reglab/statecodes huggingface dataset:
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 04 - Enforcement Powers And Proceedings › Section 58-4-54 - Disclosure of premium tax return and return information in judicial or administrative proceeding.

58-4-54. Disclosure of premium tax return and return information in judicial or administrative proceeding.
A premium tax return and premium tax return information may be disclosed in a judicial or administrative proceeding:
(1)If the information is directly related to the resolution of an issue in the proceeding; or
(2)To the extent required by a judicial or administrative order.
Source:
SL 2012, ch 242, §6.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 04A - Insurance Fraud › Section 58-4A-1 - Definition of terms.

58-4A-1. Definition of terms.
Terms used in §§58-4A-1 to 58-4A-17, inclusive, mean:
(1)"Insurer," in addition to those persons defined under subdivision 58-1-2(12), any person or entity transacting insurance with or without a certificate of authority issued by the director of insurance. The term also means health maintenance organizations, legal service insurance corporations, prepaid limited health service organizations, dental and other similar health service plans, and, notwithstanding subdivision 58-1-3(1), fraternal benefit societies;
(2)"Statement," includes any application for insurance, notice, statement, proof of loss, denial, bill of lading, receipt for payment, invoice, account, estimate of property damages, bill for services, diagnosis, prescription, hospital or medical records, X-rays, test results, or other evidence of loss, injury, or expense, whether oral, written, or computer-generated; and
(3)"Designee," the Department of Labor and Regulation, the attorney general, any state's attorney, any duly constituted criminal investigative department or agency of the State of South Dakota or of the United States, any county or municipal law enforcement agency having investigative jurisdiction, and any other person whose services are contracted for by the insurance fraud prevention unit.
Source:
SL 1999, ch 241, §1; 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 04A - Insurance Fraud › Section 58-4A-2 - Fraudulent insurance acts--Certain violations as misdemeanor--Certain violations as felony.

58-4A-2. Fraudulent insurance acts--Certain violations as misdemeanor--Certain violations as felony.
For purposes of this chapter, a person commits a fraudulent insurance act if the person:
(1)Knowingly and with intent to defraud or deceive issues or possesses fake or counterfeit insurance policies, certificates of insurance, insurance identification cards, or insurance binders;
(2)Is engaged in the business of insurance, whether authorized or unauthorized, receives money for the purpose of purchasing insurance and converts the money to the person's own benefit or for a purpose not intended or authorized by an insured or prospective insured;
(3)Willfully embezzles, abstracts, steals, misappropriates, or converts money, funds, premiums, credits, or other property of an insurer or person engaged in the business of insurance or of an insured or prospective insured;
(4)Knowingly and with intent to defraud or deceive makes any false entry of a material fact in or pertaining to any document or statement filed with or required by the Division of Insurance;
(5)Knowingly and with intent to defraud or deceive removes, conceals, alters, diverts, or destroys assets or records of an insurer or other person engaged in the business of insurance or attempts to remove, conceal, alter, divert, or destroy assets or records of an insurer or other person engaged in the business of insurance;
(6)Knowingly and with intent to defraud or deceive presents, causes to be presented, or prepares with knowledge or belief that it will be presented to or by an insurer, or any insurance producer of an insurer, any statement as part of a claim, in support of a claim, or in denial of a claim for payment or other benefit pursuant to an insurance policy knowing that the statement contains any false, incomplete, or misleading information concerning any fact or thing material to a claim;
(7)Assists, abets, solicits, or conspires with another to prepare or make any statement that is intended to be presented to or by an insurer or person in connection with or in support of any claim for payment or other benefit, or denial, pursuant to an insurance policy knowing that the statement contains any false, incomplete, or misleading information concerning any fact or thing material to the claim; or
(8)Makes any false or fraudulent representations as to the death or disability of a policy or certificate holder in any statement or certificate for the purpose of fraudulently obtaining money or benefit from an insurer.
Any violation of this section for an amount of four hundred dollars or less is a Class 2 misdemeanor. Any violation of this section for an amount in excess of four hundred dollars and less than one thousand dollars is a Class 1 misdemeanor. Any violation of this section for an amount of one thousand dollars and greater is a Class 4 felony. Any other violation of this section is a Class 1 misdemeanor.
Source:
SL 1999, ch 241, §2; SL 2001, ch 286, §67; SL 2006, ch 130, §20.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 04A - Insurance Fraud › Section 58-4A-3 - Powers of insurance fraud prevention unit.

58-4A-3. Powers of insurance fraud prevention unit.
The insurance fraud prevention unit through its investigator or attorney may do the following:
(1)The investigator or attorney may initiate and conduct independent investigations if the unit has cause to believe that a fraudulent insurance act has been or may be committed;
(2)The investigator or attorney may review reports or complaints of alleged fraudulent insurance acts to determine whether such reports require further investigation and to conduct such investigation;
(3)The investigator or attorney may undertake independent studies to determine the extent of fraudulent insurance acts;
(4)The investigator or attorney may promote awareness of insurance fraud through educational seminars and other education programs for the insurance industry and the general public;
(5)The attorney, subject to applicable criminal or civil law and procedure, may prosecute fraudulent insurance acts on behalf of the state through criminal and civil proceedings; and
(6)The investigator or attorney may cooperate with federal, state, and local law enforcement, prosecuting attorneys, and the attorney general in the investigation and prosecution of fraudulent insurance acts.
Source:
SL 1999, ch 241, §3.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 04A - Insurance Fraud › Section 58-4A-4 - Insurance fraud prevention unit--Purpose--Composition.

58-4A-4. Insurance fraud prevention unit--Purpose--Composition.
In order to investigate and prosecute activities involving fraudulent insurance acts, the attorney general shall employ a sufficient staff to be known as the insurance fraud prevention unit which shall include a minimum of one clerical employee, one investigator, and one attorney.
Source:
SL 1999, ch 241, §4; SL 2013, ch 245, §1.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 04A - Insurance Fraud › Section 58-4A-5 - Criminal and civil prosecutions--Unit attorney appointed assistant attorney general--Costs of prosecution.

58-4A-5. Criminal and civil prosecutions--Unit attorney appointed assistant attorney general--Costs of prosecution.
The insurance fraud prevention unit may prosecute fraudulent insurance acts through criminal or civil proceedings. The attorney general may appoint the insurance fraud prevention unit attorney as an assistant attorney general for purposes of prosecuting cases of fraudulent insurance acts. The unit attorney may have all the powers attributed to the insurance fraud prevention unit in §58-4A-3. The unit attorney may refer or request assistance from other persons delineated in subdivision 58-4A-1(3) for the prosecution of fraudulent acts, including access to records. All costs associated with the prosecution of fraudulent insurance acts, including those incurred by designees assisting or acting on behalf of the insurance fraud prevention unit, may be paid by the insurance fraud prevention unit fund.
Source:
SL 1999, ch 241, §5; SL 2013, ch 245, §2.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 04A - Insurance Fraud › Section 58-4A-6 - Unit investigators--Qualifications--Powers--Costs of investigation.

58-4A-6. Unit investigators--Qualifications--Powers--Costs of investigation.
The insurance fraud prevention unit investigators may investigate violations of this chapter. The unit investigators shall be qualified pursuant to the requirements of §§23-3-41, 23-3-42, and 23-3-44 and have all the powers and authority of law enforcement officers while performing duties pursuant to this chapter. The insurance fraud prevention unit may refer or request assistance from persons delineated in subdivision 58-4A-1(3) for the investigation of fraudulent insurance acts, including access to records. All costs associated with the investigation of fraudulent insurance acts, including those incurred by designees assisting or acting on behalf of the insurance fraud prevention unit, may be paid by the insurance fraud prevention unit fund.
Source:
SL 1999, ch 241, §6; SL 2013, ch 245, §3.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 04A - Insurance Fraud › Section 58-4A-7 - Civil penalties--Disposition of penalties collected--Civil action in lieu of criminal prosecution.

58-4A-7. Civil penalties--Disposition of penalties collected--Civil action in lieu of criminal prosecution.
If the insurance fraud prevention unit or its designees initiate civil action against any person and that person is found by a court of competent jurisdiction to have committed a fraudulent insurance act as set forth in §58-4A-2, that person is subject to a civil penalty not to exceed five thousand dollars for the first violation, ten thousand dollars for the second violation, and fifteen thousand dollars for each subsequent violation. Civil penalties paid under this section shall be deposited in the insurance fraud prevention unit fund. An action under this section may be in lieu of criminal prosecution under the laws of this state.
Source:
SL 1999, ch 241, §7; SL 2013, ch 245, §4.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 04A - Insurance Fraud › Section 58-4A-8 - Operational costs of unit.

58-4A-8. Operational costs of unit.
Any costs associated with the administration and operation of the insurance fraud prevention unit, including salaries and the costs set forth in §§58-4A-5 and 58-4A-6, shall be paid from the insurance fraud prevention unit fund. All disbursements from the insurance fraud prevention unit fund shall be continuously appropriated.
Source:
SL 1999, ch 241, §8.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 04A - Insurance Fraud › Section 58-4A-9 - Expenses recoverable--Disposition of recovered costs--Compensation to person in interest.

58-4A-9. Expenses recoverable--Disposition of recovered costs--Compensation to person in interest.
Costs and expenses incurred in any investigation or other action arising out of a violation under this chapter may be sought in any judgment or court decree. Any recovered costs, except civil or criminal penalties, shall be deposited by the unit or its designees in the insurance fraud prevention unit fund. The court may make such additional orders or judgments as may be necessary to restore to any person in interest any compensation which may have been acquired by means of any act prohibited in §58-4A-2.
Source:
SL 1999, ch 241, §9.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 04A - Insurance Fraud › Section 58-4A-10 - Consent agreement not prohibited.

58-4A-10. Consent agreement not prohibited.
Notwithstanding any other section of this chapter, the unit or its designees, and a person alleged to have committed a fraudulent insurance act as set forth in §58-4A-2, are not prohibited from entering into a written agreement upon commencement of a civil action in which the person alleged to have committed a fraudulent insurance act does not admit or deny the charges but consents to payment of the civil penalty.
Source:
SL 1999, ch 241, §10.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 04A - Insurance Fraud › Section 58-4A-11 - Unit governed by chapter.

58-4A-11. Unit governed by chapter.
For purposes of investigating and prosecuting insurance fraud, the insurance fraud prevention unit is subject to the provisions of this chapter and the procedures set forth in Title 15 or Title 23A if applicable and if not in conflict with this chapter.
Source:
SL 1999, ch 241, §11.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 04A - Insurance Fraud › Section 58-4A-12 - Records and files confidential--Investigator not subject to subpoena in civil matter--Exceptions.

58-4A-12. Records and files confidential--Investigator not subject to subpoena in civil matter--Exceptions.
All investigative records and files of the insurance fraud prevention unit are confidential. The investigative records of the insurance fraud prevention unit may not be released except pursuant to a court order. An investigator is not subject to subpoena in civil actions concerning any matter of which the investigator has knowledge regarding a pending insurance fraud investigation by the division, unless so ordered by the court.
Source:
SL 1999, ch 241, §12.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 04A - Insurance Fraud › Section 58-4A-13 - Immunity for persons furnishing information in good faith--Costs assessed against person acting not in good faith--Other privileges and immunities not abrogated.

58-4A-13. Immunity for persons furnishing information in good faith--Costs assessed against person acting not in good faith--Other privileges and immunities not abrogated.
Any person acting in good faith is immune from civil liability for filing a report with or for furnishing any information relating to suspected, anticipated, or completed fraudulent insurance acts to:
(1)The Department of Labor and Regulation and the director of insurance;
(2)Any governmental agency established to detect and prevent fraud;
(3)Law enforcement officials;
(4)Deleted by SL 2011, ch 1 (Ex. Ord. 11-1), §162;
(5)Any insurer or insurance producer;
(6)The National Association of Insurance Commissioners; and
(7)Any nonprofit organization established to detect and prevent insurance fraud, if the organization is approved by the director pursuant to rules promulgated by the director under chapter 1-26 setting forth the standards, criteria, and procedures necessary to obtain approval.
If a civil action is commenced against a person for damages related to the filing of a report or the furnishing of information under this section and the court determines that the person acted in good faith in filing the report or furnishing the information, the person filing the report or furnishing the information may recover costs or disbursements under chapter 15-17, including reasonable attorney's fees.
If the trier of fact concludes that the person filing the report or furnishing the information was not acting in good faith, the person filing a civil action may recover costs or disbursements under chapter 15-17, including reasonable attorney's fees.
This section does not abrogate or modify in any way any common law or statutory privilege or immunity.
Source:
SL 1999, ch 241, §13; SL 2001, ch 286, §68; 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 04A - Insurance Fraud › Section 58-4A-14 - Insurance fraud prevention unit fund--Assessment of insurers--Conditions--Failure to pay as grounds for administrative action.

58-4A-14. Insurance fraud prevention unit fund--Assessment of insurers--Conditions--Failure to pay as grounds for administrative action.
The Division of Insurance shall assess each insurer holding a certificate of authority to transact the business of insurance in this state a fee of two hundred fifty dollars to be remitted and payable to the Division of Insurance to be deposited in a separate account, entitled the insurance fraud prevention unit fund. The Division of Insurance may not make an assessment until the fund falls below one hundred thousand dollars. If the fund falls below one hundred thousand dollars, the Division of Insurance shall notify each insurer of its payment obligation. Upon receipt of the notice of assessment from the Division of Insurance each insurer shall immediately make a two hundred fifty dollar payment to the fund. Failure of an insurer to submit full payment of the assessment to the division within twenty days of receipt of the notice of assessment, unless good cause is shown, may be grounds for administrative action to be taken by the division against an insurer.
Source:
SL 1999, ch 241, §14.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 04A - Insurance Fraud › Section 58-4A-15 - Limitations of chapter.

58-4A-15. Limitations of chapter.
The provisions of this chapter do not:
(1)Preempt the authority or relieve the duty of any other law enforcement agency to investigate, examine, and prosecute suspected violations of law;
(2)Prevent or prohibit a person from voluntarily disclosing any information concerning insurance fraud to any law enforcement agency;
(3)Limit any of the powers granted elsewhere by the laws of this state to the director of insurance or the Division of Insurance to investigate and examine possible violations of law and to take appropriate action; or
(4)Limit any of the powers granted elsewhere by the laws of this state to any state agency to investigate and examine possible violations of law and to take appropriate action.
Source:
SL 1999, ch 241, §15.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 04A - Insurance Fraud › Section 58-4A-16 - Annual report to Legislature--Contents.

58-4A-16. Annual report to Legislature--Contents.
The Division of Insurance shall annually report to the Legislature concerning the activities of the insurance fraud prevention unit including the number, type, and outcome of cases investigated, the number and type of cases that have been pending without final action for more than twelve months, and the costs and expenditures incurred during such investigations.
Source:
SL 1999, ch 241, §16; SL 2006, ch 250, §2.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 04A - Insurance Fraud › Section 58-4A-17 - Insurer to reevaluate rates for possible reduction in light of impact of fraud prevention.

58-4A-17. Insurer to reevaluate rates for possible reduction in light of impact of fraud prevention.
Each authorized insurer shall, every three years after July 1, 1999, reevaluate its rates based upon the impact that fraud prevention has had upon its rates, considering the impact of §§58-4A-1 to 58-4A-17, inclusive, and the impact of any fraud prevention units of the insurer or other fraud prevention organization and appropriate accumulated data and, if justified by the insurer's actuary, reduce its rates.
Source:
SL 1999, ch 241, §17.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05 - Organization And General Powers Of Insurers › Section 58-5-1 - Scope of chapter.

58-5-1. Scope of chapter.
This chapter shall apply only to domestic stock insurers and domestic mutual insurers transacting or proposing to transact insurance on the cash premium or legal reserve plan, except that §§58-5-27, 58-5-28, 58-5-37, and 58-5-38 shall also apply to foreign and alien insurers.
Source:
SL 1966, ch 111, ch 16, §1.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05 - Organization And General Powers Of Insurers › Section 58-5-2 - "Stock" insurer defined.

58-5-2. Stock insurer defined.
A "stock" insurer is an incorporated insurer with capital divided into shares and owned by its stockholders.
Source:
SL 1966, ch 111, ch 16, §2.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05 - Organization And General Powers Of Insurers › Section 58-5-3 - "Mutual" insurer defined.

58-5-3. Mutual insurer defined.
A "mutual" insurer is an insurance corporation without capital stock, owned by its policyholders collectively, who have the right to vote in the election of its directors.
Source:
SL 1966, ch 111, ch 16, §3.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05 - Organization And General Powers Of Insurers › Section 58-5-4 - Applicability of corporation laws.

58-5-4. Applicability of corporation laws.
The applicable laws of this state as to domestic corporations formed for profit shall apply as to both stock and mutual insurers, except where in conflict with the express provisions of this title and the reasonable implications of such provisions.
Source:
SL 1966, ch 111, ch 16, §5.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05 - Organization And General Powers Of Insurers › Section 58-5-5 - Incorporation of stock and mutual insurers.

58-5-5. Incorporation of stock and mutual insurers.
Sections 58-5-6 and 58-5-7 apply to both stock and mutual insurers incorporated in this state after June 30, 1966.
Source:
SL 1966, ch 111, ch 16, §6 (1).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05 - Organization And General Powers Of Insurers › Section 58-5-6 - Incorporators--Number and qualifications.

58-5-6. Incorporators--Number and qualifications.
Five or more individuals may incorporate as a stock insurer; ten or more individuals may incorporate as a mutual insurer. The incorporators shall be citizens of the United States, at least twenty-one years of age, and a majority of the incorporators shall be residents of this state.
Source:
SL 1966, ch 111, ch 16, §6 (2).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05 - Organization And General Powers Of Insurers › Section 58-5-6.1 - Domestication of foreign company--Requirements and procedure.

58-5-6.1. Domestication of foreign company--Requirements and procedure.
Any company organized under the laws of any other state or country, which might have been originally qualified and incorporated under the laws of this state, and which has been admitted to do business in this state may become a domestic corporation, and be entitled to certificates of its corporate existence and license to transact business in this state, and be subject in all respects to the authority and jurisdiction thereof upon completion with the following requirements:
(1)Execution, filing, and recording of original certificates;
(2)Payment of incorporation fees; and
(3)Designation of its principal place of business in this state.
Source:
SL 1976, ch 310; SL 1987, ch 371.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05 - Organization And General Powers Of Insurers › Section 58-5-7 - Articles of incorporation--Execution and acknowledgment--Contents.

58-5-7. Articles of incorporation--Execution and acknowledgment--Contents.
The incorporators shall execute and acknowledge articles of incorporation in triplicate. The articles of incorporation must state:
(1)The name of the corporation; if a mutual, the word "mutual" must be a part of the name. An alternative name or names may be specified for use in other jurisdictions;
(2)The purpose for which the corporation was formed;
(3)The duration of its existence, which may be perpetual;
(4)The kinds of insurance, as defined in this title, which the corporation is formed to transact;
(5)If a stock corporation, its authorized capital, the number of shares of common stock and the par value of each share, which shall be at least one dollar. Only one class of voting common stock shall be authorized;
(6)If a mutual corporation, the maximum contingent liability of its members, other than as to nonassessable policies, shall be stated in the articles of incorporation, but shall not be less than one nor more than six times the premium for the member's policy at the annual premium rate for a term of one year;
(7)The number of directors, which shall be not less than five nor more than twenty-one, the names and addresses of the members of the initial board of directors, who shall serve until the first meeting of stockholders or until their successors are elected and qualify;
(8)The post office address of its principal place of business in this state; and
(9)The name and residence address of each incorporator.
Source:
SL 1966, ch 111, ch 16, §6 (3).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05 - Organization And General Powers Of Insurers › Section 58-5-8 - Articles of incorporation delivered to director with filing fees--Examination and approval by attorney general, return to director.

58-5-8. Articles of incorporation delivered to director with filing fees--Examination and approval by attorney general, return to director.
The incorporators of a proposed domestic insurer shall deliver the original and two executed copies of the articles of incorporation to the director of the Division of Insurance together with the filing fees therefor specified in §58-2-29. The director shall submit the same to the attorney general for examination. If the attorney general finds that the articles comply with this title and the Constitution and laws of the United States and of this state, he shall endorse his approval thereon and return such articles to the director.
Source:
SL 1966, ch 111, ch 16, §7 (1).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05 - Organization And General Powers Of Insurers › Section 58-5-9 - Distribution of copies of approved articles.

58-5-9. Distribution of copies of approved articles.
Upon such approval, the director shall retain one copy of such articles and return the original and remaining copy thereof to the incorporators, who shall file the original with the secretary of state.
Source:
SL 1966, ch 111, ch 16, §7 (2).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05 - Organization And General Powers Of Insurers › Section 58-5-10 - Disapproval of articles by attorney general--Statement of reasons--Returned to incorporators.

58-5-10. Disapproval of articles by attorney general--Statement of reasons--Returned to incorporators.
If the attorney general does not approve such articles, he shall return the same to the director with a written statement of his reasons for disapproval. The director shall return all sets of the articles with such written statement to the incorporators.
Source:
SL 1966, ch 111, ch 16, §7 (3).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05 - Organization And General Powers Of Insurers › Section 58-5-11 - Amendment of articles of incorporation--Submission and filing.

58-5-11. Amendment of articles of incorporation--Submission and filing.
Amendments to the articles of incorporation shall be submitted and filed in the same manner as articles of incorporation in §§58-5-8 to 58-5-10, inclusive, and shall be in compliance with the provisions of this title, the bylaws of such corporation and the laws of this state.
Source:
SL 1966, ch 111, ch 16, §8 (1).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05 - Organization And General Powers Of Insurers › Section 58-5-12 - Bond required of mutual insurer before soliciting applications for insurance--Filing by incorporators--Amount, conditions.

58-5-12. Bond required of mutual insurer before soliciting applications for insurance--Filing by incorporators--Amount, conditions.
Before soliciting any applications for insurance as permitted under §58-5-21, the incorporators of the proposed insurer shall file with the director a continuing corporate surety bond in the penal sum of twenty-five thousand dollars, to be approved by the director, in favor of the state. The bond shall be conditioned as follows:
(1)For payment of costs incurred by the state in event of any legal proceedings for liquidation or dissolution of the corporation in the event the corporation fails to complete its organization and secure a certificate of authority within one year from the date of its certificate of incorporation; and
(2)For the prompt return to applicant members of all premiums collected in advance.
Source:
SL 1966, ch 111, ch 16, §10 (1).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05 - Organization And General Powers Of Insurers › Section 58-5-13 - Deposit by incorporators of mutual insurer in lieu of bond--Amount.

58-5-13. Deposit by incorporators of mutual insurer in lieu of bond--Amount.
In lieu of such bond, such incorporators may deposit with the director twenty-five thousand dollars or United States government bonds, negotiable and payable to the bearer, with a market value at all times of not less than twenty-five thousand dollars, to be held in trust upon the same conditions as required for such bond.
Source:
SL 1966, ch 111, ch 16, §10 (2).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05 - Organization And General Powers Of Insurers › Section 58-5-14 - Duration of bond or deposit by mutual insurer.

58-5-14. Duration of bond or deposit by mutual insurer.
Any such bond filed or deposit made shall remain in effect until released by the director upon compliance with §§58-5-12 and 58-5-13 or otherwise terminated by law.
Source:
SL 1966, ch 111, ch 16, §10 (3).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05 - Organization And General Powers Of Insurers › Section 58-5-15 - Commencement of solicitation by mutual insurer.

58-5-15. Commencement of solicitation by mutual insurer.
Upon receipt of the director's approval of the bond or deposit as provided in §§58-5-12 to 58-5-14, inclusive, the directors and officers of the proposed domestic mutual insurer may commence solicitation of applications for insurance.
Source:
SL 1966, ch 111, ch 16, §11 (1).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05 - Organization And General Powers Of Insurers › Section 58-5-16 - Temporary insurance producer's licenses for solicitation of applications for mutual insurance--Issuance by director.

58-5-16. Temporary insurance producer's licenses for solicitation of applications for mutual insurance--Issuance by director.
The director shall, upon the corporation's application therefor, issue temporary insurance producer's licenses for a period not exceeding six months for the solicitation of such applications to individuals qualifying for a resident insurance producer license except as to the taking or passing of an examination. The director may suspend or revoke any such license for any of the causes and pursuant to the same procedures as are applicable to suspension or revocation of licenses of insurance producers in general.
Source:
SL 1966, ch 111, ch 16, §11 (4); SL 2001, ch 286, §69.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05 - Organization And General Powers Of Insurers › Section 58-5-17 - Applications for mutual insurance--Signature by applicant, coverage.

58-5-17. Applications for mutual insurance--Signature by applicant, coverage.
All applications for insurance received pursuant to §58-5-15 shall be signed by the applicant and shall only cover subjects of insurance resident, located or to be performed in this state.
Source:
SL 1966, ch 111, ch 16, §11 (2).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05 - Organization And General Powers Of Insurers › Section 58-5-18 - Applications for mutual insurance--Contents.

58-5-18. Applications for mutual insurance--Contents.
All such applications shall provide that:
(1)Issuance of the policy is contingent upon the insurer qualifying for and receiving a certificate of authority;
(2)No insurance is in effect until the certificate of authority has been issued; and
(3)The prepaid premium and any deposit, membership or policy fee shall be refunded in full to the applicant if the certificate of authority is not issued within one year from the date of the certificate of incorporation.
Source:
SL 1966, ch 111, ch 16, §11 (3).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05 - Organization And General Powers Of Insurers › Section 58-5-19 - Trust deposit of premiums or fees collected by mutual insurer on qualifying applications.

58-5-19. Trust deposit of premiums or fees collected by mutual insurer on qualifying applications.
All sums collected by a proposed mutual insurer as premiums or fees on qualifying applications for insurance shall be deposited in trust in a bank or trust company in this state under a trust agreement consistent with §58-5-25 and with subdivision 58-5-18(3). The corporation shall file an executed copy of such agreement with the director of insurance.
Source:
SL 1966, ch 111, ch 16, §12 (1).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05 - Organization And General Powers Of Insurers › Section 58-5-20 - Transaction of business without certificate of authority as misdemeanor.

58-5-20. Transaction of business without certificate of authority as misdemeanor.
The corporation shall not transact business here as an insurer until it has received a certificate of authority as provided in this title. Violation of this section is a Class 2 misdemeanor.
Source:
SL 1966, ch 111, ch 16, §7 (4); SL 1978, ch 359, §2.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05 - Organization And General Powers Of Insurers › Section 58-5-21 - Insurance applications and surplus required for original certificate of authority to domestic mutual insurer.

58-5-21. Insurance applications and surplus required for original certificate of authority to domestic mutual insurer.
Upon application for an original certificate of authority, the insurer must be otherwise qualified therefor under this title, and must have received and accepted bona fide applications as to substantial insurable subjects for insurance coverage of the kind of insurance proposed to be transacted, must have collected in cash the full premium therefor at a rate not less than that usually charged by other insurers for comparable coverages, must have surplus funds deposited as of the date such insurance coverages are to become effective, or, in lieu of such applications, premiums and surplus, deposit and thereafter maintain surplus, all in accordance with that part of the following schedule which applies to the kind of insurance the insurer proposes to transact and subject to the provisions of §§58-6-19 to 58-6-22, inclusive:
SCHEDULE
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
Kind of Insurance
Minimum No.
of applicants
accepted
Minimum No.
of subjects
covered
Minimum
premium
collected
Minimum
amount of
insurance
each subject
Maximum
amount of
insurance
each subject
Minimum
surplus funds
deposited
Deposit of
surplus in
lieu of (b)
through (g)
Life
500
500
annual
$1,000
$ 2,500
$150,000
$200,000
Health
500
500
quarterly
10
25
150,000
200,000
(weekly indem.)
(weekly indem.)
Life and
‎ Health
750
750
same as individual lines above
300,000
400,000
Property
100
250
annual
1,000
3,000
150,000
200,000
Casualty
250
500
annual
1,000
10,000
150,000
200,000
Casualty with
Workmen's Compensation
‎
‎250
‎
‎1,500
‎
‎quarterly
‎
‎1,000
‎
‎10,000
‎
‎200,000
‎
‎300,000
Marine and Transportation
100
250
annual
1,000
10,000
150,000
200,000
Surety
250
250
annual
1,000
10,000
150,000
200,000
Multiple Lines
250
500
same as individual lines above
300,000
400,000
Source:
SL 1966, ch 111, ch 16, §9
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05 - Organization And General Powers Of Insurers › Section 58-5-22 - Expendable surplus funds required of domestic mutual insurer.

58-5-22. Expendable surplus funds required of domestic mutual insurer.
In addition to surplus deposited and thereafter to be maintained as shown in columns (g) and (h) of the schedule in §58-5-21, the insurer when first authorized must have on hand surplus funds, which it can thereafter expend in the conduct of its business, in amount not less than fifty percent of the deposited and maintained surplus required of it under the said schedule.
Source:
SL 1966, ch 111, ch 16, §9.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05 - Organization And General Powers Of Insurers › Section 58-5-23 - Determination by director as to weight to be given to insurance plans.

58-5-23. Determination by director as to weight to be given to insurance plans.
The director shall by regulation determine what weight, if any, shall be given group plans, blanket plans, family plans, term insurance, owner's interest in real property, maximum and minimum bodily injury and property damage limits, and reinsurance in the light of national and state industry experience and protection of the public welfare in interpreting the schedule in §58-5-21.
Source:
SL 1966, ch 111, ch 16, §9.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05 - Organization And General Powers Of Insurers › Section 58-5-24 - Cessation of corporate powers upon failure of mutual insurer to secure certificate of authority--Return of trust deposit.

58-5-24. Cessation of corporate powers upon failure of mutual insurer to secure certificate of authority--Return of trust deposit.
If the proposed domestic insurer fails to secure its certificate of authority within one year from the date of its certificate of incorporation, its corporate powers shall cease, and the director shall cause to be returned to the persons entitled thereto all sums held in trust under §58-5-19.
Source:
SL 1966, ch 111, ch 16, §13.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05 - Organization And General Powers Of Insurers › Section 58-5-25 - Issuance of certificate of authority to domestic mutual insurer--Funds in trust deposit become funds of insurer--Delivery of policies--Effective date of policies.

58-5-25. Issuance of certificate of authority to domestic mutual insurer--Funds in trust deposit become funds of insurer--Delivery of policies--Effective date of policies.
Upon issuance of a certificate of authority for the kind of insurance for which such applications were solicited, all funds held in trust under §58-5-19 shall become the funds of the insurer, and the insurer shall deliver its policies for which premiums had been paid. The insurance shall be effective as of the date of the certificate of authority or thereafter as provided by the respective policies.
Source:
SL 1966, ch 111, ch 16, §12 (2).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05 - Organization And General Powers Of Insurers › Section 58-5-26 - Authorization of domestic mutual insurer to transact additional kinds of insurance.

58-5-26. Authorization of domestic mutual insurer to transact additional kinds of insurance.
A domestic mutual insurer, after being authorized to transact one or more kinds of insurance, may be authorized to transact such additional kinds of insurance as are permitted under §58-5-21, while in compliance with this title and while maintaining unimpaired surplus funds in conformity with the requirements of §§58-5-21 and 58-5-22.
Source:
SL 1966, ch 111, ch 16, §14.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05 - Organization And General Powers Of Insurers › Section 58-5-27 - Membership of policyholders in domestic mutual insurer--Reinsurance contract excepted.

58-5-27. Membership of policyholders in domestic mutual insurer--Reinsurance contract excepted.
Each policyholder of a domestic mutual insurer, other than of a reinsurance contract, is a member of the insurer with all rights and obligations of such membership, and the policy shall so specify.
Source:
SL 1966, ch 111, ch 16, §15 (1).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05 - Organization And General Powers Of Insurers › Section 58-5-28 - Eligibility to membership in domestic, foreign, or alien mutual insurer.

58-5-28. Eligibility to membership in domestic, foreign, or alien mutual insurer.
Any person, government or governmental agency, state or political subdivision thereof, public or private corporation, board, association, firm, estate, trustee, or fiduciary may be a member of a domestic, foreign, or alien mutual insurer. Any officer, stockholder, trustee, or legal representative of any such corporation, board, association, or estate may be recognized as acting on its behalf for the purpose of such membership, and shall not be personally liable upon any contract of insurance for acting in such representative capacity.
Source:
SL 1966, ch 111, ch 16, §15 (2).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05 - Organization And General Powers Of Insurers › Section 58-5-29 - Contingent liability of members of mutual insurer--Exception.

58-5-29. Contingent liability of members of mutual insurer--Exception.
Every member of a domestic mutual insurer shall, except as otherwise provided with respect to nonassessable policies, have only a prorata contingent liability for the discharge of its obligations, which contingent liability shall be expressed in the policy and be in such maximum amount as is specified in the insurer's articles of incorporation.
Source:
SL 1966, ch 111, ch 16, §29 (1).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05 - Organization And General Powers Of Insurers › Section 58-5-30 - Contingent liability of member of mutual insurer not terminated by termination of policy.

58-5-30. Contingent liability of member of mutual insurer not terminated by termination of policy.
Termination of the policy of any member of a domestic mutual insurer shall not relieve him of contingent liability for his prorata share, if any, of the obligations of the insurer which accrued while the policy was in force.
Source:
SL 1966, ch 111, ch 16, §29 (2).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05 - Organization And General Powers Of Insurers › Section 58-5-31 - Unrealized contingent liability of members of mutual not an asset of insurer.

58-5-31. Unrealized contingent liability of members of mutual not an asset of insurer.
Any unrealized contingent liability of members shall not constitute an asset of the insurer in any determination of its financial condition.
Source:
SL 1966, ch 111, ch 16, §29 (3).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05 - Organization And General Powers Of Insurers › Section 58-5-32 - Levy of assessment by mutual insurer for contingent liability.

58-5-32. Levy of assessment by mutual insurer for contingent liability.
If at any time the minimum basic surplus required of a domestic mutual insurer by §§58-5-21 and 58-5-22 becomes impaired and the deficiency is not cured from other sources, its directors shall forthwith levy an assessment upon only its members who held policies providing for contingent liability at any time within the twelve months preceding the date that notice of such assessment was mailed to the members' last known post office addresses, and such members shall be liable thereafter to the insurer for the amount so assessed.
Source:
SL 1966, ch 111, ch 16, §30 (1).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05 - Organization And General Powers Of Insurers › Section 58-5-33 - Amount of assessment by mutual insurer.

58-5-33. Amount of assessment by mutual insurer.
The assessment under §58-5-32 shall be in an amount to cure such deficiency and to provide a reasonable amount of working funds which shall not exceed five percent of the insurer's liabilities as of the date such deficiency was determined.
Source:
SL 1966, ch 111, ch 16, §30 (2).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05 - Organization And General Powers Of Insurers › Section 58-5-34 - Computation of assessment levied by mutual insurer.

58-5-34. Computation of assessment levied by mutual insurer.
In levying such assessment, the computation shall be upon the basis of the premiums earned on such policy during the period to which the assessment relates.
Source:
SL 1966, ch 111, ch 16, §30 (3).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05 - Organization And General Powers Of Insurers › Section 58-5-35 - Offsets not allowed against assessment by mutual insurer.

58-5-35. Offsets not allowed against assessment by mutual insurer.
No member of a domestic mutual insurer shall have an offset against any assessment for which he is liable, on account of any claim for unearned premium or loss payable.
Source:
SL 1966, ch 111, ch 16, §30 (4).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05 - Organization And General Powers Of Insurers › Section 58-5-36 - Lien of mutual insurer for levy of assessment for contingent liability.

58-5-36. Lien of mutual insurer for levy of assessment for contingent liability.
If approved by the director of insurance as being in the best interests of the insurer and its members an assessment pursuant to §58-5-32 after notice under that section may be secured by placing a lien upon the cash surrender value and accumulated dividends of any life insurance policy held by the insurer to the credit of such member.
Source:
SL 1966, ch 111, ch 16, §30 (5).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05 - Organization And General Powers Of Insurers › Section 58-5-37 - Extinguishment of contingent liability--Issuance of nonassessable policies--Revocation of authority.

58-5-37. Extinguishment of contingent liability--Issuance of nonassessable policies--Revocation of authority.
After a domestic mutual insurer has established the surplus prescribed in §§58-5-21 and 58-5-22, and has authority to issue nonassessable policies, it may, with the director's approval, extinguish the contingent liability resulting from assessment of its members and thereafter issue nonassessable policies; provided that the director shall revoke the authority of a domestic mutual insurer to issue policies without contingent liability if at any time the insurer's assets are less than the sum of its liabilities and the surplus required for such authority, or if the insurer, by resolution of its board of directors approved by a majority of its members, requests that the authority be revoked. During the absence of such authority the insurer shall not issue any policy without providing therein for the contingent liability of the policyholder, nor renew any policy which is renewable at the option of the insurer without endorsing the same to provide for such contingent liability.
Source:
SL 1966, ch 111, ch 16, §31 (1).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05 - Organization And General Powers Of Insurers › Section 58-5-38 - Extinguishment of contingent liability must apply to all members and policies.

58-5-38. Extinguishment of contingent liability must apply to all members and policies.
The director shall not approve the extinguishment of contingent liability pursuant to §58-5-37 unless it applies to all members and all policies of insurance of such insurer.
Source:
SL 1966, ch 111, ch 16, §31 (2).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05 - Organization And General Powers Of Insurers › Section 58-5-39 - Bylaws of domestic mutual insurer--Adoption, modification, and revocation.

58-5-39. Bylaws of domestic mutual insurer--Adoption, modification, and revocation.
The initial board of directors of a domestic mutual insurer shall adopt bylaws, subject to the approval of the insurer's members at the next succeeding meeting by a two-thirds vote of those present in person or by proxy. The members shall have power by a two-thirds vote of those present in person or by proxy to make, modify, and revoke bylaws.
Source:
SL 1966, ch 111, ch 16, §16 (1).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05 - Organization And General Powers Of Insurers › Section 58-5-40 - Meetings of members of domestic mutual insurer--Time, notice, quorum, and conduct.

58-5-40. Meetings of members of domestic mutual insurer--Time, notice, quorum, and conduct.
The bylaws of a domestic mutual insurer shall provide the time, notice, quorum, and conduct of annual and special meetings of members. In no event shall a quorum at any meeting of members be less than five percent of the total membership.
Source:
SL 1966, ch 111, ch 16, §16 (2) (c), (3); SL 1968, ch 135; SL 1973, ch 297.