reglab/statecodes huggingface dataset:
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 26 - Valuation Of Assets, Liabilities And Reserves › Section 58-26-99 - Procedures, controls and report regarding principle-based valuation.

58-26-99. Procedures, controls and report regarding principle-based valuation.
A company using a principle-based valuation for one or more policies or contracts subject to §§58-26-98 to 58-26-100, inclusive, as specified in the valuation manual shall:
(1)Establish procedures for corporate governance and oversight of the actuarial valuation function consistent with those described in the valuation manual;
(2)Provide to the director and the board of directors an annual certification of the effectiveness of the internal controls with respect to the principle-based valuation. The controls shall be designed to assure that all material risks inherent in the liabilities and associated assets subject to such valuation are included in the valuation, and that valuations are made in accordance with the valuation manual. The certification shall be based on the controls in place as of the end of the preceding calendar year;
(3)Develop, and file with the director upon request, a principle-based valuation report that complies with standards prescribed in the valuation manual.
Source:
SL 2015, ch 254, §33.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 26 - Valuation Of Assets, Liabilities And Reserves › Section 58-26-101 - Data to be submitted as prescribed in valuation manual.

58-26-101. Data to be submitted as prescribed in valuation manual.
A company shall submit mortality, morbidity, policyholder behavior, or expense experience and other data as prescribed in the valuation manual.
Source:
SL 2015, ch 254, §35.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 26 - Valuation Of Assets, Liabilities And Reserves › Section 58-26-102 - Confidential information defined.

58-26-102. Confidential information defined.
For purposes of this chapter, confidential information, means:
(1)A memorandum in support of an opinion submitted pursuant to §§58-26-46 to 58-26-55.1, inclusive, and any other document, material, and other information, including all working papers, and copies thereof, created, produced, or obtained by or disclosed to the director or any other person in connection with such memorandum;
(2)All documents, materials, and other information, including all working papers, and copies thereof, created, produced, or obtained by or disclosed to the director or any other person in the course of an examination made pursuant to §58-26-96; provided that if an examination report or other material prepared in connection with an examination made pursuant to chapter 58-3 is not held as private and confidential information pursuant to chapter 58-3, an examination report or other material prepared in connection with an examination made pursuant to §58-26-96 is not confidential information to the same extent as if such examination report or other material had been prepared pursuant to chapter 58-3;
(3)Any reports, documents, materials, and other information developed by a company in support of, or in connection with, an annual certification by the company pursuant to subdivision 58-26-99(2) evaluating the effectiveness of the company's internal controls with respect to a principle-based valuation and any other documents, materials, and other information, including all working papers, and copies thereof, created, produced, or obtained by or disclosed to the director or any other person in connection with such reports, documents, materials, and other information;
(4)Any principle-based valuation report developed pursuant to subdivision 58-26-99(3) and any other documents, materials, and other information, including all working papers, and copies thereof, created, produced, or obtained by or disclosed to the director or any other person in connection with such report; and
(5)Any documents, materials, data, and other information submitted by a company pursuant to §58-26-101, collectively, "experience data," and any other documents, materials, data, and other information, including all working papers, and copies thereof, created or produced in connection with such experience data, in each case that include any potentially company-identifying or personally identifiable information, that is provided to or obtained by the director together with any experience data, the experience materials, and any other documents, materials, data, and other information, including all working papers, and copies thereof, created, produced, or obtained by or disclosed to the director or any other person in connection with such experience materials.
Source:
SL 2015, ch 254, §36.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 26 - Valuation Of Assets, Liabilities And Reserves › Section 58-26-104 - Exceptions to confidentiality of information.

58-26-104. Exceptions to confidentiality of information.
Notwithstanding §58-26-103, any confidential information specified in subdivisions 58-26-102(1) and (4):
(1)May be subject to subpoena for the purpose of defending an action seeking damages from the appointed actuary submitting the related memorandum in support of an opinion submitted pursuant to §§58-26-46 to 58-26-55.1, inclusive, or principle-based valuation report developed pursuant to subdivision 58-26-99(3), by reason of an action required by this chapter or by regulations promulgated hereunder;
(2)May otherwise be released by the director with the written consent of the company; and
(3)Once any portion of a memorandum in support of an opinion submitted pursuant to §§58-26-46 to 58-26-55.1, inclusive, or a principle-based valuation report developed pursuant to subdivision 58-26-99(3), is cited by the company in its marketing or is publicly volunteered to or before a governmental agency other than a state insurance department or is released by the company to the news media, all portions of such memorandum or report is no longer confidential.
Source:
SL 2015, ch 254, §38.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 26 - Valuation Of Assets, Liabilities And Reserves › Section 58-26-105 - Exemption of certain forms or product lines of domestic insurer.

58-26-105. Exemption of certain forms or product lines of domestic insurer.
The director may exempt specific product forms or product lines of a domestic company that is licensed and doing business only in South Dakota from the requirements of §§58-26-91 to 58-26-97, inclusive, provided:
(1)The director has issued an exemption in writing to the company and has not subsequently revoked the exemption in writing; and
(2)The company computes reserves using assumptions and methods used prior to the operative date of the valuation manual in addition to any requirements established by the director and promulgated by regulation.
For any company granted an exemption pursuant to this section, §§58-26-46 to 58-26-84, inclusive, are applicable. With respect to any company applying this exemption, any reference to §§58-26-91 to 58-26-97, inclusive, found in §§58-26-46 to 58-26-84, inclusive, is not applicable.
Source:
SL 2015, ch 254, §39.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-2 - Eligible investments by insurers--Violation as misdemeanor.

58-27-2. Eligible investments by insurers--Violation as misdemeanor.
Insurers shall invest in or lend their funds on the security of, and shall hold as invested assets, only eligible investments as prescribed in this chapter. Violation of this section is a Class 2 misdemeanor.
Source:
SL 1966, ch 111, ch 6, §2 (1); SL 1978, ch 359, §2.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-3 - Time of determination of eligibility of investment.

58-27-3. Time of determination of eligibility of investment.
Eligibility of an investment shall be determined as of the date of its making or acquisition, except as stated in §58-27-4, and shall at all times be subject to the aggregate investment limitations set forth in this chapter.
Source:
SL 1966, ch 111, ch 6, §2 (3); SL 1997, ch 294, §1.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-4 - Prior legal investment deemed eligible.

58-27-4. Prior legal investment deemed eligible.
Any particular investment held by an insurer on July 1, 1997, and which was a legal investment at the time it was made, and which the insurer was legally entitled to possess immediately prior to July 1, 1997 shall be deemed to be an eligible investment.
Source:
SL 1966, ch 111, ch 6, §2 (2); SL 1997, ch 294, §2.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-5 - Acquisition of ineligible securities or property--Disposition.

58-27-5. Acquisition of ineligible securities or property--Disposition.
No provision of this chapter shall prohibit the acquisition by an insurer of other or additional securities or property if received as a dividend or as a lawful distribution of assets, or under a lawful and bona fide agreement of bulk reinsurance, merger, or consolidation. Any investment so acquired which is not otherwise eligible under this chapter shall be disposed of pursuant to §§58-27-73 and 58-27-74 if personal property or securities, or pursuant to §§58-27-70 to 58-27-72, inclusive, if real property.
Source:
SL 1966, ch 111, ch 6, §3 (3).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-6 - Time of investment limitation based on amount of insurer's admitted assets, risk based capital, or capital and surplus.

58-27-6. Time of investment limitation based on amount of insurer's admitted assets, risk based capital, or capital and surplus.
Unless otherwise specified, any investment limitation based upon the amount of the insurer's admitted assets, risk based capital, or capital and surplus, shall relate to such admitted assets, risk based capital, or capital and surplus as shown by the insurer's annual statement as of the December thirty-first next preceding date of acquisition of the investment by the insurer, or as shown by a current financial statement filed with the director. For purposes of computing any limitation based upon admitted assets, the insurer shall deduct the following to the extent included in the insurer's admitted assets, from the amount of its admitted assets:
(1)Collateral received in a reverse repurchase transaction or a securities lending transaction;
(2)Cash received in a dollar roll transaction; and
(3)The assets in any separate accounts maintained by the insurer.
Source:
SL 1966, ch 111, ch 6, §2 (4); SL 1997, ch 294, §3.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-7 - Investments required to produce income--Exemptions--Rules.

58-27-7. Investments required to produce income--Exemptions--Rules.
No security or investment, other than real and personal property acquired under §58-27-50; common shares of solvent institutions acquired under §58-27-23, 58-27-25, 58-27-26, or 58-27-51; investments acquired under §58-27-103, 58-27-104, or 58-27-111; and mutual funds acquired under subdivision 58-27-17(4) that invest less than ninety percent in bonds, is eligible for acquisition unless it is interest-bearing or interest-accruing or dividend- or income-paying, and the insurer is entitled to receive for its exclusive account and benefit the interest or income accruing thereon. The director of the Division of Insurance may promulgate rules regarding the acquisition of over-the-counter and exchange listed options and financial futures, including the exemption of these securities from the operation of this section.
Source:
SL 1966, ch 111, ch 6, §3 (1); SL 1972, ch 264; SL 1983, ch 376, §2; SL 1997, ch 294, §4.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-8 - Security or investment ineligible for purchase or exchange at more than market value.

58-27-8. Security or investment ineligible for purchase or exchange at more than market value.
No security or investment shall be eligible for purchase or exchange at a price above its market value.
Source:
SL 1966, ch 111, ch 6, §3 (2).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-9 - Obligations of United States or Canada.

58-27-9. Obligations of United States or Canada.
An insurer may invest in bonds, notes, warrants, and other evidences of indebtedness which are direct obligations of the United States of America or of Canada or for which the full faith and credit of the United States of America or of Canada is pledged for the payment of principal and interest.
Source:
SL 1966, ch 111, ch 6, §6.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-10 - Loans guaranteed by United States or Canada.

58-27-10. Loans guaranteed by United States or Canada.
An insurer may invest in loans guaranteed as to principal and interest by the United States of America or Canada, or by any agency or instrumentality of the United States or Canada.
Source:
SL 1966, ch 111, ch 6, §7.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-11 - Obligations of states, provinces, and political subdivisions.

58-27-11. Obligations of states, provinces, and political subdivisions.
An insurer may invest any of its funds in bonds, warrants, or other evidences of indebtedness which are general obligations of, or are secured by pledge of specific revenues by, this state or of any other state of the United States or province of Canada or of any of the political subdivisions or other taxing districts of such states or provinces.
Source:
SL 1966, ch 111, ch 6, §8.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-12 - Revenue bonds of states, provinces, and political subdivisions.

58-27-12. Revenue bonds of states, provinces, and political subdivisions.
An insurer may invest in bonds, notes, or evidences of indebtedness of any state of the United States or province of Canada, or any political subdivision thereof or any agency or instrumentality of any of the foregoing, which are payable from revenues or earnings specifically pledged for the payment of the principal and interest on such obligations, and for the payment of which a lawful debt service fund or reserve fund has been established and is being maintained.
Source:
SL 1966, ch 111, ch 6, §9.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-12.1 - Maximum investments in bonds, warrants, and evidence of indebtedness.

58-27-12.1. Maximum investments in bonds, warrants, and evidence of indebtedness.
An insurer may invest up to twenty percent of its admitted assets in any bonds, warrants, or evidence of indebtedness described in §§58-27-11 and 58-27-12 and not rated pursuant to §58-27-108. The valuation of such investments shall be the amortized cost of the investments or the market value of the investments, whichever is less.
Source:
SL 2004, ch 309, §1.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-13 - Obligations or stock of federal agencies.

58-27-13. Obligations or stock of federal agencies.
An insurer may invest in the obligations, or stock thereof where stated, of the following agencies of the government of the United States of America, whether or not such obligations are guaranteed by such government:
(1)Commodity credit corporation;
(2)Federal intermediate credit banks;
(3)Federal land banks;
(4)Banks for cooperatives;
(5)Federal home loan banks, and stock thereof;
(6)Federal national mortgage association, and stock thereof when acquired in connection with sale of mortgage loans to such association; and
(7)Any other similar agency of the government of the United States of America and of similar financial quality.
Source:
SL 1966, ch 111, ch 6, §10; SL 1979, ch 37, §7.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-14 - Certificates of deposit in federally insured banks.

58-27-14. Certificates of deposit in federally insured banks.
An insurer may invest in certificates of deposit in any bank that is a member of the federal deposit insurance corporation.
Source:
SL 1966, ch 111, ch 6, §18; SL 1971, ch 265, §1; SL 1974, ch 316.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-15 - Federally insured savings and loan accounts.

58-27-15. Federally insured savings and loan accounts.
To the extent that such an account is insured by the Savings Association Insurance Fund (SAIF), or any successor organizations, an insurer may invest in share or savings accounts of savings and loan and building and loan associations.
Source:
SL 1966, ch 111, ch 6, §21; SL 1971, ch 265, §2; SL 1982, ch 364; SL 1997, ch 294, §5.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-15.1 - Credit Union accounts.

58-27-15.1. Credit Union accounts.
To the extent that such an account is insured by the National Credit Union Share Insurance Fund (NCUSIF), or any successor organizations, an insurer may invest in member accounts of federal or state-chartered credit unions.
Source:
SL 1997, ch 294, §6.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-16 - Obligations of international bank and certain development banks for reconstruction and development.

58-27-16. Obligations of international bank and certain development banks for reconstruction and development.
An insurer may invest in obligations issued, assumed, or guaranteed by the International Bank for Reconstruction and Development, by the African Development Bank, or other development banks as approved by and reflected in the securities valuation manual of the National Association of Insurance Commissioners.
Source:
SL 1966, ch 111, ch 6, §11; SL 1989, ch 435.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-17 - Investments authorized for insurers.

58-27-17. Investments authorized for insurers.
An insurer may invest in:
(1)Bonds, debentures, notes, and other evidences of indebtedness, or participations thereon, issued, assumed, or guaranteed by any solvent institution existing under the laws of the United States of America or Canada, or any state or province thereof, and which bear or accrue interest at a fixed or floating rate;
(2)Secured and unsecured obligations of institutions described in subdivision (1) of this section, bearing or accruing interest at a fixed or floating rate, with mandatory principal and interest due at specified times;
(3)Adjustment, income, or other contingent interest obligations of institutions described in subdivision (1) of this section;
(4)Securities of any (a) open-end or closed-end management type investment company or investment trust fund registered under the Investment Company Act of 1940, as adopted by the director pursuant to rules promulgated pursuant to chapter 1-26, or (b) issuer meeting the requirements of Section 3(c)(1) of the Investment Company Act of 1940, as adopted by the director pursuant to rules promulgated pursuant to chapter 1-26; and
(5)Preferred shares of any solvent institution existing under the laws of the United States of America or Canada, or of any state or province thereof.
If an insurer has an investment in violation of this section, it shall divest itself of the investment pursuant to §58-27-74.
Source:
SL 1966, ch 111, ch 6, §12 (1); SL 1992, ch 350, §13; SL 1994, ch 384, §2; SL 1997, ch 294, §7.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-23 - Nonassessable common stock of corporation--Insurance stocks excepted.

58-27-23. Nonassessable common stock of corporation--Insurance stocks excepted.
An insurer may invest in nonassessable common shares, trust certificates, or other equity interests, excluding preferred shares, insurance stocks, or acquisitions subject to subdivision 58-27-17(5) or §58-27-111, of any solvent institution existing under the laws of the United States of America or Canada, or any state or province thereof.
Source:
SL 1966, ch 111, ch 6, §14; SL 1997, ch 294, §8.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-24 - Stock of solvent insurers meeting requirements.

58-27-24. Stock of solvent insurers meeting requirements.
An insurer may invest in the stocks of other solvent insurers formed under the laws of this or another state, which stocks meet the applicable requirements of subdivision 58-27-17(5) and §58-27-23.
Source:
SL 1966, ch 111, ch 6, §15 (1); SL 1992, ch 350, §19.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-25 - Insurer acquiring controlling interest in another stock insurer--Limitation as to amount.

58-27-25. Insurer acquiring controlling interest in another stock insurer--Limitation as to amount.
An insurer may acquire and hold the controlling interest in the outstanding voting stock of another stock insurer formed under the laws of this or another state. All stocks under this section shall be subject to the limitation as to amount as provided in §58-27-27.
Source:
SL 1966, ch 111, ch 6, §15 (2).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-26 - Investments in stock of majority owned subsidiary corporations.

58-27-26. Investments in stock of majority owned subsidiary corporations.
With the consent of the director of the Division of Insurance, an insurer may invest in the stock of its majority owned subsidiary insurance corporation; or in the stock of any other majority owned corporation.
Source:
SL 1966, ch 111, ch 6, §16; SL 1969, ch 130; SL 1983, ch 376, §3.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-27 - Maximum amount of investments in stock of majority owned subsidiary, or another insurer or wholly owned subsidiary.

58-27-27. Maximum amount of investments in stock of majority owned subsidiary, or another insurer or wholly owned subsidiary.
The insurer's investments in the stock of its majority owned subsidiary insurance corporation under §58-27-26, together with its investments in insurance stocks under §58-27-25, may not at any time exceed the amount of the investing insurer's surplus, if a life insurer, or its surplus to policyholders if other than a life insurer. Any investment in a noninsurance majority owned corporation under §58-27-26 is subject to the limitations under §58-5A-73.
Source:
SL 1966, ch 111, ch 6, §16; SL 1969, ch 130; SL 1994, ch 385.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-28 - Equipment trust obligations or certificates.

58-27-28. Equipment trust obligations or certificates.
An insurer may invest in equipment trust obligations or certificates adequately secured and evidencing an interest in transportation equipment, wholly or in part within the United States of America, which obligations or certificates carry the right to receive determined portions of rental, purchase, or other fixed obligatory payments to be made for the use or purchase of such transportation equipment.
Source:
SL 1966, ch 111, ch 6, §12 (5).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-29 - Foreign securities--Insurer authorized to do business in foreign country--Limitation as to amount.

58-27-29. Foreign securities--Insurer authorized to do business in foreign country--Limitation as to amount.
An insurer authorized to transact insurance in a foreign country may make investments, in aggregate amount not exceeding its deposit and obligations incurred in such country, in securities of or in such country possessing characteristics and of a quality similar to like investments required pursuant to this chapter for investments in the United States of America. Canadian securities eligible for investment under other provisions of this chapter are not subject to this section.
Source:
SL 1966, ch 111, ch 6, §22.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-30 - Collateral loans--Pledge of securities--Restricted amount.

58-27-30. Collateral loans--Pledge of securities--Restricted amount.
An insurer may lend and thereby invest its funds upon the pledge of securities eligible for investment under this chapter. As of the date made, no such loan shall exceed in amount seventy-five percent of the market value of such collateral pledged. The amount so loaned shall be included pro rata in determining the maximum percentage of funds permitted under this chapter to be invested in the respective categories of securities so pledged.
Source:
SL 1966, ch 111, ch 6, §20.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-31 - Policy loans by life insurer--Maximum amount.

58-27-31. Policy loans by life insurer--Maximum amount.
A life insurer may lend to its policyholder upon pledge of the policy as collateral security, any sum not exceeding the cash surrender value of the policy; or may lend against pledge or assignment of any of its supplementary contracts or other contracts or obligations, so long as the loan is adequately secured by such pledge or assignment.
Source:
SL 1966, ch 111, ch 6, §19.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-32 - Real estate mortgages and deeds of trust.

58-27-32. Real estate mortgages and deeds of trust.
An insurer may invest any of its funds in bonds, notes, or other evidences of indebtedness which are secured by first mortgages or deeds of trust on improved unencumbered real property located in the United States.
Source:
SL 1966, ch 111, ch 6, §24 (1).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-33 - Improved real property defined.

58-27-33. Improved real property defined.
For the purposes of §58-27-32, "improved real property" shall constitute only farm lands used for tillage, crop or pasture, and real estate on which permanent improvements, or improvements under construction or in process of construction, suitable for residence, institutional, commercial, or industrial use, are situated.
Source:
SL 1966, ch 111, ch 6, §27.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-34 - Interests and restrictions not constituting encumbrances upon improved real property.

58-27-34. Interests and restrictions not constituting encumbrances upon improved real property.
Real property shall not be deemed to be encumbered within the meaning of §58-27-32 by reason of the existence of instruments reserving mineral, oil, timber, or similar rights, rights-of-way, sewer rights, rights in walls, nor by reason of any liens for taxes or assessments not yet due, or on account of liens not delinquent for community recreational facilities, or for the maintenance of community facilities, nor by reason of building restrictions or other restrictive covenants common to the community in which the property is located, nor by liens for service and maintenance of water rights where not delinquent, nor when such real property is subject to lease under which rents or profits are reserved to the owner if in any event the security for the loan or investment is a first lien upon the real property.
Source:
SL 1966, ch 111, ch 6, §28 (1).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-36 - Bonds or notes secured by mortgage or trust deed guaranteed by federal housing administration.

58-27-36. Bonds or notes secured by mortgage or trust deed guaranteed by federal housing administration.
An insurer may invest any of its funds in bonds or notes secured by mortgage or trust deed guaranteed or insured by the federal housing administration under the terms of an act of Congress of the United States of June 27, 1934, entitled the "National Housing Act," as amended.
Source:
SL 1966, ch 111, ch 6, §24 (4).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-37 - Bonds or notes secured by mortgage or trust deed guaranteed by administrator of veterans' affairs.

58-27-37. Bonds or notes secured by mortgage or trust deed guaranteed by administrator of veterans' affairs.
An insurer may invest any of its funds in bonds or notes secured by mortgage or trust deed guaranteed or insured as to principal in whole or in part by the administrator of veterans' affairs pursuant to the provisions of title III of an act of Congress of the United States of June 22, 1944, entitled the "Servicemen's Readjustment Act of 1944," as amended.
Source:
SL 1966, ch 111, ch 6, §24 (5).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-38 - Equity of seller of real property in contract for deed--Maximum amount of investment.

58-27-38. Equity of seller of real property in contract for deed--Maximum amount of investment.
An insurer may invest any of its funds in the equity of the seller of real property in a contract for deed, covering the entire balance due on a bona fide sale of such property, in amount not to exceed ten thousand dollars or the amount permissible under §§58-27-52 to 58-27-60, inclusive, whichever is greater, in any one such contract for deed; nor in any amount in excess of the following percentages of the actual sale price or fair value of the property, whichever is the smaller:
(1)If a dwelling primarily designed for single-family occupancy and occupied by the purchaser under such contract, seventy-five percent.
(2)In all other cases, seventy-five percent.
Source:
SL 1966, ch 111, ch 6, §24 (2).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-39 - Evidences of debt secured by mortgage or trust deed upon leasehold estates--Eligibility for investment.

58-27-39. Evidences of debt secured by mortgage or trust deed upon leasehold estates--Eligibility for investment.
An insurer may invest any of its funds in evidences of debt secured by first mortgages or deeds of trust upon leasehold estates, running for a term of not less than fifteen years beyond the maturity of the loan as made or as extended, in improved real property, otherwise unencumbered, and if the mortgagee is entitled to be subrogated to all the rights under the leasehold.
Source:
SL 1966, ch 111, ch 6, §24 (6).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-40 - Purchase money mortgage or other securities received by insurer upon sale or exchange of real property.

58-27-40. Purchase money mortgage or other securities received by insurer upon sale or exchange of real property.
An insurer may invest any of its funds in purchase money mortgages or like securities received by it upon the sale or exchange of real property acquired pursuant to §58-27-50.
Source:
SL 1966, ch 111, ch 6, §24 (3).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-41 - Maximum loan on security of real property--Misdemeanor.

58-27-41. Maximum loan on security of real property--Misdemeanor.
An insurer shall not make or acquire a loan or loans upon the security of any one parcel of real property in aggregate amount in excess of ten thousand dollars or more than the amount permissible under §58-27-53, whichever is the greater. Violation of this section is a Class 2 misdemeanor.
Source:
SL 1966, ch 111, ch 6, §26 (2); SL 1978, ch 359, §2.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-42 - Real property mortgage loan limited by property value--Loan on leasehold--Additional investment in other assets.

58-27-42. Real property mortgage loan limited by property value--Loan on leasehold--Additional investment in other assets.
No mortgage loan or investment in a mortgage loan upon any one parcel of real property may exceed in amount at the time of acquisition:
(1)Seventy-five percent of the fair value of the property if the property is a dwelling house primarily intended for occupancy by one family and the loan is required to be amortized within not more than thirty years by payment of installments on the loan at regular intervals not less frequent than annually; or
(2)Seventy-five percent of the fair value of the property in all other cases. However, the percentage may be up to one hundred percent if the loan is made to a corporation which qualifies under subdivision 58-27-17(2) for investment in its bonds, notes, or other evidences of indebtedness, or if the borrower assigns to the lender a noncancellable lease or leases on the real estate providing rentals payable to the borrower in amount sufficient to repay the loan with interest in the manner specified by the note or notes evidencing the loan and executed as lessee or lessees by a corporation or corporations, which qualified under subdivision 58-27-17(2) for investment in its or their bonds, notes, or other evidences of indebtedness and in each case the obligations of the borrower or of the lessee or lessees shall be rated in the three highest grades by any one of the recognized rating agencies or whose securities, if publicly issued, would qualify for a rating. The director shall define "noncancellable lease" and "recognized rating agencies" by regulation. No mortgage loan upon a leasehold may be made or acquired pursuant to this subdivision unless the terms of the mortgage loan shall provide for amortization payments to be made by the borrower on the principal thereof at least once in each year in amount sufficient to completely amortize the loan within four-fifths of the term of the leasehold which is unexpired at the time the loan is made, but in no event exceeding thirty years.
(3)An additional ten percent of the fair value of the property in excess of the limitation imposed by subdivisions (1) and (2) of this section, but not to exceed one hundred percent in all, if the excess is treated as an investment under §58-27-51 and within the limitations imposed by the section.
An insurer's investments authorized under this section may not exceed twenty five percent of its admitted assets.
Source:
SL 1966, ch 111, ch 6, §25 (1); SL 1967, ch 130; SL 1972, ch 265; SL 1992, ch 350, §20; SL 1995, ch 285, §1.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-43 - Deduction from loan of amount guaranteed by administrator of veterans' affairs.

58-27-43. Deduction from loan of amount guaranteed by administrator of veterans' affairs.
The extent to which a mortgage loan made under §58-27-36 or 58-27-37 is guaranteed by the administrator of veterans' affairs may be deducted before application of the limitations contained in §58-27-42. The provisions of §58-27-42 shall not apply to the bonds or notes described in §58-27-36.
Source:
SL 1966, ch 111, ch 6, §25 (2).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-44 - Appraisal to determine market value of property.

58-27-44. Appraisal to determine market value of property.
The fair value of property shall be determined by appraisal by a competent appraiser at the time of the making or acquisition of a mortgage loan or investing in a contract for the deed thereon; except, that as to bonds or notes secured by mortgage or trust deed guaranteed or insured by the federal housing administration, or guaranteed or insured as to principal in full or in part by the administrator of veterans' affairs, or guaranteed or insured by the farmers home administration, the valuation made by such administration or administrator shall be deemed to have been made by a competent appraiser for the purposes of this section.
Source:
SL 1966, ch 111, ch 6, §26 (1).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-45 - Loan on or investment in real estate mortgage on security of chattel mortgage--Limited amount.

58-27-45. Loan on or investment in real estate mortgage on security of chattel mortgage--Limited amount.
In connection with a mortgage loan on the security of real estate designed and used primarily for residential purposes only, which mortgage loan was acquired pursuant to §§58-27-32 to 58-27-40, inclusive, an insurer may lend or invest an amount not exceeding twenty percent of the amount loaned on or invested in such real estate mortgage on the security of a chattel mortgage to be amortized by regular periodic payments within a term of not more than five years, and representing a first and prior lien, except for taxes not then delinquent, on personal property constituting durable equipment owned by the mortgagor and kept and used in the mortgaged premises.
Source:
SL 1966, ch 111, ch 6, §29 (1).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-46 - "Durable equipment" defined.

58-27-46."Durable equipment" defined.
For the purposes of §58-27-45, the term "durable equipment" shall include only mechanical refrigerators, air conditioning equipment, mechanical laundering machines, heating and cooking stoves and ranges, and, in addition, in the case of apartment houses, motels and hotels, room furniture and furnishings.
Source:
SL 1966, ch 111, ch 6, §29 (2).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-47 - Acquisition of chattel mortgage--Separate appraisal of included items to determine fair market value--Maximum amount of loan.

58-27-47. Acquisition of chattel mortgage--Separate appraisal of included items to determine fair market value--Maximum amount of loan.
Prior to the acquisition of a chattel mortgage under §58-27-45, items of property to be included therein shall be separately appraised by a qualified appraiser and the fair market value thereof determined. No such chattel mortgage loan shall exceed in amount the same ratio of loan to the value of the property as is applicable to the companion loan on the real property.
Source:
SL 1966, ch 111, ch 6, §29 (3).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-48 - Liens on personal property as additional security permitted.

58-27-48. Liens on personal property as additional security permitted.
Sections 58-27-45 to 58-27-47, inclusive, shall not prohibit an insurer from taking liens on personal property as additional security for any investment otherwise eligible under this chapter.
Source:
SL 1966, ch 111, ch 6, §29 (4).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-49 - Sale of mortgage loans to federal national mortgage association.

58-27-49. Sale of mortgage loans to federal national mortgage association.
Notwithstanding any other provision of law, any institution, including an insurance company or other insuring organization, organized under the laws of this state, which has as one of its principal purposes the making or purchasing of loans secured by real estate mortgages, is authorized to sell such mortgage loans to the federal National Mortgage Association, a corporation chartered by an act of Congress, or any successor thereof, and in connection therewith to make payments of any capital contributions, required pursuant to law, in the nature of subscriptions for stock of the federal National Mortgage Association or any successor thereof, to receive stock evidencing such capital contributions, and to hold or dispose of such stock.
Source:
SL 1955, ch 231; SDC Supp 1960, §39.0309.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-50 - Restrictions on purposes and amount of real estate investments.

58-27-50. Restrictions on purposes and amount of real estate investments.
An insurer may invest in real estate only if used for the purposes or acquired in the manners and within the limits as follows:
(1)The land and the building thereon in which it has its principal office and such other real estate including regional home offices as shall be requisite for its convenient accommodation in the transaction of its business. Except with the consent of the director of the Division of Insurance, all such investments may not aggregate more than fifteen percent of the insurer's admitted assets;
(2)Real estate acquired in satisfaction of loans, mortgages, liens, judgments, decrees, or debts previously owing to the insurer in the course of its business;
(3)Real estate acquired in part payment of the consideration on the sale of other real estate owned by it, if such transaction does not increase the insurer's investment in real estate;
(4)Real estate acquired by gift or devise, or through merger, consolidation, or bulk reinsurance of another insurer under this title;
(5)The seller's interest in real property subject to an agreement of purchase or sale, but the sum invested in any such parcel of real estate may not exceed three-fourths of the market value of such parcel;
(6)Real estate, or any interest therein acquired or held by purchase, lease, or otherwise, other than real estate to be used primarily for agricultural, ranch, mining, development of oil or mineral resources, recreational, amusement, or club purposes, acquired as an investment for the production of income, or acquired to be improved or developed for investment purposes pursuant to an existing program therefor. The insurer may hold, improve, develop, maintain, manage, lease, sell, and convey real estate acquired by it under this section. No insurer may have at any one time invested in real estate under this subdivision an amount exceeding fifteen percent of its admitted assets, nor in any single parcel of real estate under this subdivision, an amount in excess of five percent of its admitted assets; or
(7)Additional real estate and equipment incident to real estate, if necessary or convenient for the purpose of enhancing the sale or other value of real estate previously acquired or held by the insurer under subdivision (2), (3), (4), or (6). Such real estate and equipment shall be included, together with the real estate for the enhancement of which it was acquired, for the purpose of applicable investment limits, and shall be subject to disposal at the same time and under the same conditions as applying to such enhanced real estate under §§58-27-70 to 58-27-72, inclusive.
Except with the director's consent, all real estate owned by the insurer under this section, except a seller's interest specified in subdivision (5) may not at any one time exceed twenty percent of the insurer's admitted assets.
Source:
SL 1966, ch 111, ch 6, §30; SL 1983, ch 376, §4; SL 1997, ch 294, §9.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-51 - Maximum investments in other assets--Exceptions.

58-27-51. Maximum investments in other assets--Exceptions.
Notwithstanding the aggregate limitations set forth in chapter 58-27, an insurer may exceed such limitations if it does not invest, in the aggregate, an amount in excess of fifty percent of its capital and surplus in excess of four hundred thousand dollars, if such investment otherwise complies with chapter 58-27. The provisions of this section do not apply to the exceptions set forth in §58-27-53 or 58-27-57.
Source:
SL 1966, ch 111, ch 6, §23; SL 1974, ch 317; SL 1983, ch 376, §5; SL 1985, ch 390; SL 1997, ch 294, §10; SL 2000, ch 245, §2; SL 2001, ch 284, §2.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-51.1 - Additional investment authority--Life and health insurers.

58-27-51.1. Additional investment authority--Life and health insurers.
In addition to the authority provided under §58-27-51, an insurer authorized to write life or health insurance, or both, may invest a percentage of the amount by which the insurer's total adjusted capital equals or exceeds two hundred percent of its company action level risk-based capital in investments of any kind, in the discretion of the insurer, without regard to any condition of, restriction in, or exclusion prescribed in chapter 58-27, and regardless of whether the same or a similar type of investment has been included in, or omitted from, any such section, subject to an aggregate limitation equal to the greatest of:
(1)Fifty percent of the excess of total adjusted capital over the risk-based capital threshold if the insurer has total adjusted capital that equals or exceeds two hundred percent of its company action level risk-based capital;
(2)Seventy-five percent of the excess of total adjusted capital over the risk-based capital threshold if the insurer has total adjusted capital that equals or exceeds two hundred twenty-five percent of its company action level risk-based capital; or
(3)One hundred percent of the excess of total adjusted capital over the risk-based capital threshold if the insurer has total adjusted capital that equals or exceeds two hundred fifty percent of its company action level risk-based capital.
For the purpose of this section, risk-based capital threshold means two hundred percent of an insurer's company action level risk-based capital. The director shall promulgate rules pursuant to chapter 1-26 to define company action level risk-based capital and total adjusted capital.
Source:
SL 1997, ch 294, §11.