer;

(3) "Consumer profile information," information that is reasonably appropriate to determine whether a recommendation addresses the consumer’s financial situation, insurance needs, and financial objectives, including, at a minimum, the following:

(a) Age;

(b) Annual income;

(c) Financial situation and needs, including debts and other obligations;

(d) Financial experience;

(e) Insurance needs;

(f) Financial objectives;

(g) Intended use of the annuity;

(h) Financial objectives;

(i) Existing assets or financial products, including investment, annuity and insurance holdings;

(j) Liquidity needs;

(k) Liquid net worth;

(l) Risk tolerance, including but not limited to, willingness to accept non-guaranteed elements in the annuity;

(m) Financial resources used to fund the annuity; and

(n) Tax status;

(4) "FINRA," the Financial Industry Regulatory Authority or a succeeding agency;

(5) "Intermediary," an entity contracted directly with an insurer or with another entity contracted with an insurer to facilitate the sale of the insurer’s annuities by producers;

(6) "Material conflict of interest," a financial interest of the producer in the sale of an annuity that a reasonable person would expect to influence the impartiality of a recommendation. Material conflict of interest does not include cash compensation or non-cash compensation;

(7) "Non-cash compensation," any form of compensation that is not cash compensation including health insurance, office rent, office support, and retirement benefits;

(8) "Non-guaranteed elements," the premiums, credited interest rates including any bonus, benefits, values, dividends, non-interest based credits, charges, or elements of formulas used to determine any of these, that are subject to company discretion and are not guaranteed at issue. An element is considered non-guaranteed if any of the underlying non-guaranteed elements are used in its calculation;

(9) "Producer," a person or entity required to be licensed under the laws of this state to sell, solicit or negotiate insurance, including annuities. This term also includes an insurer where no producer is involved;

(10) "Recommendation," advice provided by a producer to an individual consumer that was intended to result or results in a purchase, replacement, or exchange of an annuity in accordance with that advice. This term does not include general communication to the public, generalized customer services assistance or administrative support, general educational information and tools, prospectuses, or other product and sales material. The term does not include presentation of illustrations or showing multiple products to educate and explain to the consumer the options available;

(11) "Replacement,” a transaction in which a new annuity is to be purchased, and it is known or should be known to the proposing producer, or to the proposing insurer whether or not a producer is involved, that by reason of the transaction, an existing annuity or other insurance policy has been or is to be any of the following:

(a) Lapsed, forfeited, surrendered, partially surrendered, assigned to the replacing insurer, or otherwise terminated;

(b) Converted to reduced paid-up insurance, continued as extended term insurance, or otherwise reduced in value by the use of nonforfeiture benefits or other policy values;

(c) Amended so as to effect either a reduction in benefits or in the term for which coverage would otherwise remain in force or for which benefits would be paid;

(d) Reissued with any reduction in cash value; or

(e) Used in a financed purchase; and

(12) "SEC," the United States Securities and Exchange Commission.

Source: SL 2008, ch 273, § 1; SL 2022, ch 186, § 1, eff. Jan. 1, 2023; SL 2023, ch 168, § 1.
S.D. Codified Laws § 58-35-28 — SD Code / Title 58 / Chapter 35 / Section 58-35-28
Bonds of treasurer and secretary
Status: in_force

The treasurer and secretary of an insurer shall each give bond to the insurer for the faithful performance of his duties, in such amount as is designated by the board of directors. Any such bond shall be issued by an authorized corporate surety.

Source: SL 1966, ch 111, ch 17, § 20.
S.D. Codified Laws § 58-26-44 — SD Code / Title 58 / Chapter 26 / Section 58-26-44
Application of chapter
Status: in_force

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

Source: SL 1992, ch 349, § 3.
S.D. Codified Laws § 58-5A-51 — SD Code / Title 58 / Chapter 5A / Section 58-5A-51
Plan for limiting anticompetitive impact of acquisition--Time limit
Status: in_force

An order entered pursuant to §§ 58-5A-49 , 58-5A-50 , and 58-5A-69 may not become final earlier than thirty days after it is issued, during which time the insurer may submit a plan or notification of submission of a plan to remedy the anticompetitive impact of the acquisition. The director may allow the insurer up to ninety days to complete the submission of the plan. Based upon the plan or other information, the director shall specify the conditions, if any, under the time period during which the aspects of the acquisition causing a violation of the standards of this section would be remedied and the order vacated or modified.

An order pursuant to this section does not apply if the acquisition is not consummated.

Source: SL 1992, ch 341, § 13.
S.D. Codified Laws § 58-5-134 — SD Code / Title 58 / Chapter 5 / Section 58-5-134
Merger or consolidation of mutual insurers--Procedure
Status: in_force

A domestic mutual insurer may merge or consolidate with another insurer under the applicable procedures prescribed by the statutes of this state applying to corporations formed for profit, subject to the provisions of §§ 58-5-135 and 58-5-136 .

Source: SL 1966, ch 111, ch 16, § 39 (2); SL 1982, ch 352, § 2; SL 1983, ch 371, § 2.
S.D. Codified Laws § 58-26-55.1 — SD Code / Title 58 / Chapter 26 / Section 58-26-55.1
Opinion of actuary on reserves and related actuarial items to be in accordance with valuation manual
Status: in_force

(1) Every company with outstanding life insurance contracts, accident and health insurance contracts, or deposit-type contracts in this state and subject to regulation by the director shall annually submit the opinion of the appointed actuary as to whether the reserves and related actuarial items held in support of the policies and contracts are computed appropriately, are based on assumptions that satisfy contractual provisions, are consistent with prior reported amounts, and comply with applicable laws of this state. The valuation manual will prescribe the specifics of this opinion including any items deemed to be necessary to its scope.

(2) Every company with outstanding life insurance contracts, accident and health insurance contracts, or deposit-type contracts in this state and subject to regulation by the director, except as exempted in the valuation manual, shall also annually include in the opinion required pursuant to subdivision (1), an opinion of the same appointed actuary as to whether the reserves and related actuarial items held in support of the policies and contracts specified in the valuation manual, when considered in light of the assets held by the company with respect to the reserves and related actuarial items, including the investment earnings on the assets and the considerations anticipated to be received and retained under the policies and contracts, make adequate provision for the company's obligations under the policies and contracts, including the benefits under and expenses associated with the policies and contracts.

(3) Each opinion required by subdivision (2) is governed by the following provisions:

(a) A memorandum, in form and substance as specified in the valuation manual, and acceptable to the director, shall be prepared to support each actuarial opinion; and

(b) If the insurance company fails to provide a supporting memorandum at the request of the director within a period specified in the valuation manual or the director determines that the supporting memorandum provided by the insurance company fails to meet the standards prescribed by the valuation manual or is otherwise unacceptable to the director, the director may engage a qualified actuary at the expense of the company to review the opinion and the basis for the opinion and prepare the supporting memorandum required by the director.

(4) Every opinion is governed by the following provisions:

(a) The opinion is in form and substance as specified in the valuation manual and acceptable to the director;

(b) The opinion is submitted with the annual statement reflecting the valuation of such reserve liabilities for each year ending on or after the operative date of the valuation manual;

(c) The opinion applies to all policies and contracts subject to subdivision (2), plus other actuarial liabilities as may be specified in the valuation manual;

(d) The opinion is based on standards adopted from time to time by the Actuarial Standards Board or its successor, and on such additional standards as may be prescribed in the valuation manual;

(e) In the case of an opinion required to be submitted by a foreign or alien company, the director may accept the opinion filed by that company with the insurance supervisory official of another state if the director determines that the opinion reasonably meets the requirements applicable to a company domiciled in this state;

(f) Except in cases of fraud or willful misconduct, the appointed actuary is not liable for damages to any person, other than the insurance company and the director, for any act, error, omission, decision, or conduct with respect to the appointed actuary's opinion;

(g) Disciplinary action by the director against the company or the appointed actuary shall be defined in rules promulgated by the director, pursuant to chapter 1-26 .

Source: SL 2015, ch 254, § 5.
S.D. Codified Laws § 58-29B-141 — SD Code / Title 58 / Chapter 29B / Section 58-29B-141
Domiciliary receiver, conservator, or liquidator appointed while liquidation proceeding--Duty to act as ancillary receiver
Status: in_force

If a domiciliary receiver, conservator, or liquidator is appointed in a reciprocal state while a liquidation is proceeding under this section the liquidator under this section shall thereafter act as ancillary receiver under §§ 58-29B-145 to 58-29B-148 , inclusive. If a domiciliary liquidator is appointed in a nonreciprocal state while a liquidation is proceeding under this section the liquidator may petition the court for permission to act as ancillary receiver under §§ 58-29B-145 to 58-29B-150 , inclusive.

Source: SL 1989, ch 436, § 141; SL 2008, ch 271, § 1.
S.D. Codified Laws § 58-29B-111 — SD Code / Title 58 / Chapter 29B / Section 58-29B-111
Claims of guaranty associations--Form and content
Status: in_force

All claims of a guaranty association or foreign guaranty association shall be in such form and contain such substantiation as may be agreed to by the association and the liquidator.

Source: SL 1989, ch 436, § 111.
S.D. Codified Laws § 58-20-27 — SD Code / Title 58 / Chapter 20 / Section 58-20-27
Application for self-insurance association--Form
Status: in_force

An association proposing to self - insure its workers' compensation liability shall apply to the department for the authority to self - insure, using forms available from the department. The application shall include:

(1) The association's name;

(2) The location and mailing address of the association's principal office and where its books and records are kept;

(3) The name and address of each member of the association;

(4) A copy of the bylaws or plan of operation adopted by the association;

(5) Proof of compliance with § 58-20-28 ;

(6) A sample copy of the agreement between the association and the members securing the payment of each member's workers' compensation liability;

(7) A pro forma financial statement, on a form acceptable to the department, showing the financial ability of the association to pay the workers' compensation liability of its members; and

(8) The required application fee.

Source: SL 1995, ch 282, § 3.
S.D. Codified Laws § 58-18B-51 — SD Code / Title 58 / Chapter 18B / Section 58-18B-51
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 benefit plan may provide coverage for a shorter length of hospital inpatient stay for services related to maternity and newborn care than is required in § 58-18B-50 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, § 8.
S.D. Codified Laws § 58-6A-13 — SD Code / Title 58 / Chapter 6A / Section 58-6A-13
Financial contribution to or benefit from insurance insolvency guaranty fund prohibited
Status: in_force

No risk retention group may be permitted to join or contribute financially to any insurance insolvency guaranty fund, or similar mechanism, in this state, nor shall any risk retention group, or its insureds, receive any benefit from any such fund for claims arising out of the operations of such risk retention group.

Source: SL 1987, ch 372, § 13.
S.D. Codified Laws § 58-30-139 — SD Code / Title 58 / Chapter 30 / Section 58-30-139
Qualified United States financial institution defined
Status: in_force

The term, a qualified United States financial institution, means an institution that:

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

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

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

Source: SL 1992, ch 353, § 16.
S.D. Codified Laws § 58-17E-45 — SD Code / Title 58 / Chapter 17E / Section 58-17E-45
Consumer's right to return plan or program--Refund
Status: in_force

Any plan or program offered by a person subject to registration pursuant to § 58-17E-9 shall provide thirty days from the date of the signed consumer contract or agreement, or thirty days from the receipt of the disclosures required by § 58-17E-41 if the consumer purchased the plan or program over the telephone, in which the consumer may return the plan or program to the person or agent through whom it was purchased and have all costs of the plan or program, excluding a nominal processing fee as prescribed by the director by rules promulgated pursuant to chapter 1-26 , refunded in full.

Source: SL 2005, ch 269, § 4; SDCL, § 58-17C-107 .
S.D. Codified Laws § 58-17E-23 — SD Code / Title 58 / Chapter 17E / Section 58-17E-23
Examination or investigation of discount medical organization--Expenses
Status: in_force

The director may examine or investigate the business and affairs of any discount medical plan organization to protect the interests of the residents of this state based on the following reasons, including complaint indices, recent complaints, information from other states, or as the director deems necessary. An examination or investigation shall be performed in accordance with the provisions of chapter 58-3 . The discount medical plan organization that is the subject of the examination or investigation shall pay the expenses incurred in conducting the examination or investigation. Failure by the discount medical plan organization to pay the expenses is grounds for denial of a registration to operate as a discount medical plan organization or revocation of a registration to operate as a discount medical plan organization.

The discount medical plan organization is subject to the provisions of § 58-33-66 .

Source: SL 2006, ch 257, § 23.
S.D. Codified Laws § 58-27-97 — SD Code / Title 58 / Chapter 27 / Section 58-27-97
Excess transactions
Status: in_force

If an insurer exceeds any one category, the excess is nonadmitted and the director may require the company to increase capital and surplus to protect policyholders. The insurer's excess transaction is also subject to § 58-27-74 .

Source: SL 1992, ch 350, § 9.
S.D. Codified Laws § 58-15-90 — SD Code / Title 58 / Chapter 15 / Section 58-15-90
Contracts without cash surrender benefits or death benefits at least equal to minimum nonforfeiture amount--Statement in contract
Status: in_force

A contract that does not provide cash surrender benefits or does not provide death benefits at least equal to the minimum nonforfeiture amount prior to the commencement of any annuity payments shall include a statement in a prominent place in the contract that such benefits are not provided.

Source: SL 2004, ch 299, § 9.
S.D. Codified Laws § 58-18-89 — SD Code / Title 58 / Chapter 18 / Section 58-18-89
Promulgation of rules pertaining to multiple employer trusts
Status: in_force

The director shall promulgate rules, pursuant to chapter 1-26 , pertaining to multiple employer trusts in the following areas:

(1) Consumer protection issues including minimum coverage standards for health policies; claims processing and payment practices; resolution of consumer complaints; compliance with federal HIPAA standards; plan termination processes and managed care protections; financial and market conduct record keeping and reporting; and unfair trade practices; and

(2) Financial and plan solvency issues including investment capital requirements; surplus and deposit requirements; claims reserves, stop loss coverage, and standards for entry and exit of plan members including a nonrefundable minimum deposit of not less than two thousand five hundred dollars plus two percent of first year contributions on an annual basis; and production of financial statements, audited financial statements, and actuarial opinions.

Source: SL 2005, ch 272, § 3.
S.D. Codified Laws § 58-6A-3.8 — SD Code / Title 58 / Chapter 6A / Section 58-6A-3.8
Waiver of audit committee requirement
Status: in_force

The domestic regulator may waive the requirement to establish an audit committee composed of independent board members if the risk retention group is able to demonstrate to the domestic regulator that it is impracticable to do so and the risk retention group's board of directors itself is otherwise able to accomplish the purposes of an audit committee, as described in § 58-6A-3.7 .

Source: SL 2016, ch 232, § 10.
S.D. Codified Laws § 58-14-16.4 — SD Code / Title 58 / Chapter 14 / Section 58-14-16.4
List of qualified jurisdictions from which domiciled insurer eligible for consideration for certification
Status: in_force

The director shall create and publish a list of qualified jurisdictions, under which an assuming insurer licensed and domiciled in the jurisdiction is eligible to be considered for certification by the director as a certified reinsurer.

If a certified reinsurer's domiciliary jurisdiction ceases to be a qualified jurisdiction, the director has the discretion to suspend the reinsurer's certification indefinitely, in lieu of revocation.

Source: SL 2017, ch 211, § 15.
S.D. Codified Laws § 58-4A-9 — SD Code / Title 58 / Chapter 4A / Section 58-4A-9
Expenses recoverable--Disposition of recovered costs--Compensation to person in interest
Status: in_force

Costs and expenses incurred in any investigation or other action arising out of a violation under this chapter may be sought in any judgment or court decree. Any recovered costs, except civil or criminal penalties, shall be deposited by the unit or its designees in the insurance fraud prevention unit fund. The court may make such additional orders or judgments as may be necessary to restore to any person in interest any compensation which may have been acquired by means of any act prohibited in § 58-4A-2 .

Source: SL 1999, ch 241, § 9.
S.D. Codified Laws § 58-15-12 — SD Code / Title 58 / Chapter 15 / Section 58-15-12
Payment of premiums provision
Status: in_force

There shall be a provision relative to the payment of premiums.

Source: SL 1966, ch 111, ch 23, § 13.
S.D. Codified Laws § 58-11-44.2 — SD Code / Title 58 / Chapter 11 / Section 58-11-44.2
Requests for information and actions based on applicant's failure to meet insurer's underwriting requirements permissible
Status: in_force

Nothing in § 58-11-44 prohibits an insurer or an insurer's representative from:

(1) Requesting information from an applicant for the purpose of determining that applicant's insurability; or

(2) Underwriting an application or declining coverage based upon that applicant's failure to meet the insurer's underwriting requirements.

Source: SL 2011, ch 214, § 2.
S.D. Codified Laws § 58-29B-57 — SD Code / Title 58 / Chapter 29B / Section 58-29B-57
Petition for liquidation--Suspension of statute of limitations, laches--Time period for commencement of actions ripe when petition filed
Status: in_force

No statute of limitations or defense of laches may run with respect to any action against an insurer between the filing of a petition for liquidation against an insurer and the denial of the petition. Any action against the insurer that might have been commenced when the petition was filed may be commenced for at least sixty days after the petition is denied.

Source: SL 1989, ch 436, § 57.
S.D. Codified Laws § 58-17A-15 — SD Code / Title 58 / Chapter 17A / Section 58-17A-15
Sale of second policy prohibited except as replacement--Liability of issuer
Status: in_force

No issuer or insurance producer may sell a medicare supplement policy to a person who has an existing, in force medicare supplement policy unless the issuer or insurance producer is replacing the existing coverage. However, no issuer is liable beyond a refund of premium for the duplication of such medicare supplement coverage when a statement, signed by the insured, is obtained from the insured verifying that no other medicare supplement coverage is then in effect.

Source: SL 1989, ch 432, § 3; SL 1992, ch 347, § 15; SL 2001, ch 286, § 121.
S.D. Codified Laws § 58-30-96 — SD Code / Title 58 / Chapter 30 / Section 58-30-96
Duration of appointment of director as attorney for service of process
Status: in_force

The appointment required by § 58-30-95 is irrevocable for as long as there could be any cause of action against the insurance producer arising out of the insurance producer's insurance transactions in or with respect to this state.

Source: SL 1966, ch 111, ch 9, § 31 (2); SL 1978, ch 365, § 24; SL 2001, ch 286, § 177.
S.D. Codified Laws § 58-33A-9 — SD Code / Title 58 / Chapter 33A / Section 58-33A-9
Buyer's guide and policy summary to be provided to all prospective life insurance purchasers--Illustration in lieu of policy summary--Director authorized to promulgate rules
Status: in_force

Prior to accepting the applicant's initial premium or premium deposit, the insurer shall provide, to all prospective life insurance purchasers, a buyer's guide, and a policy summary. However, in lieu of a policy summary, an insurer may provide an illustration which complies with applicable rules concerning life insurance illustrations. Insurers may deliver the buyer's guide and policy summary or illustration at other times as specified by the director by rule. The director may also promulgate rules pursuant to chapter 1-26 specifying the type of policy summary required, the form and content of policy summaries, the specific buyer's guide to be used, and if the buyer's guide must be provided.

Source: SL 1999, ch 240, § 9.
S.D. Codified Laws § 58-18-4 — SD Code / Title 58 / Chapter 18 / Section 58-18-4
Industry fund group insurance authorized--Employees defined
Status: in_force

Group health insurance may be under a policy issued to the trustees of a fund established by two or more employers in the same or related industry or by one or more labor unions or by one or more employers and one or more labor unions or by an association as defined in § 58-18-3 , which trustees shall be deemed the policyholder, to insure employees of the employers or members of the unions or of such association, or employees of members of such association, for the benefit of persons other than the employers or the unions or such association. The term "employees" as used herein may include the officers, managers and employees of the employer, and the individual proprietor or partners if the employer is an individual proprietor or partnership. The term "employees" as used herein may include retired employees. The policy may provide that the term "employees" shall include the trustees or their employees, or both, if their duties are principally connected with such trusteeship.

Source: SL 1966, ch 111, ch 26, § 1 (3).
S.D. Codified Laws § 58-34-55 — SD Code / Title 58 / Chapter 34 / Section 58-34-55
Surplus deposits--Allowance as assets
Status: in_force

The surplus deposits of subscribers shall be allowed as assets, except that any premium deposits delinquent for ninety days shall first be charged against such surplus deposit.

Source: SL 1966, ch 111, ch 19, § 18 (2).
S.D. Codified Laws § 58-43-21 — SD Code / Title 58 / Chapter 43 / Section 58-43-21
Compliance with chapter for year ending December 31, 1993--Foreign insurer for 1994
Status: in_force

Domestic insurers shall comply with this chapter for the year ending December 31, 1993, and each year thereafter unless the director permits otherwise.

Foreign insurers shall comply with this chapter for the year ending December 31, 1994, and each year thereafter unless the director permits otherwise.

Source: SL 1992, ch 357, § 21.
S.D. Codified Laws § 58-5-17 — SD Code / Title 58 / Chapter 5 / Section 58-5-17
Applications for mutual insurance--Signature by applicant, coverage
Status: in_force

All applications for insurance received pursuant to § 58-5-15 shall be signed by the applicant and shall only cover subjects of insurance resident, located or to be performed in this state.

Source: SL 1966, ch 111, ch 16, § 11 (2).
S.D. Codified Laws § 58-17H-37 — SD Code / Title 58 / Chapter 17H / Section 58-17H-37
Requests for information from utilization review organizations
Status: in_force

The director or the secretary may request information from any utilization review organization at any time pertaining to its activities in this state. The utilization review organization shall respond to all requests for information within twenty days.

Source: SL 2011, ch 219, § 62.
S.D. Codified Laws § 58-41-120 — SD Code / Title 58 / Chapter 41 / Section 58-41-120
Annual report on risk bearing entities
Status: in_force

A health maintenance organization shall file annually, as part of its access plan, a list of all risk bearing entities with which it has an agreement or contract and the number of covered persons assigned or selected by each risk bearing entity.

Source: SL 2013, ch 256, § 35.
S.D. Codified Laws § 58-5A-2 — SD Code / Title 58 / Chapter 5A / Section 58-5A-2
Domestic insurer defined
Status: in_force

For purposes of §§ 58-5A-3 to 58-5A-18 , inclusive, a domestic insurer shall include any other person controlling a domestic insurer unless such other person is either directly or through its affiliates primarily engaged in business other than the business of insurance.

Source: SL 1972, ch 267, § 3.
S.D. Codified Laws § 58-15-15.10 — SD Code / Title 58 / Chapter 15 / Section 58-15-15.10
Insurance policy loan--Loan value of policy
Status: in_force

The loan value of a policy shall be determined in accordance with § 58-15-16 , but no policy may terminate in a policy year as the sole result of change in the interest rate during that policy year. The life insurer shall maintain coverage during that policy year until the time at which it would otherwise have terminated if there had been no change during that policy year.

Source: SL 1982, ch 358, § 7.
S.D. Codified Laws § 58-23A-4 — SD Code / Title 58 / Chapter 23A / Section 58-23A-4
Data required on disposition of claims
Status: in_force

The following data and information shall be furnished by the insurance company to the division within thirty days from any judgment, settlement, or other dismissal involving the insured:

(1) Date of any judgment, settlement, or other dismissal;

(2) Whether any appeal has been taken and by which party;

(3) Amount of any judgment against the insured;

(4) Amount of any settlement paid on behalf of the insured, whether such settlement was negotiated by suit or without the filing of a complaint for damages; and

(5) If consideration was not paid on behalf of the insured and a judgment of no cause for action was not entered, the reason for any dismissal.

Source: SL 1976, ch 316, § 4.
S.D. Codified Laws § 58-24-25 — SD Code / Title 58 / Chapter 24 / Section 58-24-25
Issuance of contract or policy contrary to filings prohibited--Inland marine risks excepted
Status: in_force

No insurer shall make or issue a contract or policy except in accordance with the filings which are in effect for said insurer as provided in this chapter. This section shall not apply to contracts or policies for inland marine risks as to which filings are not required.

Source: SL 1966, ch 111, ch 15, § 4 (8).
S.D. Codified Laws § 58-27-61 — SD Code / Title 58 / Chapter 27 / Section 58-27-61
Investment or loans on own capital stock
Status: in_force

In addition to investments excluded pursuant to other provisions of this title, no insurer may invest in or lend its funds upon the security of issued shares of its own capital stock except out of unborrowed surplus, or except in connection with a pension plan approved by the director for the benefit of the insurer's officers, employees, representatives, or insurance producers. No such stock may, however, constitute an asset of the insurer in any determination of its financial condition.

Source: SL 1966, ch 111, ch 6, § 34 (1) (a); SL 2001, ch 286, § 135.
S.D. Codified Laws § 58-17E-44 — SD Code / Title 58 / Chapter 17E / Section 58-17E-44
Contents of written materials
Status: in_force

The written materials required under this chapter shall be clear and include information on:

(1) The name of the member;

(2) The benefits to be provided under the discount medical plan;

(3) Any processing fees and periodic charges associated with the discount medical plan;

(4) The mode of payment of any processing fees and periodic charges, such as monthly, quarterly, or otherwise, and procedures for changing the mode of payment;

(5) Any limitations, exclusions, or exceptions regarding the receipt of discount medical plan benefits;

(6) Any waiting periods for certain medical or ancillary services under the discount medical plan;

(7) Procedures for obtaining discounts under the discount medical plan, such as requiring members to contact the discount medical plan organization to make an appointment with a provider on the member's behalf;

(8) Cancellation procedures, including information on the member's thirty-day cancellation rights and refund requirements and procedures for obtaining refunds;

(9) Renewal, termination, and cancellation terms and conditions;

(10) Procedures for adding new members to a family discount medical plan, if applicable;

(11) Procedures for filing complaints under the discount medical plan organization's complaint system and information that, if the member remains dissatisfied after completing the organization's complaint system, the plan member may contact the local insurance department in the member's state; and

(12) The name and mailing address of the registered discount medical plan organization or other entity where the member can make inquiries about the plan, send cancellation notices, and file complaints.

Source: SL 2006, ch 257, § 42.
S.D. Codified Laws § 58-29B-86 — SD Code / Title 58 / Chapter 29B / Section 58-29B-86
Mutual debts or credits between insurer and another set off
Status: in_force

Mutual debts or mutual credits between the insurer and another person in connection with any action or proceeding under this chapter shall be set off and the balance only shall be allowed or paid, except as provided in § 58-29B-87 , and §§ 58-29B-95 to 58-29B-97 , inclusive.

Source: SL 1989, ch 436, § 86.
S.D. Codified Laws § 58-41-8 — SD Code / Title 58 / Chapter 41 / Section 58-41-8
Copies of forms required with application
Status: in_force

Each application for a certificate of authority shall include:

(1) A copy of the form of each evidence of coverage to be issued to the enrollees;

(2) A copy of the form of each individual or group health maintenance contract which is to be issued to enrollees or their representatives.

Source: SL 1974, ch 321, § 6 (5), (6).
S.D. Codified Laws § 58-32-22 — SD Code / Title 58 / Chapter 32 / Section 58-32-22
Requirements for placing surplus lines insurance
Status: in_force

Surplus lines insurance may be placed by a surplus lines licensee if the insurer is authorized to write the type of insurance in its domiciliary jurisdiction, and either meets the criteria established through a multi-state agreement pursuant to § 58-32-45 or meets one of the following criteria:

(1) The insurer has capital and surplus or its equivalent under the laws of its domiciliary jurisdiction which equals the greater of:

(a) The minimum capital and surplus requirements under § 58-6-23 ; or

(b) Fifteen million dollars; or

(2) The insurer is a nonadmitted insurer domiciled outside the United States that is listed on the Quarterly Listing of Alien Insurers maintained by the International Insurers Department of the National Association of Insurance Commissions.

The requirements of subdivision (1) of this section may be satisfied by an insurer's possessing less than the minimum capital and surplus upon an affirmative finding of acceptability by the director. The finding shall be based upon such factors as quality of management, capital and surplus of any parent company, company underwriting profit and investment income trends, market availability, and company record and reputation within the industry. The director may not make an affirmative finding of acceptability if the nonadmitted insurer's capital and surplus is less than four million five hundred thousand dollars.

Source: SL 1966, ch 111, ch 11, § 6(2); SL 1986, ch 420; SL 1990, ch 407, § 2; SL 2011, ch 223, § 3.
S.D. Codified Laws § 58-11-9.10 — SD Code / Title 58 / Chapter 11 / Section 58-11-9.10
Increase in automobile insurance premiums due to drug-related offenses prohibited
Status: in_force

No automobile insurer may increase the premium rate as a result of a conviction, adjudication of delinquency or revocation under § 32-12-52.3 .

Source: SL 1990, ch 249, § 2.
S.D. Codified Laws § 58-29B-155 — SD Code / Title 58 / Chapter 29B / Section 58-29B-155
Proof of claims of South Dakota residents--Elections--Procedure
Status: in_force

Claims belonging to claimants residing in this state may be proved either in the domiciliary state under the law of that state, or in ancillary proceedings, if any, in this state. If a claimant elects to prove a claim in this state, the claimant shall file the claim with the liquidator in the manner provided in §§ 58-29B-103 to 58-29B-111 , inclusive. The ancillary receiver shall make a recommendation to the court as under §§ 58-29B-125 and 58-29B-126 . The ancillary receiver shall also arrange a date for hearing if necessary under §§ 58-29B-124 and 58-29B-125 and shall give notice to the receiver, conservator, or liquidator in the domiciliary state, either by registered or certified mail or by personal service at least forty days prior to the date set for hearing. If the domiciliary receiver, conservator, or liquidator, within thirty days after the giving of such notice, gives notice in writing to the ancillary receiver and to the claimant, either by registered or certified mail or by personal service, of the receiver's intention to contest the claim, the receiver is entitled to appear or to be represented in any proceeding in this state involving the adjudication of the claim.

Source: SL 1982, ch 28, § 18; SL 1989, ch 436, § 155; SL 2008, ch 271, § 8.
S.D. Codified Laws § 58-15-26.4 — SD Code / Title 58 / Chapter 15 / Section 58-15-26.4
Notice to beneficiary of interest
Status: in_force

In any case in which interest on the proceeds of, or payments under, any policy of life insurance becomes payable pursuant to § 58-15-26.1 , the insurer shall notify the named beneficiary or beneficiaries at their last known address that interest will be paid on the proceeds of or payments under the policy. The notice shall specify the rate of interest to be paid.

Source: SL 1987, ch 375, § 4.
S.D. Codified Laws § 58-16-22 — SD Code / Title 58 / Chapter 16 / Section 58-16-22
Group life policy extended to dependents--One certificate issued to insured person
Status: in_force

Notwithstanding § 58-16-38 , only one certificate need be issued for delivery to an insured person if a statement concerning any dependent's coverage is included in such certificate.

Source: SL 1966, ch 111, ch 24, § 2 (4).
S.D. Codified Laws § 58-36-45 — SD Code / Title 58 / Chapter 36 / Section 58-36-45
Mutual property insurance association maintained by members of church--Risks covered--Conduct of business--License not required
Status: in_force

The members of any one church or of any one religious denomination may maintain for the exclusive benefit of their members, an association for the mutual insurance of the property of its members against loss or damage by fire, lightning, storm, or hail, or all of them. Any such company, whether heretofore or hereafter organized, may also if specified in its articles of incorporation and bylaws, insure, in connection with fire and lightning policies, against loss or damage caused by smoke, explosion, riot, riot attending a strike, aircraft and vehicles, vandalism, theft, or other risk or risks. Such an association shall furnish no insurance except on property of an actual member of such church or denomination. It may conduct business upon the plan and method adopted by it, satisfactory to the director, and shall not be required to be licensed by or report to the director of insurance.

Source: SDC 1939, § 31.2919; SL 1951, ch 170, § 11; SL 1955, ch 119; repealed SL 1966, ch 111, § 5; re - enacted SL 1978, ch 366, § 1.
S.D. Codified Laws § 58-27-103 — SD Code / Title 58 / Chapter 27 / Section 58-27-103
Investment in a collateralized pool of mortgages--Requirements--Restrictions
Status: in_force

In addition to investment in mortgages in §§ 58-27-32 to 58-27-48 , inclusive, an insurer may invest in obligations or certificates entitled to receive both principal and interest, or both principal and implied interest, from a pool collateralized by one or more commercial and residential mortgages. The collateral for the investments shall have been sold to and be currently owned by either a trust or institution established solely for the purpose of holding the mortgages or certificates for the benefit of the obligee. Any investment authorized under this section shall have a minimum quality rating of two by the Securities Valuation Office of the National Association of Insurance Commissioners and shall meet volatility standards. If at any time thereafter the quality rating drops below a rating of two the insurer is subject to § 58-27-90 . The director shall promulgate rules pursuant to chapter 1-26 to set volatility standards and reporting requirements for investments under this section.

An insurer's investments authorized under this section may not exceed forty percent of its admitted assets. This restriction does not apply to obligations of the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation and those issued, assumed, guaranteed, or insured by the United States or a government sponsored enterprise of the United States, if the instruments of the government sponsored enterprise are assumed, guaranteed, or insured by the United States or are otherwise backed or supported by the full faith and credit of the United States.

Any particular investment held by an insurer on February 7, 1995, under this section, which was a legal investment at the time it was made, and which is the type of investment the insurer was legally entitled to possess under this section immediately prior to February 7, 1995, is considered an eligible investment under this section. Any additional investment pursuant to this section may not be made if the total amount invested would at any time exceed forty percent of admitted assets.

Source: SL 1993, ch 364, § 2; SL 1994, ch 384, § 6; SL 1995, ch 285, § 2; SL 1995, ch 286; SL 1996, ch 299; SL 1997, ch 294, § 25.
S.D. Codified Laws § 58-17-163 — SD Code / Title 58 / Chapter 17 / Section 58-17-163
Dental care insurers to honor assignment of benefits
Status: in_force

Any insurer that provides dental care insurance to a person shall honor an assignment, made in writing by the person insured under the policy, of payments due under the policy to a dentist or a dental corporation for dental care services provided to the person that is insured under the policy. Upon notice of the assignment, the insurer shall make payments directly to the dentist or dental corporation providing the dental care services. A dentist or dental corporation with a valid assignment may bill the insurer and notify the insurer of the assignment. Upon request of the insurer, the dentist or dental corporation shall provide a copy of the assignment to the insurer.

Source: SL 2017, ch 213, § 1.
S.D. Codified Laws § 58-29B-59 — SD Code / Title 58 / Chapter 29B / Section 58-29B-59
Liquidator to prepare list of insurer's assets--Filing requirements
Status: in_force

As soon as practicable after the liquidation order, but not later than one hundred twenty days thereafter, the liquidator shall prepare in duplicate a list of the insurer's assets. The list shall be amended or supplemented from time to time as the liquidator may determine. One copy shall be filed in the office of the clerk of the circuit court of Hughes County and one copy shall be retained for the liquidator's files. All amendments and supplements shall be similarly filed. A submission to the court for disbursement of assets in accordance with §§ 58-29B-98 to 58-29B-100 , inclusive, fulfills the requirements of this section.

Source: SL 1989, ch 436, § 59.
S.D. Codified Laws § 58-28-24.2 — SD Code / Title 58 / Chapter 28 / Section 58-28-24.2
Issuance of policies by insurance company or fraternal benefit society--Delivery receipts--Certificates of mailing--Term of retention
Status: in_force

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

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

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

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

Source: SL 1982, ch 28, § 18; SL 1987, ch 374, § 5; SL 2001, ch 286, § 136; SL 2002, ch 232, § 4.
S.D. Codified Laws § 58-15-105 — SD Code / Title 58 / Chapter 15 / Section 58-15-105
Request for information about beneficiaries
Status: in_force

At no later than the policy delivery or the establishment of an account, and upon any change of insured or beneficiary, an insurer shall request information sufficient to ensure that all benefits or proceeds are distributed to the appropriate persons upon the death of the insured including, at a minimum, the name, address, date of birth, social security number, and telephone number of each insured and beneficiary of a policy or account, as applicable.

If an insurer issues a policy or provides an account based on information received directly from an insured's employer, the insurer may obtain the beneficiary information by communicating with the insured after the insurer's receipt of the information from the insured's employer.

Source: SL 2018, ch 280, § 12.
S.D. Codified Laws § 58-11-6 — SD Code / Title 58 / Chapter 11 / Section 58-11-6
Policy not to contain provisions inconsistent with standard or uniform provisions--Substitute provision, approval by director
Status: in_force

No policy shall contain any provision inconsistent with or contradictory to any standard or uniform provision used or required to be used, but the director may approve any substitute provision which is, in his opinion, not less favorable in any particular to the insured or beneficiary than the provisions otherwise required.

Source: SL 1966, ch 111, ch 22, § 15 (2).
S.D. Codified Laws § 58-17E-7 — SD Code / Title 58 / Chapter 17E / Section 58-17E-7
Registration exception and compliance requirements for otherwise registered health carriers
Status: in_force

A discount medical plan organization that is a health carrier registered pursuant to Title 58:

(1) Is not required to register as a discount medical plan organization. However, any of its affiliates that operate as a discount medical plan organization in this state shall comply with all provisions of this chapter and shall register as a discount medical plan organization;

(2) Is required to comply with §§ 58-17E-24 to 58-17E-38 , inclusive, 58-17E-40 , and 58-17E-42 to 58-17E-44 , inclusive.

Source: SL 2006, ch 257, § 7.
S.D. Codified Laws § 58-19-50 — SD Code / Title 58 / Chapter 19 / Section 58-19-50
Disapproval of group property insurance by director--Grounds--Time limit
Status: in_force

Within thirty days after the filing of any group property insurance authorized by credit card insurance policy, certificate of insurance, notice of proposed insurance, application for insurance, endorsement or rider, the director shall disapprove any such form if the premium rates charged or to be charged are excessive in relation to benefits, or if such form contains provisions which are unjust, unfair, inequitable, misleading, deceptive, or encourage misrepresentation of the insurance, or are contrary to any provision of this title. If such filing is not disapproved by the director within this thirty - day period, it shall be deemed approved.

Source: SL 2001, ch 281, § 6.
S.D. Codified Laws § 58-18B-54 — SD Code / Title 58 / Chapter 18B / Section 58-18B-54
Application--Exemptions
Status: in_force

The provisions of § 58-18B-53 do not apply to any plan, policy, or contract that provides coverage only for:

(1) Specified disease;

(2) Hospital indemnity;

(3) Fixed indemnity;

(4) Accident - only;

(5) Credit;

(6) Dental;

(7) Vision;

(8) Prescription drug;

(9) Medicare supplement;

(10) Long - term care;

(11) Disability income insurance;

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

(13) Workers' compensation or similar insurance;

(14) Automobile medical payment insurance; or

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

Source: SL 1998, ch 291, § 7.
S.D. Codified Laws § 58-5A-7 — SD Code / Title 58 / Chapter 5A / Section 58-5A-7
Amendment of information statement--Violation as misdemeanor
Status: in_force

If any material change occurs in the facts set forth in the statement filed with the director and sent to such insurer pursuant to § 58-5A-3 , an amendment setting forth such change, together with copies of all documents and other material relevant to such change, shall be filed with the director and sent to such insurer within two business days after the person learns of such change. Such insurer shall send such amendment to its shareholders.

A violation of this section is a Class 2 misdemeanor.

Source: SL 1972, ch 267, § 6; SL 1990, ch 158, § 24.
S.D. Codified Laws § 58-14-16.16 — SD Code / Title 58 / Chapter 14 / Section 58-14-16.16
Management and notice requirements regarding ceding insurer's reinsurance recoverables
Status: in_force

A ceding insurer shall take steps to manage the ceding insurer's reinsurance recoverables proportionate to the ceding insurer's own book of business. A domestic ceding insurer shall notify the director within thirty days after reinsurance recoverables from any single assuming insurer, or group of affiliated assuming insurers, exceeds fifty percent of the domestic ceding insurer's last reported surplus to policyholders, or after the ceding insurer determined that reinsurance recoverables from 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, § 27.
S.D. Codified Laws § 58-24-19 — SD Code / Title 58 / Chapter 24 / Section 58-24-19
Disapproval of filings by director--Notice--Contents
Status: in_force

If the director finds that a filing does not meet the requirements of this chapter, the director shall send to the insurer or rating organization which made the filing, written notice of disapproval of the filing specifying therein in what respects the director finds the filing fails to meet the requirements of this chapter and stating that the filing may not become effective.

Source: SL 1966, ch 111, ch 15, § 5 (1); SL 2006, ch 260, § 1.
S.D. Codified Laws § 58-29A-75 — SD Code / Title 58 / Chapter 29A / Section 58-29A-75
Allocation of claims, expenses, and assessments to separate accounts--Operating expenses excepted
Status: in_force

The association shall allocate claims paid and expenses incurred among the three accounts separately, and assess member insurers separately for each account amounts necessary to pay the obligations of the association under § 58-29A-68 subsequent to an insolvency, the expenses of handling covered claims subsequent to an insolvency, the cost of examinations under § 58-29A-63 and other expenses authorized by this chapter, except that expenses paid from assessments authorized by § 58-29A-76 need not be allocated to any particular account.

Source: SL 2000, ch 247, § 22.
S.D. Codified Laws § 58-25-19 — SD Code / Title 58 / Chapter 25 / Section 58-25-19
Written order of director for imposition of penalty and suspension of license--Hearing, notice, findings
Status: in_force

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

Source: SL 1966, ch 111, ch 14, § 6 (3).
S.D. Codified Laws § 58-30-20 — SD Code / Title 58 / Chapter 30 / Section 58-30-20
Licensing provisions inapplicable to title insurance
Status: in_force

The provisions of §§ 58-30-12.1 , 58-30-143 , and 58-30-169 to 58-30-176 , inclusive, do not apply to title insurance.

Source: SL 1966, ch 111, ch 9, § 7 (6); SL 2001, ch 286, § 163.
S.D. Codified Laws § 58-15-15.6 — SD Code / Title 58 / Chapter 15 / Section 58-15-15.6
Insurance policy loan--Permitted interest rates
Status: in_force

Any policy issued on or after July 1, 1982, shall provide for policy loan interest rates through a provision permitting a maximum interest rate of not more than eight percent per annum or a provision permitting an adjustable maximum interest rate established from time to time by the life insurer, as permitted by law.

Source: SL 1982, ch 358, § 3.
S.D. Codified Laws § 58-5-6 — SD Code / Title 58 / Chapter 5 / Section 58-5-6
Incorporators--Number and qualifications
Status: in_force

Five or more individuals may incorporate as a stock insurer; ten or more individuals may incorporate as a mutual insurer. The incorporators shall be citizens of the United States, at least twenty - one years of age, and a majority of the incorporators shall be residents of this state.

Source: SL 1966, ch 111, ch 16, § 6 (2).
S.D. Codified Laws § 58-5A-11 — SD Code / Title 58 / Chapter 5A / Section 58-5A-11
Procedure at hearing--Evidence admissible
Status: in_force

At the public hearing required by § 58-5A-9 , the person filing the statement, the insurer, any person to whom notice of hearing was sent, and any other person whose interests may be affected thereby shall have the right to present evidence, examine and cross - examine witnesses, and offer oral and written arguments and in connection therewith shall be entitled to conduct discovery proceedings in the same manner as is presently allowed in the circuit court of this state. All discovery proceedings shall be concluded not later than three days prior to the commencement of the public hearing.

Source: SL 1972, ch 267, § 9.
S.D. Codified Laws § 58-32-39 — SD Code / Title 58 / Chapter 32 / Section 58-32-39
Record by broker of each surplus line coverage--Violation as misdemeanor
Status: in_force

Each broker shall keep in the broker's office a record of each surplus line coverage procured by the broker, including a copy of each daily report, if any; a copy of each certificate issued by the broker; and the following items as may be applicable:

(1) Amount of the insurance;

(2) Gross premium charged;

(3) Return premium paid, if any;

(4) Rate of premium charged upon the several items of property;

(5) Effective date of the contract, and the terms thereof;

(6) Name and address of each insurer on the direct risk and the proportion of the entire risk assumed by such insurer if less than the entire risk;

(7) Name and address of the insured;

(8) Brief general description of the property or risk insured and where located or to be performed; and

(9) Other information as may be required by the director.

A violation of this section is a Class 2 misdemeanor.

Source: SL 1966, ch 111, ch 11, § 16 (1); SL 1978, ch 359, § 2; SL 2015, ch 260, § 10.
S.D. Codified Laws § 58-33-12 — SD Code / Title 58 / Chapter 33 / Section 58-33-12
Unfair discrimination as misdemeanor--Life insurance and annuities
Status: in_force

No person shall make or permit any unfair discrimination between individuals of the same class and equal expectation of life in the rates charged for any contract of life insurance or of life annuity or in the dividends or other benefits payable thereon, or in any other of the terms and conditions of such contract. Violation of this section is a Class 2 misdemeanor.

Source: SL 1966, ch 111, ch 13, § 12 (1); SL 1978, ch 359, § 2.
S.D. Codified Laws § 58-20-28 — SD Code / Title 58 / Chapter 20 / Section 58-20-28
Requirements to obtain self-insurance certificate
Status: in_force

To obtain and maintain its certificate an association shall:

(1) Have sufficient assets, net worth, and liquidity to promptly meet all obligations of the association's members under §§ 58-20-25 to 58-20-40 , inclusive, and their workers' compensation liability. In determining whether an association is in sound financial condition, consideration shall be given to the combined net worth of the member companies; the combined long - term and short - term debt to equity ratios of the member companies; other financial data requested by the department or submitted by the group; and the combined workers' compensation experience of the group for the last three years;

(2) Furnish to the department security in the form of a bond, cash, certificate of deposit, government securities, irrevocable letter of credit, irrevocable trust, in any combination, in an amount equal to the greater of:

(a) Two hundred fifty thousand dollars; or

(b) Twenty - five percent of the association's preceding year's gross annual assessments to its members;

(3) Obtain specific and aggregate excess insurance by an insurance company licensed to conduct business in South Dakota; and

(4) Maintain an indemnity agreement jointly and severally binding the association and each member of the association to meet the workers' compensation liability of each member.

Source: SL 1995, ch 282, § 4.
S.D. Codified Laws § 58-17E-2 — SD Code / Title 58 / Chapter 17E / Section 58-17E-2
Discount medical plan defined
Status: in_force

For the purposes of this chapter, the term, discount medical plan, means a business arrangement or contract in which a person, in exchange for fees, dues, charges, or other consideration, offers access for its members to providers of medical or ancillary services and the right to receive discounts on medical or ancillary services provided under the discount medical plan from those providers. The term includes a prescription drug discount plan.

The term does not include:

(1) A plan that does not charge a membership or other fee to use the discount medical plan;

(2) Any product otherwise regulated under Title 58;

(3) A patient access program; or

(4) A medicare prescription drug plan.

Source: SL 2006, ch 257, § 2.
S.D. Codified Laws § 58-29B-151 — SD Code / Title 58 / Chapter 29B / Section 58-29B-151
Director may institute proceedings under §§58-29B-13to58-29B-30
Status: in_force

The director in his sole discretion may institute proceedings under §§ 58-29B-13 to 58-29B-30 , inclusive, at the request of the director or other appropriate insurance official of the domiciliary state of any foreign or alien insurer having property located in this state.

Source: SL 1989, ch 436, § 151.
S.D. Codified Laws § 58-26-93 — SD Code / Title 58 / Chapter 26 / Section 58-26-93
Adoption of change to valuation manual
Status: in_force

The director may approve a change to the valuation manual pursuant to rules promulgated pursuant to chapter 1-26 when the change to the valuation manual is adopted by the NAIC by an affirmative vote representing:

(1) At least three-fourths of the members of the NAIC voting, but not less than a majority of the total membership; and

(2) Members of the NAIC representing jurisdictions totaling greater than seventy-five percent of the direct premiums written as reported in the following annual statements most recently available prior to the vote in subdivision (1) above: life, accident, and health annual statements, health annual statements, or fraternal annual statements.

Source: SL 2015, ch 254, § 27.
S.D. Codified Laws § 58-17D-7 — SD Code / Title 58 / Chapter 17D / Section 58-17D-7
No cause of action created or abrogated
Status: in_force

Nothing in this chapter is intended to create or abrogate any cause of action as a result of a violation of the standards in this chapter.

Source: SL 2002, ch 231, § 7.
S.D. Codified Laws § 58-11-73 — SD Code / Title 58 / Chapter 11 / Section 58-11-73
Grossly inadequate filings
Status: in_force

The director may return a grossly inadequate filing to the filer without triggering any of the time deadlines set forth in §§ 58-11-64 to 58-11-76 , inclusive. For purposes of this section, a grossly inadequate filing means a filing that fails to provide key information, including state-specific information, regarding a product, policy, or rate, or that demonstrates an insufficient understanding of what is required to comply with state statutes or rules.

Source: SL 2008, ch 261, § 10.
S.D. Codified Laws § 58-5-55 — SD Code / Title 58 / Chapter 5 / Section 58-5-55
Meetings of stockholders or members--Organization for transaction of business, quorum required
Status: in_force

A stockholders' or members' meeting duly held can be organized for the transaction of business whenever a quorum is present. Unless otherwise provided in the bylaws or articles of incorporation:

(1) The presence, in person or by proxy, of the holders of not less than ten percent of the voting power of all stockholders or of all members shall constitute a quorum;

(2) The stockholders or members present at a duly organized meeting can continue to do business until adjournment, notwithstanding the withdrawal of enough stockholders or members to leave less than a quorum;

(3) If any necessary officer fails to attend such meeting, any stockholder or member present may be elected to act temporarily in lieu of any such absent officer;

(4) In the absence of a quorum, those present may adjourn the meeting to such time as they may determine; and

(5) An annual or special meeting of stockholders or members may be adjourned to another date without a new notice being given.

Source: SL 1966, ch 111, ch 16, § 18 (6).
S.D. Codified Laws § 58-29D-33 — SD Code / Title 58 / Chapter 29D / Section 58-29D-33
Money penalty in lieu of suspension or revocation
Status: in_force

If the director finds that one or more grounds exist for the denial of an application, suspension, or revocation of a license issued under this chapter, the director may, in lieu of denial, suspension, or revocation, impose a money penalty pursuant to § 58-4-28.1 .

Source: SL 1992, ch 352, § 33; SL 2000, ch 235, § 2.
S.D. Codified Laws § 58-48-9 — SD Code / Title 58 / Chapter 48 / Section 58-48-9
Waiver participants--Deposit or bond
Status: in_force

A participant may be required to make a deposit of cash or marketable securities in the manner provided under chapter 58-7 and in amounts, conditions, and for such purposes as the director determines necessary for the protection of consumers. The deposit required by this section may be refunded when the waiver has expired or if the director is satisfied that consumer claims have been satisfied, whichever is later. In lieu of a deposit, the director may accept a bond in an amount and with such conditions as the director determines is necessary for the protection of consumers.

Source: SL 2021, ch 214, § 9.
S.D. Codified Laws § 58-17-107 — SD Code / Title 58 / Chapter 17 / Section 58-17-107
Health insurance policies to provide coverage for prostate cancer screening
Status: in_force

Every policy of health insurance 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, § 1.
S.D. Codified Laws § 58-17-30.2 — SD Code / Title 58 / Chapter 17 / Section 58-17-30.2
Family coverage to include newborn or newly adopted children--Payment of claim not to be withheld during bonding period of adopted child
Status: in_force

Any individual health insurance policy and individual or indemnity type contract issued by a nonprofit corporation which offers coverage for a family member of an insured or subscriber shall provide that the health insurance benefits applicable for children are payable with respect to a newly born child of the insured or subscriber from the moment of birth or to a newly adopted child of the insured or subscriber from the beginning of the six - month adoption bonding period. The newly born or newly adopted child shall be added to the policy without underwriting and without the imposition of any preexisting waiting period. Any policy or contract issued before July 1, 1974, shall, upon its next anniversary date, also provide that the health insurance benefits applicable for children are payable with respect to a newly born child of the insured or subscriber from the moment of birth or to a newly adopted child of the insured or subscriber from the beginning of the six - month adoption bonding period. Payment of any valid insurance claim may not be withheld during the bonding period of an adopted child.

Source: SL 1974, ch 322; SL 1976, ch 313, § 1; SL 1977, ch 408; SL 1983, ch 375, § 1; SL 1988, ch 401; SL 1994, ch 387, § 5.
S.D. Codified Laws § 58-18-7.13 — SD Code / Title 58 / Chapter 18 / Section 58-18-7.13
Premium for conversion policy and continuation policy
Status: in_force

The premium for the conversion policy shall be determined in accordance with the insurer's table of premium rates applicable to the age and class of risk for each person to be covered under that policy and to the type and amount of insurance provided. The premium for a continuation policy may not be greater than one hundred two percent of the group rate under which a person is covered. For any month after the eighteenth month, the premium amount may not exceed one hundred fifty percent of the applicable premium.

Source: SL 1984, ch 326, § 9; SL 1987, ch 378, § 1; SL 1988, ch 400, § 3; SL 1989, ch 433, § 11; SL 2001, ch 280, § 14.
S.D. Codified Laws § 58-3-7 — SD Code / Title 58 / Chapter 3 / Section 58-3-7
Information to be available--Cooperation of persons being examined
Status: in_force

Every person being examined, its officers, employees, insurance producers, and representatives shall produce and make freely available to the director or the director's examiners the accounts, records, documents, files, assets, and other relevant information in their possession or control relating to the subject of the examination, and shall otherwise facilitate and aid the examination as far as reasonably possible.

Source: SL 1966, ch 111, ch 2, § 18 (2); SL 2001, ch 286, § 62; SL 2012, ch 241, § 1.
S.D. Codified Laws § 58-27-8 — SD Code / Title 58 / Chapter 27 / Section 58-27-8
Security or investment ineligible for purchase or exchange at more than market value
Status: in_force

No security or investment shall be eligible for purchase or exchange at a price above its market value.

Source: SL 1966, ch 111, ch 6, § 3 (2).
S.D. Codified Laws § 58-2-1.1 — SD Code / Title 58 / Chapter 2 / Section 58-2-1.1
Division within Department of Labor and Regulation--Direction and supervision by department--Independent functions retained by division
Status: in_force

The Division of Insurance shall be administered under the direction and supervision of the Department of Labor and Regulation (hereinafter referred to as "department") and the secretary of labor and regulation (hereinafter referred to as "secretary"), but shall retain the quasi-judicial, quasi-legislative, advisory, and other nonadministrative functions (as defined in § 1-32-1 ) otherwise vested in it and shall exercise those functions independently of the secretary.

Source: SL 1973, ch 2 (Ex. Ord. 73-1), § 48; SL 1974, ch 3, § 12; SL 2003, ch 272 (Ex. Ord. 03-1), § 119, eff. Apr. 17, 2003; SL 2011, ch 1 (Ex. Ord. 11-1), § 162, eff. Apr. 12, 2011.
S.D. Codified Laws § 58-5A-64 — SD Code / Title 58 / Chapter 5A / Section 58-5A-64
Criminal proceedings for violation committed knowingly--Fine
Status: in_force

If it appears to the director that any insurer or any director, officer, employee, or agent thereof has knowingly committed a violation of this chapter, the director may request of the attorney general that criminal proceedings be instituted in the circuit court of Hughes County.

Any insurer which knowingly violates this chapter may be fined not more than twenty - five thousand dollars per violation. Any individual who knowingly violates this chapter may be fined in his individual capacity not more than two thousand dollars per violation.

Source: SL 1992, ch 341, § 31.
S.D. Codified Laws § 58-30-155 — SD Code / Title 58 / Chapter 30 / Section 58-30-155
Waiver of insurance producer license renewal requirements
Status: in_force

A licensed insurance producer who is unable to comply with license renewal procedures due to military service or some other extenuating circumstance, such as a long - term medical disability, may request a waiver of those procedures. The producer may also request a waiver of any examination requirement or any other monetary penalty or sanction imposed for failure to comply with renewal procedures. The director may promulgate rules pursuant to chapter 1-26 for determining what constitutes extenuating circumstances if the director finds that application of this section or the imposition of sanctions would create an unreasonable hardship.

Source: SL 2001, ch 286, § 15.
S.D. Codified Laws § 58-14-16.10 — SD Code / Title 58 / Chapter 14 / Section 58-14-16.10
Trust accounts of certified reinsurer securing obligations as multibeneficiary trust
Status: in_force

If a certified reinsurer maintains a trust to fully secure the certified reinsurer's obligations subject to § 58-14-11 and chooses to secure the certified reinsurer's obligations incurred as a certified reinsurer in the form of a multibeneficiary trust, the certified reinsurer shall maintain separate trust accounts for the certified reinsurer's obligations incurred under reinsurance agreements issued or renewed as a certified reinsurer with reduced security as permitted by this chapter or comparable laws of other United States jurisdictions and for the certified reinsurer's obligations subject to § 58-14-11 . It shall be a condition to the grant of certification that the certified reinsurer shall have bound itself, by the language of the trust and agreement with the director with principal regulatory oversight of each trust account, to fund upon termination of any trust account, out of the remaining surplus of the trust any deficiency of any other trust account.

Source: SL 2017, ch 211, § 21.
S.D. Codified Laws § 58-17-102 — SD Code / Title 58 / Chapter 17 / Section 58-17-102
Exceptions
Status: in_force

No coverage is required under §§ 58-17-100 to 58-17-106 , inclusive, for the following:

(1) Any drug that has not been fully licensed or approved by the FDA;

(2) The use of any drug if the FDA has determined that use to be contraindicated; or

(3) Any experimental drug not otherwise approved for any indication by the FDA.

Source: SL 2000, ch 242, § 3.
S.D. Codified Laws § 58-18-52 — SD Code / Title 58 / Chapter 18 / Section 58-18-52
Formation of voluntary health insurance purchasing organizations
Status: in_force

Notwithstanding the provisions of chapter 47-34A and §§ 47-15-2 and 47-22-4 , any organization may form for the purposes of purchasing group health insurance on a voluntary basis. For purposes of §§ 58-18-52 to 58-18-62 , inclusive, an organization means any nonprofit organization or nonprofit corporation formed under South Dakota law. Stop loss or excess insurance may be purchased in the same manner as group health insurance is purchased pursuant to §§ 58-18-52 to 58-18-62 , inclusive.

Source: SL 1994, ch 382, § 1; SL 1998, ch 293, § 2; SL 2021, ch 210, § 16.
S.D. Codified Laws § 58-22-42 — SD Code / Title 58 / Chapter 22 / Section 58-22-42
Bail by surety substituted for deposit--Refunding of deposit--Cancellation of original undertaking
Status: in_force

If money or bonds have been deposited, bail by sureties may be substituted therefor at any time before a breach of the undertaking, and the official taking the new bail shall make an order that the money or bonds be refunded to the person depositing the same and they shall be refunded accordingly, and the original undertakings shall be canceled.

Source: SL 1966, ch 111, ch 31, § 22.
S.D. Codified Laws § 58-33-130 — SD Code / Title 58 / Chapter 33 / Section 58-33-130
Promulgation of rules
Status: in_force

The director may, by rules promulgated pursuant to chapter 1-26 , adopt:

(1) Revisions of the Internal Revenue Code and the regulations promulgated pursuant thereto which are in substantial compliance with the intent of subdivisions 58-33-119(6) and (7);

(2) Revisions of the Employee Retirement and Income Security Act which are in substantial compliance with the intent of subdivision 58-33-119(7);

(3) Revisions or replacement forms or instructions from the Department of Defense which are in substantial compliance with the intent of §§ 58-33-120 and 58-33-122 ; and

(4) Revisions of the Military Personnel Financial Services Protection Act which are in substantial compliance with the intent of subdivision 58-33-128(4).

Source: SL 2008, ch 272, § 14.
S.D. Codified Laws § 58-27-29 — SD Code / Title 58 / Chapter 27 / Section 58-27-29
Foreign securities--Insurer authorized to do business in foreign country--Limitation as to amount
Status: in_force

An insurer authorized to transact insurance in a foreign country may make investments, in aggregate amount not exceeding its deposit and obligations incurred in such country, in securities of or in such country possessing characteristics and of a quality similar to like investments required pursuant to this chapter for investments in the United States of America. Canadian securities eligible for investment under other provisions of this chapter are not subject to this section.

Source: SL 1966, ch 111, ch 6, § 22.
S.D. Codified Laws § 58-26-52 — SD Code / Title 58 / Chapter 26 / Section 58-26-52
Qualified actuary defined
Status: in_force

For the purposes of the opinion required by §§ 58-26-46 to 58-26-50 , inclusive, qualified actuary means a member in good standing of the American Academy of Actuaries who meets the requirements set forth in rules promulgated pursuant to chapter 1-26 .

Source: SL 1995, ch 284, § 8; SL 2015, ch 254, § 4.
S.D. Codified Laws § 58-17E-35 — SD Code / Title 58 / Chapter 17E / Section 58-17E-35
Liability for conduct of marketer
Status: in_force

The discount medical plan organization shall be bound by and is responsible for the activities of a marketer that are within the scope of the marketer's contract with the organization, or are otherwise approved by or under the direction and control of the organization.

Source: SL 2006, ch 257, § 35.
S.D. Codified Laws § 58-5A-75 — SD Code / Title 58 / Chapter 5A / Section 58-5A-75
Investments subject to chapter58-27
Status: in_force

Investments in common stock, preferred stock, debt obligations, or other securities of subsidiaries made pursuant to § 58-5A-73 are subject to chapter 58-27 .

Source: SL 1992, ch 341, § 41.
S.D. Codified Laws § 58-5A-39 — SD Code / Title 58 / Chapter 5A / Section 58-5A-39
Personnel employed by department for conduct of examination
Status: in_force

The department may retain at the registered insurer's expense such attorneys, actuaries, accountants, and other experts not otherwise a part of the director's staff as shall be reasonably necessary to assist in the conduct of the examination under § 58-5A-37 . Any person so retained shall be under the direction and control of the director and shall act in a purely advisory capacity.

Source: SL 1972, ch 267, § 33.
S.D. Codified Laws § 58-12-36 — SD Code / Title 58 / Chapter 12 / Section 58-12-36
Cease and desist order--Monetary penalty--Suspension or revocation of license
Status: in_force

If, after the hearing, the director finds an insurer has engaged in an unfair claims practice, the director shall reduce the findings to writing and shall issue and serve the insurer a copy of the findings and an order requiring the insurer to cease and desist from engaging in the act or practice. The secretary of labor and regulation may order either or both of the following:

(1) The insurer to pay a monetary penalty of not more than one thousand dollars for each violation but not to exceed an aggregate penalty of one hundred thousand dollars, unless the violation was committed flagrantly and in conscious disregard of §§ 58-12-31 to 58-12-37 , inclusive, in which case the penalty may not be more than twenty-five thousand dollars for each violation, but not to exceed an aggregate penalty of two hundred fifty thousand dollars; and

(2) Suspension or revocation of the insurer's license if the insurer knew or reasonably should have known it was in violation of §§ 58-12-31 to 58-12-37 , inclusive.

This section only applies to violations of §§ 58-12-31 to 58-12-37 , inclusive. Any penalty imposed pursuant to this section is the sole and exclusive remedy for any act or violation brought by the director under §§ 58-12-31 to 58-12-37 , inclusive.

The director shall consider the size, the amount of surplus, and the premium volume of the insurer when determining a penalty pursuant to this section.

Source: SL 2014, ch 235, § 6.
S.D. Codified Laws § 58-17E-3 — SD Code / Title 58 / Chapter 17E / Section 58-17E-3
Discount prescription drug plan defined
Status: in_force

For the purposes of this chapter, the term, discount prescription drug plan, means a business arrangement or contract in which a person, in exchange for fees, dues, charges, or other consideration provides access for its plan members to providers of pharmacy services and the right to receive discounts on pharmacy services provided under the discount prescription drug plan from those providers.

Source: SL 2006, ch 257, § 3.
S.D. Codified Laws § 58-7-18 — SD Code / Title 58 / Chapter 7 / Section 58-7-18
Deposit of reserves in financial institutions
Status: in_force

Deposits required under this title may be made in South Dakota safe deposit institutions, banks, or trust companies selected by the insurer with the director's prior approval or may be made in the depository outside of the state approved by the director. The director may, upon written request of the insurer, permit a deposit to be made with and held by the trust department of a national or state bank approved by the director for the purpose and under depository or custodial arrangements approved by the director.

Source: SL 1966, ch 111, ch 7, § 5 (1); SL 1991, ch 398, § 9.
S.D. Codified Laws § 58-18-4.1 — SD Code / Title 58 / Chapter 18 / Section 58-18-4.1
Restrictions on issuance of group health insurance policy to association
Status: in_force

A group health insurance policy may not be issued to an association under §§ 58-18-3 and 58-18-4 that is formed, owned, or controlled by any of the following, other than to the extent the entities participate in the group or association in their capacity as employer members of the group or association:

(1) A health insurance issuer;

(2) A subsidiary or affiliate of a health insurance issuer;

(3) A health care organization or network provider that is part of the health care delivery system; or

(4) An insurance producer, broker, or consultant.

Source: SL 2019, ch 212, § 2.
S.D. Codified Laws § 58-18-82 — SD Code / Title 58 / Chapter 18 / Section 58-18-82
Carrier to provide annual report--Time frame--Information
Status: in_force

Any carrier who is or has provided coverage to an employer shall provide, at the written request of the employer, annual reports of the claims experience of that employer for the immediate past policy period and for any time frames which are not in excess of three years prior to the policy period for which the request was made. A carrier is not required to provide any claims information that pertains to a prior carrier's experience with that employer. The claims report shall be in sufficient detail so as to provide the employer with data necessary to realistically assess the employer's future health insurance needs.

Source: SL 1998, ch 289, § 8.
S.D. Codified Laws § 58-17E-1 — SD Code / Title 58 / Chapter 17E / Section 58-17E-1
Affiliate defined
Status: in_force

For the purposes of this chapter, the term, affiliate, means 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. For the purposes of this section, the term, control, or controlled by, or under common control with, means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract other than a commercial contract for goods or nonmanagement services, or otherwise, unless the power is the result of an official position with or corporate office held by the person. Control is presumed to exist if any person, directly or indirectly, owns, controls, holds with the power to vote, or holds proxies representing ten percent or more of the voting securities of any other person. This presumption may be rebutted by a showing made in the manner provided by § 58-5A-29 .

Source: SL 2006, ch 257, § 1.
S.D. Codified Laws § 58-5-152 — SD Code / Title 58 / Chapter 5 / Section 58-5-152
Required information in reporting material nonrenewal, cancellation, or revision
Status: in_force

The following information shall be disclosed in any report of a material nonrenewal, cancellation, or revision of ceded reinsurance agreements:

(1) Effective date of the nonrenewal, cancellation, or revision;

(2) The description of the transaction with an identification of the initiator thereof;

(3) Purpose of, or reason for, the transaction; and

(4) If applicable, the identity of the replacement reinsurers.

Source: SL 1995, ch 275, § 9.
S.D. Codified Laws § 58-5B-3 — SD Code / Title 58 / Chapter 5B / Section 58-5B-3
Incorporation of mutual malpractice insurers--Conflict of laws
Status: in_force

All domestic corporations, organized for the purpose of transacting such insurance business under the provisions of this chapter, shall incorporate under the provisions of chapter 58-5 , and be regulated as mutual insurers; provided, the provisions of this chapter shall govern where in conflict with other laws or parts of laws.

Source: SL 1976, ch 315, § 3.
S.D. Codified Laws § 58-17-84.1 — SD Code / Title 58 / Chapter 17 / Section 58-17-84.1
(Text of section effective until the first plan year, policy year, or renewal date on or after January 1, 2019) Anesthesia and hospitalization for dental care to be provided certain covered persons
Status: in_force

Any health benefit plan as defined by § 58-17-63 shall cover anesthesia and hospital charges for dental care provided to a covered person who:

(1) Is a child under age five; or

(2) Is severely disabled or otherwise suffers from a developmental disability as determined by a licensed physician which places such person at serious risk.

Such coverage applies regardless of whether the services are provided in a hospital or a dental office. A health carrier may require prior authorization of hospitalization for dental care procedures in the same manner that prior authorization is required for hospitalization for other covered diseases or conditions.

(Text of section effective the first plan year, policy year, or renewal date on or after January 1, 2019) Anesthesia and hospital or ambulatory surgery center charges for dental care to be covered for certain persons. Any health benefit plan as defined by § 58-17-63 shall cover anesthesia and hospital or ambulatory surgery center charges for dental care provided to a covered person who:

(1) Is a child under age five; or

(2) If determined by a licensed physician, is severely disabled, has a developmental disability, or otherwise has a medical condition that places the person at serious medical risk.

The coverage applies regardless of whether the services are provided in a hospital, ambulatory surgery center, or a dental office. A health carrier may require prior authorization in the same manner that prior authorization is required for other covered diseases or conditions.

Source: SL 1999, ch 248, § 2; SL 2018, ch 279, § 1, eff. Jan. 1, 2019.
S.D. Codified Laws § 58-29E-1 — SD Code / Title 58 / Chapter 29E / Section 58-29E-1
Definitions
Status: in_force

Terms used in this chapter mean:

(1) "Brand name," the same as set forth in § 36-11-2 ;

(2) "Covered individual," a member, participant, enrollee, contract holder, policy holder, or beneficiary of a third-party payor who is provided health coverage by the third-party payor. The term includes a dependent or other individual provided health coverage through a policy, contract, or plan for a covered individual;

(3) "Generic drug," a chemically equivalent copy of a brand name drug with an expired patent;

(4) "Health benefit plan," the same as set forth in § 58-17F-2 ;

(5) "Health carrier," the same as set forth in § 58-17F-1 ;

(6) "Interchangeable biological product," the same as set forth in § 36-11-2 ;

(7) "Maximum allowable cost," the maximum amount that a pharmacy may be reimbursed, as set by a pharmacy benefit manager or a third-party payor, for a brand name or a generic drug, an interchangeable biological product, or any other prescription drug and which may include:

(a) The average acquisition cost;

(b) The national average acquisition cost;

(c) The average manufacturer price;

(d) The average wholesale price;

(e) The brand effective rate;

(f) The generic effective rate;

(g) Discount indexing;

(h) Federal upper limits;

(i) The wholesale acquisition cost; and

(j) Any other term used by a pharmacy benefit manager or a health carrier to establish reimbursement rates for a pharmacy;

(8) "Maximum allowable cost list," a list of prescription drugs that:

(a) Includes the maximum allowable cost for each prescription drug; and

(b) Is used, directly or indirectly, by a pharmacy benefit manager;

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

(10) "Pharmacist," the same as set forth in § 36-11-2 ;

(11) "Pharmacy," the same as set forth in § 36-11-2 ;

(12) "Pharmacy benefit management," the procurement of prescription drugs at a negotiated rate for dispensation within this state to covered individuals, the administration or management of prescription drug benefits provided by a third-party payor for the benefit of covered individuals, or any of the following services provided with regard to the administration of pharmacy benefits:

(a) Mail service pharmacy;

(b) Claims processing, retail network management, and payment of claims to pharmacies for prescription drugs dispensed to covered individuals;

(c) Clinical formulary development and management services;

(d) Rebate contracting and administration;

(e) Certain patient compliance, therapeutic intervention, and generic substitution programs; and

(f) Disease management programs involving prescription drug utilization;

(13) "Pharmacy benefit management fee," a fee that covers the cost of providing pharmacy benefit management, but does not exceed the value of the service performed by the pharmacy benefit manager;

(14) "Pharmacy benefit manager," a person that performs pharmacy benefit management, pursuant to a contract or other relationship with a third-party payor and includes:

(a) A person acting in a contractual or employment relationship for a pharmacy benefit manager while providing pharmacy benefit management for a third-party payor; and

(b) A mail service pharmacy;

(15) "Pharmacy benefit manager affiliate," a pharmacy that, or a pharmacist who, directly or indirectly, through one or more intermediaries, owns or controls, is owned and controlled by, or is under common ownership or control of, a pharmacy benefit manager;

(16) "Pharmacy network," pharmacies that have contracted with a pharmacy benefit manager to dispense or sell prescription drugs to covered individuals under a health benefit plan for which the prescription drug benefit is managed by a pharmacy benefit manager;

(17) "Prescription drug," a drug classified by the United States Food and Drug Administration as requiring a prescription by a health care practitioner, prior to being administered or dispensed to a patient, and including interchangeable biological products, brand names, and generic drugs;

(18) "Prescription drug benefit,” a health benefit plan providing third-party payment or prepayment for prescription drugs;

(19) "Prescription drug order,” the same as set forth in § 36-11-2 ;

(20) "Proprietary information," information on pricing, costs, revenue, taxes, market share, negotiating strategies, customers, and personnel held by a private entity and used for that private entity's business purposes;

(21) "Rebate," a discount or other negotiated price concession that is paid directly or indirectly to a pharmacy benefit manager by a pharmaceutical manufacturer or by an entity in the prescription drug supply chain, other than a covered individual, and which is:

(a) Based on a pharmaceutical manufacturer's list price for a prescription drug;

(b) Based on utilization;

(c) Designed to maintain, for the pharmacy benefit manager, a net price for a prescription drug, during a specified period of time, in the event the pharmaceutical manufacturer's list price increases; or

(d) Based on estimates regarding the quantity of a prescribed drug that will be dispensed by a pharmacy to covered individuals;

(22) "Spread pricing," an amount charged or claimed by a pharmacy benefit manager that is in excess of the ingredient cost for a dispensed prescription drug, plus a dispensing fee paid directly or indirectly to a pharmacy, pharmacist, or other provider, on behalf of the third-party payor, less a pharmacy benefit management fee;

(23) "Third-party payor," any entity, other than a covered individual, a covered individual's representative, or a healthcare provider, which is responsible for any amount of reimbursement for a prescription drug benefit, provided the term includes a health carrier and a health benefit plan;

(24) "340B drug," a drug purchased through the 340B drug discount program by a 340B entity;

(25) "340B drug discount program," a program that imposes limitations on the prices of drugs purchased by covered entities, in accordance with 42 U.S.C. § 256b (January 1, 2024);

(26) "340B entity," a covered entity as defined in 42 U.S.C. § 256b(a)(4) (January 1, 2024);

(27) "Trade secret," the same as set forth in § 37-29-1 ;

(28) "Unaffiliated pharmacy," a dispensing pharmacy that is not:

(a) Owned, in whole or in part, by a pharmacy benefit manager;

(b) A subsidiary of a pharmacy benefit manager; or

(c) An affiliate of a pharmacy benefit manager; and

(29) "Wholesale distributor," the same as set forth in § 36-11A-25 .

Source: SL 2004, ch 311, § 1; SL 2023, ch 166, § 1; SL 2024, ch 203, § 2, eff. Jan. 1, 2025.
S.D. Codified Laws § 58-40-27 — SD Code / Title 58 / Chapter 40 / Section 58-40-27
Approval of purchasing organization by Division of Insurance
Status: in_force

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

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

(2) Insufficient membership control of the organization;

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

(4) Misuse of premiums; or

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

Source: SL 1994, ch 382, § 6.
S.D. Codified Laws § 58-4A-12 — SD Code / Title 58 / Chapter 4A / Section 58-4A-12
Records and files confidential--Investigator not subject to subpoena in civil matter--Exceptions
Status: in_force

All investigative records and files of the insurance fraud prevention unit are confidential. The investigative records of the insurance fraud prevention unit may not be released except pursuant to a court order. An investigator is not subject to subpoena in civil actions concerning any matter of which the investigator has knowledge regarding a pending insurance fraud investigation by the division, unless so ordered by the court.

Source: SL 1999, ch 241, § 12.
S.D. Codified Laws § 58-33-14 — SD Code / Title 58 / Chapter 33 / Section 58-33-14
Rebate as misdemeanor--Life, disability and annuity contracts
Status: in_force

Except as otherwise provided by law, no person shall knowingly permit or offer to make or make any contract of life insurance, life annuity or health insurance, or agreement as to such contract other than is plainly expressed in the contract issued thereon, or pay or allow, or give or offer to pay, allow, or give, directly or indirectly, as inducement to such insurance, or annuity, any rebate of premiums payable on the contract, or any special favor or advantage in the dividends or other benefits thereon, or any paid employment or contract for services of any kind, or any valuable consideration or inducement whatever not specified in the contract; or directly or indirectly give or sell, or purchase or offer or agree to give, sell, purchase, or allow as inducement to such insurance or annuity or in connection therewith, and whether or not to be specified in the policy or contract, any agreement of any form or nature promising returns and profits, or any stocks, bonds, or other securities, or interest present or contingent therein or as measured thereby, of any insurance company or other corporation, association, or partnership, or any dividends or profits accrued or to accrue thereon; or offer, promise or give anything of value whatsoever not specified in the contract. Violation of this section is a Class 2 misdemeanor.

Source: SL 1966, ch 111, ch 13, § 13; SL 1978, ch 359, § 2.
S.D. Codified Laws § 58-5-70 — SD Code / Title 58 / Chapter 5 / Section 58-5-70
Short sales by insider as misdemeanor--Delivery of securities sold, when required
Status: in_force

It shall be a Class 2 misdemeanor for any such beneficial owner, director, or officer, directly or indirectly, to sell any equity security of such company if the person selling the security or his principal:

(1) Does not own the security sold; or

(2) If owning the security, does not deliver it against such sale within twenty days thereafter, or does not within five days after such sale deposit it in the mails or other usual channels of transportation;

Source: SL 1966, ch 111, ch 16, § 27 (3); SL 1978, ch 359, § 2.
S.D. Codified Laws § 58-7-24 — SD Code / Title 58 / Chapter 7 / Section 58-7-24
Custodial arrangements--Termination by director--New arrangements
Status: in_force

The director may terminate any depository or custodial arrangement and require a new arrangement. No arrangement may be terminated without the written authorization of the director.

Source: SL 1966, ch 111, ch 7, § 5 (5); SL 1991, ch 398, § 13.
S.D. Codified Laws § 58-14-17 — SD Code / Title 58 / Chapter 14 / Section 58-14-17
Promulgation of rules
Status: in_force

The director may promulgate rules, pursuant to chapter 1-26 , concerning requirements, qualifications, and criteria for receiving credit for reinsurance, surplus amounts, accreditation of a reinsurer, certification of a reinsurer, minimum levels for reinsurer capital and surplus, financial rating of reinsurers, recognition and appraisal of qualified jurisdictions, trusts and trust agreements, reinsurance contracts, hazardous investments and evidence of submission to this state's authority, requirements and qualifications for life reinsurance agreements, reserve credits, credits for reinsurance, valuation of assets or reserve credits, the adoption of certain methods and manuals for the valuation of assets, the amount and forms of security supporting reinsurance arrangements, reduction of liability or establishment of assets in a financial statement, circumstances under which credit will be reduced or eliminated, and treatment of existing agreements.

The director may also promulgate rules, pursuant to chapter 1-26 , regarding reinsurance relating to life insurance policies with guaranteed nonlevel gross premiums or guaranteed nonlevel benefits, universal life insurance policies resulting in the ability of a policyholder to keep a policy in force over a secondary guarantee period, variable annuities with guaranteed death or living benefits, and long-term care insurance policies. The director may also promulgate rules, pursuant to chapter 1-26 , to adopt the use and applicability of the National Association of Insurance Commissioners valuation manual for use in calculating the amounts or form of security to be held by reinsurers.

Source: SL 1992, ch 344, § 11; SL 2017, ch 211, § 11.
S.D. Codified Laws § 58-39-5 — SD Code / Title 58 / Chapter 39 / Section 58-39-5
License to issue contracts required--Violation as misdemeanor
Status: in_force

A corporation subject to the provisions of this chapter may issue contracts only when the director has by formal license authorized it to do so. Violation of this section is a Class 2 misdemeanor.

Source: SL 1966, ch 111, ch 30, § 6; SL 1978, ch 359, § 2.
S.D. Codified Laws § 58-26-62 — SD Code / Title 58 / Chapter 26 / Section 58-26-62
Tables used for accidental death benefits
Status: in_force

The tables that shall be used for accidental death benefits in or supplementary to policies issued on or after January 1, 1966, are: the 1959 Accidental Death Benefits Table or any accidental death benefits table adopted after 1980 by the NAIC, that is approved by rules promulgated pursuant to chapter 1-26 by the director for use in determining the minimum standard of valuation for the policies; for policies issued on or after January 1, 1961, and prior to January 1, 1966, either table or, at the option of the company, the Inter-Company Double Indemnity Mortality Table; and for policies issued prior to January 1, 1961, the Inter-Company Double Indemnity Mortality Table. Either table shall be combined with a mortality table for calculating the reserves for life insurance policies.

Source: SL 1995, ch 284, § 18; SL 2015, ch 254, § 10.
S.D. Codified Laws § 58-6-9 — SD Code / Title 58 / Chapter 6 / Section 58-6-9
Continuance of authorization of prior authorized mutual and stock insurers--Participating policyholders--Quorum--Proxies--Issuance of nonvoting participating policies
Status: in_force

Any mutual and stock insurer authorized on July 1, 1966, to transact insurance in this state shall be eligible to continue such authorization if otherwise in compliance with this title and its charter provisions. As to any such domestic insurer, each holder of a policy of insurance who is entitled to participate in profits and savings, shall be entitled to participate and vote at all meetings of stockholders and to cast the same number of votes which he was entitled to cast under the articles of incorporation and bylaws of such insurer on July 1, 1966. At all such meetings, to constitute a quorum of such participating policyholders, there shall be present in person or by proxy at least ten percent of the total of such participating policyholders. Solicitation of proxies from such participating policyholders shall be subject to the same regulations and restrictions as apply to a domestic mutual insurer. Except as hereinbefore otherwise provided, such an insurer shall in all respects be subject to all laws regulating stock companies.

Any mutual and stock company authorized and doing business pursuant to this section may issue nonvoting participating policies. The issuance of such nonvoting participating policies may not affect the voting rights of holders of participating policies issued by a mutual and stock company pursuant to the first paragraph of this section.

Source: SL 1966, ch 111, ch 3, § 4 (3); SL 1981, ch 358.
S.D. Codified Laws § 58-12-21 — SD Code / Title 58 / Chapter 12 / Section 58-12-21
Applicability of §§58-12-19to58-12-21--Certain policies exempt--No private right of action
Status: in_force

Sections 58-12-19 to 58-12-21 , inclusive, apply to any health insurer or health maintenance organization that issues health insurance coverage pursuant to chapters 58-17 , 58-18 , 58-18B , 58-37A , 58-38 , 58-39 , 58-40 , and 58-41 . Nothing in §§ 58-12-19 to 58-12-21 , inclusive, apply to disability income policies or certificates, accident only, credit health, workers' compensation, long - term care, medicare supplement, automobile medical payment, or other types of health insurance that are not medical expense policies or certificates. Nothing in §§ 58-12-19 to 58-12-21 , inclusive, grants a private right of action.

Source: SL 2001, ch 273, § 3.
S.D. Codified Laws § 58-18A-63 — SD Code / Title 58 / Chapter 18A / Section 58-18A-63
Restriction on excess or secondary benefits provisions
Status: in_force

No plan may contain a provision that its benefits are always excess or always secondary except in accordance with the rules permitted by §§ 58-18A-53 to 58-18A-83 , inclusive. No plan is required to coordinate benefits provided that it pays benefits as a primary plan; but if the plan coordinates benefits, it shall do so in compliance with the provisions of this chapter.

Source: SL 2006, ch 259, § 11.
S.D. Codified Laws § 58-29A-65 — SD Code / Title 58 / Chapter 29A / Section 58-29A-65
Recommendations for detection and prevention of insolvencies
Status: in_force

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

Source: SL 2000, ch 247, § 12.
S.D. Codified Laws § 58-46-32 — SD Code / Title 58 / Chapter 46 / Section 58-46-32
Promulgation of rules
Status: in_force

The director may promulgate rules pursuant to chapter 1-26 to further the provisions of this chapter. The rules may include:

(1) Definition of terms;

(2) Requirements for doing business;

(3) Application requirements and procedures;

(4) Conditions for receiving a certificate of authority;

(5) Criteria for suspending or revoking a certificate of authority;

(6) Organizational structure;

(7) Financial condition;

(8) Pooling and sharing risks; and

(9) Notice requirements.

Source: SL 2013, ch 257, § 28.
S.D. Codified Laws § 58-30-160 — SD Code / Title 58 / Chapter 30 / Section 58-30-160
Nonresident insurance producer required to hold equivalent license in home state
Status: in_force

A licensee as nonresident insurance producer shall at all times be qualified for and hold in the licensee's home state of domicile the license of that home state as a resident insurance producer covering all kinds of insurance covered or to be covered under the South Dakota nonresident license. A hearing is not necessary in order to revoke, suspend, terminate, or nonrenew a nonresident insurance producer's license in this state if that insurance producer no longer has a producer license in the insurance producer's home state of domicile.

Source: SL 2001, ch 286, § 20; SL 2002, ch 240, § 7.
S.D. Codified Laws § 58-15-43.2 — SD Code / Title 58 / Chapter 15 / Section 58-15-43.2
Nonforfeiture net level premium determined
Status: in_force

The nonforfeiture net level premium is equal to the present value, at the date of issue of the policy, of the guaranteed benefits provided for by the policy divided by the present value, at the date of issue of the policy, of an annuity of one per annum payable on the date of issue of the policy and on each anniversary of the policy on which a premium falls due.

Source: SL 1982, ch 357, § 6.
S.D. Codified Laws § 58-33-58 — SD Code / Title 58 / Chapter 33 / Section 58-33-58
Citation of provisions for process against unauthorized insurers for false advertising
Status: in_force

Sections 58-33-47 to 58-33-57 , inclusive, may be cited as the Unauthorized Insurers False Advertising Process Act.

Source: SL 1966, ch 111, ch 13, § 25.
S.D. Codified Laws § 58-5-128 — SD Code / Title 58 / Chapter 5 / Section 58-5-128
Merger or consolidation of stock insurers
Status: in_force

A domestic stock insurer may merge or consolidate with other domestic or foreign insurers authorized to transact insurance in this state, by complying with the applicable statutes of this state that govern the merger or consolidation of corporations formed for profit but subject to the provisions of §§ 58-5-129 to 58-5-133 , inclusive.

Source: SL 1966, ch 111, ch 16, § 38 (1); SL 1982, ch 352, § 1; SL 1983, ch 371, § 1.
S.D. Codified Laws § 58-27-5 — SD Code / Title 58 / Chapter 27 / Section 58-27-5
Acquisition of ineligible securities or property--Disposition
Status: in_force

No provision of this chapter shall prohibit the acquisition by an insurer of other or additional securities or property if received as a dividend or as a lawful distribution of assets, or under a lawful and bona fide agreement of bulk reinsurance, merger, or consolidation. Any investment so acquired which is not otherwise eligible under this chapter shall be disposed of pursuant to §§ 58-27-73 and 58-27-74 if personal property or securities, or pursuant to §§ 58-27-70 to 58-27-72 , inclusive, if real property.

Source: SL 1966, ch 111, ch 6, § 3 (3).
S.D. Codified Laws § 58-5A-58 — SD Code / Title 58 / Chapter 5A / Section 58-5A-58
Considerations in decision to approve or disapprove transactions
Status: in_force

The director in making the decision to approve or disapprove the transactions in §§ 58-5A-56 and 58-5A-57 shall consider whether the transactions comply with the standards set forth in § 58-5A-32 and whether they may adversely affect the interests of policyholders or of the insurer.

Source: SL 1992, ch 341, § 23.
S.D. Codified Laws § 58-41-7 — SD Code / Title 58 / Chapter 41 / Section 58-41-7
Financial statements required with application
Status: in_force

Each application for a certificate of authority shall include financial statements showing the applicant's assets, liabilities, and sources of financial support. If the applicant's financial affairs are audited by independent certified public accountants, a copy of the applicant's most recent regular certified financial statement shall be deemed to satisfy this requirement unless the director directs that additional or more recent financial information is required for the proper administration of this chapter.

Source: SL 1974, ch 321, § 6 (7).
S.D. Codified Laws § 58-38-9 — SD Code / Title 58 / Chapter 38 / Section 58-38-9
Contracts with subscribers
Status: in_force

Any medical and surgical plan corporation, organized under the provisions of this chapter, may enter into contracts with subscribers to furnish medical and surgical service through physicians and surgeons. The medical and surgical plan operated by such corporation shall also provide for such service to subscribers by the physician and surgeon chosen by the subscriber without regard to whether such physician and surgeon has a contract for service with such corporation.

Source: SL 1966, ch 111, ch 21, § 5.
S.D. Codified Laws § 58-6A-3.12 — SD Code / Title 58 / Chapter 6A / Section 58-6A-3.12
Application of §§58-6A-1to58-6A-3.11
Status: in_force

Any retention group licensed before July 1, 2016, shall be in compliance with §§ 58-6A-1 to 58-6A-3.11 , inclusive, by July 1, 2017. Any risk retention group licensed after June 30, 2016, shall be in compliance with §§ 58-6A-1 to 58-6A-3.11 , inclusive, at licensure.

Source: SL 2016, ch 232, § 1.
S.D. Codified Laws § 58-15-43.6 — SD Code / Title 58 / Chapter 15 / Section 58-15-43.6
Recalculated nonforfeiture net level premium
Status: in_force

The recalculated nonforfeiture net level premium is equal to the result obtained by dividing (A) by (B) if (A) equals the sum of the nonforfeiture net level premium applicable prior to the change times the present value of an annuity of one per annum payable on each anniversary of the policy on or subsequent to the date of the change on which a premium would have fallen due had the change not occurred, and the present value of the increase in future guaranteed benefits provided for by the policy, and (B) equals the present value of an annuity of one per annum payable on each anniversary of the policy on or subsequent to the date of change on which a premium falls due.

Source: SL 1982, ch 357, § 10.
S.D. Codified Laws § 58-30-27 — SD Code / Title 58 / Chapter 30 / Section 58-30-27
Licenses to insurance producers of domestic insurer insuring members of armed forces and dependents outside territorial limits
Status: in_force

If any domestic company is engaged in writing insurance on the lives or property of the members of the military forces of the United States, and dependents of the members while stationed outside the continental and territorial limits of the United States, the director, if otherwise satisfied as to the qualifications of applicants for licenses as insurance producers to write the business outside the continental and territorial limits of the United States, for the companies, may issue the same type of license to the insurance producers as to any resident insurance producer.

Source: SL 1966, ch 111, ch 9, § 9 (7); SL 2001, ch 286, § 165.
S.D. Codified Laws § 58-18B-17 — SD Code / Title 58 / Chapter 18B / Section 58-18B-17
Limit on premium rates
Status: in_force

The premium rates for an individual covered in a small employer plan may not exceed the premium rate for any other individual covered under the same small employer carrier because of age alone by a factor of 3:1. A small employer carrier may not require any individual to pay any premium or contribution that is greater than that for a similarly situated individual enrolled in the plan. Nothing in this section prohibits a group health plan, and a health insurance issuer offering group health insurance coverage, from establishing premium discounts or rebates or modifying otherwise applicable copayments or deductibles in return for adherence to programs of health promotion or disease prevention.

Source: SL 1995, ch 281, § 10; SL 1997, ch 289, § 15; SL 2001, ch 279, § 2.
S.D. Codified Laws § 58-6-11 — SD Code / Title 58 / Chapter 6 / Section 58-6-11
Readmission to state as an authorized insurer--Requirements--Payment of back premium taxes
Status: in_force

In addition to other applicable requirements therefor, no insurer, formerly authorized in this state and again seeking admission to this state as an authorized insurer, shall be so authorized unless the insurer, as part of its application for such authority, includes a written statement, duly sworn to by at least two of its executive officers, of all premiums received by the insurer with respect to insurance on subjects of insurance resident, located or to be performed in this state, subsequent to its previous withdrawal for any cause from this state, and pays to the state a premium tax thereon at the same rate and in the same amount as the insurer would have paid on such premiums had it continued to be an authorized insurer in this state during the period between its withdrawal and its reapplication for authority.

Source: SL 1966, ch 111, ch 3, § 6 (1).
S.D. Codified Laws § 58-12-34 — SD Code / Title 58 / Chapter 12 / Section 58-12-34
Acts constituting unfair claims practices
Status: in_force

Any of the following acts by an insurer, if committed in violation of § 58-12-33 , is an unfair claims practice:

(1) Knowingly misrepresents to a claimant or an insured a relevant fact or policy provision relating to coverages at issue;

(2) Fails to acknowledge with reasonable promptness pertinent communications with respect to claims arising under its policies;

(3) Fails to adopt and implement reasonable standards to promptly complete claim investigations and settlement of claims arising under its policies;

(4) Fails to make a good faith attempt to effectuate prompt, fair, and equitable settlement of claims submitted in which liability coverage, and causation of claims have become reasonably clear;

(5) Compels an insured or beneficiary to institute a suit to recover an amount due under its policies by offering substantially less than the amount ultimately recovered in a suit brought by the insured or beneficiary;

(6) Refuses to pay claims without conducting a reasonable claim investigation;

(7) Fails to affirm or deny coverage of claims within a reasonable time after having completed a claim investigation related to the claim;

(8) Attempts to settle a claim for less than the amount that a reasonable person would believe the insured or beneficiary is entitled by reference to written or printed advertising material accompanying or made part of an application;

(9) Attempts to settle a claim on the basis of an application that was materially altered without notice to, or knowledge or consent of, the insured;

(10) Makes a claim payment to an insured or beneficiary without indicating the coverage under which each payment is being made;

(11) Unreasonably delays a claim investigation or payment of a claim by requiring both a formal proof of loss form and subsequent verification that would result in duplication of information and verification appearing in the formal proof of loss form;

(12) Fails, in the case of a claim denial or offer of compromise settlement, to promptly provide a reasonable and accurate explanation of the basis for such action; or

(13) Fails to provide forms necessary to present a claim within fifteen days of a request with reasonable explanations regarding their use.

Source: SL 2014, ch 235, § 4.
S.D. Codified Laws § 58-30-98 — SD Code / Title 58 / Chapter 30 / Section 58-30-98
Receipt by director of process against nonresident insurance producer--Copy mailed to defendant
Status: in_force

Upon receiving such service, the director shall send one of the copies of the process, by registered or certified mail with return receipt requested, to the defendant insurance producer at the insurance producer's last address of record with the director.

Source: SL 1966, ch 111, ch 9, § 31 (4); SL 1978, ch 365, § 24; SL 1982, ch 28, § 18; SL 2001, ch 286, § 179.
S.D. Codified Laws § 58-37A-6 — SD Code / Title 58 / Chapter 37A / Section 58-37A-6
Specification of laws or rules--Membership rights
Status: in_force

A society shall specify in its laws or rules:

(1) Eligibility standards for each class of membership. If benefits are provided on the lives of children, the minimum age for adult membership shall be set at not less than age fifteen and not greater than age twenty - one;

(2) The process for admission to membership for each membership class; and

(3) The rights and privileges of each membership class. However, only benefit members have the right to vote on the management of the insurance affairs of the society.

A society may also admit social members who have no voice or vote in the management of the insurance affairs of the society. Membership rights in the society are personal to the member and are not assignable.

Source: SL 1990, ch 410, § 6.
S.D. Codified Laws § 58-29B-129 — SD Code / Title 58 / Chapter 29B / Section 58-29B-129
Disposition of funds not distributed
Status: in_force

All funds withheld under §§ 58-29B-112 to 58-29B-114 , inclusive, and not distributed shall upon discharge of the liquidator be deposited with the state treasurer and paid by him in accordance with § 58-29B-123 . Any sums remaining which under § 58-29B-123 would revert to the undistributed assets of the insurer shall be transferred to the state treasurer and become the property of the state under § 58-29B-128 , unless the director in his discretion petitions the court to reopen the liquidation under § 58-29B-131 .

Source: SL 1989, ch 436, § 129.
S.D. Codified Laws § 58-3-11 — SD Code / Title 58 / Chapter 3 / Section 58-3-11
Contents of examination reports
Status: in_force

The report shall be comprised only of facts appearing from the books, papers, records, or documents of the person being examined, or ascertained from the statements of individuals concerning its affairs and the examiner's conclusions and recommendations based on procedures and guidelines adopted by the National Association of Insurance Commissioners or state statutes or rules. The director shall adopt the procedures and guidelines and their effective date by rule promulgated pursuant to chapter 1-26 .

Source: SL 1966, ch 111, ch 2, § 20 (2); SL 1992, ch 338, § 8; SL 1993, ch 357, § 2; SL 1994, ch 375, § 4; SL 1997, ch 283, § 4.
S.D. Codified Laws § 58-32-17 — SD Code / Title 58 / Chapter 32 / Section 58-32-17
Conditions for export--Amount not procurable from authorized insurers
Status: in_force

The full amount of insurance required must not be procurable, after diligent effort has been made to do so, from insurers authorized to transact and actually writing that kind and class of insurance in this state, and the amount of insurance exported shall be only the excess over the amount procurable from authorized insurers.

Source: SL 1966, ch 111, ch 11, § 4 (2).
S.D. Codified Laws § 58-46-23 — SD Code / Title 58 / Chapter 46 / Section 58-46-23
Contribution to plan, pool, association, or guaranty or insolvency fund prohibited
Status: in_force

No captive insurance company may join or contribute financially to any plan, pool, association, or guaranty or insolvency fund in this state. No captive insurance company or its parent or affiliated entities may receive any benefit from any such plan, pool, association, or guaranty or insolvency fund for claims arising out of the operations of the captive insurance company.

Source: SL 1996, ch 287, § 23; SL 2013, ch 257, § 19.
S.D. Codified Laws § 58-29B-122 — SD Code / Title 58 / Chapter 29B / Section 58-29B-122
Valuation of security held by secured creditor
Status: in_force

The value of any security held by a secured creditor shall be determined in one of the following ways, as the court may direct:

(1) By converting the same into money according to the terms of the agreement pursuant to which the security was delivered to such creditors; or

(2) By agreement, arbitration, compromise, or litigation between the creditor and the liquidator.

Source: SL 1989, ch 436, § 122.
S.D. Codified Laws § 58-15-100 — SD Code / Title 58 / Chapter 15 / Section 58-15-100
Requirements upon receipt of information establishing knowledge of death
Status: in_force

Upon receipt of information establishing knowledge of death, the insurer shall check its records to determine whether the insurer has any other policies, annuity contracts, or retained asset accounts for that insured.

Upon receipt of information establishing knowledge of death of an insured, the insurer shall notify each United States affiliate, parent or subsidiary, as appropriate, and any entity with which the insurer contracts that may maintain or control records related to policies, annuity contracts, or retained asset accounts to which §§ 58-15-94 to 58-15-108 , inclusive, apply, of the knowledge of death or match, and make a reasonable and good faith effort to ensure that each affiliate, parent or subsidiary, or other entity performs a check of their records.

Source: SL 2018, ch 280, § 7.
S.D. Codified Laws § 58-22-50 — SD Code / Title 58 / Chapter 22 / Section 58-22-50
Licensee to notify Division of certain convictions
Status: in_force

Any person holding a license under this chapter shall notify the Division of Insurance of a conviction or plea of guilty or nolo contendere to a felony or a crime of moral turpitude within twenty days of the conviction or plea. Violation of this section is a Class 1 misdemeanor.

Source: SL 1998, ch 296, § 11.
S.D. Codified Laws § 58-30-187 — SD Code / Title 58 / Chapter 30 / Section 58-30-187
Confidentiality of information gathered in termination investigation
Status: in_force

Any documents, materials, or other information in the control or possession of the Division of Insurance that is furnished by the insurer, insurance producer, or an employee or agent thereof acting on behalf of the insurer or insurance producer, or obtained by the director in an investigation pursuant to §§ 58-30-180 to 58-30-193 , inclusive, 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 is authorized to use the documents, materials, or other information in the furtherance of any regulatory function or legal action brought as a part of the director's duties.

Source: SL 2001, ch 286, § 47.
S.D. Codified Laws § 58-29E-8.1 — SD Code / Title 58 / Chapter 29E / Section 58-29E-8.1
Provision of information to a patient
Status: in_force

A pharmacy benefit manager may neither prohibit a pharmacist or pharmacy from, nor penalize a pharmacist or pharmacy for, informing a covered individual about:

(1) The cost of a prescription drug;

(2) The amount of reimbursement that the pharmacy will receive for dispensing the prescription drug;

(3) The cost and clinical efficacy of a more affordable alternative prescription drug, if one is available; and

(4) Any differential between the amount a covered individual would pay under the covered individual’s prescription drug benefit and a lower price the covered individual would pay for the prescription drug, if the covered individual obtained the prescription drug without making a claim for benefits on the covered individual’s prescription drug benefit.

Source: SL 2018, ch 281, § 1; SL 2023, ch 166, § 10.
S.D. Codified Laws § 58-17-30.3 — SD Code / Title 58 / Chapter 17 / Section 58-17-30.3
Premature birth and congenital defects covered--Applicability
Status: in_force

The coverage for a newly born child from the moment of birth or for a newly adopted child, from the beginning of the six-month adoption bonding period, shall consist of coverage of injury or sickness including the necessary care and treatment of premature birth and medically diagnosed congenital defects and birth abnormalities. The provisions of §§ 58-17-30.2 to 58-17-30.4 , inclusive, apply to any individually written health benefit plan issued or renewed by any health insurer, health carrier, health maintenance organization, fraternal benefit society, nonprofit medical and surgical plan, nonprofit hospital service plan, or other entity providing coverage through a health benefit plan subject to the provisions of this title.

Source: SL 1974, ch 322; SL 1976, ch 313, § 2; SL 1983, ch 375, § 2; SL 1984, ch 327, § 13; SL 2001, ch 274, § 1; SL 2015, ch 249, § 1.
S.D. Codified Laws § 58-30-97 — SD Code / Title 58 / Chapter 30 / Section 58-30-97
Service on director of process against nonresident insurance producer--Fee
Status: in_force

Duplicate copies of legal process against the insurance producer shall be served on the director by registered or certified mail. At the time of service the plaintiff shall pay the director the fee set forth in subdivision § 58-2-29(12)(c), which is taxable as costs in the action.

Source: SL 1966, ch 111, ch 9, § 31 (3); SL 1978, ch 365, § 22; SL 1982, ch 28, § 18; SL 2001, ch 286, § 178.
S.D. Codified Laws § 58-40-5 — SD Code / Title 58 / Chapter 40 / Section 58-40-5
License to issue contracts required--Violation as misdemeanor
Status: in_force

A corporation subject to the provisions of this chapter may issue contracts only when the director has by formal certificate or license authorized it to do so. Violation of this section is a Class 2 misdemeanor.

Source: SL 1966, ch 111, ch 21, § 18; SL 1978, ch 359, § 2.
S.D. Codified Laws § 58-27-100 — SD Code / Title 58 / Chapter 27 / Section 58-27-100
Time limit for compliance with §§58-27-89to58-27-102
Status: in_force

All persons subject to §§ 58-27-89 to 58-27-102 , inclusive, shall be in compliance with §§ 58-27-89 to 58-27-102 , inclusive, by July 1, 1993. The director may establish limitations on the obligations or time frames for those persons to reduce obligations in violation of §§ 58-27-89 to 58-27-102 , inclusive.

Source: SL 1992, ch 350, § 12.
S.D. Codified Laws § 58-5A-16 — SD Code / Title 58 / Chapter 5A / Section 58-5A-16
Acquisitions exempt from information and approval requirements by order of director
Status: in_force

The provisions of §§ 58-5A-3 to 58-5A-13 , inclusive, shall not apply to any offer, request, invitation, agreement, or acquisition which the director by order shall exempt therefrom as not having been made or entered into for the purpose and not having the effect of changing or influencing the control of a domestic insurer, or as otherwise not comprehended within the purposes of this chapter.

Source: SL 1972, ch 267, § 11 (3).
S.D. Codified Laws § 58-33-7 — SD Code / Title 58 / Chapter 33 / Section 58-33-7
Defamation as misdemeanor
Status: in_force

No person shall make, publish, disseminate, or circulate, directly or indirectly, or aid, abet, or encourage the making, publishing, disseminating, or circulating of any oral or written statement or any pamphlet, circular, article, or literature which is false, or maliciously critical of or derogatory to the financial condition of an insurer, or of an organization proposing to become an insurer, and which is calculated to injure any person engaged or proposing to engage in the business of insurance. Violation of this section is a Class 2 misdemeanor.

Source: SL 1966, ch 111, ch 13, § 8; SL 1978, ch 359, § 2.
S.D. Codified Laws § 58-30-92 — SD Code / Title 58 / Chapter 30 / Section 58-30-92
Companies prohibited from issuing policy in this state except through licensed agent--Violation as misdemeanor
Status: in_force

No authorized insurer may issue or cause to be issued any policy, duplicate policy, or insurance contract covering a subject of insurance that is resident, located or to be performed in this state through any person who is not licensed as an agent under this chapter. Violation of this section is a Class 2 misdemeanor.

Source: SL 1966, ch 111, ch 9, § 32 (1); SL 1978, ch 359, § 2; SL 1978, ch 365, § 24; SL 1983, ch 378, § 1.
S.D. Codified Laws § 58-18-11.1 — SD Code / Title 58 / Chapter 18 / Section 58-18-11.1
Reduction of benefits because of increase in statutory disability benefits prohibited
Status: in_force

No group insurance policy for loss of time or disability benefits issued, amended, renewed or delivered in this state shall contain any provision offsetting, or in any other manner reducing, any benefit under the policy by the amount of, or in proportion to, any increase in disability benefits received or receivable under the federal Social Security Act, the Railroad Retirement Act, any veteran's disability compensation and survivor benefits act, worker's compensation, or any similar federal or state law, as amended subsequent to the date of commencement of such benefit.

Source: SL 1976, ch 312.
S.D. Codified Laws § 58-23-6 — SD Code / Title 58 / Chapter 23 / Section 58-23-6
Supplemental automobile coverage--Definition of terms
Status: in_force

Terms used in §§ 58-23-6 to 58-23-8 , inclusive, mean:

(1) "Automobile," a four - wheel passenger motor vehicle designed for use upon public roads, not operated for commercial use, and owned by a natural person. This definition includes trailers designed for use with such motor vehicles, but does not include a motorcycle or a motorcycle with a sidecar attached thereto;

(2) "Automobile liability policy," a policy of insurance, insuring against liability on account of bodily injury;

(3) "Insured," the named insured or any other person who is in or upon, entering into, or alighting from, the automobile insured and described in the policy with the express or implied permission of the named insured or the person operating the automobile with the express or implied consent of the named insured. The term insured also includes the named insured or any member of the named insured's household when either of them is a pedestrian and collides with or is struck by a motor vehicle or trailer;

(4) "Medical expense," reasonable and customary expenses for necessary medical, hospital, surgical, X ray, and dental services, including prosthetic devices, and necessary ambulance, professional nursing, and funeral expenses;

(5) "Named insured," the individual or individuals designated by name as specifically insured in the policy declaration.

Source: SL 1971, ch 270, § 1; SL 1972, ch 263, § 1; SL 1990, ch 399; SL 1993, ch 363; SL 1995, ch 283.
S.D. Codified Laws § 58-36-46 — SD Code / Title 58 / Chapter 36 / Section 58-36-46
Validation of past actions of religious society mutual
Status: in_force

All actions of any religious society mutual which was organized pursuant to § 31.2919 of the 1960 Supplement to the South Dakota Code of 1939, are valid despite the repeal of the section.

Source: SL 1978, ch 366, § 2.
S.D. Codified Laws § 58-26-58 — SD Code / Title 58 / Chapter 26 / Section 58-26-58
Mortality tables used for industrial life insurance policies
Status: in_force

The tables that shall be used for all industrial life insurance policies issued on the standard basis, excluding any disability and accidental death benefits in the policies are: the 1941 Standard Industrial Mortality Table for policies issued prior to the operative date of § 58-15-38 , and for policies issued on or after the operative date, the Commissioners 1961 Standard Industrial Mortality Table or any industrial mortality table, adopted after 1980 by the NAIC, that is approved by rules promulgated pursuant to chapter 1-26 by the director for use in determining the minimum standard of valuation for the policies.

Source: SL 1995, ch 284, § 14; SL 2015, ch 254, § 8.
S.D. Codified Laws § 58-6-3 — SD Code / Title 58 / Chapter 6 / Section 58-6-3
Preemption of field of insurance regulation by state--Licensing by political subdivisions prohibited
Status: in_force

The state hereby preempts the field of regulating insurers and their insurance producers and solicitors; and all political subdivisions of the state are prohibited from requiring of any insurer, insurance producer, or solicitor regulated under this title any authorization, permit, or registration of any kind for conducting transactions lawful under the authority granted by the state under this title.

Source: SL 1966, ch 111, ch 3, § 1 (3); SL 2001, ch 286, § 76.
S.D. Codified Laws § 58-38-37 — SD Code / Title 58 / Chapter 38 / Section 58-38-37
Minimum inpatient care coverage following delivery
Status: in_force

If a service or indemnity - type contract issued or renewed on or after July 1, 1996, by a nonprofit medical and surgical service plan corporation provides maternity coverage, the contract shall provide coverage for a minimum of forty - eight hours of inpatient care following a vaginal delivery and a minimum of ninety - six hours of inpatient care following delivery by cesarean section for a mother and her newborn child in a health care facility licensed pursuant to chapter 34-12 , except as otherwise provided in § 58-38-38 . Any individual policy and any policy issued to employers with less than fifteen employees that provides coverage for complications of pregnancy, and does not provide other maternity benefits, is not required to comply with this section.

Source: SL 1996, ch 292, § 10; SL 1998, ch 290, § 4.
S.D. Codified Laws § 58-17K-6 — SD Code / Title 58 / Chapter 17K / Section 58-17K-6
Cost-sharing information or prescription drug file--Third party contract to provide information--Health insurer responsible
Status: in_force

A health insurer may enter into a written agreement with a third-party administrator, health care claims clearinghouse, pharmacy benefit manager, or other third party to provide the required cost-sharing information or prescription drug file in compliance with this chapter. If a health insurer chooses to enter into an agreement and the contracted party fails to provide the information or file, the health insurer is in violation of this chapter.

Source: SL 2021, ch 213, § 6.
S.D. Codified Laws § 58-33-57 — SD Code / Title 58 / Chapter 33 / Section 58-33-57
Severability of provisions
Status: in_force

If any provision of this chapter or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or application of the chapter which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are declared to be severable.

Source: SL 1966, ch 111, ch 13, § 31.
S.D. Codified Laws § 58-30-209.2 — SD Code / Title 58 / Chapter 30 / Section 58-30-209.2
Licensed producers may sell travel insurance--Appointment not required
Status: in_force

Any person licensed as an insurance producer in a line of authority as specified in subdivisions 58-30-152 (1), (2), (3), (4), (5), and (6), is authorized to sell, solicit, and negotiate travel insurance. A property and casualty insurance producer is not required to become appointed by an insurer in order to sell, solicit, or negotiate travel insurance.

Source: SL 2022, ch 185, § 3.
S.D. Codified Laws § 58-29A-70 — SD Code / Title 58 / Chapter 29A / Section 58-29A-70
Investigation, adjustment, and payment or denial of claims--Review of previous settlements, releases, and judgments
Status: in_force

The association shall investigate claims brought against the association and adjust, compromise, settle, and pay covered claims to the extent of the association's obligation and deny any other claims and may review settlements, releases, and judgments to which the insolvent insurer or its insureds were parties to determine the extent to which such settlements, releases, and judgments may be properly contested. The association may appoint and direct legal counsel retained under liability insurance policies for the defense of covered claims.

Source: SL 2000, ch 247, § 17.
S.D. Codified Laws § 58-20-36 — SD Code / Title 58 / Chapter 20 / Section 58-20-36
Dissolution of self-insurance association to be approved by department
Status: in_force

No association may be voluntarily dissolved or otherwise cease to function without written approval by the department after the department has determined that all claims and other legal obligations of the association have been paid or that adequate provisions for such payment have been made.

Source: SL 1995, ch 282, § 12.
S.D. Codified Laws § 58-18-6.1 — SD Code / Title 58 / Chapter 18 / Section 58-18-6.1
Coverage of proprietors, partners and executive corporate officer employees
Status: in_force

Group health insurance, as defined in § 58-18-1 , is required to offer to extend health insurance coverage to proprietors, partners, and executive corporate officer employees who are participating in such group insurance in their place of employment if such proprietor, partner, or executive officer elects not to be covered under workers' compensation.

Source: SL 1981, ch 361.
S.D. Codified Laws § 58-17E-47 — SD Code / Title 58 / Chapter 17E / Section 58-17E-47
Construction with trade practices statute
Status: in_force

Nothing in this chapter may be construed to discharge any requirements imposed by subdivision 37-24-6(12).

Source: SL 2006, ch 257, § 46.
S.D. Codified Laws § 58-27-87 — SD Code / Title 58 / Chapter 27 / Section 58-27-87
Banking patronage as prerequisite to issuance of insurance policy prohibited
Status: in_force

No insurance company as a prerequisite to the sale of an insurance policy may require the insured or those purchasing insurance on his behalf to do banking business with any insurance company or a subsidiary bank.

Source: SL 1983, ch 376, § 12.
S.D. Codified Laws § 58-32-47 — SD Code / Title 58 / Chapter 32 / Section 58-32-47
Report of independently procured coverages--Violation as misdemeanor
Status: in_force

Every insured who in this state procures or causes to be procured or continues or renews insurance in an unauthorized foreign insurer, or any self - insurer who in this state so procures or continues excess loss, catastrophe or other insurance, upon a subject of insurance resident, located or to be performed within this state, other than insurance procured through a surplus line broker subject to §§ 58-32-44 and 58-32-45 , shall within thirty days after the date such insurance was so procured, continued or renewed file a written report of the same with the director on forms furnished by the director to the insured, giving the name and address of the insurer, the subject of the insurance, a general description of the coverage, the amount of premium currently charged therefor, and such additional pertinent information as the director reasonably requests. If the insurance covers also a subject of insurance resident, located or to be performed outside this state a proper prorata portion of the entire premium payable for all such insurance shall be allocated to this state for the purposes of § 58-32-50 .

Violation of this section is a Class 2 misdemeanor.

Source: SL 1966, ch 111, ch 11, § 22 (1); SL 1978, ch 359, § 2.
S.D. Codified Laws § 58-41-21 — SD Code / Title 58 / Chapter 41 / Section 58-41-21
Foreign corporations qualifying--Exemption from other requirements
Status: in_force

A foreign corporation may qualify under this chapter, and if such corporation fully complies with the provisions of Title 58, then such corporation shall be exempt from complying with other provisions of the South Dakota Code concerning foreign corporations.

Source: SL 1974, ch 321, § 3; SL 1985, ch 393, § 4.
S.D. Codified Laws § 58-18A-75 — SD Code / Title 58 / Chapter 18A / Section 58-18A-75
Calculation of amount to be paid by secondary plan
Status: in_force

In determining the amount to be paid by the secondary plan on a claim, if the plan wishes to coordinate benefits, the secondary plan shall calculate the benefits it would have paid on the claim in the absence of other health care coverage and apply that calculated amount to any allowable expense under its plan that is unpaid by the primary plan. The secondary plan may reduce its payment by the amount so that, when combined with the amount paid by the primary plan, the total benefits paid or provided by all plans for the claim do not exceed one hundred percent of the total allowable expense for that claim. In addition, the secondary plan shall credit to its plan deductible any amounts it would have credited to its deductible in the absence of other health care coverage.

Source: SL 2006, ch 259, § 23.
S.D. Codified Laws § 58-29B-48 — SD Code / Title 58 / Chapter 29B / Section 58-29B-48
Order to dissolve corporate existence--Procedure
Status: in_force

The director may petition for an order dissolving the corporate existence of a domestic insurer or the United States branch of an alien insurer domiciled in this state at the time he applies for a liquidation order. The court shall order dissolution of the corporation upon petition by the director upon or after the granting of a liquidation order. Dissolution may also be effected by operation of law upon the discharge of the liquidator, if the insurer is insolvent and may be ordered by the court upon the discharge of the liquidator if the insurer is under a liquidation order for some other reason.

Source: SL 1989, ch 436, § 48.