reglab/statecodes huggingface dataset:
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-41 - Confidentiality of information in possession or control of Division--Use in regulatory or legal action--Grounds for publication by director.

58-5A-41. Confidentiality of information in possession or control of Division--Use in regulatory or legal action--Grounds for publication by director.
Documents, materials, or other information including filings in the possession or control of the Division of Insurance that are obtained by or disclosed to the director or any other person in the course of an examination or investigation made pursuant to this chapter and all information reported pursuant to this chapter shall be confidential by law and privileged, are not subject to open records, freedom of information, sunshine, or other related laws, are not subject to subpoena, and are not subject to discovery or admissible in evidence in any private civil action. However, the director is authorized to use the documents, materials, or other information in the furtherance of any regulatory or legal action brought as a part of the director's official duties. The director may not otherwise make the documents, materials, or other information public without the prior written consent of the insurer to which it pertains unless the director, after giving the insurer and its affiliates who would be affected thereby notice and opportunity to be heard, determines that the interest of policyholders, shareholders, or the public will be served by the publication thereof, in which event the director may publish all or any part in such manner as may be deemed appropriate.
Source:
SL 1972, ch 267, §35; SL 2015, ch 246, §27.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-41.1 - Testimony in private civil action concerning confidential information prohibited.

58-5A-41.1. Testimony in private civil action concerning confidential information prohibited.
Neither the director nor any person who receives documents, materials, or other information while acting under the authority of the director or with whom the documents, materials, or other information are shared pursuant to the provisions of §58-5A-41 is permitted or required to testify in any private civil action concerning any confidential documents, materials, or information subject to the provisions of §58-5A-41.
Source:
SL 2015, ch 246, §15.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-41.2 - Certain sharing of confidential information permitted.

58-5A-41.2. Certain sharing of confidential information permitted.
To assist in the performance of the duties assigned to the director pursuant to the provisions of this chapter:
(1)The director may, upon request, share documents, materials, or other information, including the confidential and privileged documents, materials, or information disclosed pursuant to this chapter with a state, federal, and international regulatory agency, the NAIC and its affiliates and subsidiaries, and a state, federal, and international law enforcement authority, including a member of any supervisory college described in §§58-5A-78 to 58-5A-80, inclusive, if the recipient agrees in writing to maintain the confidentiality and privileged status of the document, material, or other information, and verifies in writing the legal authority to maintain confidentiality;
(2)Notwithstanding the provisions of subdivision (1), the director may only share confidential and privileged documents, or information reported pursuant to §58-5A-29.1, with a director of a state that has laws substantially similar to the provisions of §58-5A-41, and who agrees in writing not to disclose such information; and
(3)May receive documents, materials, or information, including otherwise confidential and privileged documents, materials, or information from the NAIC and its affiliates and subsidiaries and from regulatory and law enforcement officials of other foreign or domestic jurisdictions, and shall maintain as confidential or privileged any document, material, or information received with notice or the understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the document, material, or information.
The sharing of information by the director pursuant to this chapter does not constitute a delegation of regulatory authority or rule-making authority, and the director is solely responsible for the administration, execution, and enforcement of the provisions of this chapter.
Source:
SL 2015, ch 246, §16.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-41.3 - Agreements regarding sharing of confidential information.

58-5A-41.3. Agreements regarding sharing of confidential information.
The director shall enter into written agreements with the NAIC governing the sharing and use of information provided pursuant to this chapter that:
(1)Specify procedures and protocols regarding the confidentiality and security of information shared with the NAIC and its affiliates and subsidiaries pursuant to this chapter, including procedures and protocols for sharing by the NAIC with any other state, federal, or international regulator;
(2)Specify that ownership of information shared with the NAIC and its affiliates and subsidiaries pursuant to this chapter remains with the director and that the NAIC use of the information is subject to the direction of the director;
(3)Require prompt notice to be given to an insurer whose confidential information is in the possession of the NAIC pursuant to this chapter and is subject to a request or subpoena issued to the NAIC for disclosure or production; and
(4)Require the NAIC and its affiliates and subsidiaries to consent to intervention by an insurer in any judicial or administrative action in which the NAIC and its affiliates and subsidiaries may be required to disclose confidential information about the insurer shared with the NAIC and its affiliates and subsidiaries pursuant to this chapter.
Source:
SL 2015, ch 246, §17.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-41.4 - Information in possession or control of NAIC confidential.

58-5A-41.4. Information in possession or control of NAIC confidential.
Any document, material, or other information in the possession or control of the NAIC, shared pursuant to this chapter, is confidential by law and privileged, is not subject to subpoena, open records laws, and is not subject to discovery or admissible as evidence in any private civil action.
Source:
SL 2015, ch 246, §25.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-41.5 - Confidentiality not waived by disclosure of information.

58-5A-41.5. Confidentiality not waived by disclosure of information.
No waiver of any applicable privilege or claim of confidentiality in the documents, materials, or information may occur as a result of disclosure to the director pursuant to this chapter or as a result of sharing as authorized pursuant to this chapter.
Source:
SL 2015, ch 246, §28.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-43 - Acquisition of subsidiaries--Limitations.

58-5A-43. Acquisition of subsidiaries--Limitations.
Any domestic insurer, either by itself or in cooperation with one or more persons, may organize or acquire one or more subsidiaries with the approval of the director and within those acquisitions allowed by this title as long as the aggregate investment by the insurer and its subsidiaries acquired or organized do not exceed the limitations applicable to the investment.
Source:
SL 1992, ch 341, §2.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-44 - Disposition of investment in subsidiary upon cessation of control--Waiver.

58-5A-44. Disposition of investment in subsidiary upon cessation of control--Waiver.
If an insurer ceases to control a subsidiary, it shall dispose of the investment in the subsidiary within three years from the time of the cessation of control or within further time as the director may prescribe upon written request by the insurer. If the investment qualifies for investment under any other section of this chapter, and the insurer has notified the director in writing of that qualification, the disposition requirement may be waived by the director.
Source:
SL 1992, ch 341, §3.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-45 - Pre-acquisition notification--"Person" defined.

58-5A-45. Pre-acquisition notification--Person defined.
Any person acquiring assets pursuant to §58-5A-3 shall file a pre-acquisition notification with the director containing the information set forth in §58-5A-48 thirty days prior to the proposed effective date of the acquisition. Any person failing to file is subject to §58-5A-53. For the purposes of this section, "person" does not include any securities broker holding, in the usual and customary brokers function, less than twenty percent of the voting securities of an insurance company or of any person which controls an insurance company.
Source:
SL 1992, ch 341, §4.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-46 - "Acquisition" and "Involved insurer" defined--Limited application.

58-5A-46. Acquisition and involved insurer defined.
The following definitions shall only apply to §§58-5A-47 to 58-5A-53, inclusive:
(1)"Acquisition," any agreement, arrangement, or activity the consummation of which results in a person acquiring directly or indirectly the control of another person, and includes the acquisition of voting securities, assets, bulk reinsurance, and mergers; and
(2)"Involved insurer," an insurer which either acquires or is acquired, is affiliated with an acquirer or acquired or is the result of a merger.
Source:
SL 1992, ch 341, §8.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-47 - Application of §§ 58-5A-46 to 58-5A-53--Exceptions.

58-5A-47. Application of §§58-5A-46 to 58-5A-53--Exceptions.
The provisions of §§58-5A-46 to 58-5A-53, inclusive, apply to any acquisition in which there is a change in control of an insurer authorized to do business in this state except the following:
(1)A purchase of securities solely for investment purposes as long as the securities are not used by voting or otherwise to lessen the competition in any insurance market in this state to the detriment of policyholders or consumers. If a purchase of securities results in a presumption of control pursuant to subdivision 58-5A-1(2), it is not solely for investment purposes unless the director or commissioner of the insurer's state of domicile accepts a disclaimer of control or affirmatively finds that control does not exist and the disclaimer or affirmative finding is communicated by the domiciliary director or commissioner to the director of this state;
(2)The acquisition of any person by another person if both persons are neither directly nor through affiliates primarily engaged in the business of insurance, if pre-acquisition notification is filed with the director in accordance with the provisions of §58-5A-48 thirty days prior to the proposed effective date of the acquisition. Pre-acquisition notification is not required for exclusion from this subdivision if the acquisition would otherwise be excluded from this subdivision by any other subdivision of this section;
(3)The acquisition of already affiliated persons;
(4)An acquisition if, as an immediate result of the acquisition,
(a)In no market would the combined market share of the involved insurers exceed five percent of the total market;
(b)There would be no increase in any market share; or
(c)In no market would the combined market share of the involved insurers exceed twelve percent of the total market, and the market share increase by more than two percent of the total market.
For the purpose of this subdivision, a market means direct written insurance premium in this state for a line of business as contained in the annual statement required to be filed by insurers licensed to do business in this state;
(5)An acquisition for which a pre-acquisition notification would be required pursuant to this section due solely to the resulting effect on the ocean marine insurance line of business; and
(6)An acquisition of an insurer whose domiciliary director or commissioner affirmatively finds that the insurer is in failing condition; there is a lack of feasible alternatives to improving the condition; the public benefits of improving the insurer's condition through the acquisition exceed the public benefits that would arise from not lessening competition; and the findings are communicated by the domiciliary director or commissioner to the director of this state.
Source:
SL 1992, ch 341, §9; SL 2015, ch 246, §23.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-48 - Pre-acquisition notification--Contents--Waiting period.

58-5A-48. Pre-acquisition notification--Contents--Waiting period.
An acquisition covered pursuant to the provisions of §58-5A-47 may be subject to an order pursuant to §58-5A-69 unless the acquiring or acquired person files a pre-acquisition notification and the waiting period has expired. The director shall give confidential treatment to information submitted under this section in the same manner as provided in §58-5A-41.
The notification shall be as follows:
(1)The pre-acquisition notification of this chapter shall be in a form and contain information as prescribed by the National Association of Insurance Commissioners relating to those markets which, under subdivision 58-5A-47(4), cause the acquisition not to be exempted from the provisions of this section. The director may require additional material and information to determine whether the proposed acquisition, if consummated, would violate the competitive standard of §§58-5A-49 and 58-5A-50. The required information may include an opinion of an economist as to the competitive impact of the acquisition in this state accompanied by a summary of the education and experience of the person indicating his ability to render an informed opinion;
(2)The waiting period required shall begin on the date of receipt of the director of a pre-acquisition notification and shall end on the earlier of the thirtieth day after the date of the receipt, or termination of the waiting period by the director. Prior to the end of the waiting period, the director on a one-time basis may require the submission of additional needed information relevant to the proposed acquisition, in which event the waiting period shall end on the earlier of the thirtieth day after receipt of the additional information by the director or termination of the waiting period by the director.
Source:
SL 1992, ch 341, §10; SL 2015, ch 246, §24.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-49 - Action by director when acquisition lessens competition--Promulgation of rules establishing competitive standards.

58-5A-49. Action by director when acquisition lessens competition--Promulgation of rules establishing competitive standards.
The director may enter an order under §58-5A-67 or 58-5A-69 with respect to an acquisition if there is substantial evidence that the effect of the acquisition lessens competition in any line of insurance in this state to the detriment of consumers or tends to create a monopoly or if the insurer fails to file adequate information in compliance with §58-5A-48. The director may promulgate rules pursuant to chapter 1-26 to establish criteria and factors for competitive standards. The director may disapprove the acquisition or act to prevent the acquisition by invoking the laws of this state.
Source:
SL 1992, ch 341, §11.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-50 - Acquisitions subject to order under § 58-5A-69.

58-5A-50. Acquisitions subject to order under §58-5A-69.
An order may not be entered under §58-5A-69 if:
(1)The acquisition will yield substantial economies of scale or economies in resource utilization that cannot be feasibly achieved in any other way, and the public benefits which would arise from the economies would exceed the public benefits which would arise from not lessening competition; or
(2)The acquisition will substantially increase the availability of insurance, and the public benefits of the increase would exceed the public benefits which would arise from not lessening competition.
Source:
SL 1992, ch 341, §12.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-51 - Plan for limiting anticompetitive impact of acquisition--Time limit.

58-5A-51. Plan for limiting anticompetitive impact of acquisition--Time limit.
An order entered pursuant to §§58-5A-49, 58-5A-50, and 58-5A-69 may not become final earlier than thirty days after it is issued, during which time the insurer may submit a plan or notification of submission of a plan to remedy the anticompetitive impact of the acquisition. The director may allow the insurer up to ninety days to complete the submission of the plan. Based upon the plan or other information, the director shall specify the conditions, if any, under the time period during which the aspects of the acquisition causing a violation of the standards of this section would be remedied and the order vacated or modified.
An order pursuant to this section does not apply if the acquisition is not consummated.
Source:
SL 1992, ch 341, §13.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-52 - Fine, suspension, or revocation for violation of cease and desist order.

58-5A-52. Fine, suspension, or revocation for violation of cease and desist order.
Any person who violates a cease and desist order of the director may, after notice and hearing, be subject to one or more of the following:
(1)An administrative fine of not more than ten thousand dollars for every day of violation; and
(2)Suspension or revocation of the person's license.
Source:
SL 1992, ch 341, §14.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-53 - Failure to comply with filing requirements--Fine.

58-5A-53. Failure to comply with filing requirements--Fine.
Any insurer or other person that fails to make any filing required by §§58-5A-46 to 58-5A-52, inclusive, and that fails to demonstrate a good faith effort to comply with any filing requirement is subject to an administrative fine of not less than two thousand five hundred dollars and not more than fifty thousand dollars.
Source:
SL 1992, ch 341, §15.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-54 - Report of dividends and distributions to shareholders--Time limit.

58-5A-54. Report of dividends and distributions to shareholders--Time limit.
In addition to the filing requirements of §§58-5A-23 and 58-5A-35, each registered insurer shall file with the director a report of all dividends and other distributions to shareholders within fifteen business days following the declaration thereof. However, payment may not be made until ten days after the division receives the report. However, payment of an ordinary dividend may be made on the day that it is declared if an intention to declare the dividend is received by the division ten days before the date of payment. The division shall hold the notice of intention to declare a dividend confidential until the dividend has been declared.
Source:
SL 1992, ch 341, §17; SL 1993, ch 359, §2; SL 1994, ch 373.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-55 - Persons subject to registration to provide complete and accurate information to insurer.

58-5A-55. Persons subject to registration to provide complete and accurate information to insurer.
Any person within an insurance holding company system subject to registration shall be required to provide to an insurer complete and accurate information reasonably necessary to enable the insurer to comply with the provisions of this chapter.
Source:
SL 1992, ch 341, §18.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-56 - Notification to director of certain transactions required.

58-5A-56. Notification to director of certain transactions required.
A domestic insurer and any person in its insurance holding company system may not enter into transactions, including any amendment or modification of an affiliate agreement previously filed pursuant to this chapter, that is subject to any materiality standard provided in this section, unless the director has received a written notification from the insurer of the transaction at least thirty days prior to its effective date. The director has thirty days from receipt to approve or disapprove the transaction. If the director takes no action within the thirty days, the transaction is deemed approved. The director may allow less than thirty days notification if the insurer can show cause why a lesser time is necessary. Transactions of which the insurer needs to notify the director are:
(1)Sales, purchases, exchanges, loans, or extensions of credit, guarantees, or investments provided the transactions are equal to or exceed as of December thirty-first next preceding:
(a)With respect to nonlife insurers, the lesser of three percent of the insurer's admitted assets or twenty-five percent of surplus as regards policyholders; or
(b)With respect to life insurers, three percent of the insurer's admitted assets;
(2)Loans or extensions of credit by the insurer to any person that is not an affiliate, with the agreement or that the proceeds of the transactions, in whole or in substantial part, are to be used to make loans or extensions of credit to, to purchase assets of, or to make investments in any affiliate of the insurer provided the transactions are equal to or exceed as of December thirty-first next preceding:
(a)With respect to nonlife insurers, the lesser of three percent of the insurer's admitted assets or twenty-five percent of surplus as regards policyholders; or
(b)With respect to life insurers, three percent of the insurer's admitted assets;
(3)Reinsurance agreements or modifications to the agreements, including:
(a)Any reinsurance pooling agreement; and
(b)Any agreement in which the reinsurance premium or a change in the insurer's liabilities, or the projected reinsurance premium or a change in the insurer's liabilities in any of the next three years, equal or exceeds five percent of the insurer's surplus as regards policyholders as of December thirty-first next preceding, including any agreement that requires as consideration the transfer of assets from an insurer to a nonaffiliate, if an agreement or understanding exists between the insurer and nonaffiliate that any portion of the assets will be transferred to one or more affiliates of the insurer;
(4)All management agreements, service contracts, tax allocation agreements, and all cost-sharing arrangements; and
(5)Any transactions which the director determines may adversely affect the interests of the insurer's policyholders.
Source:
SL 1992, ch 341, §21; SL 2015, ch 246, §18.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-57 - Transactions entered into to avoid director's review prohibited.

58-5A-57. Transactions entered into to avoid director's review prohibited.
A domestic insurer may not enter into transactions which are part of a plan or series of like transactions with persons within the holding company system if the purpose of those separate transactions is to avoid the statutory amounts in §58-5A-56 and thus the review. If the director determines that transactions were entered into over any twelve-month period to avoid §58-5A-56, the director may exercise his authority under §§58-5A-62 to 58-5A-67, inclusive.
Source:
SL 1992, ch 341, §22.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-58 - Considerations in decision to approve or disapprove transactions.

58-5A-58. Considerations in decision to approve or disapprove transactions.
The director in making the decision to approve or disapprove the transactions in §§58-5A-56 and 58-5A-57 shall consider whether the transactions comply with the standards set forth in §58-5A-32 and whether they may adversely affect the interests of policyholders or of the insurer.
Source:
SL 1992, ch 341, §23.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-59 - Notification to director of certain investments into one corporation.

58-5A-59. Notification to director of certain investments into one corporation.
The director shall be notified within thirty days of any investment of the domestic insurer in any one corporation if the total investment in the corporation by the insurance holding company system exceeds ten percent of the corporation's voting securities.
Source:
SL 1992, ch 341, §24.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-60 - Certain securities not to be voted at shareholder's meeting--Application for injunction.

58-5A-60. Certain securities not to be voted at shareholder's meeting--Application for injunction.
No security, which is the subject of any acquisition, agreement, or arrangement, or which is acquired or to be acquired, in contravention of the provisions of this chapter or order issued by the director, may be voted at any shareholder's meeting, or may be counted for quorum purposes. Any action of shareholders requiring the affirmative vote of a percentage of shares may be taken as though those securities were not issued and outstanding; but no action taken at any meeting may be invalidated by the voting of those securities, unless the action would materially affect control of the insurer or unless the circuit court of Hughes County has so ordered. If an insurer or the director has reason to believe that any security of the insurer has been or is about to be acquired in contravention of the provisions of this chapter, an order issued by the director, the insurer or the director may apply to the circuit court in Hughes County to enjoin any offer, request, invitation, agreement, or acquisition made in contravention of this chapter or order issued by the director, to enjoin the voting of any security so acquired, or to void any vote of a security already cast at any meeting of shareholders.
Source:
SL 1992, ch 341, §27.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-61 - Petition to seize or sequester voting securities acquired in violation of chapter.

58-5A-61. Petition to seize or sequester voting securities acquired in violation of chapter.
An insurer or the director may petition the court in Hughes County for an order to seize or sequester any voting securities of the insurer owned directly or indirectly by a person if that person has acquired or is proposed to acquire any voting securities in violation of this chapter.
Source:
SL 1992, ch 341, §28.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-62 - Violations by officers subject to fine--Determining amount of fine.

58-5A-62. Violations by officers subject to fine--Determining amount of fine.
Every director or officer of an insurance holding company system who knowingly violates, participates in, or assents to, or who knowingly permits any of the officers or agents of the insurer to engage in transactions or make investments which have not been properly reported or submitted pursuant to this chapter shall pay, in their individual capacity, an administrative fine of not more than five thousand dollars per violation. In determining the amount of the fine, the director shall take into account the gravity of the violation, previous violations, and other matters.
Source:
SL 1992, ch 341, §29.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-63 - Transactions or contracts entered into without approval--Cease and desist order by director.

58-5A-63. Transactions or contracts entered into without approval--Cease and desist order by director.
If any insurer subject to this chapter or any director, officer, employee, or agent has engaged in any transaction or entered into a contract which is subject to §§58-5A-32, 58-5A-34, 58-5A-35, 58-5A-56, 58-5A-58, and 58-5A-59 and which would not have been approved had approval been requested, the director may order the insurer to cease and desist immediately any further activity under that transaction or contract. After notice and hearing, the director may also order the insurer to void any contracts and restore the status quo if the action is in the best interest of the policyholders, creditors, or the public.
Source:
SL 1992, ch 341, §30.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-64 - Criminal proceedings for violation committed knowingly--Fine.

58-5A-64. Criminal proceedings for violation committed knowingly--Fine.
If it appears to the director that any insurer or any director, officer, employee, or agent thereof has knowingly committed a violation of this chapter, the director may request of the attorney general that criminal proceedings be instituted in the circuit court of Hughes County.
Any insurer which knowingly violates this chapter may be fined not more than twenty-five thousand dollars per violation. Any individual who knowingly violates this chapter may be fined in his individual capacity not more than two thousand dollars per violation.
Source:
SL 1992, ch 341, §31.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-65 - False statements, reports, or filings as felony.

58-5A-65. False statements, reports, or filings as felony.
Any officer, director, or employee of an insurance holding company system who knowingly subscribes to or makes or causes to be made any false statements or false reports or false filings with the director is guilty of a Class 6 felony.
Source:
SL 1992, ch 341, §32.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-66 - Order for conservation, liquidation, or rehabilitation--Distribution and recovery--Liability.

58-5A-66. Order for conservation, liquidation, or rehabilitation--Distribution and recovery--Liability.
If an order for conservation, liquidation, or rehabilitation of a domestic insurer has been entered, the receiver may recover on behalf of the insurer:
(1)From any parent corporation or holding company or person or affiliate who otherwise controlled the insurer, the amount of distributions (other than distributions of shares of the same class of stock) paid by the insurer on its capital stock; or
(2)Any payment in the form of a bonus, termination settlement, or extraordinary lump sum salary adjustment made by the insurer or its subsidiary to a director, officer, or employee;
where the distribution or payment pursuant to subdivision (1) or (2) of this section is made at any time during the one year preceding the petition for liquidation, conservation or rehabilitation subject to the limitations of this section.
No such distribution is recoverable if the parent or affiliate shows that when paid the distribution was lawful and reasonable and that the insurer did not know and could not reasonably have known that the distribution might adversely affect the ability of the insurer to fulfill its contractual obligations.
Any person that was a parent corporation or holding company or any person that otherwise controlled the insurer or affiliate at the time distributions were paid is liable up to the amount of distributions or payments the person received. Any person that otherwise controlled the insurer at the time the distributions were declared is liable up to the amount of distributions he would have received if they had been paid immediately. If two or more persons are liable with respect to the same distributions, they are jointly and severally liable.
The maximum amount recoverable shall be the amount needed in excess of all other available assets of the impaired or insolvent insurer to pay the contractual obligations of the impaired or insolvent insurer and to reimburse any guaranty funds.
To the extent that any person liable under this section is insolvent or otherwise fails to pay claims due from it, its parent corporation or holding company or person that otherwise controlled it at the time the distribution was paid is jointly and severally liable for any resulting deficiency in the amount recovered from the parent corporation or holding company or person that otherwise controlled it.
Source:
SL 1992, ch 341, §33.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-67 - Suspension, revocation, or refusal to renew license for violation.

58-5A-67. Suspension, revocation, or refusal to renew license for violation.
If any person has committed a violation of this chapter which makes the continued operation of an insurer contrary to the interests of policyholders or the public, the director may, suspend, revoke, or refuse to renew the insurer's license or authority to do business in this state.
Source:
SL 1992, ch 341, §34.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-68 - Stay of director's action upon appeal to circuit court.

58-5A-68. Stay of director's action upon appeal to circuit court.
The filing of an appeal to the circuit court for any administrative act shall stay the application of any rule, order, or other action of the director to the appealing party unless the court, after giving the party notice and an opportunity to be heard, determines that a stay would be detrimental to the interest of policyholders, shareholders, creditors, or the public.
Source:
SL 1992, ch 341, §35.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-69 - Order by director upon violation of standards--Cease and desist--Denial of license.

58-5A-69. Order by director upon violation of standards--Cease and desist--Denial of license.
If an acquisition violates the standards of this chapter, the director may enter an order:
(1)Requiring an involved insurer to cease and desist from doing business in this state with respect to the line or lines of insurance involved in the violation; or
(2)Denying the application of an acquired or acquiring insurer for a license to do business in this state.
Source:
SL 1992, ch 341, §36.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-70 - Promulgation of rules by director.

58-5A-70. Promulgation of rules by director.
The director may promulgate rules pursuant to chapter 1-26 covering requirements, standards, criteria, and limitations on acquisitions, mergers, and divestitures; notification of acquisitions or divestitures and the format for notification; competitive impact and the plans to remedy anticompetitive impact; the registration statement, information needed for compliance with the chapter, and material transactions; loans, extensions of credit; reinsurance agreements; extraordinary dividends; admittance or disallowance of assets and transactions of which the director needs notification; and standards and criteria for determining transactions which may adversely affect policyholders or the insurer.
Source:
SL 1992, ch 341, §37.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-71 - Application of §§ 58-5A-60 and 58-5A-61.

58-5A-71. Application of §§58-5A-60 and 58-5A-61.
Sections 58-5A-60 and 58-5A-61 do not apply to §58-5A-47.
Source:
SL 1992, ch 341, §38.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-72 - Ownership situs of voting securities.

58-5A-72. Ownership situs of voting securities.
For the purposes of this chapter, the situs of the ownership of the voting securities of a domestic insurer in a holding company system shall be construed to be in this state.
Source:
SL 1992, ch 341, §39.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-73 - Additional investments by domestic insurer.

58-5A-73. Additional investments by domestic insurer.
In addition to investments in common stock, preferred stock, debt obligations, and other securities permitted, a domestic insurer under this chapter may also:
(1)Invest, in common stock, preferred stock, debt obligations, and other securities of one or more subsidiaries, amounts which do not exceed the lesser of ten percent of the insurer's assets or fifty percent of the insurer's surplus as regards policyholders, provided that after investing, the insurer's surplus as regards policyholders will be reasonable in relation to the insurer's outstanding liabilities and adequate to its financial needs. In calculating the amount of the investments, investments in domestic or foreign insurance subsidiaries shall be excluded, and there shall be included:
(a)Total net moneys or other consideration expended and obligations assumed in the acquisition or formation of a subsidiary, including all organizational expenses and contributions to capital and surplus of the subsidiary whether or not represented by the purchase of capital stock or issuance of other securities; and
(b)All amounts expended in acquiring additional common stock, preferred stock, debt obligations, and other securities and all contributions to the capital or surplus, of a subsidiary subsequent to its acquisition or formation;
(2)Invest any amount in common stock, preferred stock, debt obligations, and other securities of one or more subsidiaries engaged or organized to engage exclusively in the ownership and management of assets authorized as investments for the insurer provided that each subsidiary agrees to limit its investments in any asset so that the investments will not cause the amount of the total investment of the insurer to exceed any of the investment limitations specified. For the purpose of this clause, the term, the total investment of the insurer, includes:
(a)Any direct investment by the insurer in an asset; and
(b)The insurer's proportionate share of any investment in an asset by any subsidiary of the insurer, which shall be calculated by multiplying the amount of the subsidiary's investment by the percentage of the ownership of the subsidiary;
(3)With the approval of the director, invest any greater amount in common stock, preferred stock, debt obligations, or other securities of one or more subsidiaries, provided that after the investment the insurer's surplus as regards policyholders will be reasonable in relation to the insurer's outstanding liabilities and adequate to its financial needs.
Source:
SL 1992, ch 341, §40.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-74 - Determining whether investments meet applicable requirements.

58-5A-74. Determining whether investments meet applicable requirements.
Whether any investment pursuant to §58-5A-73 meets the applicable requirements of that section is to be determined before the investment is made, by calculating the applicable investment limitations as though the investment had already been made, taking into account the then outstanding principal balance on all previous investments in debt obligations, and the value of all previous investments in equity securities as of the day they were made, net of any return of capital invested, not including dividends.
Source:
SL 1992, ch 341, §25.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-75 - Investments subject to chapter 58-27.

58-5A-75. Investments subject to chapter 58-27.
Investments in common stock, preferred stock, debt obligations, or other securities of subsidiaries made pursuant to §58-5A-73 are subject to chapter 58-27.
Source:
SL 1992, ch 341, §41.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-76 - Application to insurer not a member of same holding company.

58-5A-76. Application to insurer not a member of same holding company.
Nothing contained in this chapter authorizes or permits any transactions which, in the case of an insurer not a member of the same holding company system, would be otherwise contrary to law.
Source:
SL 1992, ch 341, §44.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-77 - Dividends paid from earned surplus--Exclusions--Promulgation of rules for ordinary dividends.

58-5A-77. Dividends paid from earned surplus--Exclusions--Promulgation of rules for ordinary dividends.
Insurers subject to this chapter may only pay dividends from earned surplus excluding surplus arising from unrealized capital gains or revaluation of assets. The director may promulgate rules pursuant to chapter 1-26 covering requirements for ordinary dividends including those for approval or disapproval of ordinary dividends.
Source:
SL 1993, ch 359, §3.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-78 - Director's participation in supervisory college to determine insurer compliance.

58-5A-78. Director's participation in supervisory college to determine insurer compliance.
Pursuant to the provisions of §§58-5A-78 to 58-5A-80, inclusive, the director may participate in a supervisory college for any domestic insurer registered pursuant to this chapter that is part of an insurance holding company system with international operations to determine compliance by the insurer with this chapter. The director, with respect to a supervisory college, may perform any of the following activities:
(1)Initiate the establishment of a supervisory college;
(2)Clarify the membership and participation of any other supervisor in the supervisory college;
(3)Clarify the functions of the supervisory college and the role of any other regulator, including the establishment of a group-wide supervisor;
(4)Coordinate the ongoing activities of the supervisory college, including planning meetings, supervisory activities, and processes for information sharing; and
(5)Establish a crisis management plan.
Source:
SL 2015, ch 246, §19.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-79 - Expenses of director's participation in supervisory college.

58-5A-79. Expenses of director's participation in supervisory college.
Each registered insurer subject to §§58-5A-78 to 58-5A-80, inclusive, is liable for and shall pay the reasonable expenses of the director's participation in a supervisory college, including reasonable travel expenses. A supervisory college may be convened as either a temporary or permanent forum for communication and cooperation between the regulators charged with the supervision of the insurer or its affiliates, and the director may establish a regular assessment to the insurer for the payment of these expenses.
Source:
SL 2015, ch 246, §20.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-80 - Director's participation in supervisory college with other regulators.

58-5A-80. Director's participation in supervisory college with other regulators.
The director may participate in a supervisory college with other regulators charged with supervision of the insurer or its affiliates, including any state, federal, and international regulatory agency to assess the business strategy, financial position, legal and regulatory position, risk exposure, risk management, and governance processes of individual insurers. The director may enter into agreements pursuant to §§58-5A-41.2 and 58-5A-41.3 providing for the basis for cooperation between the director and any other regulatory agency, and the activities of the supervisory college. Nothing in this section delegates to the supervisory college the authority of the director to regulate or supervise the insurer or its affiliates within its jurisdiction.
Source:
SL 2015, ch 246, §21.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-80.1 - Internationally active insurance group--Supervision.

58-5A-80.1  .  Internationally active insurance group--Supervision.
The director may act as the group-wide supervisor for any internationally active insurance group in accordance with the provisions of this section. The director may also acknowledge another regulatory official as the group-wide supervisor if the internationally active insurance group:
(1) Does not have substantial insurance operations in the United States;
(2) Has substantial insurance operations in the United States, but not in this state; or
(3) Has substantial insurance operations in the United States and this state, but the director has determined pursuant to the factors set forth in §58-5A-80.2 that another regulatory official is the appropriate group-wide supervisor.
An insurance holding company system that does not qualify as an internationally active insurance group may request that the director make a determination or acknowledgment as to a group-wide supervisor pursuant to §§58-5A-80.2 and 58-5A-80.6.
Source:  SL 2020, ch 213, § 2.