reglab/statecodes huggingface dataset:
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-16.22 - Fees.

58-14-16.22. Fees.
The fee for each required document included in any application for accreditation, certification or any annual reinsurance filing, or for approval of or amendments to a trust, required by §58-14-5, 58-14-8, 58-14-9, 58-14-10, 58-14-11, 58-14-13, 58-14-14, or §§58-14-16.1 to 58-14-16.3, inclusive, shall be fifty dollars.
Source:
SL 2017, ch 211, §33.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-16.24 - Credit for reinsurance for reinsurers in reciprocal jurisdictions--Capital and surplus requirements.

58-14-16.24. Credit for reinsurance for reinsurers in reciprocal jurisdictions--Capital and surplus requirements.
An assuming insurer under § 58-14-16.23 shall have and maintain, on an ongoing basis:
(1)A license to transact reinsurance by, and have its head office or be domiciled in, a reciprocal jurisdiction;
(2)Minimum capital and surplus, or its equivalent, calculated on at least an annual basis as of the preceding December thirty-first or at the annual date otherwise statutorily reported to the reciprocal jurisdiction, and confirmed pursuant to subdivision 58-14-16.25(6) according to the methodology of its domiciliary jurisdiction, in the following amounts:
(a)No less than two hundred fifty million dollars; or
(b)If the assuming insurer is an association, including incorporated and individual unincorporated underwriters, minimum capital and surplus equivalents net of liabilities or own funds of the equivalent of at least two hundred fifty million dollars and a central fund containing a balance of the equivalent of at least two hundred fifty million dollars; and
(3)Minimum solvency or capital ratio as follows:
(a)If the assuming insurer has its head office or is domiciled in a reciprocal jurisdiction as defined in subdivision 58-14-16.23(1), the ratio specified in the applicable covered agreement;
(b)If the assuming insurer is domiciled in a reciprocal jurisdiction as defined in subdivision 58-14-16.23(2), a risk-based capital ratio of three hundred percent of the authorized control level calculated in accordance with a formula developed by the NAIC and prescribed by the director; or
(c)If the assuming insurer is domiciled in a reciprocal jurisdiction as defined in subdivision 58-14-16.23(3), after consultation with the reciprocal jurisdiction and considering any recommendations published through the NAIC, such solvency or capital ratio as the director determines to be an effective measure of solvency.
Source:
SL 2021, ch 211, § 2.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-16.26 - Documents that must be provided to the division.

58-14-16.26. Documents that must be provided to the division.
An assuming insurer under § 58-14-16.23 or its legal successor shall provide, if requested by the director, on behalf of itself and any legal predecessors, the following documentation to the director:
(1)For the two years preceding entry into the reinsurance agreement and on an annual basis thereafter, the assuming insurer's annual audited financial statements in accordance with the applicable law of the jurisdiction of its head office or domiciliary jurisdiction, including the external audit report;
(2)For the two years preceding entry into the reinsurance agreement, the solvency and financial condition report or actuarial opinion, if filed with the assuming insurer's supervisor; and
(3)Prior to entry into the reinsurance agreement and not more than semiannually thereafter:
(a)An updated list of all disputed and overdue reinsurance claims that are outstanding for ninety days or more regarding reinsurance assumed from ceding insurers domiciled in the United States; and
(b)Information regarding the assuming insurer's assumed reinsurance by ceding insurer, ceded reinsurance by the assuming insurer, and reinsurance recoverable on paid and unpaid losses by the assuming insurer to allow for the evaluation of the criteria set forth in § 58-14-16.27.
Source:
SL 2021, ch 211, § 4.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-16.27 - Prompt payment practices.

58-14-16.27. Prompt payment practices.
An assuming insurer under § 58-14-16.23 shall maintain a practice of prompt payment of claims under a reinsurance agreement. The lack of prompt payment is evidenced if any of the following criteria are met:
(1)More than fifteen percent of the reinsurance recoverables from the assuming insurer are overdue and in dispute as reported to the director;
(2)More than fifteen percent of the assuming insurer's ceding insurers or reinsurers have overdue reinsurance recoverable on paid losses of ninety days or more that are not in dispute and that exceed one hundred thousand dollars for each ceding insurer or as otherwise specified in a covered agreement; or
(3)The aggregate amount of reinsurance recoverable on paid losses that are not in dispute but are overdue by ninety days or more exceeds fifty million dollars or as otherwise specified in a covered agreement.
Source:
SL 2021, ch 211, § 5.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-16.28 - List or reciprocal jurisdictions to be published.

58-14-16.28. List or reciprocal jurisdictions to be published.
The director shall timely create and publish a list of reciprocal jurisdictions that includes any reciprocal jurisdiction as defined under this chapter. A list of reciprocal jurisdictions is published by the NAIC and the director shall consider any other reciprocal jurisdiction included on the list. The director may approve a jurisdiction that does not appear on the list of reciprocal jurisdictions in accordance with criteria provided in this chapter.
The director may remove a jurisdiction from the list of reciprocal jurisdictions upon a determination that the jurisdiction no longer meets one or more of the requirements of a reciprocal jurisdiction in accordance with § 58-14-16.23. However, the director may not remove from the list a reciprocal jurisdiction as under subdivisions 58-14-16.23(1) and (2). Upon removal of a reciprocal jurisdiction from this list, credit for reinsurance ceded to an assuming insurer that has its home office or is domiciled in that jurisdiction is allowed if otherwise allowed pursuant to this chapter.
Source:
SL 2021, ch 211, § 6.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-16.29 - List of assuming insurers.

58-14-16.29. List of assuming insurers.
The director shall timely create and publish a list of assuming insurers that have satisfied the conditions set forth in §§ 58-14-16.23 to 58-14-16.34, inclusive, and to which cessions must be granted credit. The director may add an assuming insurer to the list if an NAIC-accredited jurisdiction has added the assuming insurer to its list of assuming insurers or if, upon initial eligibility, the assuming insurer submits the information to the director as required under § 58-14-16.25, except to the extent that submissions conflict with an applicable covered agreement. If an NAIC-accredited jurisdiction has determined that the conditions set forth in §§ 58-14-16.24 to 58-14-16.27, inclusive, have been met, the director has the discretion to defer to that jurisdiction's determination and add such assuming insurer to the list of assuming insurers. The director may accept financial documentation filed with another NAIC-accredited jurisdiction or with the NAIC in satisfaction of the requirements of §§ 58-14-16.24 to 58-14-16.27, inclusive.
When requesting that the director defer to another NAIC-accredited jurisdiction's determination, an assuming insurer shall submit a properly executed form prescribed by the director and other additional information as the director may require. A state that has received such a request will notify other states through the NAIC and provide relevant information with respect to the determination of eligibility.
Source:
SL 2021, ch 211, § 7.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-16.30 - Assuming insurers that no longer meet one or more requirements.

58-14-16.30. Assuming insurers that no longer meet one or more requirements.
If the director determines that an assuming insurer no longer meets a requirement under §§ 58-14-16.23 to 58-14-16.34, inclusive, the director may revoke or suspend the eligibility of the assuming insurer.
While an assuming insurer's eligibility is suspended, no reinsurance agreement issued, amended, or renewed after the effective date of the suspension qualifies for credit except to the extent that the assuming insurer's obligations under the contract are secured in accordance with § 58-14-16.
If an assuming insurer's eligibility is revoked, no credit for reinsurance may be granted after the effective date of the revocation with respect to any reinsurance agreements entered into by the assuming insurer, including reinsurance agreements entered into prior to the date of revocation, except to the extent that the assuming insurer's obligations under the contract are secured in a form acceptable to the director and consistent with the provisions of § 58-14-16.
Source:
SL 2021, ch 211, § 8.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-16.31 - Procedure for denying statement credit.

58-14-16.31. Procedure for denying statement credit.
Before denying statement credit or imposing a requirement to post security under § 58-14-16.30 or adopting any similar requirement that will have substantially the same regulatory impact as security, the director shall:
(1)Communicate with the ceding insurer, the assuming insurer, and the assuming insurer's supervisory authority that the assuming insurer no longer satisfies one of the conditions listed in §§ 58-14-16.24 to 58-14-16.27, inclusive;
(2)Provide the assuming insurer with thirty days from the initial communication to submit a plan to remedy the defect and ninety days from the initial communication to remedy the defect, except in exceptional circumstances in which a shorter period is necessary for policyholder and other consumer protection;
(3)After the expiration of ninety days or less, as set out in subdivision (2) of this section, if the director determines that no or insufficient action was taken by the assuming insurer, the director may impose any of the requirements under §§ 58-14-16.23 to 58-14-16.34, inclusive; and
(4)Provide a written explanation to the assuming insurer of any of the requirements under §§ 58-14-16.23 to 58-14-16.34, inclusive.
Source:
SL 2021, ch 211, § 9.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-16.32 - Assuming insurers in receivership.

58-14-16.32. Assuming insurers in receivership.
If subject to a legal process of rehabilitation, liquidation, or conservation, the ceding insurer or its representative may seek and, if determined appropriate by the court in which the proceedings are pending, obtain an order requiring that the assuming insurer post security for all outstanding ceded liabilities.
Source:
SL 2021, ch 211, § 10.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-16.33 - Effective date for reinsurers in reciprocal jurisdictions.

58-14-16.33. Effective date for reinsurers in reciprocal jurisdictions.
Credit may be taken under §§ 58-14-16.23 to 58-14-16.34, inclusive, only for reinsurance agreements entered into, amended, or renewed on or after July 1, 2021, and only with respect to losses incurred and reserves reported on or after the later of the date on which the assuming insurer has met all eligibility requirements pursuant to §§ 58-14-16.23 to 58-14-16.27, inclusive, or the effective date of the new reinsurance agreement, amendment, or renewal. Nothing in this section alters or impairs a ceding insurer's right to take credit for reinsurance, to the extent that credit is not available under §§ 58-14-16.23 to 58-14-16.34, inclusive, as long as the reinsurance qualifies for credit under any other applicable provision of this chapter.
Source:
SL 2021, ch 211, § 11.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-16.34 - Application of reciprocal jurisdiction laws.

58-14-16.34. Application of reciprocal jurisdiction laws.
Nothing in §§ 58-14-16.23 to 58-14-16.34, inclusive:
(1)Limits or in any way alters the capacity of parties to a reinsurance agreement to agree on requirements for security or other terms in that reinsurance agreement except as expressly prohibited by this chapter or other applicable law;
(2)Authorizes an assuming insurer to withdraw or reduce the security provided under any reinsurance agreement except as permitted by the terms of the agreement; or
(3)Limits or alters the capacity of parties to any reinsurance agreement to renegotiate the agreement.
Source:
SL 2021, ch 211, § 12.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-17 - Promulgation of rules.

58-14-17. Promulgation of rules.
The director may promulgate rules, pursuant to chapter 1-26, concerning requirements, qualifications, and criteria for receiving credit for reinsurance, surplus amounts, accreditation of a reinsurer, certification of a reinsurer, minimum levels for reinsurer capital and surplus, financial rating of reinsurers, recognition and appraisal of qualified jurisdictions, trusts and trust agreements, reinsurance contracts, hazardous investments and evidence of submission to this state's authority, requirements and qualifications for life reinsurance agreements, reserve credits, credits for reinsurance, valuation of assets or reserve credits, the adoption of certain methods and manuals for the valuation of assets, the amount and forms of security supporting reinsurance arrangements, reduction of liability or establishment of assets in a financial statement, circumstances under which credit will be reduced or eliminated, and treatment of existing agreements.
The director may also promulgate rules, pursuant to chapter 1-26, regarding reinsurance relating to life insurance policies with guaranteed nonlevel gross premiums or guaranteed nonlevel benefits, universal life insurance policies resulting in the ability of a policyholder to keep a policy in force over a secondary guarantee period, variable annuities with guaranteed death or living benefits, and long-term care insurance policies. The director may also promulgate rules, pursuant to chapter 1-26, to adopt the use and applicability of the National Association of Insurance Commissioners valuation manual for use in calculating the amounts or form of security to be held by reinsurers.
Source:
SL 1992, ch 344, §11; SL 2017, ch 211, §11.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-18 - Application of reinsurance provisions.

58-14-18. Application of reinsurance provisions.
This section applies to all cessions after July 1, 1993, under reinsurance agreements which have had an inception, anniversary, or renewal date not less than six months after July 1, 1993.
Source:
SL 1992, ch 344, §12.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-20 - Disallowal of credit or deduction.

58-14-20. Disallowal of credit or deduction.
The director may not allow a credit or deduction to the ceding insurer if the director determines the quality, quantity, or diversity of investments in the trust account of a reinsurer or the surplus to policyholders of the reinsurer is hazardous to a ceding insurer or policyholders.
Source:
SL 1992, ch 344, §18.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-21 - "Reinsurer" defined--Examination of reinsurer.

58-14-21. Reinsurer defined--Examination of reinsurer.
A reinsurer is an insurer that assumes all or part of the insurance or reinsurance written by another insurer and which meets the requirements of this chapter. The director may examine a reinsurer pursuant to chapter 58-3 and costs shall be assessed pursuant to that chapter.
Source:
SL 1992, ch 344, §19.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-23 - "Qualified United States financial institution" defined for eligibility to act as fiduciary of a trust.

58-14-23. Qualified United States financial institution defined for eligibility to act as fiduciary of a trust.
A qualified United States financial institution means, for purposes of those provisions of this chapter specifying those institutions that are eligible to act as a fiduciary of a trust, an institution that:
(1)Is organized or, in the case of a United States branch or agency office of a foreign banking organization, licensed under the laws of the United States or any state thereof, and has been granted authority to operate with fiduciary powers; and
(2)Is regulated, supervised, and examined by United States federal or state authorities having regulatory authority over banks and trust companies.
Source:
SL 1992, ch 344, §22; SL 1995, ch 278.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-24 - Definition of terms.

58-14-24. Definition of terms.
Terms used in §§58-14-24 to 58-14-42, inclusive, mean:
(1)"Actuary," any person who is a member in good standing of the American Academy of Actuaries;
(2)"Controlling person," any person who, directly or indirectly, has the power to direct or cause to be directed the management, control, or activities of the agent or broker who sells, solicits, negotiates, or places reinsurance;
(3)"Reinsurance agent or agent," any person that has authority to bind or manage all or part of the assumed reinsurance business of a reinsurer, including the management of a separate division, department, or underwriting office, and acts as an agent for the reinsurer whether known as a manager or other similar term;
(4)"Reinsurance broker or broker," any person, other than an officer or employee of the ceding insurer, who solicits, negotiates, or places reinsurance cessions or retrocessions on behalf of a ceding insurer without the authority or power to bind reinsurance on behalf of the insurer.
Source:
SL 1992, ch 345, §1.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-25 - Persons not agents.

58-14-25. Persons not agents.
The following persons are not agents:
(1)Any employee of the reinsurer;
(2)Any United States manager of the United States branch of an alien reinsurer;
(3)Any underwriting manager who, pursuant to contract, manages all the reinsurance operations of the reinsurer, is under common control with the reinsurer, subject to chapter 58-5A, and whose compensation is not based on the volume of premiums written;
(4)Any manager of a group, association, pool, or organization of insurers which engage in joint underwriting or joint reinsurance and who is subject to examination by the director or commissioner of the state in which the manager's principal business office is located.
Source:
SL 1992, ch 345, §2.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-26 - License required to sell, solicit, negotiate, or place reinsurance.

58-14-26. License required to sell, solicit, negotiate, or place reinsurance.
No person may sell, solicit, negotiate, or place reinsurance without being licensed pursuant to §§58-14-24 to 58-14-42, inclusive, to sell, negotiate, solicit, or place reinsurance. The provisions of chapter 58-30 apply to the extent that the provisions are not inconsistent with this chapter.
Source:
SL 1992, ch 345, §3; SL 1994, ch 379, §1.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-27 - Agent or broker bond--Errors and omissions policy.

58-14-27. Agent or broker bond--Errors and omissions policy.
The director may require an agent or broker under §§58-14-24 to 58-14-42, inclusive, to file a bond in an amount acceptable to the director for the protection of the reinsurer or maintain an errors and omissions policy in an amount acceptable to the director, or both.
Source:
SL 1992, ch 345, §4.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-28 - Refusal to license--Reasons.

58-14-28. Refusal to license--Reasons.
The director may refuse to license an agent or broker in reinsurance if the applicant, any one named on the application, or any member, principal, officer or director of the applicant, is not trustworthy; if any controlling person of the applicant is not trustworthy; if there has been a revocation or suspension of a license; or if the applicant has failed to comply with any prerequisite for the issuance of the license. Upon written request by the applicant, the director shall furnish reasons for the basis of the denial.
Source:
SL 1992, ch 345, §5.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-29 - Written contract between agent or broker and insurer or reinsurer.

58-14-29. Written contract between agent or broker and insurer or reinsurer.
Any transaction between an agent or broker and the insurer or reinsurer that it represents may only be entered into pursuant to a written contract, specifying the responsibilities of each party. The contract shall, at a minimum, provide that:
(1)The insurer or reinsurer may terminate the contract for cause upon written notice to the agent or broker. A reinsurer may immediately suspend the authority of the agent or broker to assume or cede business during the pendency of any dispute regarding the cause for termination. Within thirty days of the termination of the contract with an agent or broker, the insurer or reinsurer shall provide written notification of the termination to the director;
(2)The agent or broker shall render accounts to the insurer and reinsurer accurately detailing all transactions, including information necessary to support all commissions, charges and other fees received by, or owed to, the agent or broker, and remit all funds due to the insurer or reinsurer within thirty days of receipt;
(3)All funds collected for the insurer's or reinsurer's account shall be held by the agent or broker in a fiduciary capacity in a bank which is a qualified United States financial institution. The agent may retain no more than three months estimated claims payments and allocated loss adjustment expenses. The agent shall maintain a separate bank account for each reinsurer that it represents;
(4)The agent or broker shall comply with §§58-14-30 and 58-14-31;
(5)The agent or broker shall comply with the written standards established by the insurer or reinsurer for the cession or retrocession of all risks; and
(6)The broker shall disclose to the insurer any relationship with any reinsurer to which business will be ceded or retroceded.
Source:
SL 1992, ch 345, §6; SL 1994, ch 379, §2.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-30 - Records of reinsurance contracts.

58-14-30. Records of reinsurance contracts.
For at least ten years after expiration of each contract of reinsurance transacted by the agent or broker, the agent or broker shall keep a complete record for each transaction showing:
(1)The type of contract, limits, underwriting restrictions, classes or risks, and territory;
(2)Period of coverage, including effective and expiration dates, cancellation provisions, and notice required for cancellation. The agent shall also maintain a record of the disposition of outstanding reserves on covered risks;
(3)Reporting and settlement requirements of balances;
(4)Rate used to compute the reinsurance premium;
(5)Names and addresses of reinsurers;
(6)Rates of all reinsurance commissions, including the commissions on any retrocessions handled by the agent or broker;
(7)Related correspondence and memoranda;
(8)Proof of placement;
(9)Details regarding retrocessions handled by the agent or broker including the identity of retrocessionaires and percentage of each contract assumed or ceded. Retrocessions for the agent are also subject to §58-14-36;
(10)Financial records, including but not limited to, premium and loss accounts; and
(11)When the agent or broker procures a reinsurance contract on behalf of a licensed ceding insurer:
(a)Directly from any assuming reinsurer, written evidence that the assuming reinsurer has agreed to assume the risk; or
(b)If placed through a representative of the assuming reinsurer, other than an employee, written evidence that the reinsurer has delegated binding authority to the representative.
Source:
SL 1992, ch 345, §7.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-31 - Insurer or reinsurer to employ only licensed agent or broker.

58-14-31. Insurer or reinsurer to employ only licensed agent or broker.
No insurer or reinsurer may engage the services of any person to act as an agent or broker on its behalf unless the person is licensed as required by §§58-14-24 to 58-14-42, inclusive, nor employ an individual who is employed by an agent or broker with which it transacts business, unless an agent or broker is under common control with the insurer and subject to chapter 58-5A.
Source:
SL 1992, ch 345, §8.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-32 - Approval and filing of contract.

58-14-32. Approval and filing of contract.
The written contract with the agent, pursuant to §58-14-29, specifying the responsibilities of each party, shall be approved by the reinsurer's board of directors. At least thirty days before the insurer or reinsurer assumes or cedes business through the agent or broker, the contract in §58-14-29 shall be filed with the director for approval pursuant to §§58-5-85 to 58-5-87, inclusive.
Source:
SL 1992, ch 345, §9.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-33 - Additional provisions of contract.

58-14-33. Additional provisions of contract.
In addition to standards set forth in §58-14-29, the contract shall provide:
(1)That the reinsurer and insurer shall have access and the right to copy and audit all accounts and records maintained by the agent or broker related to its business in a form usable by the insurer and reinsurer;
(2)That the contract cannot be assigned in whole or in part by the agent or broker;
(3)That the agent or broker shall comply with the written underwriting and rating standards established by the insurer for the acceptance, rejection or cession of all risks;
(4)That the rates, terms, and purposes of commissions, charges, and other fees which the agent or broker may levy against the reinsurer;
(5)Whether the agent has the authority to settle claims;
(6)If the contract provides for a sharing of interim profits by the agent, that interim profits for property business may not be paid until one year after the end of each underwriting period. Interim profits for casualty business may not be paid for five years after the end of each underwriting period or a later period set by the director for specified lines of casualty insurance. No interim profits may be paid for until the adequacy of reserves on remaining claims has been verified pursuant to §58-14-36;
(7)That the agent or broker shall annually provide the insurer or reinsurer with a statement of its financial condition prepared by an independent certified accountant;
(8)That the reinsurer shall at least semi-annually conduct an on-site review of the underwriting and claims processing operations of the agent;
(9)That the agent shall disclose to the reinsurer any relationship it has with any insurer prior to ceding or assuming any business with the insurer pursuant to the contract; and
(10)That within the scope of its actual or apparent authority, the acts of the agent or broker shall be deemed to be the acts of the reinsurer or insurer on whose behalf it is acting.
Source:
SL 1992, ch 345, §10.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-34 - Handling of reinsurer.

58-14-34. Handling of reinsurer.
If the contract permits the agent or broker to settle claims on behalf of the reinsurer, the contract shall state the claims shall be handled as follows:
(1)All claims shall be reported to the reinsurer in a timely manner;
(2)A copy of the claim file shall be sent to the reinsurer at its request or as soon as it becomes known that the claim:
(a)Involves a coverage dispute;
(b)May exceed the agent's claims settlement authority or any amount set in that authority;
(c)Is open for more than six months; or
(d)Is closed by payment of the lesser of an amount set by the company.
The director has the authority to initially and at least annually review the amount for settling claims or payment of claims and direct the amount be changed.
(3)All claim files shall be the joint property of the reinsurer and agent. However, upon an order of liquidation of the reinsurer, files shall become the sole property of the reinsurer or its estate; the agent shall have reasonable access to and the right to copy the files on a timely basis; and
(4)Any settlement authority granted to the agent may be terminated for cause upon the reinsurer's written notice to the agent or upon the termination of the contract. The reinsurer may suspend the settlement authority during the pendency of the dispute regarding the cause of termination.
Source:
SL 1992, ch 345, §11.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-35 - Restrictions on agent.

58-14-35. Restrictions on agent.
The agent may not:
(1)Cede retrocessions on behalf of the reinsurer. However, the agent or broker may cede facultative retrocessions pursuant to obligatory facultative agreements if the contract with the reinsurer contains reinsurance underwriting guidelines for the retrocessions. The guidelines shall include a list of reinsurers with which automatic agreements are in effect, and for each reinsurer, the coverages and amounts or percentages that may be reinsured, and commission schedules;
(2)Commit the reinsurer to participate in reinsurance syndicates;
(3)Employing another agent or broker who is not lawfully licensed to transact the type of reinsurance for which he is appointed;
(4)Without prior approval of the reinsurer, pay or commit the reinsurer to pay a claim, net of retrocessions, that exceeds the lesser of an amount specified by the reinsurer or one percent of the reinsurer's policyholder's surplus as of December thirty-first of the last complete calendar year;
(5)Collect any payment from a retrocessionaire or commit the reinsurer to any claim settlement with a retrocessionaire, without prior approval of the reinsurer. If prior approval is given, a report shall be promptly forwarded to the reinsurer;
(6)Appoint a sub-agent; or
(7)Jointly employ an individual who is employed by the reinsurer unless the agent is under common control with the reinsurer subject to chapter 58-5A.
Source:
SL 1992, ch 345, §12.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-36 - Loss reserves--Actuary's opinion--Employee of agent or broker not to be appointed to reinsurer's board of directors.

58-14-36. Loss reserves--Actuary's opinion--Employee of agent or broker not to be appointed to reinsurer's board of directors.
If an agent or broker establishes loss reserves, the reinsurer shall annually obtain the opinion of an actuary attesting to the adequacy of loss reserves established for losses incurred and outstanding on business produced by the agent. This opinion shall be in addition to any other required loss reserve certification. Binding authority for all retrocessional contracts or participation in reinsurance syndicates shall rest with an officer of the reinsurer who may not be affiliated with an agent or broker. No reinsurer may appoint to its board of directors, any officer, director, employee, controlling shareholder, or sub-producer of its agent or broker; however, this prohibition does not apply to relationships governed by chapter 58-5A or, if applicable, chapter 58-30.
Source:
SL 1992, ch 345, §13.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-37 - Examination of agent or broker--Cost.

58-14-37. Examination of agent or broker--Cost.
Any person doing business as an agent or broker under §§58-14-24 to 58-14-42, inclusive, is subject to examination by the director. The director shall have access to all books, bank accounts and records of the person in a form usable to the director. Any person contracting with a reinsurer may be examined as if it were the reinsurer. The reinsurer may be required to pay the cost of examination pursuant to §58-3-15.
Source:
SL 1992, ch 345, §14.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-38 - Penalty for violation.

58-14-38. Penalty for violation.
Any agent or broker, insurer or reinsurer found by the director, after a hearing conducted in accordance with chapter 1-26, to be in violation of any provision of §§58-14-24 to 58-14-42, inclusive, shall:
(1)For each separate violation, pay a penalty in an amount not exceeding five thousand dollars;
(2)Be subject to revocation or suspension of its license; and
(3)If a violation was committed by the agent or broker, the agent or broker shall make restitution to the insurer, reinsurer, rehabilitator, or liquidator of the insurer or reinsurer for the net losses incurred by the insurer or reinsurer attributable to the violation.
Source:
SL 1992, ch 345, §15.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-39 - Rights of third party.

58-14-39. Rights of third party.
Nothing contained in §§58-14-24 to 58-14-42, inclusive, limits or restricts the rights of policyholders, claimants, creditors, or other third parties or confer any rights to those persons.
Source:
SL 1992, ch 345, §16.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-40 - Adoption of rules.

58-14-40. Adoption of rules.
The director may adopt rules pursuant to chapter 1-26 for the implementation and administration of the provisions of §§58-14-24 to 58-14-42, inclusive.
Source:
SL 1992, ch 345, §17.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-41 - Compliance with and application of §§ 58-14-24 to 58-14-42.

58-14-41. Compliance with and application of §§58-14-24 to 58-14-42.
No insurer or reinsurer may continue to do business with an agent or broker negotiating, selling, placing or soliciting reinsurance after July 1, 1993, unless the agent or broker is in compliance with §§58-14-24 to 58-14-42, inclusive. Sections 58-14-24 to 58-14-42, inclusive, apply to all persons doing insurance business notwithstanding any provision in this title which exempts them from other insurance laws except insurers licensed pursuant to chapter 58-35 which do not have more than one million dollars in direct written premiums and more than one thousand policyholders in any calendar year.
Source:
SL 1992, ch 345, §18.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-42 - Qualified United States financial institution.

58-14-42. Qualified United States financial institution.
For the purposes of §§58-14-24 to 58-14-42, inclusive, a qualified United States financial institution is an institution that:
(1)Is organized or licensed under the laws of the United States or any state;
(2)Is regulated, supervised, and examined by United States federal or state authorities having regulatory authority over banks and trust companies; and
(3)Has been determined by either the director or the securities valuation office of the National Association of Insurance Commissioners to meet the standards of financial condition and standing as are considered necessary and appropriate to regulate the quality of financial institutions whose letters of credit may be acceptable to the director.
Source:
SL 1992, ch 345, §19.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-43 - Restrictions on brokers connected to a firm or association.

58-14-43. Restrictions on brokers connected to a firm or association.
No person may act as a broker in this state if the broker maintains an office either directly or as a member or employee of a firm or association, or an officer, director, or employee of a corporation:
(1)In this state, unless the broker is a licensed producer in this state; or
(2)In another state, unless the broker is a licensed producer in this state or another state having a law substantially similar to this law or the broker is licensed in this state as a nonresident reinsurance intermediary.
Source:
SL 1994, ch 379, §3.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 14 - Reinsurance › Section 58-14-44 - Restrictions on who may act as agent.

58-14-44. Restrictions on who may act as agent.
No person, firm, association, or corporation may act as an agent:
(1)For a reinsurer domiciled in this state, unless the agent is a licensed producer in this state;
(2)In this state, if the agent maintains an office either directly or as a member or employee of a firm or association, or an officer, director, or employee of a corporation in this state, unless the agent is a licensed producer in this state;
(3)In another state for a nondomestic insurer, unless the agent is a licensed producer in this state or another state having a law substantially similar to this law or the person is licensed in this state as a nonresident reinsurance intermediary.
Source:
SL 1994, ch 379, §4.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 15 - Life Insurance And Annuities › Section 58-15-1 - Application of chapter.

58-15-1. Application of chapter.
This chapter applies only to contracts of life insurance and annuities, other than reinsurance, group life insurance, and group annuities.
Source:
SL 1966, ch 111, ch 23, §1.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 15 - Life Insurance And Annuities › Section 58-15-2 - "Industrial life insurance" defined.

58-15-2. Industrial life insurance defined.
For the purpose of this title "industrial life insurance" is that form of life insurance written under policies of face amount of one thousand dollars or less bearing the words "industrial policy" imprinted on the face thereof as part of the descriptive matter, and under which premiums are payable monthly or more often.
Source:
SL 1966, ch 111, ch 23, §2.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 15 - Life Insurance And Annuities › Section 58-15-3 - Investment of trust funds in life insurance and annuities.

58-15-3. Investment of trust funds in life insurance and annuities.
Personal representatives, conservators, and trustees may invest the funds of their trusts, in the absence of any provision pertaining to investments contained in the instrument under which they are acting, in insurance policies and annuities of life insurers authorized to do business in South Dakota and, with the approval of the court, may retain and pay premiums on annuities, life insurance policies and health insurance policies benefitting the beneficiary of the trust or the ward or their dependents.
Source:
SL 1966, ch 111, ch 23, §34; SL 1993, ch 213, §259; SL 1995, ch 167, §188.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 15 - Life Insurance And Annuities › Section 58-15-4 - Standard provisions required in policy of life insurance, exceptions.

58-15-4. Standard provisions required in policy of life insurance, exceptions.
No policy of life insurance, other than group and pure endowments with or without return of premiums or of premiums and interest, shall be delivered or issued for delivery in this state unless it contains in substance all of the applicable provisions required by §§58-15-7 to 58-15-29, inclusive.
Source:
SL 1966, ch 111, ch 23, §3 (1).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 15 - Life Insurance And Annuities › Section 58-15-5 - Standard provisions inapplicable to annuity contract or health or accident benefits.

58-15-5. Standard provisions inapplicable to annuity contract or health or accident benefits.
Section 58-15-4 shall not apply to annuity contracts nor to any provision of a life insurance policy, or contract supplemental thereto, relating to health benefits or to additional benefits in the event of death by accident or accidental means.
Source:
SL 1966, ch 111, ch 23, §3 (1).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 15 - Life Insurance And Annuities › Section 58-15-6 - Standard provisions inapplicable to single premium or term policies.

58-15-6. Standard provisions inapplicable to single premium or term policies.
Any provisions or portions of §§58-15-7 to 58-15-29, inclusive, not applicable to single premium or term policies shall to that extent not be incorporated therein.
Source:
SL 1966, ch 111, ch 23, §3 (2).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 15 - Life Insurance And Annuities › Section 58-15-8 - Entire contract contained in policy and application--Statement of applicant not deemed a warranty.

58-15-8. Entire contract contained in policy and application--Statement of applicant not deemed a warranty.
There shall be a provision that the policy, or the policy and the application therefor if a copy of such application is endorsed upon or attached to the policy when issued, shall constitute the entire contract between the parties, and that all statements contained in such an application shall, in the absence of fraud, be deemed representations and not warranties.
Source:
SL 1966, ch 111, ch 23, §6.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 15 - Life Insurance And Annuities › Section 58-15-8.1 - Notice of right of cancellation after receipt of policy--"Free look" provision.

58-15-8.1. Notice of right of cancellation after receipt of policy--"Free look" provision.
Every individual life insurance policy issued for delivery in South Dakota on or after July 1, 1982, by an insurance company or fraternal benefit society, shall have a notice printed on or attached to the face page of the policy, stating in substance that the person issued the policy is permitted to return the policy, with a written request for cancellation within ten days of its actual receipt by the purchaser, and to have the premium paid refunded if, after examination of the policy, the purchaser is not satisfied with it for any reason. If a policyholder or purchaser, pursuant to the notice, returns the policy to the company or fraternal benefit society at its home or branch office or to the insurance producer through whom it was purchased, it is void from the beginning and the parties are in the same position as if no policy had been issued.
Source:
SL 1978, ch 361, §1; SL 1982, ch 359; SL 2001, ch 286, §106.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 15 - Life Insurance And Annuities › Section 58-15-8.2 - Issuance of policies by insurance company or fraternal benefit society--Delivery receipts--Certificates of mailing--Term of retention.

58-15-8.2. 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, §1; SL 2001, ch 286, §107; SL 2002, ch 232, §1.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 15 - Life Insurance And Annuities › Section 58-15-9 - Effect of misstatement in policy regarding age.

58-15-9. Effect of misstatement in policy regarding age.
There shall be a provision that if the age of the insured, or of any other person whose age is considered in determining the premium or benefit has been misstated, any amount payable or benefit accruing under the policy shall be such as the premium would have purchased at the correct age or ages.
Source:
SL 1966, ch 111, ch 23, §7.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 15 - Life Insurance And Annuities › Section 58-15-10 - Incontestability provision required--Exceptions.

58-15-10. Incontestability provision required--Exceptions.
There shall be a provision that the policy, exclusive of provisions relating to health benefits or to additional benefits in the event of death by accident or accidental means, is incontestable, except for nonpayment of premiums or fraud on the part of the applicant or insured, after it has been in force during the lifetime of the insured for a period of two years from its date of issue.
Source:
SL 1966, ch 111, ch 23, §5; SL 2010, ch 236, §2.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 15 - Life Insurance And Annuities › Section 58-15-11 - Exclusions and restrictions unaffected by incontestability clause.

58-15-11. Exclusions and restrictions unaffected by incontestability clause.
A clause in any policy of life insurance providing that such policy shall be incontestable after a specified period shall preclude only a contest of the validity of the policy, and shall not preclude the assertion at any time of defenses based upon provisions in the policy which exclude or restrict coverage, whether or not such restrictions or exclusions are excepted in such clause.
Source:
SL 1966, ch 111, ch 23, §17.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 15 - Life Insurance And Annuities › Section 58-15-13 - Grace period in policy.

58-15-13. Grace period in policy.
There shall be a provision that a grace period of thirty days, or of four weeks in the case of industrial life insurance policies the premiums for which are payable more frequently than monthly, shall be allowed within which the payment of any premium after the first may be made, during which period of grace the policy shall continue in full force; but if a claim arises under the policy during such period of grace the amount of any premium due or overdue may be deducted from the policy proceeds.
Source:
SL 1966, ch 111, ch 23, §4.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 15 - Life Insurance And Annuities › Section 58-15-14 - Automatic premium loan--Provision optional with insurer.

58-15-14. Automatic premium loan--Provision optional with insurer.
The policy, at the insurer's option, may provide for automatic premium loan and may provide that such provisions do not become operative unless so elected by the party entitled to elect.
Source:
SL 1966, ch 111, ch 23, §9.