reglab/statecodes huggingface dataset:
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-86 - Delegation of functions to interstate organization--Reimbursement of organization--Approval of delegation.

58-29A-86. Delegation of functions to interstate organization--Reimbursement of organization--Approval of delegation.
The plan of operation may provide that any or all powers and duties of the association, except those under subdivision 58-29A-60(2) and those under §§58-29A-75 to 58-29A-81, inclusive, are delegated to a corporation, association, or other organization which performs or will perform functions similar to those of this association, or its equivalent, in two or more states. Such a corporation, association, or organization shall be reimbursed as a servicing facility would be reimbursed and shall be paid for its performance of any other functions of the association. A delegation under this section shall take effect only with the approval of both the board of directors and the director, and may be made only to a corporation, association, or organization which extends protection not substantially less favorable and effective than that provided by this chapter.
Source:
SL 2000, ch 247, §33.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-87 - Director's rules promulgated in lieu of amendments to plan of operation.

58-29A-87. Director's rules promulgated in lieu of amendments to plan of operation.
If at any time the association fails to submit suitable amendments to the plan of operation, the director shall, after notice and hearing, promulgate such reasonable rules as are necessary or advisable to effectuate the provisions of this chapter. The rules shall continue in force until modified by the director or superseded by a plan submitted by the association and approved by the director.
Source:
SL 2000, ch 247, §34.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-88 - Notice to association of insolvency of insurer.

58-29A-88. Notice to association of insolvency of insurer.
The director shall notify the association of the existence of an insolvent insurer not later than three days after the director receives notice of the determination of the insolvency. The association is entitled to a copy of any complaint seeking an order of liquidation with a finding of insolvency against a member company at the same time that the complaint is filed with a court of competent jurisdiction.
Source:
SL 2000, ch 247, §35.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-89 - Statement of members' premiums furnished to association.

58-29A-89. Statement of members' premiums furnished to association.
The director shall, upon request of the board of directors, provide the association with a statement of the net direct written premiums of each member insurer.
Source:
SL 2000, ch 247, §36.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-90 - Stay of default proceedings against insolvent insurer--Setting aside of prior proceedings.

58-29A-90. Stay of default proceedings against insolvent insurer--Setting aside of prior proceedings.
Any proceeding in which the insolvent insurer is a party or is obligated to defend a party in any court in this state shall, subject to waiver by the association in specific cases involving covered claims, be stayed until the last day fixed by the court for the filing of claims and such additional time thereafter as may be determined by the court from the date the insolvency is determined or an ancillary proceeding is instituted in the state, whichever is later, to permit proper defense by the association of all pending causes of action. As to any covered claims arising from a judgment under any decision, verdict, or finding based on the default of the insolvent insurer or its failure to defend an insured, the association, either on its own behalf or on behalf of such insured, may apply to have the judgment, order, decision, verdict, or finding set aside by the same court or administrator that made the judgment, order, decision, verdict, or finding and shall be permitted to defend against the claim on the merits.
Source:
SL 2000, ch 247, §37.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-91 - Suspension or revocation of certificate of authority for failure to pay assessment or comply with plan--Fine as alternative.

58-29A-91. Suspension or revocation of certificate of authority for failure to pay assessment or comply with plan--Fine as alternative.
The director may suspend or revoke, after notice and hearing, the certificate of authority to transact insurance in this state of any member insurer that fails to pay an assessment when due or fails to comply with the plan of operation. As an alternative, the director may levy a fine on any member insurer which fails to pay an assessment when due. The fine may not exceed five percent of the unpaid assessment per month, except that no fine may be less than one hundred dollars per month.
Source:
SL 2000, ch 247, §38.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-92 - Revocation of designation of servicing facility.

58-29A-92. Revocation of designation of servicing facility.
The director may revoke the designation of any servicing facility if the director finds claims are being handled unsatisfactorily.
Source:
SL 2000, ch 247, §39.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-93 - Duplicate coverage--Insured to exhaust rights against solvent insurer.

58-29A-93. Duplicate coverage--Insured to exhaust rights against solvent insurer.
Any person having a claim against an insurer, whether or not the insurer is a member insurer, under any provision in an insurance policy other than a policy of an insolvent insurer which is also a covered claim, shall be required to first exhaust any right under the policy. Any amount payable on a covered claim under this chapter shall be reduced by the amount of any recovery under the insurance policy.
Source:
SL 2000, ch 247, §40.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-94 - Duplicate coverage by insolvent insurers--Factors governing primary recovery.

58-29A-94. Duplicate coverage by insolvent insurers--Factors governing primary recovery.
Any person having a claim which may be recovered under more than one insurance guaranty association or its equivalent shall seek recovery first from the association of the place of residence of the insured except that if it is a first-party claim for damage to property with a permanent location, the person shall seek recovery first from the association of the location of the property, and if it is a workers' compensation claim, the person shall seek recovery first from the association of the residence of the claimant. Any recovery under this chapter shall be reduced by the amount of recovery from any other insurance guaranty association or its equivalent.
Source:
SL 2000, ch 247, §41.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-95 - Subrogation of association to rights of claimant.

58-29A-95. Subrogation of association to rights of claimant.
Any person recovering under this chapter shall be deemed to have assigned that person's rights under the policy to the association to the extent of any recovery from the association. Every insured or claimant seeking the protection of this chapter shall cooperate with the association to the same extent as such person would have been required to cooperate with the insolvent insurer.
Source:
SL 2000, ch 247, §42.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-96 - Restrictions on liability of insured to association.

58-29A-96. Restrictions on liability of insured to association.
The association has no cause of action against the insured of the insolvent insurer for any sums it has paid out, except such causes of action as the insolvent insurer would have had if the sums had been paid by the insolvent insurer and except as provided in §58-29A-71.
Source:
SL 2000, ch 247, §43.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-97 - Liability of insureds for unpaid assessments.

58-29A-97. Liability of insureds for unpaid assessments.
In the case of an insolvent insurer operating on a plan with assessment liability, payments of claims of the association may not operate to reduce the liability of insureds to the receiver, liquidator, or statutory successor for unpaid assessments.
Source:
SL 2000, ch 247, §44.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-98 - Settlements by association binding on successor of insolvent insurer--Priority of claim and expenses.

58-29A-98. Settlements by association binding on successor of insolvent insurer--Priority of claim and expenses.
The receiver, liquidator, or statutory successor of an insolvent insurer is bound by determinations of covered claim eligibility under this chapter and by settlements of claims made by the association or a similar organization in another state. The court having jurisdiction shall grant such claims priority equal to that which the claimant would have been entitled in the absence of this chapter against the assets of the insolvent insurer. The expenses of the association or similar organization in handling claims shall be accorded the same priority as the liquidator's expenses.
Source:
SL 2000, ch 247, §45.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-99 - Association's statements of claims paid filed with receiver or liquidator.

58-29A-99. Association's statements of claims paid filed with receiver or liquidator.
The association shall periodically file with the receiver or liquidator of the insolvent insurer statements of the covered claims paid by the association and estimates of anticipated claims on the association which shall preserve the rights of the association against the assets of the insolvent insurer.
Source:
SL 2000, ch 247, §46.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-100 - Examination and regulation of association--Annual report.

58-29A-100. Examination and regulation of association--Annual report.
The association is subject to examination and regulation by the director. The board of directors shall submit, not later than May thirtieth of each year, a financial report for the preceding calendar year in a form approved by the director.
Source:
SL 2000, ch 247, §47; SL 2011, ch 222, §1.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-101 - Immunity from liability of persons acting under chapter.

58-29A-101. Immunity from liability of persons acting under chapter.
There is no liability on the part of and no cause of action of any nature may arise against any member insurer, the association or its agents or employees, the board of directors, any person serving as a representative of any director, or the director or the director's representatives for any action taken or any failure to act by them in the performance of their powers and duties under this chapter.
Source:
SL 2000, ch 247, §48.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-102 - Judicial review of director's actions.

58-29A-102. Judicial review of director's actions.
Any final action or order of the director under this chapter is subject to judicial review in a court of competent jurisdiction.
Source:
SL 2000, ch 247, §49.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-103 - Premiums to include amounts sufficient for assessments.

58-29A-103. Premiums to include amounts sufficient for assessments.
The rates and premiums charged for insurance policies to which this chapter applies shall include amounts sufficient to recoup a sum equal to the amounts paid to the association by the member insurer less any amounts returned to the member insurer by the association and such rates may not be deemed excessive because they contain an amount reasonably calculated to recoup assessments paid by the member insurer.
Source:
SL 2000, ch 247, §50.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-104 - Unfair trade practice to advertise protection given by chapter.

58-29A-104. Unfair trade practice to advertise protection given by chapter.
It is unfair trade practice for any insurer or insurance producer to in any manner make use of the protection given policyholders by this chapter as a reason for buying insurance from the insurer or insurance producer.
Source:
SL 2000, ch 247, §51; SL 2001, ch 286, §138.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-105 - Payment of claims to be made in any reasonable order.

58-29A-105. Payment of claims to be made in any reasonable order.
The association shall pay claims in any order which it deems reasonable, including the payment of claims as such are received from the claimants or in groups or categories of claims.
Source:
SL 2000, ch 247, §52.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-106 - Association to be recognized as claimant in liquidation of insolvent insurer--Priority of distribution.

58-29A-106. Association to be recognized as claimant in liquidation of insolvent insurer--Priority of distribution.
The association and any similar organization in another state shall be recognized as claimants in the liquidation of an insolvent insurer for any amounts paid by them on covered claims obligations as determined under this chapter or similar laws in other states and shall receive dividends and any other distributions at the priority set forth in §58-29B-124.
Source:
SL 2000, ch 247, §53.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-107 - Insolvent insurer's records to be made available to board.

58-29A-107. Insolvent insurer's records to be made available to board.
The liquidator, receiver, or statutory successor of an insolvent insurer covered by this chapter shall permit access by the board or its authorized representative to any of the insolvent insurer's records that are necessary for the board in carrying out its functions under this chapter with regard to covered claims. In addition, the liquidator, receiver, or statutory successor shall provide the board or its representative with copies of such records upon request by the board and at the expense of the board.
Source:
SL 2000, ch 247, §54.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29A - Insurance Guaranty Association › Section 58-29A-108 - Jurisdiction over claims against association.

58-29A-108. Jurisdiction over claims against association.
Except for actions by member insurers aggrieved by final actions or decisions of the association pursuant to subdivision 58-29A-84(7), any action relating to or arising out of this chapter against the association shall be brought in a court in this state. The courts in this state have exclusive jurisdiction over all actions relating to or arising out of this chapter against the association.
Source:
SL 2000, ch 247, §55.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-1 - Citation of chapter.

58-29B-1. Citation of chapter.
This chapter may be cited as the Insurers Supervision, Rehabilitation, and Liquidation Act.
Source:
SL 1989, ch 436, §1.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-2 - Scope.

58-29B-2. Scope.
The provisions of this chapter apply to:
(1)All insurers who are doing, or have done, an insurance business in this state, and against whom claims arising from that business may exist now or in the future;
(2)All insurers who purport to do an insurance business in this state;
(3)All insurers who have insureds resident in this state;
(4)All other persons organized or in the process of organizing with the intent to do an insurance business in this state;
(5)All nonprofit service plans and all fraternal benefit societies, health maintenance organizations, benefit societies and any other entity subject to Title 58;
(6)All title insurance companies, subject to chapter 58-25;
(7)Any entity whose administrative actions represent the administrative actions of an insurance company.
Source:
SL 1989, ch 436, §2.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-4 - Delinquency proceedings sole and exclusive remedy--Commencement of proceedings by director.

58-29B-4. Delinquency proceedings sole and exclusive remedy--Commencement of proceedings by director.
Delinquency proceedings pursuant to this chapter shall constitute the sole and exclusive method of liquidating, rehabilitating, reorganizing, or conserving an insurer, and no court may entertain a petition for the commencement of such proceedings, or any other similar procedure, unless it has been filed in the name of the state on the relation of the director.
Source:
SL 1989, ch 436, §4.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-5 - Commencement of proceedings despite lack of notice to insurer.

58-29B-5. Commencement of proceedings despite lack of notice to insurer.
Delinquency proceedings pursuant to this chapter may be commenced by the director at any time, regardless of whether notice to an insurer has been given concerning impairment of capital or assets as provided in §58-5-114.
Source:
SL 1989, ch 436, §5.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-6 - Grounds for personal jurisdiction.

58-29B-6. Grounds for personal jurisdiction.
In addition to other grounds for jurisdiction provided by the law of this state, a court of this state having jurisdiction of the subject matter has jurisdiction over a person served pursuant to chapter 15-6 or other applicable provisions of law in an action brought by the receiver of a domestic insurer or an alien insurer domiciled in this state:
(1)If the person served is obligated to the insurer in any way as an incident to any agency or brokerage or other arrangement that may exist or has existed between the insurer and the insurance producer or representative of the insurer, in any action on or incident to the obligation;
(2)If the person served is a reinsurer who has at any time written a policy of reinsurance for an insurer against which a rehabilitation or liquidation order is in effect when the action is commenced, or is an insurance producer or representative of or for the reinsurer, in any action on or incident to the reinsurance contract;
(3)If the person served is or has been an officer, manager, trustee, organizer, promoter, or person in a position of comparable authority or influence in an insurer against which a rehabilitation or liquidation order is in effect when the action is commenced, in any action resulting from such a relationship with the insurer;
(4)If the person served is an insurance producer or representative of the insurer or other person who has at any time written policies of insurance for or has acted in any manner on behalf of an insurer against which a delinquency proceeding has been instituted, in any action resulting from or incident to such a relationship with the insurer;
(5)If the person served is or was at the time of the institution of the delinquency proceeding against the insurer holding assets in which the receiver claims an interest on behalf of the insurer, in any action concerning the assets; or
(6)If the person served is obligated to the insurer in any way whatsoever, in any action or incident to the obligation.
Source:
SL 1989, ch 436, §6; SL 1992, ch 351, §1; SL 2001, ch 286, §139.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-8 - Receiver authorized to grant certain orders.

58-29B-8. Receiver authorized to grant certain orders.
Any receiver appointed in a proceeding under this chapter, may at any time apply for and the court may grant, such restraining orders, preliminary and permanent injunctions, and other orders as may be deemed necessary and proper to prevent:
(1)The transaction of further business;
(2)The transfer of property;
(3)Interference with the receiver or with a proceeding under this chapter;
(4)Waste of the insurer's assets;
(5)Dissipation and transfer of bank accounts;
(6)The institution or further prosecution of any actions or proceedings;
(7)The obtaining of preferences, judgments, attachments, garnishments, or liens against the insurer, its assets or its policyholders;
(8)The levying of execution against the insurer, its assets or its policyholders;
(9)The making of any sale or deed for nonpayment of taxes or assessments that would lessen the value of the assets of the insurer;
(10)The withholding from the receiver of books, accounts, documents, or other records relating to the business of the insurer; or
(11)Any other threatened or contemplated action that might lessen the value of the insurer's assets or prejudice the rights of policyholders, creditors, or shareholders, or the administration of any proceeding under this chapter.
The receiver may apply to any court outside of the state for the relief described in this section.
Source:
SL 1989, ch 436, §8.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-9 - Persons to cooperate in proceedings and preliminary investigations.

58-29B-9. Persons to cooperate in proceedings and preliminary investigations.
Any officer, manager, director, trustee, owner, employee, representative, or insurance producer of any insurer, or any other persons with authority over or in charge of any segment of the insurer's affairs, shall cooperate with the director in any proceeding under this chapter or any investigation preliminary to the proceeding. The term, person, as used in this section, includes any person who exercises control directly or indirectly over activities of insurer through any holding company or other affiliate of the insurer. The term, to cooperate, includes the following:
(1)To reply promptly in writing to any inquiry from the director requesting such a reply; and
(2)To make available to the director any books, accounts, documents, or other records or information or property of or pertaining to the insurer and in the insurer's possession, custody, or control.
Source:
SL 1989, ch 436, §9; SL 2001, ch 286, §140.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-10 - Obstruction or interference in conduct of proceedings.

58-29B-10. Obstruction or interference in conduct of proceedings.
No person may obstruct or interfere with the director in the conduct of any delinquency proceeding or any investigation preliminary or incidental thereto. This section may not be construed to abridge otherwise existing legal rights, including the right to good faith resistance to a petition for liquidation or other delinquency proceedings, or other orders.
Source:
SL 1989, ch 436, §10.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-11 - Failure to cooperate--Obstruction or interference--Penalty.

58-29B-11. Failure to cooperate--Obstruction or interference--Penalty.
Any person included within §58-29B-9 who fails to cooperate with the director, or any person who obstructs or interferes with the director in the conduct of any delinquency proceeding or any investigation preliminary or incidental thereto, or who violates any order the director issued validly under this chapter may be ordered by the court to pay a fine not exceeding ten thousand dollars or sentenced to state imprisonment for a term of not more than one year, or both, or after a hearing, the director may impose and order the person to pay an administrative penalty not to exceed ten thousand dollars and may order the revocation or suspension of any insurance licenses issued by the director.
Source:
SL 1989, ch 436, §11.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-12 - Directors and deputies responsible for official bonds--Source of payment.

58-29B-12. Directors and deputies responsible for official bonds--Source of payment.
In any proceeding under this chapter, the director and his deputies shall be responsible on their official bonds for the faithful performance of their duties. If the court deems it desirable for the protection of the assets, it may at any time require an additional bond from the director or his deputies, and such bonds shall be paid for out of the assets of the insurer as a cost of administration.
Source:
SL 1989, ch 436, §12.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-13 - Proceedings commenced prior to enactment of chapter.

58-29B-13. Proceedings commenced prior to enactment of chapter.
Every proceeding heretofore commenced under the laws in effect before the enactment of this chapter shall be deemed to have commenced under this chapter for the purpose of conducting the proceeding henceforth, except that in the discretion of the director the proceeding may be continued, in whole or in part, as it would have been continued had this chapter not been enacted.
Source:
SL 1989, ch 436, §13.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-13.1 - Service of appropriate orders by director.

58-29B-13.1. Service of appropriate orders by director.
If the director has reasonable cause to believe, and determines, after a hearing held pursuant to the provisions of §58-29B-17, that any domestic insurer has committed or engaged in, or is about to commit or engage in, any act, practice, or transaction that would subject it to delinquency proceedings under this chapter, he may make and serve upon the insurer and any other persons involved, such orders as are reasonably necessary to correct, eliminate, or remedy such conduct, condition, or ground.
Source:
SL 1989, ch 436, §13A.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-14 - Director's determination of continuation of business hazardous--Notification of insurer.

58-29B-14. Director's determination of continuation of business hazardous--Notification of insurer.
If upon examination or at any other time the director has reasonable cause to believe or determines that any domestic insurer is in such condition as to render the continuance of its business hazardous to the public or to holders of its policies or certificates of insurance, or if such domestic insurer gives its consent, then the director shall upon his determination:
(1)Notify the insurer of his determination; and
(2)Furnish to the insurer a written list of the director's requirements to abate his determination.
Source:
SL 1989, ch 436, §14.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-15 - Supervision of insurer--Appointment of supervisor--Certain acts by insurer prohibited--Costs.

58-29B-15. Supervision of insurer--Appointment of supervisor--Certain acts by insurer prohibited--Costs.
If the director makes a determination to supervise an insurer subject to an order under §58-29B-13.1 or 58-29B-14, he shall notify the insurer. During the period of supervision, the director may appoint a supervisor to supervise such insurer. The order appointing a supervisor shall direct the supervisor to enforce orders issued under this chapter and may also require that the insurer not do any of the following things, during the period of supervision, without the prior approval of the director or the supervisor:
(1)Dispose of, convey, or encumber any of its assets or its business in force;
(2)Withdraw from any of its bank accounts;
(3)Lend any of its funds;
(4)Invest any of its funds;
(5)Transfer any of its property;
(6)Incur any debt, obligation, or liability;
(7)Merge or consolidate with another company;
(8)Enter into any new reinsurance contract or treaty; or
(9)Write any new insurance contract or renew any insurance contract.
All costs and expenses, including attorney fees, associated with administering the supervision order are the responsibility of the insurer and shall be paid from insurer's funds or assets.
Source:
SL 1989, ch 436, §15; SL 1991, ch 404, §1.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-16 - Insurer to comply with director's requirements--Time period--Failure to comply.

58-29B-16. Insurer to comply with director's requirements--Time period--Failure to comply.
Any insurer subject to an order under §§58-29B-13.1 and 58-29B-14 shall comply with the lawful requirements of the director and, if placed under supervision, shall have sixty days from the date the supervision order is served within which to comply with the requirements of the director. In the event of such insurer's failure to comply within the proper time, the director may institute proceedings under §58-29B-31 or 58-29B-41 to have a rehabilitator or liquidator appointed, or extend the period of supervision.
Source:
SL 1989, ch 436, §16.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-17 - Hearings--Notice and procedure.

58-29B-17. Hearings--Notice and procedure.
The notice of hearing under §58-29B-13.1 and any order issued pursuant to that section shall be served upon the insurer pursuant to the applicable rules of civil or administrative procedure. The notice of hearing shall state the time and place of hearing, and the conduct, condition, or ground upon which the director would base his order. Unless mutually agreed between the director and the insurer, the hearing shall occur no less than ten days nor more than thirty days after notice is served and shall be in Hughes County or such other location as may be designated by the director. All hearings shall be private, unless the insurer requests a public hearing.
Source:
SL 1989, ch 436, §17.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-18 - Request for hearing--Request not to stay order.

58-29B-18. Request for hearing--Request not to stay order.
Any insurer subject to an order under §58-29B-14 may request a hearing to review that order. Such a hearing shall be held as provided in §58-29B-17, but the request for a hearing may not stay the effect of the order.
Source:
SL 1989, ch 436, §18.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-19 - Waiver of hearing--Application for judicial relief--Judicial review of order after hearing.

58-29B-19. Waiver of hearing--Application for judicial relief--Judicial review of order after hearing.
If the director issues an order under §58-29B-14, the insurer may, at any time, waive a director's hearing and apply for immediate judicial relief by means of any remedy afforded by law without first exhausting administrative remedies. If a hearing is held subsequent to the hearing, any party to the proceedings whose interests are substantially affected shall be entitled to judicial review of any order issued by the director.
Source:
SL 1989, ch 436, §19.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-20 - Requests for review of supervisor's actions.

58-29B-20. Requests for review of supervisor's actions.
During the period of supervision the insurer may request the director to review an action taken or proposed to be taken by the supervisor, specifying wherein the action complained of is believed not to be in the best interest of the insurer.
Source:
SL 1989, ch 436, §20.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-21 - Violation of supervision order--Penalty.

58-29B-21. Violation of supervision order--Penalty.
If any person has violated any supervision order issued under this chapter, he is liable to pay a civil penalty imposed by the circuit court of Hughes County not to exceed ten thousand dollars.
Source:
SL 1989, ch 436, §21.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-22 - Application for necessary orders to enforce supervision order.

58-29B-22. Application for necessary orders to enforce supervision order.
The director may apply for and any court of general jurisdiction may grant, such restraining orders, preliminary and permanent injunctions, and other orders as may be deemed necessary and proper to enforce a supervision order.
Source:
SL 1989, ch 436, §22.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-23 - Violation of valid orders--Personal liability for losses suffered by insurer--Commencement of action.

58-29B-23. Violation of valid orders--Personal liability for losses suffered by insurer--Commencement of action.
In the event that any person, subject to the provisions of this chapter, including those persons described in §58-29B-9 shall knowingly violate any valid order of the director issued under §§58-29B-13.1 to 58-29B-23, inclusive, and, as a result of such violation, the net worth of the insurer shall be reduced or the insurer shall suffer loss it would not otherwise have suffered, that person shall be personally liable to the insurer for the amount of any such reduction or loss. The director or supervisor may bring an action on behalf of the insurer in the circuit court of Hughes County to recover the amount of the reduction or loss together with any costs.
Source:
SL 1989, ch 436, §23.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-24 - Authority to file petition for seizure order--Grounds.

58-29B-24. Authority to file petition for seizure order--Grounds.
For domestic insurers the director may file in the circuit court of Hughes County a petition for a seizure order:
(1)That there exist any grounds that would justify a court order for a formal delinquency proceeding against an insurer under this chapter;
(2)That the interest of policyholders, creditors, or the public will be endangered by delay; and
(3)The contents of an order deemed necessary by the director.
Source:
SL 1989, ch 436, §24.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-25 - Ex parte issuance of seizure order--Costs.

58-29B-25. Ex parte issuance of seizure order--Costs.
Upon a filing under §58-29B-24, the court may issue forthwith, ex parte and without a hearing, the requested order which shall direct the director to take possession and control of all or a part of the property, books, accounts, documents, and other records of an insurer, and of the premises occupied by it for transaction of its business, and until further order of the court enjoin the insurer and its officers, managers, representatives, insurance producers, and employees from disposition of its property and from transaction of its business except with the written consent of the director. All costs and expenses incurred by the Division of Insurance, including attorney fees, associated with taking possession of the property, books, accounts, documents, and other records of the insurer and the business premises are the responsibility of the insurer and shall be paid from the insurer's funds and assets. The court may require an accounting of the costs and expenses.
Source:
SL 1989, ch 436, §25; SL 1991, ch 404, §2; SL 2001, ch 286, §141.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-26 - Duration of order--Hearing to extend, shorten or modify--Vacation of order.

58-29B-26. Duration of order--Hearing to extend, shorten or modify--Vacation of order.
The court shall specify in the order under §58-29B-25 its duration which shall be such time as the court deems necessary for the director to ascertain the condition of the insurer. On motion of either party or on its own motion, the court may from time to time hold such hearings as it considers desirable after such notice as it deems appropriate, and may extend, shorten, or modify the terms of the seizure order. The court may vacate the seizure order if the director fails to commence rehabilitation or liquidation proceedings under this chapter after having had a reasonable opportunity to do so. An order of the court pursuant to a formal proceeding under this chapter shall vacate the seizure order.
Source:
SL 1989, ch 436, §26.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-27 - Entry of order not anticipatory breach of insurer's contracts.

58-29B-27. Entry of order not anticipatory breach of insurer's contracts.
Entry of a seizure order under §§58-29B-24 to 58-29B-26, inclusive, does not constitute an anticipatory breach of any contract of the insurer.
Source:
SL 1989, ch 436, §27.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-28 - Petition for review of order--Procedure.

58-29B-28. Petition for review of order--Procedure.
An insurer subject to an ex parte order under §58-29B-25 may petition the court at any time after the issuance of such order for a hearing and review of the order. The court shall hold the hearing and review the order within fifteen days of the date of the request. A hearing under this section may be held privately in chambers and it shall be so held if the insurer proceeded against so requests.
Source:
SL 1989, ch 436, §28.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-29 - Notice to persons not present at hearing--Effect on previously issued order.

58-29B-29. Notice to persons not present at hearing--Effect on previously issued order.
If, at any time after the issuance of an order under §58-29B-25, it appears to the court that any person whose interest is or will be substantially affected by the order did not appear at the hearing and has not been served, the court may order that notice be given. An order that notice be given does not stay the effect of any order previously issued by the court.
Source:
SL 1989, ch 436, §29.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-30 - Records to remain confidential--Exceptions.

58-29B-30. Records to remain confidential--Exceptions.
In any proceeding and judicial review thereof under the provisions of §§58-29B-13.1 to 58-29B-29, inclusive, all records of the insurer, other documents, and all Division of Insurance files and court records and papers, so far as they pertain to or are a part of the record of the proceedings, shall be and remain confidential except as is necessary to obtain compliance therewith, unless the circuit court of Hughes County, after hearing arguments from the parties in chambers, shall order otherwise, or unless the insurer requests that the matter be made public. Until such court order, all papers filed with the clerk of the circuit court of Hughes County shall be held by him in a confidential file.
Source:
SL 1989, ch 436, §30.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-32 - Order of rehabilitation--Contents--Effect of filing or recording--Vesting of title--Accounting required.

58-29B-32. Order of rehabilitation--Contents--Effect of filing or recording--Vesting of title--Accounting required.
Except for good cause shown, an order to rehabilitate the business of a domestic insurer, or an alien insurer domiciled in this state, shall be issued within ten days of the hearing on the order to show cause and shall contain an appointment of the director and his successors in office as the rehabilitator, and shall direct the rehabilitator forthwith to take possession of the assets of the insurer, and to administer them under the general supervision of the court. The filing or recording of the order with the clerk of the circuit court of Hughes County or register of deeds of the county in which the principal business of the company is conducted, or the county in which its principal office or place of business is located, shall impart the same notice as a deed, bill of sale, or other evidence of title duly filed or recorded with that register of deeds would have imparted. The order to rehabilitate the insurer shall by operation of law vest title to all assets of the insurer in the rehabilitator. Any order issued under this section shall require an accounting to the court by the rehabilitator. Accountings shall be at such intervals as the court specifies in its order, but no less than semiannually. Entry of an order of rehabilitation does not constitute an anticipatory breach of any contracts of the insurer nor may it be grounds for retroactive revocation or cancellation of any contracts of the insurer, unless revocation or cancellation is done by the rehabilitator pursuant to §§58-29B-32.1 to 58-29B-35, inclusive. Each accounting shall include a report from the rehabilitator on whether a plan pursuant to §58-29B-35 is being prepared and, if so, the timetable for the preparation.
Source:
SL 1989, ch 436, §32; SL 1992, ch 351, §2.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-32.1 - Appointment of deputies--Powers and responsibilities--Employment of counsel, clerks and assistants--Compensation--Advisory committee.

58-29B-32.1. Appointment of deputies--Powers and responsibilities--Employment of counsel, clerks and assistants--Compensation--Advisory committee.
The director as rehabilitator may appoint one or more special deputies, who shall have all the powers and responsibilities of the rehabilitator granted under this section, and the director may employ such counsel, clerks, and assistants as he considers necessary. The compensation of the special deputy, counsel, or clerks and assistants and all expenses of taking possession of the insurer and of conducting the proceedings shall be fixed by the director, with the approval of the court and shall be paid out of the funds or assets of the insurer. Any persons appointed under this section shall serve at the pleasure of the director. In the event that the property of the insurer does not contain sufficient cash or liquid assets to defray the costs incurred, the director, with the approval of the secretary of the Department of Labor and Regulation, may advance the costs so incurred out of any appropriation for the maintenance of the Division of Insurance. Any amounts so advanced for expenses of administration shall be repaid to the director for the use of the Division of Insurance out of the first available money of the insurer. The director may, with the approval of the court, appoint an advisory committee of policyholders, claimants or other creditors including guaranty associations. The committee shall serve at the pleasure of the director and shall serve without compensation other than reimbursement for reasonable travel and per diem expenses. No other committee of any nature may be appointed by the director or the court in rehabilitation.
Source:
SL 1989, ch 436, §32A; SL 1992, ch 351, §3; SL 2003, ch 272 (Ex. Ord. 03-1), §20; SL 2011, ch 1 (Ex. Ord. 11-1), §162, eff. Apr. 12, 2011.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-32.2 - Promulgation of rules for appointing committees.

58-29B-32.2. Promulgation of rules for appointing committees.
The director may promulgate rules pursuant to chapter 1-26 for appointing committees pursuant to §§58-29B-32.1 and 58-29B-46 and establishing the duties to be performed by such committees.
Source:
SL 1992, ch 351, §14.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-33 - Authority of rehabilitator to reform and revitalize issuer.

58-29B-33. Authority of rehabilitator to reform and revitalize issuer.
The rehabilitator may take any action he considers appropriate to reform and revitalize the insurer. He shall have all the powers of the directors, officers, and managers, whose authority shall be suspended, except as they are redelegated by the rehabilitator. He may direct and manage, hire and discharge employees subject to any contract rights they may have, and deal with the property and business of the insurer.
Source:
SL 1989, ch 436, §33.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 29B - Insurers Supervision, Rehabilitation And Liquidation › Section 58-29B-34 - Authority to pursue legal remedies on insurer's behalf.

58-29B-34. Authority to pursue legal remedies on insurer's behalf.
If it appears to the rehabilitator that there has been criminal or tortious conduct, or breach of any contractual or fiduciary obligation detrimental to the insurer by any officer, manager, representative, insurance producer, employee, or other person, the rehabilitator may pursue all appropriate legal remedies on behalf of the insurer.
Source:
SL 1989, ch 436, §34; SL 2001, ch 286, §142.