reglab/statecodes huggingface dataset:
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-104 - Investment in a collateralized pool of assets other than mortgages--Requirements.

58-27-104. Investment in a collateralized pool of assets other than mortgages--Requirements.
An insurer may invest in an interest in a collateralized pool whose underlying assets are not addressed or may be prohibited by chapter 58-26 or 58-27. An insurer may invest in interest-bearing obligations entitled to receive both principal and interest, or both principal and implied interest, from a pool collateralized by one or more assets other than those authorized in §58-27-103. The collateral for the investments shall have been sold to and be currently owned by a trust or corporation established solely for the purpose of holding the assets 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. If at any time thereafter the quality rating drops below a rating of two the insurer is subject to §58-27-90.
An insurer's investments authorized under this section may not exceed forty percent of its admitted assets.
If the underlying investment of the pool is an investment set forth in chapters 58-26 and 58-27, any requirement or limitation for that investment shall apply. This section is subject to the five percent limitation of §58-27-53.
Source:
SL 1993, ch 364, §3; SL 1994, ch 384, §7; SL 1997, ch 294, §26.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-105 - Foreign investments.

58-27-105. Foreign investments.
An insurer may invest in securities or other investments which are issued or denominated in the currency of countries other than the United States or whose obligor is domiciled in another country. The securities and investments shall meet the limitation, quality, and quantity requirements of chapters 58-26 and 58-27.
The investments in other countries may not exceed in the aggregate twenty percent of the insurer's admitted assets or one hundred percent of capital and surplus, whichever is less.
Source:
SL 1993, ch 364, §4; SL 1997, ch 294, §27.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-107 - Ratification of investment.

58-27-107. Ratification of investment.
Any investment satisfying the provisions of §58-27-53, 58-27-57, 58-27-103, 58-27-104, or 58-27-105 entered into before January 1, 1993, is hereby ratified.
Source:
SL 1993, ch 364, §7; SL 1997, ch 294, §29.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-108 - Rating and valuation of investments--Requirements--Divestment.

58-27-108. Rating and valuation of investments--Requirements--Divestment.
Any investment shall be rated and valued in accordance with standards promulgated by the Securities Valuation Office of the National Association of Insurance Commissioners as adopted by the director pursuant to rules promulgated pursuant to chapter 1-26. The rating of the investment must comply with the statutory requirement for the investment.
Any insurer may purchase any investment not rated by the Securities Valuation Office of the National Association of Insurance Commissioners if the investment has received an equivalent rating by an independent rating agency which is recognized by the Securities Valuation Office. If the insurer purchases an investment not previously rated and valued by the Securities Valuation Office, application for a rating and valuation shall be filed in accordance with the standards promulgated by the Securities Valuation Office. If the investment, when rated by the Securities Valuation Office, does not comply with the statutory requirement, the insurer must divest of the investment pursuant to §58-27-97.
Nothing in this section is applicable to the assets in any separate accounts maintained by the insurer.
Source:
SL 1994, ch 384, §1; SL 1997, ch 294, §30.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-109 - Institution defined.

58-27-109. Institution defined.
For purposes of this chapter, an institution is a corporation, a joint stock company, an association, a trust, a business partnership, a business joint venture, or a similar entity.
Source:
SL 1994, ch 384, §4.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-110 - Title plans investments.

58-27-110. Title plans investments.
A domestic title insurer may make investments in title plants in an aggregate amount not exceeding twenty-five percent of the insurer's assets.
Source:
SL 1997, ch 294, §32.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-111 - Joint venture and limited partnership investments.

58-27-111. Joint venture and limited partnership investments.
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.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 28 - Separate Life Insurance And Annuity Accounts › Section 58-28-13 - Life insurers authorized to establish separate accounts--Allocations to provide insurance or annuities.

58-28-13. Life insurers authorized to establish separate accounts--Allocations to provide insurance or annuities.
A domestic life insurer, including for the purposes of this chapter all domestic fraternal beneficiary associations, societies or companies which operate on a legal reserve basis may establish one or more separate accounts, and may allocate thereto amounts, including without limitation proceeds applied under optional modes of settlement or under dividend options, to provide for life insurance or annuities, and benefits incidental thereto, payable in fixed or variable amounts or both, subject to §§58-28-14 to 58-28-22, inclusive.
Source:
SL 1966, ch 111, ch 6, §36 (2); §36 (1) as amended by SL 1967, ch 131; SDCL, §58-28-1; SL 1971, ch 266, §1.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 28 - Separate Life Insurance And Annuity Accounts › Section 58-28-14 - Approval required to maintain guaranteed benefits and funds in separate account.

58-28-14. Approval required to maintain guaranteed benefits and funds in separate account.
Except with the approval of the director and under such conditions as to investments and other matters as he may prescribe, which shall recognize the guaranteed nature of the benefits provided, reserves for:
(1)Benefits guaranteed as to dollar amount and duration and
(2)Funds guaranteed as to principal amount or stated rate of interest shall not be maintained in a separate account.
Source:
SL 1966, ch 111, ch 6, §36 (4); §36 (2) as amended by SL 1967, ch 131; SDCL, §58-28-2; SL 1969, ch 132; SL 1971, ch 266, §1 (3).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 28 - Separate Life Insurance And Annuity Accounts › Section 58-28-15 - Securities in which investment authorized--Not considered in applying company's investment limitations.

58-28-15. Securities in which investment authorized--Not considered in applying company's investment limitations.
Except as may be provided with respect to reserves for guaranteed benefits and funds referred to in §58-28-14, amounts allocated to any separate account and accumulations thereon may be invested and reinvested:
(1)In any class of investments which are authorized by chapter 58-27, except as provided in §58-27-51 or 58-27-51.1, and except that limitations on the amount of assets which may be invested in the various classes of investments imposed in chapter 58-27 does not apply;
(2)In shares registered on a national securities exchange, although the same do not meet the dividend paying requirements of §58-27-23;
(3)In the securities of an open-end investment company or companies registered under the Investment Company Act of 1940.
The investments in such separate account or accounts may not be taken into account in applying the investment limitations otherwise applicable to the investments of the insurer.
Source:
SL 1966, ch 111, ch 6, §36 (4); §36 (2) as amended by SL 1967, ch 131; SDCL, §58-28-2; SL 1969, ch 132; SL 1971, ch 266, §1 (2); SL 1997, ch 294, §34.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 28 - Separate Life Insurance And Annuity Accounts › Section 58-28-16 - Gains and losses from allocated assets credited or charged to separate account.

58-28-16. Gains and losses from allocated assets credited or charged to separate account.
The income, gains, and losses, realized or unrealized, from assets allocated to a separate account shall be credited to or charged against the account, without regard to other income, gains, or losses of the insurer.
Source:
SL 1966, ch 111, ch 6, §36 (3); SL 1967, ch 131; SDCL, §58-28-3; SL 1971, ch 266, §1 (1).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 28 - Separate Life Insurance And Annuity Accounts › Section 58-28-17 - Ownership by insurer--Not a trustee.

58-28-17. Ownership by insurer--Not a trustee.
Amounts allocated to a separate account in the exercise of the power granted by this chapter shall be owned by the insurer, and the insurer shall not be, nor hold itself out to be, a trustee with respect to such amounts.
Source:
SL 1966, ch 111, ch 6, §36 (6); §36 (5) as amended by SL 1967, ch 131; SDCL, §58-28-5; SL 1971, ch 266, §1 (5).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 28 - Separate Life Insurance And Annuity Accounts › Section 58-28-18 - Separate account not chargeable with liabilities from other business.

58-28-18. Separate account not chargeable with liabilities from other business.
If and to the extent so provided under the applicable contracts, that portion of the assets of any such separate account equal to the reserves and other contract liabilities with respect to such account shall not be chargeable with liabilities arising out of any other business the insurer may conduct.
Source:
SL 1966, ch 111, ch 6, §36 as added by SL 1969, ch 131; SDCL Supp, §58-28-6.1; SL 1971, ch 266, §1 (5).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 28 - Separate Life Insurance And Annuity Accounts › Section 58-28-19 - Voting and other rights accorded to beneficiaries of accounts.

58-28-19. Voting and other rights accorded to beneficiaries of accounts.
To the extent such insurer deems it necessary to comply with any applicable federal or state laws, such insurer, with respect to any separate account, including without limitation any separate account which is a management investment company or a unit investment trust, may provide for persons having an interest therein appropriate voting and other rights and special procedures for the conduct of the business of such account, including without limitation special rights and procedures relating to investment policy, investment advisory services, selection of independent public accountants, and the selection of a committee, the members of which need not be otherwise affiliated with such insurer, to manage the business of such account.
Source:
SL 1966, ch 111, ch 6, §36 as added by SL 1969, ch 131; SDCL Supp, §58-28-6.4; SL 1971, ch 266, §1 (7).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 28 - Separate Life Insurance And Annuity Accounts › Section 58-28-20 - Restrictions on transfers between accounts.

58-28-20. Restrictions on transfers between accounts.
No sale, exchange, or other transfer of assets may be made by an insurer between any of its separate accounts or between any other investment account and one or more of its separate accounts unless, in case of a transfer into a separate account, such transfer is made solely to establish the account or to support the operation of the contracts with respect to the separate account to which the transfer is made, and unless such transfer, whether into or from a separate account, is made:
(1)By a transfer of cash; or
(2)By a transfer of securities having a readily determinable market value, provided that such transfer of securities is approved by the director.
The director may approve other transfers among such accounts if, in his opinion, such transfers would not be inequitable.
Source:
SL 1966, ch 111, ch 6, §36 (8); §36 (6) as amended by SL 1967, ch 131; SDCL, §58-28-6; SL 1971, ch 266, §1 (6).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 28 - Separate Life Insurance And Annuity Accounts › Section 58-28-21 - Valuation of assets allocated to account.

58-28-21. Valuation of assets allocated to account.
Unless otherwise approved by the director, assets allocated to a separate account shall be valued at their market value on the date of valuation, or if there is no readily available market, then as provided under the terms of the contract or the rules or other written agreement applicable to such separate account.
Source:
SL 1966, ch 111, ch 6, §36 (10); §36 (8) as amended by SL 1967, ch 131; SDCL, §58-28-8; SL 1971, ch 266, §1 (4).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 28 - Separate Life Insurance And Annuity Accounts › Section 58-28-22 - Valuation of portion of assets equal to reserve liability.

58-28-22. Valuation of portion of assets equal to reserve liability.
Notwithstanding §58-28-21, unless otherwise approved by the director, the portion, if any, of the assets of such separate account equal to the insurer's reserve liability with regard to the guaranteed benefits and funds referred to in §58-28-14 shall be valued in accordance with the rules otherwise applicable to the insurer's assets.
Source:
SL 1971, ch 266, §1 (4).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 28 - Separate Life Insurance And Annuity Accounts › Section 58-28-23 - Contract to state procedure for determining amount of variable benefits.

58-28-23. Contract to state procedure for determining amount of variable benefits.
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.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 28 - Separate Life Insurance And Annuity Accounts › Section 58-28-24 - Statement included as to variability of benefits.

58-28-24. Statement included as to variability of benefits.
Any such contract under which the benefits vary to reflect investment experience, including a group contract and any certificate in evidence of variable benefits issued thereunder, shall state that such dollar amount will so vary and shall contain on its first page a statement to the effect that the benefits thereunder are on a variable basis.
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.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 28 - Separate Life Insurance And Annuity Accounts › Section 58-28-24.1 - Right of annuitant to cancel--Refund by insurer.

58-28-24.1. Right of annuitant to cancel--Refund by insurer.
Every individual variable annuity contract issued for delivery in South Dakota on or after July 1, 1978, shall contain a provision, or a notice attached to the contract, to the effect that during a period of ten days from the date the contract is delivered to the contract owner, it may be surrendered to the insurer together with a written request for cancellation of the contract and in such event, the insurer will pay to the contract owner an amount equal to the sum of:
(1)The difference between the premiums paid and the amounts, if any, allocated to any separate accounts under the contract; and
(2)The cash value of the contract on the date of surrender attributable to the amounts so allocated.
Source:
SL 1978, ch 361, §1.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 28 - Separate Life Insurance And Annuity Accounts › Section 58-28-24.2 - Issuance of policies by insurance company or fraternal benefit society--Delivery receipts--Certificates of mailing--Term of retention.

58-28-24.2. Issuance of policies by insurance company or fraternal benefit society--Delivery receipts--Certificates of mailing--Term of retention.
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.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 28 - Separate Life Insurance And Annuity Accounts › Section 58-28-25 - Approval by director required for variable contracts.

58-28-25. Approval by director required for variable contracts.
No domestic life insurer and no other life insurer admitted to transact business in this state shall deliver or issue for delivery within this state variable contracts, unless the director is satisfied that its condition or method of operation in connection with the issuance of such contracts will not render its operation hazardous to the public or its policyholders in this state.
Source:
SL 1966, ch 111, ch 6, §36 (9) as added by SL 1967, ch 131; SDCL, §58-28-9; SL 1971, ch 266, §3.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 28 - Separate Life Insurance And Annuity Accounts › Section 58-28-26 - Factors considered by director in examining variable contracts.

58-28-26. Factors considered by director in examining variable contracts.
In connection with §58-28-25, the director shall consider among other things:
(1)The history and financial condition of the insurer;
(2)The character, responsibility, and fitness of the officers and directors of the insurer; and
(3)The law and regulation under which the insurer is authorized in the state of domicile to issue variable contracts.
Source:
SL 1966, ch 111, ch 6, §36 (9) as added by SL 1967, ch 131; SDCL, §58-28-10; SL 1971, ch 266, §3.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 28 - Separate Life Insurance And Annuity Accounts › Section 58-28-27 - Affiliated insurer measured by factors applicable to parent.

58-28-27. Affiliated insurer measured by factors applicable to parent.
If the insurer is a subsidiary of an admitted life insurer, or affiliated with such insurer through common management or ownership, it may be deemed by the director to have met the provisions of §§58-28-25 and 58-28-26 if either it or the parent or the affiliated insurer meets the requirements hereof.
Source:
SL 1971, ch 266, §3.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 28 - Separate Life Insurance And Annuity Accounts › Section 58-28-28 - Grace, reinstatement, and nonforfeiture provisions required.

58-28-28. Grace, reinstatement, and nonforfeiture provisions required.
Any individual variable life insurance or annuity contracts delivered or issued for delivery in this state shall contain grace, reinstatement, and nonforfeiture provisions appropriate to such a contract.
Source:
SL 1971, ch 266, §5; SL 1977, ch 412, §21.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 28 - Separate Life Insurance And Annuity Accounts › Section 58-28-29 - Actuarial standards for reserve liability on variable contracts.

58-28-29. Actuarial standards for reserve liability on variable contracts.
The reserve liability for variable contracts shall be established in accordance with actuarial procedures that recognize the variable nature of the benefits provided and any mortality guarantees.
Source:
SL 1971, ch 266, §5.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 28 - Separate Life Insurance And Annuity Accounts › Section 58-28-30 - General insurance law applicable--Exceptions.

58-28-30. General insurance law applicable--Exceptions.
Except for §§58-15-13, 58-15-14, 58-15-15, 58-15-17, 58-15-18, 58-15-19, 58-15-21, 58-15-22, 58-15-29, 58-15-31, 58-15-32, 58-15-33, 58-15-34, 58-15-35, 58-15-36, 58-15-38, 58-15-39, and 58-27-108, as in the case of a variable life insurance policy, §§58-15-57, 58-15-62, 58-15-64, 58-15-65, 58-15-66, 58-15-83 to 58-15-93, inclusive, and 58-27-108, as in the case of a variable annuity contract and except as is otherwise provided in this chapter, all pertinent provisions of the insurance code apply to separate accounts and contracts relating thereto.
Source:
SL 1966, ch 111, ch 6, §36 (11) as added by SL 1967, ch 131; SDCL, §58-28-12; SL 1971, ch 266, §5; SL 1977, ch 412, §22; SL 1990, ch 30, §17; SL 1997, ch 294, §31; SL 2003, ch 251, §1; SL 2021, ch 210, § 17.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 28 - Separate Life Insurance And Annuity Accounts › Section 58-28-31 - Regulation of variable contracts by director--Rules--Review of contracts--Disclosure document.

58-28-31. Regulation of variable contracts by director--Rules--Review of contracts--Disclosure document.
The director has sole authority to regulate the issuance and sale of variable contracts and promulgate rules to carry out the purposes and provisions of this chapter. The Division of Insurance may, upon request by the director, review the underlying investments in securities of variable contracts. The Division of Insurance may require filing a disclosure document with the Division of Insurance pursuant to chapter 47-31B.
Source:
SL 1966, ch 111, ch 6, §36(10) as added by SL 1967, ch 131; SDCL §58-28-11; SL 1969, ch 133; SL 1971, ch 266, §4; SL 1986, ch 22, §37; SL 1993, ch 365; SL 2004, ch 278, §66; SL 2017, ch 231 (Ex. Ord. 17-2), §19, eff. Apr. 13, 2017.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 28 - Separate Life Insurance And Annuity Accounts › Section 58-28-32 - Deferment of variable death benefits payment--Time period--State of emergency.

58-28-32. Deferment of variable death benefits payment--Time period--State of emergency.
Except if variable death benefits are used to pay premiums, the payment of variable death benefits in excess of any minimum death benefits, cash values, policy loans, or partial withdrawals, or the payment of variable death benefits in excess of any partial surrenders, may be deferred either:
(1)For up to six months from the date of the request, if the payments are based on policy values that do not depend on the investment performance of the separate account; or
(2)For any period during which the New York stock exchange is closed for trading, except for normal holiday closing, or for any period during which the securities and exchange commission determines that a state of emergency exists which may make such payment impractical.
Source:
SL 2003, ch 251, §2.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 28 - Separate Life Insurance And Annuity Accounts › Section 58-28-33 - Promulgation of rules relating to variable life insurance policies--Uniformity--Limitations.

58-28-33. Promulgation of rules relating to variable life insurance policies--Uniformity--Limitations.
The director may promulgate rules pursuant to chapter 1-26 relating to variable life insurance policies. In promulgating the rules, the director shall give substantial consideration to the standards contained in the National Association of Insurance Commissioners (NAIC) Variable Life Insurance Model Regulation and otherwise design the rules to achieve uniformity, to the degree reasonably possible, in the standards for variable life insurance. The rules shall be limited to the following:
(1)Standards for suitability of sales and sales materials;
(2)Policy benefit and design requirements;
(3)Establishment and administration of separate accounts;
(4)Disclosure requirements; and
(5)Definition of terms.
Source:
SL 2003, ch 251, §3.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-54 - Scope of application of chapter.

58-29A-54. Scope of application of chapter.
This chapter applies to any kind of direct insurance, but does not apply to:
(1)Life, annuity, health, or disability insurance;
(2)Mortgage guaranty, financial guaranty, or other forms of insurance offering protection against investment risks;
(3)Fidelity or surety bonds, or any other bonding obligations;
(4)Credit insurance, vendors' single-interest insurance, or collateral protection insurance, or any similar insurance protecting the interests of a creditor arising out of a creditor-debtor transaction;
(5)Insurance of warranties or service contracts including insurance that provides for the repair, replacement, or service of goods or property or indemnification for repair, replacement, or service for the operational or structural failure of the goods or property due to a defect in materials or workmanship or to normal wear and tear, or provides reimbursement for the liability incurred by the issuer of agreements or service contracts that provide such benefits;
(6)Title insurance;
(7)Ocean marine insurance;
(8)Any transaction or combination of transactions between a person, including affiliates of the person, and an insurer, including affiliates of the insurer, that involves the transfer of investment or credit risk unaccompanied by a transfer of insurance risk; or
(9)Any insurance provided by or guaranteed or reinsured by any governmental body.
Source:
SL 2000, ch 247, §1.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-56 - Creation of association--Membership--Exercise of powers.

58-29A-56. Creation of association--Membership--Exercise of powers.
There is created a nonprofit unincorporated legal entity to be known as the South Dakota Insurance Guaranty Association. Any insurer defined as a member insurer in subdivision 58-29A-55(9) is a member of the association as a condition of its authority to transact insurance in this state. The association shall perform its functions under a plan of operation established and approved under §§58-29A-83 to 58-29A-87, inclusive, and shall exercise its powers through a board of directors established under §§58-29A-57 and 58-29A-58.
Source:
SL 2000, ch 247, §3.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-57 - Board of directors--Appointment and terms of members--Vacancies on board.

58-29A-57. Board of directors--Appointment and terms of members--Vacancies on board.
The board of directors of the association shall consist of seven persons, each of whom shall be appointed by the director for a term of three years and until a successor has been appointed and qualified. The director shall consult with member insurers concerning their recommendations for the board of directors. Any vacancy on the board shall be filled for the remaining period of the term by a majority vote of the remaining board members subject to the approval of the director.
Source:
SL 2000, ch 247, §4.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-58 - Representation of member insurers on board--Domestic insurers.

58-29A-58. Representation of member insurers on board--Domestic insurers.
In approving selections to the board, the director shall consider, among other things, whether all member insurers are fairly represented. No less than two members of the board shall be domestic insurers.
Source:
SL 2000, ch 247, §5.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-59 - Reimbursement of director's expenses.

58-29A-59. Reimbursement of director's expenses.
Members of the board may be reimbursed from the assets of the association for expenses incurred by them as members of the board of directors.
Source:
SL 2000, ch 247, §6.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-60 - General corporate powers of association.

58-29A-60. General corporate powers of association.
The association may:
(1)Employ or retain such persons as are necessary to handle claims and perform other duties of the association;
(2)Borrow funds necessary to effect the purposes of this chapter in accord with the plan of operation;
(3)Sue or be sued. The power to sue includes the power and right to intervene as a party before any court in this state that has jurisdiction over an insolvent insurer as defined by this chapter;
(4)Negotiate and become a party to such contracts as are necessary to carry out the purpose of this chapter;
(5)Perform such other acts as are necessary or proper to effectuate the purpose of this chapter.
Source:
SL 2000, ch 247, §7.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-61 - Tax exemption of association.

58-29A-61. Tax exemption of association.
The association is exempt from payment of all fees and all taxes levied by this state or any of its subdivisions except taxes levied on real property.
Source:
SL 2000, ch 247, §8.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-62 - Notice to director of indications of member insolvency.

58-29A-62. Notice to director of indications of member insolvency.
To aid in the detection and prevention of insurer insolvencies, it is the duty of the board of directors, upon majority vote, to notify the director of any information indicating any member insurer may be insolvent or in a financial condition hazardous to the policyholders or the public.
Source:
SL 2000, ch 247, §9.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-63 - Examination of insurer on request by board--Cost of examination--Handling of report.

58-29A-63. Examination of insurer on request by board--Cost of examination--Handling of report.
To aid in the detection and prevention of insurer insolvencies, the board of directors may, upon majority vote, request that the director order an examination of any member insurer which the board in good faith believes may be in a financial condition hazardous to the policyholders or the public. Within thirty days of the receipt of such request, the director shall begin the examination. The examination may be conducted as a National Association of Insurance Commissioners' Examination or may be conducted by such persons as the director designates. The cost of the examination shall be paid by the association and the examination report shall be treated as are other examination reports. In no event may the examination report be released to the board of directors prior to its release to the public, but this does not preclude the director from complying with §58-29A-64. The director shall notify the board of directors when the examination is completed. The request for an examination shall be kept on file by the director but it may not be open to public inspection prior to the release of the examination report to the public.
Source:
SL 2000, ch 247, §10.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-64 - Insolvency or hazardous condition reported to board of directors.

58-29A-64. Insolvency or hazardous condition reported to board of directors.
The director shall report to the board of directors when the director has reasonable cause to believe that any member insurer examined or being examined at the request of the board of directors may be insolvent or in a financial condition hazardous to the policyholders or the public.
Source:
SL 2000, ch 247, §11.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-65 - Recommendations for detection and prevention of insolvencies.

58-29A-65. Recommendations for detection and prevention of insolvencies.
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.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-66 - Recommendations on improving regulation for solvency.

58-29A-66. Recommendations on improving regulation for solvency.
The board of directors may, upon majority vote, make recommendations to the director on matters generally related to improving or enhancing regulation for solvency.
Source:
SL 2000, ch 247, §13.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-67 - Report by directors on history and causes of insolvency.

58-29A-67. Report by directors on history and causes of insolvency.
The board of directors may, at the conclusion of any domestic insurer insolvency in which the association was obligated to pay covered claims, prepare a report on the history and causes of such insolvency, based on the information available to the association, and submit the report to the director.
Source:
SL 2000, ch 247, §14.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-69 - Association deemed insurer to extent of obligations on covered claims.

58-29A-69. Association deemed insurer to extent of obligations on covered claims.
The association shall be deemed the insurer to the extent of its obligation on the covered claims and to such extent, subject to the limitations provided in this chapter, shall have all rights, duties, and obligations of the insolvent insurer as if the insurer had not become insolvent, including the right to pursue and retain salvage and subrogation recoverable on paid covered claim obligations. The association may not be deemed the insolvent insurer for any purpose relating to the issue of whether the association is amenable to the personal jurisdiction of the courts of any state.
Source:
SL 2000, ch 247, §16.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-70 - Investigation, adjustment, and payment or denial of claims--Review of previous settlements, releases, and judgments.

58-29A-70. Investigation, adjustment, and payment or denial of claims--Review of previous settlements, releases, and judgments.
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.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-71 - Transfer or recovery of claim from certain covered persons.

58-29A-71. Transfer or recovery of claim from certain covered persons.
The association, at its sole discretion, may transfer claims handling and financial responsibility for a covered claim to, or recover from, the following persons the amount of any covered claim paid on behalf of such person pursuant to this chapter:
(1)Any insured whose net worth exceeds fifty million dollars and whose liability obligations to other persons, including obligations under workers' compensation insurance coverages, are satisfied in whole or in part by payments made under this chapter. Any insured's net worth is deemed to include the aggregate net worth of the insured and any of its subsidiaries and affiliates as calculated on a consolidated basis; and
(2)Any person who is an affiliate of the insolvent insurer and whose liability obligations to other persons are satisfied in whole or in part by payments made under this chapter.
The term, affiliate, does not include any insurance producer of the insolvent insurer.
Source:
SL 2000, ch 247, §18; SL 2001, ch 286, §137; SL 2004, ch 310, §3.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-72 - Means of handling claims--Designation of servicing facility.

58-29A-72. Means of handling claims--Designation of servicing facility.
The association shall handle claims through its employees or through one or more insurers or other persons designated as servicing facilities. Designation of a servicing facility is subject to the approval of the director, but such designation may be declined by a member insurer.
Source:
SL 2000, ch 247, §19.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-73 - Reimbursement of servicing facility--Payment of other expenses.

58-29A-73. Reimbursement of servicing facility--Payment of other expenses.
The association shall reimburse each servicing facility for obligations of the association paid by the facility and for expenses incurred by the facility while handling claims on behalf of the association and shall pay the other expenses of the association authorized by this chapter.
Source:
SL 2000, ch 247, §20.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-74 - Separate accounts for administration and assessment.

58-29A-74. Separate accounts for administration and assessment.
For purposes of administration and assessment, the association shall be divided into three separate accounts:
(1)The workers' compensation insurance account;
(2)The automobile insurance account; and
(3)The account for all other insurance to which this chapter applies.
Source:
SL 2000, ch 247, §21.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-75 - Allocation of claims, expenses, and assessments to separate accounts--Operating expenses excepted.

58-29A-75. Allocation of claims, expenses, and assessments to separate accounts--Operating expenses excepted.
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.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-76 - Administrative assessments for operating expenses.

58-29A-76. Administrative assessments for operating expenses.
In addition to any other assessments authorized by this chapter, the association may assess each member insurer an administrative assessment not to exceed five hundred dollars per annum. The administrative assessment shall be made for the purpose of paying operating expenses of the association and its employees not directly attributable to any particular insolvency or insolvent insurer, and the administrative assessment may not be on a pro rata basis. The assessments are due not less than thirty days after prior written notice to the member insurer and shall accrue interest at ten percent per annum on and after the due date.
Source:
SL 2000, ch 247, §23; SL 2013, ch 251, §1.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-77 - Apportionment of assessments among members--Notice of assessment.

58-29A-77. Apportionment of assessments among members--Notice of assessment.
The assessments of each member insurer shall be in the proportion that the net direct written premiums of the member insurer for the preceding calendar year on the kinds of insurance in the account bears to the net direct written premiums of all member insurers for the preceding calendar year on the kinds of insurance in the account. The assessment is due not less than thirty days after prior written notice to the member insurer and shall accrue interest at ten percent per annum on and after the due date.
Source:
SL 2000, ch 247, §24.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-78 - Maximum assessment in relation to net premiums.

58-29A-78. Maximum assessment in relation to net premiums.
No member insurer may be assessed in any year on any account an amount greater than two percent of that member insurer's net direct written premiums for the preceding calendar year on the kinds of insurance in the account.
Source:
SL 2000, ch 247, §25.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-79 - Offset of payments and expenses against assessment due.

58-29A-79. Offset of payments and expenses against assessment due.
Each member insurer may set off against any assessment, authorized payments made on covered claims and expenses incurred in the payment of such claims by the member insurer if they are chargeable to the account for which the assessment is made.
Source:
SL 2000, ch 247, §26.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-80 - Exemption or deferment of assessments to avoid impairment of capital or surplus.

58-29A-80. Exemption or deferment of assessments to avoid impairment of capital or surplus.
The association may exempt or defer, in whole or in part, the assessment of any member insurer, if the assessment would cause the member insurer's financial statement to reflect amounts of capital or surplus less than the minimum amounts required for a certificate of authority by any jurisdiction in which the member insurer is authorized to transact insurance . However, during the period of deferment, no dividends may be paid to shareholders or policyholders. Deferred assessments shall be paid when such payment will not reduce capital or surplus below required minimums. Such payments shall be refunded to those companies receiving larger assessments by virtue of the deferment, or at the election of any such company, credited against future assessments.
Source:
SL 2000, ch 247, §27.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-81 - Proration of payments when assets insufficient for full payment.

58-29A-81. Proration of payments when assets insufficient for full payment.
If the maximum assessment, together with the other assets of the association in any account, does not provide in any one year in any account an amount sufficient to make all necessary payments from that account, the funds available shall be prorated and the unpaid portion shall be paid as soon thereafter as funds become available.
Source:
SL 2000, ch 247, §28.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-82 - Refund of surplus to member insurers.

58-29A-82. Refund of surplus to member insurers.
The association may refund to the member insurers in proportion to the contribution of each member insurer to that account that amount by which the assets of the account exceed the liabilities, if, at the end of any calendar year, the board of directors finds that the assets of the association in any account exceed the liabilities of that account as estimated by the board of directors for the coming year.
Source:
SL 2000, ch 247, §29.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-83 - Plan of operation submitted to director--Approval.

58-29A-83. Plan of operation submitted to director--Approval.
The association shall submit to the director a plan of operation and any amendments necessary or suitable to assure the fair, reasonable, and equitable administration of the association. The plan of operation and any amendments is effective upon approval in writing by the director.
Source:
SL 2000, ch 247, §30.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-84 - Required contents of plan of operation.

58-29A-84. Required contents of plan of operation.
The plan of operation shall:
(1)Establish the procedures whereby all the powers and duties of the association under §§58-29A-60, 58-29A-68 to 58-29A-73, inclusive, and §§58-29A-75 to 58-29A-82, inclusive, will be performed;
(2)Establish procedures for handling assets of the association;
(3)Establish the amount and method of reimbursing members of the board of directors under §58-29A-59;
(4)Establish procedures by which claims may be filed with the association and establish acceptable forms of proof of covered claims. Notice of claims to the receiver or liquidator of the insolvent insurer shall be deemed notice to the association or its agent and a list of such claims shall be periodically submitted to the association or similar organization in another state by the receiver or liquidator;
(5)Establish regular places and times for meetings of the board of directors;
(6)Establish procedures for records to be kept of all financial transactions of the association, its agents, and the board of directors;
(7)Provide that any member insurer aggrieved by any final action or decision of the association may appeal to the director within thirty days after the action or decision;
(8)Establish the procedures whereby selections for the board of directors will be submitted to the director;
(9)Establish procedures for the disposition of liquidating dividends or other moneys received from the estate of the insolvent insurer;
(10)Contain additional provisions necessary or proper for the execution of the powers and duties of the association.
Source:
SL 2000, ch 247, §31.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-85 - Compliance with plan of operation--Violation as misdemeanor.

58-29A-85. Compliance with plan of operation--Violation as misdemeanor.
All member insurers shall comply with the plan of operation. Violation of this section is a Class 2 misdemeanor.
Source:
SL 2000, ch 247, §32.