reglab/statecodes huggingface dataset:
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-35 - Rehabilitator's plan for transformation--Application and grounds for approval--Procedure upon approval.

58-29B-35. Rehabilitator's plan for transformation--Application and grounds for approval--Procedure upon approval.
If the rehabilitator determines that reorganization, consolidation, conversion, reinsurance, merger, sale, or other transformation of the insurer is appropriate, he shall prepare a plan to effect such changes. Upon application of the rehabilitator for approval of the plan, and after such notice and hearings as the court may prescribe, the court may either approve or disapprove the plan proposed, or may modify it and approve it as modified. Any plan approved under this section shall be, in the judgment of the court, fair and equitable to all parties concerned. If the plan is approved, the rehabilitator shall carry out the plan. In the case of a life insurer, the plan proposed may include the imposition of liens upon the policies of the company, if all rights of shareholders are first relinquished. A plan for a life insurer may also propose imposition of a moratorium upon loan and cash surrender rights under policies, for such period and to such an extent as may be necessary. The rehabilitator may under §§58-29B-61 to 58-29B-65, inclusive, avoid fraudulent transfers.
Source:
SL 1989, ch 436, §35; SL 1991, ch 404, §4.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-36 - Disposition of actions in which insurer a party pending when rehabilitation order entered.

58-29B-36. Disposition of actions in which insurer a party pending when rehabilitation order entered.
Any court in this state before which any action or proceeding in which the insurer is a party or is obligated to defend a party is pending when a rehabilitation order against the insurer is entered shall stay the action or proceeding for ninety days and such additional time as is necessary for the rehabilitator to obtain proper representation and prepare for further proceedings. The rehabilitator shall take such action respecting the pending litigation as he deems necessary in the interests of justice and for the protection of creditors, policyholders, and the public. The rehabilitator shall immediately consider all litigation pending outside this state and shall petition the courts having jurisdiction over that litigation for stays if necessary to protect the estate of the insurer.
Source:
SL 1989, ch 436, §36.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-37 - Petition for appointment of rehabilitator--Suspension of statute of limitations, laches--Time period for commencement of actions ripe when petition is filed.

58-29B-37. Petition for appointment of rehabilitator--Suspension of statute of limitations, laches--Time period for commencement of actions ripe when petition is filed.
No statute of limitations or defense of laches may run with respect to any action by or against an insurer between the filing of a petition for appointment of a rehabilitator for that insurer and the order granting or denying that petition. Any action by or against the insurer that might have been commenced when the petition was filed may be commenced for at least sixty days after the order of rehabilitation is entered or the petition is denied.
Source:
SL 1989, ch 436, §37.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-38 - Guaranty associations--Standing to appear in rehabilitation proceedings.

58-29B-38. Guaranty associations--Standing to appear in rehabilitation proceedings.
Any guaranty association or foreign guaranty association covering life or health insurance or annuities shall have standing to appear in any court proceeding concerning the rehabilitation of a life or health insurer if such association is or may become liable to act as a result of the rehabilitation.
Source:
SL 1989, ch 436, §38.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-39 - Rehabilitation futile--Petition for liquidation--Effect--Court to permit directors or insurers to defend.

58-29B-39. Rehabilitation futile--Petition for liquidation--Effect--Court to permit directors or insurers to defend.
If the director believes further attempts to rehabilitate an insurer would substantially increase the risk of loss to creditors, policyholders, or the public, or would be futile, the director may petition the circuit court of Hughes County for an order of liquidation. A petition under this section has the same effect as a petition under §58-29B-41. The circuit court of Hughes County shall permit the directors of the insurer to take such actions as are reasonably necessary to defend against the petition and may order payment from the estate of the insurer of such costs and other expenses of defense as justice may require. If the insurer is insolvent, the court shall issue an order for liquidation and shall set a hearing to determine the issues being asserted by the directors.
Source:
SL 1989, ch 436, §39; SL 1992, ch 351, §15.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-40 - Termination of rehabilitation--Procedure--Payment of costs.

58-29B-40. Termination of rehabilitation--Procedure--Payment of costs.
The rehabilitator or directors may at any time petition the circuit court of Hughes County for an order terminating rehabilitation of an insurer. The court may order payment from the estate of the insurer of such costs and other expenses of such petition as justice may require. If the court finds that rehabilitation has been accomplished and that grounds for rehabilitation under §58-29B-31 no longer exist, it shall order that the insurer be restored to possession of its property and the control of its business. The court may also on its own motion make that finding and issue an order terminating rehabilitation.
Source:
SL 1989, ch 436, §40.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-41 - Petition for liquidation--Grounds.

58-29B-41. Petition for liquidation--Grounds.
The director may petition the court for an order directing him to liquidate a domestic insurer or an alien insurer domiciled in this state based on the following:
(1)Any ground for an order of rehabilitation as specified in §58-29B-31, whether or not there has been a prior order directing the rehabilitation of the insurer;
(2)The insurer is insolvent; or
(3)The insurer is in such condition that the further transaction of business would be hazardous, financially or otherwise, to its policyholders, its creditors or the public.
Source:
SL 1989, ch 436, §41.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-42 - Order of liquidation--Contents--Title vested in liquidator--Effect of filing or recording.

58-29B-42. Order of liquidation--Contents--Title vested in liquidator--Effect of filing or recording.
An order to liquidate the business of a domestic insurer shall contain appointment of the director and his successors in office as liquidator and shall direct the liquidator forthwith to take possession of the assets of the insurer and to administer them under the general supervision of the court. The liquidator shall be vested by operation of law with the title to all property, contracts, and rights of action and all of the books and records of the insurer ordered liquidated, wherever located, as of the entry of the final order of liquidation. The filing or recording of the order with the clerk of the circuit court of Hughes County and the register of deeds of the county in which its principal office or place of business is located, or, in the case of real estate with the register of deeds of the county where the property is located, shall impart the same notice as a deed, bill of sale, or other evidence of title duly filed or recorded with that register of deeds would have imparted.
Source:
SL 1989, ch 436, §42.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-42.1 - Plan for continued performance of policy claim obligations during appeal of liquidation order.

58-29B-42.1. Plan for continued performance of policy claim obligations during appeal of liquidation order.
If an insurer is in liquidation, within five days of July 1, 1992, or, if later, within five days after the initiation of an appeal of an order of liquidation, which order has not been stayed, the director shall present for the court's approval a plan for the continued performance of the company's policy claims obligations, including the duty to defend insureds under liability insurance policies, during the pendency of an appeal. The plan shall provide for the continued performance and payment of policy claims obligations in the normal course of events, notwithstanding the grounds alleged in support of the order of liquidation includes the ground of insolvency. If the company's financial condition does not, in the judgment of the director, support the full performance of all policy claims obligations during the appeal period, the plan may prefer the claims of certain policyholders and claimants over creditors and interested parties as well as other policyholders and claimants, as the director finds to be fair and equitable considering the relative circumstances of the policyholders and claimants. The court shall examine the plan submitted by the director and if it finds the plan to be in the best interests of the parties, the court shall approve the plan. No action may lie against the director or any of his deputies, agents, clerks, assistants, or attorneys by any party based on preference in a plan during the pendency of appeal approved by the court.
The plan may not supersede or affect the obligations of any insurance guaranty association.
If the liquidator pays claims from assets of the estate, which would otherwise be the obligations of any particular guaranty association but for the appeal of the order of liquidation, the plans, during the appeal period, shall provide for equitable adjustments to be made by the liquidator to any distributions of assets to guaranty associations, so that all guaranty associations equally benefit on a pro rata basis from the assets of the estate. Further, if an order of liquidation is set aside upon any appeal, the company may not be released from delinquency proceedings until all funds advanced by any guaranty association, including reasonable administrative expenses relating to obligations of the company, are repaid in full, together with interest at the judgment rate of interest or unless an arrangement for repayment has been made with the consent of all applicable guaranty associations.
Source:
SL 1992, ch 351, §5.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-43 - Rights and liabilities fixed upon issuance of order.

58-29B-43. Rights and liabilities fixed upon issuance of order.
Upon issuance of the order to liquidate, the rights and liabilities of any such insurer and of its creditors, policyholders, shareholders, members, and all other persons interested in its estate shall become fixed as of the date of entry of the order of liquidation, except as provided in §§58-29B-47 and 58-29B-112 to 58-29B-114, inclusive.
Source:
SL 1989, ch 436, §43.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-44 - Order to liquidate alien insurer domiciled in state--Effect.

58-29B-44. Order to liquidate alien insurer domiciled in state--Effect.
An order to liquidate the business of an alien insurer domiciled in this state shall be in the same terms and have the same legal effect as an order to liquidate a domestic insurer, except that the assets and the business in the United States shall be the only assets and business included therein.
Source:
SL 1989, ch 436, §44.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-45 - Declaration of insurer's insolvency--Procedure.

58-29B-45. Declaration of insurer's insolvency--Procedure.
At the time of the petition for an order of liquidation, or at any time thereafter, the director, after making appropriate findings of an insurer's insolvency, may petition the court for a judicial declaration of such insolvency. After providing such notice and hearing as it deems proper the court may make the declaration.
Source:
SL 1989, ch 436, §45.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-46 - Order of liquidation--Financial reports required--Annual filing.

58-29B-46. Order of liquidation--Financial reports required--Annual filing.
Any order issued under §§58-29B-41 to 58-29B-45, inclusive, shall require financial reports to the court by the liquidator.
Financial reports shall include, at a minimum, the assets and liabilities of the insurer and all funds received or disbursed by the liquidator during the current period. Financial reports shall be filed within one year of the liquidation order and at least annually thereafter.
Source:
SL 1989, ch 436, §46; SL 1992, ch 351, §4.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-47 - Effect of order upon policies in effect at time of issuance.

58-29B-47. Effect of order upon policies in effect at time of issuance.
All policies, including bonds and other noncancellable business, other than life or health insurance or annuities, in effect at the time of issuance of an order of liquidation shall continue in force for the lesser of:
(1)A period of thirty days from the date of entry of the liquidation orders;
(2)The expiration of the policy coverage;
(3)The date when the insured has replaced the insurance coverage with equivalent insurance coverage in another insurer or otherwise terminated the policy; or
(4)The liquidator has effected a transfer of the policy obligation pursuant to §58-29B-49.
An order of liquidation under §§58-29B-41 to 58-29B-45, inclusive, shall terminate coverages at the time specified in this section for purposes of any other statute.
Policies of life or health insurance or annuities shall continue in force for such period and under such terms as is provided for by any applicable guaranty association or foreign guaranty association.
Policies of life or health insurance or annuities or any period or coverage of such policies not covered by a guaranty association or foreign guaranty association shall terminate according to this section.
Source:
SL 1989, ch 436, §47; SL 1992, ch 351, §6.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-48 - Order to dissolve corporate existence--Procedure.

58-29B-48. Order to dissolve corporate existence--Procedure.
The director may petition for an order dissolving the corporate existence of a domestic insurer or the United States branch of an alien insurer domiciled in this state at the time he applies for a liquidation order. The court shall order dissolution of the corporation upon petition by the director upon or after the granting of a liquidation order. Dissolution may also be effected by operation of law upon the discharge of the liquidator, if the insurer is insolvent and may be ordered by the court upon the discharge of the liquidator if the insurer is under a liquidation order for some other reason.
Source:
SL 1989, ch 436, §48.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-50 - Enumeration in § 58-29B-49 not exclusive.

58-29B-50. Enumeration in §58-29B-49 not exclusive.
The enumeration, in §58-29B-49, of the powers and authority of the liquidator may not be construed as a limitation upon him, nor may it exclude in any manner his right to do such other acts not herein specifically enumerated, or otherwise provided for, as may be necessary or appropriate for the accomplishment of or in aid of the purpose of liquidation.
Source:
SL 1989, ch 436, §50.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-50.1 - Obligations of liquidator subsequent to entry of liquidation order.

58-29B-50.1. Obligations of liquidator subsequent to entry of liquidation order.
Notwithstanding the powers of the liquidator as stated in §§58-29B-47 and 58-29B-50, the liquidator has no obligation to defend claims or to continue to defend claims subsequent to the entry of a liquidation order.
Source:
SL 1992, ch 351, §8.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-51 - Notice of liquidation order.

58-29B-51. Notice of liquidation order.
Unless the court otherwise directs, the liquidator shall give notice of the liquidation order as soon as possible but in no event more than ten days from the date of entry of the order to liquidate:
(1)By first class mail or by telegram or telephone to the insurance director of each jurisdiction in which the insurer is doing business;
(2)By first class mail to any guaranty association or foreign guaranty association which is or may become obligated as a result of the liquidation;
(3)By first class mail to any insurance producer of the insurer;
(4)By first class mail to any person known or reasonably expected to have claims against the insurer including any policyholder, at the person's last known address as indicated by the records of the insurer; and
(5)By publication in a newspaper of general circulation in the county in which the insurer has its principal place of business and in such other locations as the liquidator considers appropriate.
Source:
SL 1989, ch 436, §51; SL 2001, ch 286, §144.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-52 - Duties of claimant upon notice of liquidation.

58-29B-52. Duties of claimant upon notice of liquidation.
Notice to any potential claimant under §58-29B-51 requires such claimant to file with the liquidator his claims together with proper proofs thereof under §§58-29B-106 to 58-29B-110, inclusive, on or before a date the liquidator shall specify in the notice. The liquidator need not require any person claiming cash surrender values or other investment values in life insurance and annuities to file a claim. All claimants shall keep the liquidator informed of any changes of address. If notice is given in accordance with §58-29B-51, the distribution of assets of the insurer under this chapter shall be conclusive with respect to all claimants, whether or not they received notice.
Source:
SL 1989, ch 436, §52.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-53 - Duties of insurance producer upon notice of liquidation.

58-29B-53. Duties of insurance producer upon notice of liquidation.
Every person who receives notice in the form prescribed in §58-29B-51 that an insurer which the person represents is the subject of a liquidation order shall, within five days of the notice, give written notice of the liquidation order by first class mail to the last known address contained in the insurance producer's records to each policyholder or other person named in any policy issued through the insurance producer by the insurer. A policy is deemed issued through an insurance producer if the insurance producer has a property interest in the expiration of the policy at any time during the life of the policy, unless the ownership of the expiration of the policy has been transferred to another. The written notice shall include the name and address of the insurer, the name and address of the insurance producer, identification of the policy impaired, and the nature of the impairment including termination of coverage, as described in §58-29B-47. Each insurance producer obligated to give notice under this section shall file a report of compliance with the liquidator within five days of the receipt of the notice from the liquidator.
Source:
SL 1989, ch 436, §53; SL 2001, ch 286, §145.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-54 - Failure of insurance producer to comply with § 58-29B-53--Penalty--Liquidator's waiver of duties.

58-29B-54. Failure of insurance producer to comply with §58-29B-53--Penalty--Liquidator's waiver of duties.
Any insurance producer failing to give notice or file a report of compliance as required in §58-29B-53 may be subject to payment of a penalty of not more than one thousand dollars and may have the insurance producer's license suspended, which may only be imposed after a hearing held by the director. The liquidator may waive the duties imposed by §58-29B-53 if he determines that other notice to the policyholders of the insurer under liquidation is adequate.
Source:
SL 1989, ch 436, §54; SL 2001, ch 286, §146.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-55 - Appointment of liquidator--Effect upon actions and injunctions pending against insurer or liquidator--Liquidator's right to intervene.

58-29B-55. Appointment of liquidator--Effect upon actions and injunctions pending against insurer or liquidator--Liquidator's right to intervene.
Upon issuance of an order appointing a liquidator of a domestic insurer or of an alien insurer domiciled in this state, no action at law or equity may be brought against the insurer or liquidator, whether in this state or elsewhere, nor may any such existing action be maintained or further presented after issuance of such order. The courts of this state shall give full faith and credit to injunctions against the liquidator or the company or the continuation of existing actions against the liquidator or the company, if such injunctions are included in an order to liquidate an insurer issued pursuant to corresponding provisions in other states. If in the liquidator's judgment, protection of the estate of the insurer requires intervention in an action against the insurer that is pending outside this state, he may intervene in this action. The liquidator may defend any action in which he intervenes under this section at the expense of the estate of the insurer.
Source:
SL 1989, ch 436, §55.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-56 - Time periods in which liquidator may act for or institute action on behalf of insurer.

58-29B-56. Time periods in which liquidator may act for or institute action on behalf of insurer.
The liquidator may, upon or after an order for liquidation, within two years or such time in addition to two years as applicable law may permit, institute an action or proceeding on behalf of the estate of the insurer upon any cause of action against which the statute of limitations has not expired at the time of the filing of the petition upon which such order is entered. If, by any agreement, a period of limitation is fixed for instituting a suit or proceeding upon any claim, or for filing any claim, proof of claim, proof of loss, demand, notice, or the like, or where in any proceeding, judicial or otherwise, a period of limitation is fixed, either in the proceeding or by applicable law, for taking any action, filing any claim or pleading, or doing any act, and where in any such case the period had not expired at the date of the filing of the petition, the liquidator may, for the benefit of the estate, take any such action or do any such act, required of or permitted to the insurer, within a period of one hundred eighty days subsequent to the entry of an order for liquidation, or within such further period as is shown to the satisfaction of the court not to be unfairly prejudicial to the other party.
Source:
SL 1989, ch 436, §56.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-57 - Petition for liquidation--Suspension of statute of limitations, laches--Time period for commencement of actions ripe when petition filed.

58-29B-57. Petition for liquidation--Suspension of statute of limitations, laches--Time period for commencement of actions ripe when petition filed.
No statute of limitations or defense of laches may run with respect to any action against an insurer between the filing of a petition for liquidation against an insurer and the denial of the petition. Any action against the insurer that might have been commenced when the petition was filed may be commenced for at least sixty days after the petition is denied.
Source:
SL 1989, ch 436, §57.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-58 - Guaranty associations--Standing to appear in liquidation proceedings.

58-29B-58. Guaranty associations--Standing to appear in liquidation proceedings.
Any guaranty association or foreign guaranty association may appear in any court proceeding concerning the liquidation of an insurer if such association is or may become liable to act as a result of the liquidation of an insurer if such association is or may become liable to act as a result of the liquidation of an insurer.
Source:
SL 1989, ch 436, §58.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-59 - Liquidator to prepare list of insurer's assets--Filing requirements.

58-29B-59. Liquidator to prepare list of insurer's assets--Filing requirements.
As soon as practicable after the liquidation order, but not later than one hundred twenty days thereafter, the liquidator shall prepare in duplicate a list of the insurer's assets. The list shall be amended or supplemented from time to time as the liquidator may determine. One copy shall be filed in the office of the clerk of the circuit court of Hughes County and one copy shall be retained for the liquidator's files. All amendments and supplements shall be similarly filed. A submission to the court for disbursement of assets in accordance with §§58-29B-98 to 58-29B-100, inclusive, fulfills the requirements of this section.
Source:
SL 1989, ch 436, §59.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-60 - Reduction of assets to appropriate degree.

58-29B-60. Reduction of assets to appropriate degree.
The liquidator shall reduce the assets to a degree of liquidity that is consistent with the execution of the liquidation.
Source:
SL 1989, ch 436, §60.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-61 - "Fraudulent transfers" defined--Avoidance by receiver--Acceptance or preservation of transfer.

58-29B-61. Fraudulent transfers--Avoidance by receiver--Acceptance or preservation of transfer.
Every transfer made or suffered and every obligation incurred by an insurer within one year prior to the filing of a successful petition for rehabilitation or liquidation under this chapter is fraudulent as to then existing and future creditors if made or incurred without fair consideration, or with actual intent to hinder, delay, or defraud either existing or future creditors. A transfer made, or an obligation incurred, by an insurer ordered to be rehabilitated or liquidated under this chapter, which is fraudulent under this section, may be avoided by the receiver. However, a person who in good faith is a purchaser, lienor, or obligee who in good faith has given a consideration less than fair for such transfer, lien, or obligation may retain the property, lien, or obligation as security for repayment. The court may, on due notice, order any such transfer or obligation to be preserved for the benefit of the estate, and in that event, the receiver shall succeed to and may enforce the rights of the purchaser, lienor, or obligee.
Source:
SL 1989, ch 436, §61.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-61.1 - Liability of beneficiary of fraudulent transfer.

58-29B-61.1. Liability of beneficiary of fraudulent transfer.
Any person receiving any property or benefit from the insurer which is a fraudulent transfer under §58-29B-61 is personally liable and shall account to the liquidator concerning it.
Source:
SL 1992, ch 351, §9.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-62 - Fraudulent transfers between insurer and reinsurer--Grounds for avoidance by receiver.

58-29B-62. Fraudulent transfers between insurer and reinsurer--Grounds for avoidance by receiver.
Any transaction of the insurer with a reinsurer shall be deemed fraudulent and may be avoided by the receiver under §58-29B-61 if:
(1)The transaction consists of the termination, adjustment, or settlement of a reinsurance contract in which the reinsurer is released from any part of its duty to pay the originally specified share of losses that had occurred prior to the time of the transaction, unless the reinsurer gives a present fair equivalent value for the release; and
(2)Any part of the transaction took place within one year prior to the date of filing of the petition through which the receivership was commenced.
Source:
SL 1989, ch 436, §62.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-63 - Transfers of insurer's real property after petition filed--Recording of copy of petition as constructive notice.

58-29B-63. Transfers of insurer's real property after petition filed--Recording of copy of petition as constructive notice.
After a petition for rehabilitation or liquidation has been filed a transfer of any of the real property of the insurer made to a person acting in good faith shall be valid against the receiver if made for a present fair equivalent value, or, if not made for a present fair equivalent value, then to the extent of the present consideration actually paid therefor, for which amount the transferee shall have a lien on the property so transferred. The commencement of a proceeding in rehabilitation or liquidation shall be constructive notice upon the recording of a copy of the petition for or order of rehabilitation or liquidation with the register of deeds in the county where any real property in question is located. The exercise by a court of the United States or any state or jurisdiction to authorize or effect a judicial sale of real property of the insurer within any county in any state may not be impaired by the pendency of such a proceeding unless the copy is recorded in the county prior to the consummation of the judicial sale.
Source:
SL 1989, ch 436, §63.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-64 - Validity of transfers after petitions filed and before receiver takes possession or order granted.

58-29B-64. Validity of transfers after petitions filed and before receiver takes possession or order granted.
After a petition for rehabilitation or liquidation has been filed and before either the receiver takes possession of the property of the insurer or an order of rehabilitation or liquidation is granted:
(1)A transfer of any of the property of the insurer, other than real property, made to a person acting in good faith shall be valid against the receiver if made for a present fair equivalent value, or, if not made for a present fair equivalent value, then to the extent of the present consideration actually paid therefor, for which amount the transferee shall have a lien on the property so transferred;
(2)A person indebted to the insurer or holding property of the insurer may, if acting in good faith, pay the indebtedness or deliver the property, or any part thereof, to the insurer or upon his order, with the same effect as if the petition were not pending;
(3)A person having actual knowledge of the pending rehabilitation or liquidation is deemed not to act in good faith;
(4)A person asserting the validity of a transfer under this section has the burden of proof. Except as elsewhere provided in this section, no transfer by or on behalf of the insurer after the date of the petition for liquidation by any person other than the liquidator may be valid against the liquidator.
Source:
SL 1989, ch 436, §64.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-65 - No impairment of negotiability.

58-29B-65. No impairment of negotiability.
Nothing in this chapter may impair the negotiability of currency or negotiable instruments.
Source:
SL 1989, ch 436, §65.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-66 - "Preference" defined.

58-29B-66. Preference defined.
A preference is a transfer of any of the property of an insurer to or for the benefit of a creditor, for or on account of an antecedent debt, made or suffered by the insurer within one year before the filing of a successful petition for liquidation under this chapter, the effect of which transfer may be to enable the creditor to obtain a greater percentage of this debt than another creditor of the same class would receive. If a liquidation order is entered while the insurer is already subject to a rehabilitation order, then such transfers shall be deemed preferences if made or suffered within one year before the filing of the successful petition for rehabilitation, or within two years before the filing of the successful petition for liquidation, whichever time is shorter.
Source:
SL 1989, ch 436, §66.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-67 - Preference--Avoidance by liquidator.

58-29B-67. Preference--Avoidance by liquidator.
Any preference may be avoided by the liquidator if:
(1)The insurer was insolvent at the time of the transfer;
(2)The transfer was made within four months before the filing of the petition;
(3)The creditor receiving it or to be benefited thereby or his agent acting with reference thereto had, at the time when the transfer was made, reasonable cause to believe that the insurer was insolvent or was about to become insolvent; or
(4)The creditor receiving it was an officer, any employee, attorney, or other person who was in a position of comparable influence in the insurer to an officer whether or not he held such position, any shareholder holding directly or indirectly more than five percent of any class of any equity security issued by the insurer, or any other person, firm, corporation, association, or aggregation of persons with whom the insurer did not deal at arm's length.
Source:
SL 1989, ch 436, §67.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-68 - Preference voidable--Consequences.

58-29B-68. Preference voidable--Consequences.
If the preference is voidable, the liquidator may recover the property or, if it has been converted, its value from any person who has received or converted the property, except where a bona fide purchaser or lienor has given less than fair equivalent value, he shall have a lien upon the property to the extent of the consideration actually given by him. If a preference by way of lien or security title is voidable, the court may on due notice order the lien or title to be preserved for the benefit of the estate, in which event the lien or title shall pass to the liquidator.
Source:
SL 1989, ch 436, §68.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-69 - When transfer of property other than real property deemed made or suffered.

58-29B-69. When transfer of property other than real property deemed made or suffered.
For purposes of §§58-29B-61 and 58-29B-66, transfer of property other than real property shall be deemed to be made or suffered when it becomes so far perfected that no subsequent lien obtainable by legal or equitable proceedings on a simple contract could become superior to the rights of the transferee.
Source:
SL 1989, ch 436, §69.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-70 - When transfer of real property deemed made or suffered.

58-29B-70. When transfer of real property deemed made or suffered.
A transfer of real property shall be deemed to be made or suffered when it becomes so far perfected that no subsequent bona fide purchaser from the insurer could obtain rights superior to the rights of the transferee.
Source:
SL 1989, ch 436, §70.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-71 - Transfer creating equitable lien--Conditions prohibiting perfection.

58-29B-71. Transfer creating equitable lien--Conditions prohibiting perfection.
No transfer which creates an equitable lien may be deemed to be perfected if there are available means by which a legal lien could be created.
Source:
SL 1989, ch 436, §71.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-72 - Transfer not perfected prior to filing of petition deemed made before filing of successful petition.

58-29B-72. Transfer not perfected prior to filing of petition deemed made before filing of successful petition.
A transfer not perfected prior to the filing of a petition for liquidation shall be deemed to be made immediately before the filing of the successful petition.
Source:
SL 1989, ch 436, §72.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-73 - Sections 58-29B-69 to 58-29B-72 applicable despite certain creditors or potential bona fide purchasers.

58-29B-73. Sections 58-29B-69 to 58-29B-72 applicable despite certain creditors or potential bona fide purchasers.
The provisions of §§58-29B-69 to 58-29B-72, inclusive, apply whether or not there are or were creditors who might have obtained liens or persons who might have become bona fide purchasers.
Source:
SL 1989, ch 436, §73.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-74 - "Lien by legal or equitable proceedings upon simple contract" defined.

58-29B-74. Lien obtainable by legal or equitable proceedings--Simple contract--Exclusions.
A lien obtainable by legal or equitable proceedings upon a simple contract is one arising in the ordinary course of such proceedings upon the entry or docketing of a judgment or decree, or upon attachment, garnishment, execution, or like process, whether before, upon, or after judgment or decree and whether before or upon levy. It does not include liens which under applicable law are given a special priority over other liens which are prior in time.
Source:
SL 1989, ch 436, §74.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-75 - Lien by legal or equitable proceedings--Superiority to rights of transferee.

58-29B-75. Lien by legal or equitable proceedings--Superiority to rights of transferee.
A lien obtainable by legal or equitable proceedings could become superior to the rights of a transferee, or a purchaser could obtain rights superior to the rights of a transferee within the meaning of §§58-29B-69 to 58-29B-72, inclusive, if such consequences would follow only from the lien or purchase itself, or from the lien or purchaser, with or without the aid of ministerial action by public officials. Such a lien could not, however, become superior and such a purchase could not create superior rights for the purpose of §§58-29B-69 to 58-29B-72, inclusive, through any acts subsequent to the obtaining of such a lien or subsequent to such a purchase which require the agreement or concurrence of any third party or which require any further judicial action or ruling.
Source:
SL 1989, ch 436, §75.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-76 - Transfer for or on account of new and contemporaneous consideration--Transfer to secure future loan--Effects.

58-29B-76. Transfer for or on account of new and contemporaneous consideration--Transfer to secure future loan--Effects.
A transfer of property for or on account of a new and contemporaneous consideration which is deemed under §§58-29B-69 to 58-29B-72, inclusive, to be made or suffered after the transfer because of delay in perfecting it does not thereby become a transfer for or on account of an antecedent debt if any acts required by the applicable law to be performed in order to perfect the transfer as against liens or bona fide purchasers' rights are performed within twenty-one days or any period expressly allowed by the law, whichever is less. A transfer to secure a future loan, if such a loan is actually made, or a transfer which becomes security for a future loan, shall have the same effect as a transfer for or on account of a new and contemporaneous consideration.
Source:
SL 1989, ch 436, §76.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-77 - Voidable lien dissolved--Indemnifying transfer or lien deemed voidable.

58-29B-77. Voidable lien dissolved--Indemnifying transfer or lien deemed voidable.
If any lien deemed voidable under §58-29B-67 has been dissolved by the furnishing of a bond or other obligation, the surety on which has been indemnified directly or indirectly by the transfer of or the creation of a lien upon any property of an insurer before the filing of a petition under this chapter which results in a liquidation order, the indemnifying transfer or lien shall also be deemed voidable.
Source:
SL 1989, ch 436, §77.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-78 - Property affected by voidable lien discharge--That and indemnifying property pass to liquidator--Exception.

58-29B-78. Property affected by voidable lien discharge--That and indemnifying property pass to liquidator--Exception.
The property affected by any lien deemed voidable under §§58-29B-66 to 58-29B-68, inclusive, and 58-29B-77, shall be discharged from such lien, and that property and any of the indemnifying property transferred to or for the benefit of a surety shall pass to the liquidator, except that the court may on due notice order any such lien to be preserved for the benefit of the estate and the court may direct that such conveyance be executed as may be proper or adequate to evidence the title of the liquidator.
Source:
SL 1989, ch 436, §78.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-79 - Summary jurisdiction of Hughes county circuit court--Notice--Valuation of certain property or liens--Election of transferee or lienholder.

58-29B-79. Summary jurisdiction of Hughes county circuit court--Notice--Valuation of certain property or liens--Election of transferee or lienholder.
The circuit court of Hughes County shall have summary jurisdiction of any proceeding by the liquidator to hear and determine the rights of any parties under §§58-29B-71 to 58-29B-88, inclusive. Reasonable notice of any hearing in the proceeding shall be given to all parties in interest, including the obligee of a releasing bond or other like obligation. If an order is entered for the recovery of indemnifying property in kind or for the avoidance of an indemnifying lien, the court, upon application of any party in interest, shall in the same proceeding ascertain the value of the property or lien, and if the value is less than the amount for which the property is indemnified or than the amount of the lien, the transferee or lienholder may elect to retain the property or lien upon payment of its value, as ascertained by the court, to the liquidator, within such reasonable times as the court shall fix.
Source:
SL 1989, ch 436, §79.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-80 - Extent of surety discharge under releasing bond or similar obligation.

58-29B-80. Extent of surety discharge under releasing bond or similar obligation.
The liability of a surety under a releasing bond or other like obligation shall be discharged to the extent of the value of the indemnifying property recovered or the indemnifying lien nullified and avoided by the liquidator or, if the property is retained under §58-29B-79, to the extent of the amount paid to the liquidator.
Source:
SL 1989, ch 436, §80.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-81 - Preferred creditor--Setoff for new credit issued in good faith.

58-29B-81. Preferred creditor--Setoff for new credit issued in good faith.
If a creditor has been preferred, and afterward in good faith gives the insurer further credit without security of any kind, for property which becomes a part of the insurer's estate, the amount of the new credit remaining unpaid at the time of the petition may be set off against the preference which would otherwise be recoverable from him.
Source:
SL 1989, ch 436, §81.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-82 - Transfers by insurer to attorney for services within four months of filing petition--Examination by court.

58-29B-82. Transfers by insurer to attorney for services within four months of filing petition--Examination by court.
If an insurer shall, directly or indirectly, within four months before the filing of a successful petition for liquidation under this chapter, or at any time in contemplation of a proceeding to liquidate it, pay money or transfer property to an attorney-at-law for services rendered or to be rendered, the transaction may be examined by the court on its own motion or shall be examined by the court on petition of the liquidator and shall be held valid only to the extent of a reasonable amount to be determined by the court, and the excess may be recovered by the liquidator for the benefit of the estate. However, if the attorney is in a position of influence in the insurer or an affiliate thereof, payment of any money or the transfer of any property to the attorney-at-law for services rendered or to be rendered shall be governed by the provision of subdivision 58-29B-67(4).
Source:
SL 1989, ch 436, §82.