reglab/statecodes huggingface dataset:
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 33A - Standards For Advertisement, Solicitation, And Sale Of Life And Health Insurance › Section 58-33A-16.6 - Additional disclosure upon request.

58-33A-16.6. Additional disclosure upon request.
Upon request of the consumer or the consumer’s designated representative, the producer shall disclose:
(1)A reasonable estimate of the amount of cash compensation to be received by the producer, which may be stated as a range of amounts or percentages; and
(2)Whether the cash compensation is a one-time or multiple occurrence amount, and if a multiple occurrence amount, the frequency and amount of the occurrence, which may be stated as a range of amounts or percentages.
Source: SL 2022, ch 186, §13, eff. Jan. 1, 2023.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 33A - Standards For Advertisement, Solicitation, And Sale Of Life And Health Insurance › Section 58-33A-16.7 - Disclosure of producer conflicts of interest required--Certain factors excluded.

58-33A-16.7. Disclosure of producer conflicts of interest required--Certain factors excluded.
A producer shall identify and avoid or reasonably manage and disclose material conflicts of interest, including material conflicts of interest related to an ownership interest. The following factors, when considered in isolation, are not material conflicts of interest:
(1)The producer has a minority ownership in an insurer or licensed business entity;
(2)The producer has a majority ownership in a licensed business entity, if the ownership is conspicuously disclosed to the consumer; or
(3)An immediate family member is employed by a licensed business entity.
Source: SL 2022, ch 186, §14, eff. Jan. 1, 2023; SL 2023, ch 168, §4.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 33A - Standards For Advertisement, Solicitation, And Sale Of Life And Health Insurance › Section 58-33A-18 - Conditions resulting in no obligation to consumer.

58-33A-18. Conditions resulting in no obligation to consumer.
Except as provided pursuant to §58-33A-19, a producer has no obligation to a consumer under §§58-33A-16.1 to 58-33A-16.3, inclusive, and §58-33A-17 related to any annuity transaction if:
(1)A consumer refuses to provide relevant consumer profile information and the annuity transaction is not recommended;
(2)A consumer decides to enter into an annuity transaction that is not based on a recommendation of the producer;
(3)A recommendation was made and was later found to have been prepared based on materially inaccurate information provided by the consumer; or
(4)No recommendation is made.
Source: SL 2008, ch 273, §6; SL 2012, ch 250, §4; SL 2022, ch 186, §10, eff. Jan. 1, 2023.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 33A - Standards For Advertisement, Solicitation, And Sale Of Life And Health Insurance › Section 58-33A-19 - Reasonableness under circumstances known to insurer.

58-33A-19. Reasonableness under circumstances known to insurer.
An insurer's issuance of an annuity subject to §58-33A-18 shall be reasonable under all the circumstances actually known to the insurer at the time the annuity is issued.
Source: SL 2008, ch 273, §7; SL 2012, ch 250, §5; SL 2022, ch 186, §17, eff. Jan. 1, 2023.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 33A - Standards For Advertisement, Solicitation, And Sale Of Life And Health Insurance › Section 58-33A-19.2 - Producer obligations--Documentation--Time of recommendation or sale.

58-33A-19.2. Producer obligations--Documentation--Time of recommendation or sale.
A producer shall, at the time of the recommendation or sale:
(1)Make a written record of any recommendation and the basis for the recommendation subject to the obligations required in §§58-33A-13 to 58-33A-27, inclusive;
(2)Obtain a consumer signed statement on a form substantially similar to the form prescribed by the director and available on the division’s website documenting:
(a)A customer’s refusal to provide the consumer profile information, if any;
(b)A customer’s understanding of the ramifications of not providing his or her consumer profile information or providing insufficient consumer profile information; and
(3)Obtain a consumer signed statement acknowledging the annuity transaction is not recommended if a customer decides to enter into an annuity transaction that is not based on the producer’s recommendation on a form substantially similar to a form prescribed by the director.
Source: SL 2022, ch 186, §15, eff. Jan. 1, 2023.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 33A - Standards For Advertisement, Solicitation, And Sale Of Life And Health Insurance › Section 58-33A-19.3 - Issuance by insurer to be reasonable and address consumer needs.

58-33A-19.3. Issuance by insurer to be reasonable and address consumer needs.
Except as permitted under §§58-33A-18 and 58-33A-19, an insurer may not issue an annuity recommended to a consumer unless there is a reasonable basis to believe the annuity would effectively address the particular consumer’s financial situation, insurance needs, and financial objectives based on the consumer’s profile information.
Source: SL 2022, ch 186, §19, eff. Jan. 1, 2023.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 33A - Standards For Advertisement, Solicitation, And Sale Of Life And Health Insurance › Section 58-33A-20.1 - Contract for performance of supervision system functions--Responsibility for corrective action--Supervision of performance.

58-33A-20.1. Contract for performance of supervision system functions--Responsibility for corrective action--Supervision of performance.
Nothing in §58-33A-20 or this section restricts an insurer from contracting for performance of a function required under §58-33A-20, including maintenance of procedures. An insurer is responsible for taking appropriate corrective action and may be subject to sanctions and penalties pursuant to §58-33A-26 regardless of whether the insurer contracts for performance of a function and regardless of the insurer's compliance with this section.
An insurer's supervision system under §58-33A-20 and this section shall include supervision of contractual performance under this section. This includes the following:
(1)Monitoring and, as appropriate, conducting audits to assure that the contracted function is properly performed; and
(2)Annually obtaining a certification from a senior manager who has responsibility for the contracted function that the manager has a reasonable basis to represent, and does represent, that the function is properly performed.
An insurer is not required to include in its system of supervision a producer's recommendations to consumers of products other than the annuities offered by the insurer, consideration of or comparison to options available to the producer, or compensation relating to those options other than annuities or other products offered by the insurer.
Source: SL 2012, ch 250, §8; SL 2022, ch 186, §21, eff. Jan. 1, 2023.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 33A - Standards For Advertisement, Solicitation, And Sale Of Life And Health Insurance › Section 58-33A-20.2 - Prohibited conduct by insurance producer.

58-33A-20.2. Prohibited conduct by insurance producer.
No producer or insurer may dissuade, or attempt to dissuade, a consumer from:
(1)Truthfully responding to an insurer's request for confirmation of consumer profile information;
(2)Filing a complaint; or
(3)Cooperating with the investigation of a complaint.
Source: SL 2012, ch 250, §9; SL 2022, ch 186, §22, eff. Jan. 1, 2023.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 33A - Standards For Advertisement, Solicitation, And Sale Of Life And Health Insurance › Section 58-33A-25 - Compliance with comparable standards by financial professional.

58-33A-25. Compliance with comparable standards by financial professional.
Recommendations and sales of annuities made in compliance with comparable standards shall satisfy the requirements of §§58-33A-13 to 58-33-27, inclusive. This section applies to all recommendations and sales of annuities made by financial professionals in compliance with business rules, controls, and procedures that satisfy a comparable standard even if such standard would not otherwise apply to the product or recommendation at issue. For this section to apply, an insurer shall:
(1)Monitor the relevant conduct of the financial professional seeking to rely on this section or the entity responsible for supervising the financial professional, such as the financial professional’s broker-dealer or an investment adviser registered under federal or state securities laws using information collected in the normal course of an insurer's business; and
(2)Provide to the entity responsible for supervising the financial professional seeking to rely on this section, such as the financial professional’s broker-dealer or investment adviser registered under federal or state securities laws, information and reports that are reasonably appropriate to assist the entity to maintain its supervision system.
Nothing in this section shall limit the director’s ability to investigate and enforce the provisions of §§58-33A-13 to 58-33A-27, inclusive, or limit the insurer’s obligation to comply with §58-33A-20(4), although the insurer may base its analysis on information received from either the financial professional or the entity supervising the financial professional.
Source: SL 2008, ch 273, §13; SL 2012, ch 250, §10; SL 2022, ch 186, §24, eff. Jan. 1, 2023.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 33A - Standards For Advertisement, Solicitation, And Sale Of Life And Health Insurance › Section 58-33A-25.1 - Insurance producer to have adequate knowledge of annuity product--Required training.

58-33A-25.1. Insurance producer to have adequate knowledge of annuity product--Required training.
No producer may solicit the sale of an annuity product unless the producer has adequate knowledge of the product to recommend the annuity and the producer is in compliance with the insurer's standards for product training. A producer may rely on insurer-provided product-specific training standards and materials to comply with this section. A producer who engages in the sale of annuity products shall complete a one-time four credit training course approved by the director and provided by a director-approved education provider.
A producer who obtains a life insurance line of authority may not engage in the sale of annuities unless the annuity training course required under this section has been completed. The minimum length of the training required under this section shall be sufficient to qualify for at least four continuing education credits, but may be longer. The training required under this section must include information on the following subjects:
(1)The types of annuities and various classifications of annuities;
(2)Identification of the parties to an annuity;
(3)How product-specific annuity contract features affect consumers;
(4)The application of income taxation of qualified and nonqualified annuities;
(5)The primary uses of annuities; and
(6)Appropriate standard of conduct, sales practices, replacement, and disclosure requirements.
An insurance producer who has completed an annuity training course approved by the division prior to January 1, 2023 shall, within six months, complete either a new four credit training course approved by the division or an additional one-time one credit training course approved by the division and provided by the division-approved education provider on appropriate sales practices, replacement, and disclosure requirements under §§58-33A-13 to 58-33A-27, inclusive.
Source: SL 2012, ch 250, §11; SL 2022, ch 186, §25, eff. Jan. 1, 2023.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 33A - Standards For Advertisement, Solicitation, And Sale Of Life And Health Insurance › Section 58-33A-25.2 - Annuity training course providers--Training requirements of other states.

58-33A-25.2. Annuity training course providers--Training requirements of other states.
Each course provider intending to comply with §58-33A-25.1 shall cover all subjects listed in §58-33A-25.1. No provider of such course may present any marketing information or provide training on sales techniques or provide specific information about a particular insurer's products. Additional subjects may be offered in conjunction with and in addition to the required subjects. Each provider of an annuity training course intending to comply with §58-33A-25.1 shall register as a continuing education provider in this state and shall comply with the rules applicable to producer continuing education courses as set forth in chapter 58-30.
An annuity training course may be conducted and completed by classroom or self-study methods. Each provider of annuity training shall comply with the reporting requirements and shall issue certificates of completion in accordance with chapter 58-30. The satisfaction of the training requirements of another state that are substantially similar to the provisions of this section satisfy the training requirements of this section and §58-33A-25.1. The satisfaction of the components of the training requirements of any course or courses with components substantially similar to §58-33A-25.1 are be deemed to satisfy the training requirements.
Source: SL 2012, ch 250, §12; SL 2022, ch 186, §26, eff. Jan. 1, 2023.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 33A - Standards For Advertisement, Solicitation, And Sale Of Life And Health Insurance › Section 58-33A-25.3 - Insurer to verify producer has completed annuity training course.

58-33A-25.3. Insurer to verify producer has completed annuity training course.
An insurer shall verify that a producer has completed the annuity training course required pursuant to §58-33A-25.1 before allowing the producer to sell an annuity product for that insurer. An insurer may satisfy its responsibility under this section by obtaining certificates of completion of the training course or obtaining reports provided by a director-sponsored database system or vendor or from a reasonably reliable commercial database vendor that has a reporting arrangement with an approved insurance education provider.
Source: SL 2012, ch 250, §13; SL 2022, ch 186, §27, eff. Jan. 1, 2023.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 33A - Standards For Advertisement, Solicitation, And Sale Of Life And Health Insurance › Section 58-33A-25.4 - Authorized insurance business--Other licenses.

58-33A-25.4. Authorized insurance business--Other licenses.
Nothing in §§58-33A-13 to 58-33A-27, inclusive, should be construed to require a producer to obtain any license other than a producer license with the appropriate line of authority to sell, solicit, or negotiate insurance in this state, including a securities license, in order to fulfill the duties and obligations contained in §§58-33A-13 to 58-33A-27, inclusive provided the producer does not give advice or provide services that are otherwise subject to securities laws or engage in any other activity requiring other professional licenses.
Source: SL 2022, ch 186, §16, eff. Jan. 1, 2023.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 33A - Standards For Advertisement, Solicitation, And Sale Of Life And Health Insurance › Section 58-33A-25.5 - Definition of terms--Compliance with Conduct Rules.

58-33A-25.5. Definition of terms--Compliance with Conduct Rules.
The terms used in §58-33A-25 mean:
(1)"Comparable standards,":
(a)With respect to broker-dealers and registered representatives of broker-dealers, applicable SEC and FINRA rules pertaining to best interest obligations and supervision of annuity recommendations and sales, including 17 C.F.R. §240.15|-1 (2023);
(b)With respect to investment advisers registered under federal or state securities laws or investment adviser representatives, the fiduciary duties and all other requirements imposed on such investment advisers or investment adviser representatives by contract or under the Investment Advisers Act of 1940 or applicable state securities law, including the Form ADV and interpretations; and
(c)With respect to plan fiduciaries or fiduciaries, the duties, obligations, prohibitions, and all other requirements attendant to such status under Employee Retirement Income Security Act of 1974 (ERISA) or the Internal Revenue Code as of January 1, 2023; and
(2)"Financial professional," a producer that is regulated and acting as:
(a)A broker-dealer registered under federal or state securities laws or a registered representative of a broker-dealer;
(b)An investment adviser registered under federal or state securities laws or an investment adviser representative associated with the federal or state registered investment adviser; or
(c)A plan fiduciary under 29 U.S. Code § 1002(21) (2019) or fiduciary under 26 U.S. Code §4975(e)(3) (2019).
Source: SL 2022, ch 186, §23, eff. Jan. 1, 2023.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 33A - Standards For Advertisement, Solicitation, And Sale Of Life And Health Insurance › Section 58-33A-26 - Corrective action for violations.

58-33A-26. Corrective action for violations.
An insurer is responsible for compliance with §§58-33A-13 to 58-33A-27, inclusive. If a violation occurs because of the action or inaction of the insurer or its producer, the director may order:
(1)An insurer to take reasonably appropriate corrective action for any consumer harmed by a failure to comply by the insurer, an entity contracted to perform the insurer’s supervisory duties, or by its producer in violation of §§58-33A-13 to 58-33A-27, inclusive;
(2)A producer to take reasonably appropriate corrective action for any consumer harmed by the producer's violation of §§58-33A-13 to 58-33A-27, inclusive; and
(3)A general agency or independent agency that employs or contracts with a producer to sell, or solicit the sale, of annuities to consumers, to take reasonably appropriate corrective action for any consumer harmed by the producer's violation of §§58-33A-13 to 58-33A-27, inclusive.
Any violation of §§58-33A-13 to 58-33A-27, inclusive subjects the insurer, producer, or general agency or independent agency to suspension, revocation, refusal to renew a license, or to a monetary penalty as provided for under this title. However, the penalty may be reduced or eliminated, if corrective action for the consumer is taken promptly after a violation is discovered or the violation was not part of a pattern or practice.
Source: SL 2008, ch 273, §14; SL 2012, ch 250, §14; SL 2022, ch 186, §28, eff. Jan. 1, 2023.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 33A - Standards For Advertisement, Solicitation, And Sale Of Life And Health Insurance › Section 58-33A-27 - Records regarding recommendations.

58-33A-27. Records regarding recommendations.
Each insurer, general agent, independent agency and producer shall maintain or be able to make available to the director records of the information collected from the consumer, disclosures made to the consumer, including summaries of oral disclosures, and other information used in making the recommendations that were the basis for insurance transactions for five years after the insurance transaction is completed by the insurer. An insurer is permitted, but is not required, to maintain documentation on behalf of a producer.
Any record required to be maintained by §§58-33A-13 to 58-33A-27, inclusive, may be maintained in paper, photographic, microprocess, magnetic, mechanical or electronic media or by any process that accurately reproduces the actual document.
Source: SL 2008, ch 273, §15; SL 2022, ch 186, §29, eff. Jan. 1, 2023.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 33A - Standards For Advertisement, Solicitation, And Sale Of Life And Health Insurance › Section 58-33A-28 - Multi-state plan sale or solicitation of health insurance outside of exchange prohibited.

58-33A-28. Multi-state plan sale or solicitation of health insurance outside of exchange prohibited.
No multi-state plan as described in Section 1334 of the Patient Protection and Affordable Care Act, Pub. L. No. 111-148, 124 Stat. 119 (2010), as amended by the Health Care and Education Reconciliation Act of 2010, Pub. L. No. 111-152, 124 Stat. 1029 (2010) may sell, solicit, negotiate, or otherwise transact health insurance in this state outside of any public exchange which may be operating in this state.
Source:
SL 2013, ch 249, §3.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 34 - Reciprocal Insurers › Section 58-34-1 - Reciprocal insurance defined.

58-34-1. Reciprocal insurance defined.
"Reciprocal" insurance is that resulting from an interexchange among persons, known as "subscribers," of reciprocal agreements of indemnity, the interexchange being effectuated through an "attorney in fact" common to all such persons.
Source:
SL 1966, ch 111, ch 19, §1.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 34 - Reciprocal Insurers › Section 58-34-2 - Reciprocal insurer defined.

58-34-2. Reciprocal insurer defined.
A "reciprocal insurer" means an unincorporated aggregation of subscribers operating individually and collectively through an attorney in fact to provide reciprocal insurance among themselves.
Source:
SL 1966, ch 111, ch 19, §2.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 34 - Reciprocal Insurers › Section 58-34-3 - Attorney defined.

58-34-3. Attorney defined.
"Attorney," as used in this chapter, refers to the attorney in fact of a reciprocal insurer. The attorney may be an individual, firm, or corporation.
Source:
SL 1966, ch 111, ch 19, §6.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 34 - Reciprocal Insurers › Section 58-34-4 - Application of chapter to foreign reciprocal insurers.

58-34-4. Application of chapter to foreign reciprocal insurers.
All authorized reciprocal insurers shall be governed by those sections of this chapter not expressly made applicable to domestic reciprocals.
Source:
SL 1966, ch 111, ch 19, §3 (1).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 34 - Reciprocal Insurers › Section 58-34-5 - Compliance required of existing insurers.

58-34-5. Compliance required of existing insurers.
Authorized reciprocal insurers existing on July 1, 1966, shall after said date comply with the provisions of this chapter, and shall make such amendments to their subscribers' agreements, power of attorney, policies, and other documents and accounts and perform such other acts as may be required for such compliance.
Source:
SL 1966, ch 111, ch 19, §3 (2).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 34 - Reciprocal Insurers › Section 58-34-6 - Organization of insurer--Number of persons required.

58-34-6. Organization of insurer--Number of persons required.
Twenty-five or more persons domiciled in this state may organize a domestic reciprocal insurer and make application to the director for a certificate of authority.
Source:
SL 1966, ch 111, ch 19, §7 (1).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 34 - Reciprocal Insurers › Section 58-34-7 - Application for certificate of authority--Execution and filing--Contents.

58-34-7. Application for certificate of authority--Execution and filing--Contents.
The proposed attorney shall execute and file with the director an application for a certificate of authority setting forth:
(1)The name of the insurer;
(2)The location of the insurer's principal office, which shall be the same as that of the attorney and shall be maintained within this state;
(3)The kinds of insurance business proposed to be transacted;
(4)The names and addresses of the original subscribers;
(5)The designation and appointment of the proposed attorney and a copy of the power of attorney;
(6)The names and addresses of the officers and directors of the attorney, if a corporation, or its members, if a firm;
(7)The powers of the subscribers' advisory committee; and the names and terms of office of the members thereof;
(8)That all moneys paid to the reciprocal shall, after deducting therefrom any sum payable to the attorney, be held in the name of the insurer and for the purposes specified in the subscribers' agreement;
(9)A copy of the subscribers' agreement;
(10)A statement that each of the original subscribers has in good faith applied for insurance of a kind proposed to be transacted, and that the insurer has received from each such subscriber the full premium or premium deposit required for the policy applied for, for a term of not less than six months at an adequate rate theretofore filed with and approved by the director;
(11)A statement of the financial condition of the insurer, a schedule of its assets, and a statement that the surplus as required by §§58-34-14 to 58-34-16, inclusive, is on hand; and
(12)A copy of each policy, endorsement and application form it then proposes to issue or use.
Such declaration shall be acknowledged by the attorney.
Source:
SL 1966, ch 111, ch 19, §7 (2).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 34 - Reciprocal Insurers › Section 58-34-8 - Bond of attorney in fact--Filing with and approval by director.

58-34-8. Bond of attorney in fact--Filing with and approval by director.
Concurrently with the filing of the application provided for in §58-34-7, the attorney of a domestic reciprocal insurer shall file with the director a bond in favor of the State of South Dakota for the benefit of all persons damaged as a result of a breach of the conditions of his bond as set forth in §58-34-9. The bond shall be executed by the attorney and by an authorized corporate surety, and shall be subject to the director's approval.
Source:
SL 1966, ch 111, ch 19, §12 (1).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 34 - Reciprocal Insurers › Section 58-34-9 - Amount and conditions of bond.

58-34-9. Amount and conditions of bond.
The bond required by §58-34-8 shall be in the penal sum of twenty-five thousand dollars, conditioned that the attorney will faithfully account for all moneys and other property of the insurer coming into his hands, and that he will not withdraw or appropriate to his own use from the funds of the insurer, any moneys or property to which he is not entitled.
Source:
SL 1966, ch 111, ch 19, §12 (2).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 34 - Reciprocal Insurers › Section 58-34-10 - Advance notice of cancellation of bond.

58-34-10. Advance notice of cancellation of bond.
The bond required by §58-34-8 shall provide that it is not subject to cancellation unless thirty days' advance notice in writing of cancellation is given to the attorney and the director.
Source:
SL 1966, ch 111, ch 19, §12 (3).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 34 - Reciprocal Insurers › Section 58-34-11 - Deposit in lieu of bond.

58-34-11. Deposit in lieu of bond.
In lieu of the bond required under §58-34-8, the attorney may maintain on deposit through the office of the director, a like amount of cash or of securities eligible for deposit under §§58-7-8 to 58-7-10, inclusive, and subject to the same conditions as the bond.
Source:
SL 1966, ch 111, ch 19, §13.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 34 - Reciprocal Insurers › Section 58-34-12 - Action on bond or to recover against deposit.

58-34-12. Action on bond or to recover against deposit.
Action on the attorney's bond or to recover against any such deposit made in lieu thereof may be brought at any time by one or more subscribers suffering loss through a violation of its conditions or by a receiver or liquidator of the insurer. Amounts recovered on the bond shall be deposited in and become part of the insurer's funds. The total aggregate liability of the surety shall be limited to the amount of the penalty of such bond.
Source:
SL 1966, ch 111, ch 19, §14.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 34 - Reciprocal Insurers › Section 58-34-13 - Business name of insurer--Use in suits by and against.

58-34-13. Business name of insurer--Use in suits by and against.
A reciprocal insurer shall:
(1)Have and use a business name. The name shall include the word "reciprocal," or "interinsurer," or "interinsurance," or "exchange," or "underwriters," or "underwriting."
(2)Sue and be sued in its own name.
Source:
SL 1966, ch 111, ch 19, §5.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 34 - Reciprocal Insurers › Section 58-34-14 - Surplus funds of domestic reciprocal insurer--Amounts required.

58-34-14. Surplus funds of domestic reciprocal insurer--Amounts required.
A domestic reciprocal insurer formed after June 30, 1966, may be authorized to transact insurance if it has otherwise complied with the applicable provisions of this title and has and thereafter maintains surplus funds as follows:
(1)To transact property insurance, surplus of not less than two hundred thousand dollars;
(2)To transact casualty insurance, without workers' compensation included, surplus of not less than two hundred thousand dollars; to transact casualty insurance, including workers' compensation, surplus of not less than three hundred thousand dollars.
Source:
SL 1966, ch 111, ch 19, §8 (2).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 34 - Reciprocal Insurers › Section 58-34-15 - Additional expendable surplus required of new insurer.

58-34-15. Additional expendable surplus required of new insurer.
In addition to surplus required to be maintained under §58-34-14, a domestic reciprocal insurer formed after June 30, 1966, shall have, when first authorized to transact insurance, expendable surplus equal to not less than one-half of the minimum amount of surplus required to be maintained.
Source:
SL 1966, ch 111, ch 19, §8 (3).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 34 - Reciprocal Insurers › Section 58-34-16 - Additional kinds of insurance transacted--Minimum amount of surplus funds.

58-34-16. Additional kinds of insurance transacted--Minimum amount of surplus funds.
A domestic reciprocal insurer may be authorized to transact additional kinds of insurance if it has otherwise complied with the provisions of this title therefor and possesses and maintains surplus funds not less in amount than the minimum capital stock required of a domestic stock insurer for authority to transact a like combination of kinds of insurance, but subject to §§58-6-27 and 58-6-28.
Source:
SL 1966, ch 111, ch 19, §8 (4).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 34 - Reciprocal Insurers › Section 58-34-17 - Surplus funds of existing insurers--Laws governing.

58-34-17. Surplus funds of existing insurers--Laws governing.
A domestic reciprocal insurer, which held a valid certificate of authority to transact business in this state immediately prior to July 1, 1966, is governed, as to surplus required to be maintained, by §§58-6-27 and 58-6-28.
Source:
SL 1966, ch 111, ch 19, §8 (1).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 34 - Reciprocal Insurers › Section 58-34-18 - Issuance of certificate of authority.

58-34-18. Issuance of certificate of authority.
The certificate of authority of a reciprocal insurer shall be issued to its attorney in the name of the insurer.
Source:
SL 1966, ch 111, ch 19, §9 (1).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 34 - Reciprocal Insurers › Section 58-34-19 - Refusal, suspension, or revocation of certificate of authority--Grounds.

58-34-19. Refusal, suspension, or revocation of certificate of authority--Grounds.
The director may refuse, suspend, or revoke the certificate of authority, in addition to other grounds therefor, for failure of the attorney to comply with any provision of this title.
Source:
SL 1966, ch 111, ch 19, §9 (2).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 34 - Reciprocal Insurers › Section 58-34-20 - Rights and powers of attorney provided by subscribers' agreement.

58-34-20. Rights and powers of attorney provided by subscribers' agreement.
The rights and powers of the attorney of a reciprocal insurer shall be as provided in the power of attorney given it by the subscribers.
Source:
SL 1966, ch 111, ch 19, §10 (1).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 34 - Reciprocal Insurers › Section 58-34-21 - Power of attorney--Form and contents.

58-34-21. Power of attorney--Form and contents.
The power of attorney described in §58-34-20 must set forth:
(1)The powers of the attorney;
(2)That the attorney is empowered to accept service of process on behalf of the insurer and to authorize the director to receive service of process in actions against the insurer upon contracts exchanged;
(3)The general services to be performed by the attorney;
(4)The maximum amount to be deducted from advanced premiums or deposits to be paid to the attorney and the general items of expense in addition to losses, to be paid by the insurer; and
(5)Except as to nonassessable policies, a provision for a contingent several liability of each subscriber in a specified amount which amount shall be not less than one nor more than ten times the premium or premium deposit stated in the policy.
Source:
SL 1966, ch 111, ch 19, §10 (2).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 34 - Reciprocal Insurers › Section 58-34-22 - Power of attorney--Terms--Approval by director.

58-34-22. Power of attorney--Terms--Approval by director.
The terms of any power of attorney or agreement collateral thereto shall be fair and equitable, and no such power or agreement shall be effective as to a domestic reciprocal insurer until approved by the director.
Source:
SL 1966, ch 111, ch 19, §10 (3).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 34 - Reciprocal Insurers › Section 58-34-23 - Service of legal process upon domestic insurer.

58-34-23. Service of legal process upon domestic insurer.
Legal process shall be served upon a domestic reciprocal insurer by serving the insurer's attorney at his principal offices or by serving the director as the insurer's process agent under §58-6-39.
Source:
SL 1966, ch 111, ch 19, §15 (1).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 34 - Reciprocal Insurers › Section 58-34-24 - Liability of subscribers for judgment against insurer--Service of legal process.

58-34-24. Liability of subscribers for judgment against insurer--Service of legal process.
Any judgment based upon legal process so served shall be binding upon each of the insurer's subscribers as their respective interests may appear, but in an amount not exceeding their respective contingent liabilities, if any, the same as though personal service of process was had upon each such subscriber.
Source:
SL 1966, ch 111, ch 19, §15 (2).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 34 - Reciprocal Insurers › Section 58-34-25 - Eligibility to become subscriber.

58-34-25. Eligibility to become subscriber.
Individuals, partnerships, associations, and corporations, public or private, of this state, hereby designated as subscribers, are authorized to exchange reciprocal or interinsurance contracts with each other, or with individuals, partnerships, associations, and corporations, public or private, of other states and countries, providing indemnity among themselves for any loss which may be insured against by the reciprocal insurer to which they are subscribers; except, that public corporations of this state may so insure only in an insurer which has a surplus of three hundred thousand dollars or more and under an insurance contract as to which such an insured has no contingent liability.
Source:
SL 1966, ch 111, ch 19, §19 (1).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 34 - Reciprocal Insurers › Section 58-34-26 - Authority of corporation to exchange insurance contracts.

58-34-26. Authority of corporation to exchange insurance contracts.
Any corporation now or hereafter organized under the laws of this state shall, in addition to the rights, powers, and franchises specified in its articles of incorporation have full power and authority to exchange insurance contracts of the kind and character mentioned in §58-34-25. The right to exchange such contracts is declared to be incidental to the purposes for which such corporations are organized and as much granted as the rights and powers expressly conferred.
Source:
SL 1966, ch 111, ch 19, §19 (2).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 34 - Reciprocal Insurers › Section 58-34-27 - Representatives of subscribers not liable on contract.

58-34-27. Representatives of subscribers not liable on contract.
Any officer, representative, trustee, receiver, or legal representative of any such subscriber shall be recognized as acting for or on its behalf for the purpose of such contract but shall not be personally liable upon the contract by reason of acting in such representative capacity.
Source:
SL 1966, ch 111, ch 19, §19 (3).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 34 - Reciprocal Insurers › Section 58-34-28 - Advisory committee representing subscribers--Selection.

58-34-28. Advisory committee representing subscribers--Selection.
The advisory committee of a domestic reciprocal insurer exercising the subscribers' rights shall be selected under such rules as the subscribers adopt.
Source:
SL 1966, ch 111, ch 19, §20 (1).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 34 - Reciprocal Insurers › Section 58-34-29 - Advisory committee--Qualifications of members.

58-34-29. Advisory committee--Qualifications of members.
Not less than two-thirds of the advisory committee of a domestic reciprocal insurer shall be subscribers other than the attorney, or any person employed by, representing, or having a financial interest in the attorney.
Source:
SL 1966, ch 111, ch 19, §20 (2).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 34 - Reciprocal Insurers › Section 58-34-30 - Powers of advisory committee.

58-34-30. Powers of advisory committee.
The advisory committee of a domestic reciprocal insurer shall:
(1)Supervise the finances of the insurer;
(2)Supervise the insurer's operations to such extent as to assure conformity with the subscribers' agreement and power of attorney;
(3)Procure the audit of the accounts and records of the insurer and of the attorney at the expense of the insurer; and
(4)Have such additional powers and functions as may be conferred by the subscribers' agreement.
Source:
SL 1966, ch 111, ch 19, §20 (3).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 34 - Reciprocal Insurers › Section 58-34-31 - Modification of subscribers' agreement or power of attorney.

58-34-31. Modification of subscribers' agreement or power of attorney.
Modifications of the terms of the subscribers' agreement or of the power of attorney of a domestic reciprocal insurer shall be made jointly by the attorney and the subscribers' advisory committee. No such modification shall be effective until approved by the director.
Source:
SL 1966, ch 111, ch 19, §11.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 34 - Reciprocal Insurers › Section 58-34-32 - Kinds of business transacted--Life or title insurance excepted.

58-34-32. Kinds of business transacted--Life or title insurance excepted.
A reciprocal insurer may, upon qualifying therefor as provided for by this title, transact any kinds of business defined by this title, other than life or title insurance.
Source:
SL 1966, ch 111, ch 19, §4 (1).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 34 - Reciprocal Insurers › Section 58-34-33 - Reinsurance authorized.

58-34-33. Reinsurance authorized.
A reciprocal insurer may purchase reinsurance, and may grant reinsurance as to any kind of insurance it is authorized to transact.
Source:
SL 1966, ch 111, ch 19, §4 (2).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 34 - Reciprocal Insurers › Section 58-34-34 - Advance of funds to insurer.

58-34-34. Advance of funds to insurer.
The attorney or other parties may advance to a domestic reciprocal insurer upon reasonable terms such funds as it may require from time to time in its operations. Sums so advanced shall not be treated as a liability of the insurer, and, except upon liquidation of the insurer, shall not be withdrawn or repaid except out of the insurer's realized earned surplus in excess of its minimum required surplus. No such withdrawal or repayment shall be made without the advance approval of the director. This section does not apply to bank loans, or to other loans made upon security.
Source:
SL 1966, ch 111, ch 19, §16.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 34 - Reciprocal Insurers › Section 58-34-35 - Liability of subscribers several and proportionate.

58-34-35. Liability of subscribers several and proportionate.
The liability of each subscriber, other than as to a nonassessable policy, for the obligations of the reciprocal insurer shall be an individual, several and proportionate liability, and not joint.
Source:
SL 1966, ch 111, ch 19, §21 (1).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 34 - Reciprocal Insurers › Section 58-34-36 - Contingent assessment liability of subscriber.

58-34-36. Contingent assessment liability of subscriber.
Except as to a nonassessable policy, each subscriber shall have a contingent assessment liability, in the amount provided for in the power of attorney or in the subscribers' agreement, for payment of actual losses and expenses incurred while his policy was in force. Such contingent liability may be at the rate of not less than one nor more than ten times the premium or premium deposit stated in the policy, and the maximum aggregate thereof shall be computed in the manner set forth in §58-34-43.
Source:
SL 1966, ch 111, ch 19, §21 (2).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 34 - Reciprocal Insurers › Section 58-34-37 - Contingent liability stated in assessable policy.

58-34-37. Contingent liability stated in assessable policy.
Each assessable policy issued by the insurer shall contain a statement of the contingent liability, set in type of the same prominence as the insuring clause.
Source:
SL 1966, ch 111, ch 19, §21 (3).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 34 - Reciprocal Insurers › Section 58-34-38 - Assessments against subscribers--Authority for levy.

58-34-38. Assessments against subscribers--Authority for levy.
Assessments may be levied upon subscribers of a domestic reciprocal insurer liable therefor under the terms of their policies by the attorney upon approval by the subscribers' advisory committee and the director; or by the director in liquidation of the insurer.
Source:
SL 1966, ch 111, ch 19, §23 (1).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 34 - Reciprocal Insurers › Section 58-34-39 - Computation of amounts of assessments--Ratio of deficiency to premiums earned.

58-34-39. Computation of amounts of assessments--Ratio of deficiency to premiums earned.
Each subscriber's share of a deficiency for which an assessment is made, but not exceeding in any event his aggregate contingent liability as provided by this chapter, shall be computed by applying to the premium earned on the subscriber's policy or policies during the period to be covered by the assessment, the ratio of the total deficiency to the total premiums earned during such period upon all policies subject to the assessment.
Source:
SL 1966, ch 111, ch 19, §23 (2).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 34 - Reciprocal Insurers › Section 58-34-40 - Earned premiums, computation for purpose of assessments.

58-34-40. Earned premiums, computation for purpose of assessments.
In computing the earned premiums for the purposes of §58-34-39, the gross premium received by the insurer for the policy shall be used as a base, deducting therefrom solely charges not recurring upon the renewal or extension of the policy.
Source:
SL 1966, ch 111, ch 19, §23 (3).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 34 - Reciprocal Insurers › Section 58-34-41 - Offset of claim for unearned premium against assessment prohibited.

58-34-41. Offset of claim for unearned premium against assessment prohibited.
No subscriber shall have an offset against any assessment for which he is liable, on account of any claim for unearned premium or losses payable.
Source:
SL 1966, ch 111, ch 19, §23 (4).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 34 - Reciprocal Insurers › Section 58-34-42 - Time limit for levy of assessment.

58-34-42. Time limit for levy of assessment.
Every subscriber of a domestic reciprocal insurer having contingent liability shall be liable for, and shall pay his share of any assessment, as computed and limited in accordance with this chapter, if:
(1)While his policy is in force or within one year after its termination, he is notified by either the attorney or the director of his intentions to levy such assessment; or
(2)An order to show cause why a receiver, conservator, rehabilitator, or liquidator of the insurer should not be appointed is issued while his policy is in force or within one year after its termination.
Source:
SL 1966, ch 111, ch 19, §24.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 34 - Reciprocal Insurers › Section 58-34-43 - Aggregate liability of subscriber--Maximum in one year.

58-34-43. Aggregate liability of subscriber--Maximum in one year.
No one policy, or subscriber of such policy, shall be assessed or charged with an aggregate of contingent liability as to obligations incurred by a domestic reciprocal insurer in any one calendar year, in excess of the amount provided for in the power of attorney or in the subscribers' agreement, computed solely upon premium earned on such policy during that year.
Source:
SL 1966, ch 111, ch 19, §25.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 34 - Reciprocal Insurers › Section 58-34-44 - Subscriber not liable until final judgment against insurer.

58-34-44. Subscriber not liable until final judgment against insurer.
No action shall lie against any subscriber upon any obligation claimed against the insurer until a final judgment has been obtained against the insurer and remains unsatisfied for thirty days.
Source:
SL 1966, ch 111, ch 19, §22 (1).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 34 - Reciprocal Insurers › Section 58-34-45 - Limited liability of subscriber on judgment.

58-34-45. Limited liability of subscriber on judgment.
Any such judgment shall be binding upon each subscriber only in such proportion as his interest may appear and in an amount not exceeding his contingent liability, if any.
Source:
SL 1966, ch 111, ch 19, §22 (2).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 34 - Reciprocal Insurers › Section 58-34-46 - Nonassessable policies--Authorization for issuance--Extinguishment of contingent liability.

58-34-46. Nonassessable policies--Authorization for issuance--Extinguishment of contingent liability.
If a reciprocal insurer has a surplus of assets over all liabilities at least equal to the minimum capital stock required of a domestic stock insurer authorized to transact like kinds of insurance, upon application of the attorney and as approved by the subscribers' advisory committee, the director shall issue his certificate authorizing the insurer to extinguish the contingent liability of subscribers under its policies then in force in this state, and to omit provisions imposing contingent liability in all policies delivered or issued for delivery in this state for so long as all such surplus remains unimpaired.
Source:
SL 1966, ch 111, ch 19, §26 (1).