reglab/statecodes huggingface dataset:
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 06 - Authority To Transact Insurance In State › Section 58-6-77 - Time for publication of summary statement by director--Publication in judicial circuits.

58-6-77. Time for publication of summary statement by director--Publication in judicial circuits.
The director shall cause the publication of such statements to be made within sixty days from the end of the limit of time provided by law for filing such annual statements. The director shall, thereafter, provide for publication of the annual statements in such judicial circuits as shall be occupied by the appointment of an insurance producer after the first statements have been assigned.
Source:
SL 1966, ch 111, ch 3, §27; SL 2001, ch 286, §87.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 06 - Authority To Transact Insurance In State › Section 58-6-78 - Director to supply summary statement to each legal newspaper published in each judicial circuit--Recognition of legal newspaper.

58-6-78. Director to supply summary statement to each legal newspaper published in each judicial circuit--Recognition of legal newspaper.
The director shall supply at least one such statement to each legal newspaper published in each judicial circuit, if there are a sufficient number of such statements to be published so to supply each newspaper, and no newspaper shall receive a second statement for publication until each legal newspaper in each circuit shall be furnished at least one such statement for publication. If there are insufficient statements to supply all newspapers in one year, the statements for the succeeding year shall be first supplied to those newspapers not supplied the previous year, and they shall be so supplied in each succeeding year. The publisher of any legal newspaper published in this state, who desires his publication to be recognized in the distribution of annual statements, shall each year, on or before the first day of April, furnish to the director an affidavit that the newspaper he seeks to have recognized is a legal newspaper.
Source:
SL 1966, ch 111, ch 3, §27.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 06 - Authority To Transact Insurance In State › Section 58-6-79 - Publication requirements do not apply to fraternal or benevolent life association transactions nor to mutual insurance companies or associations.

58-6-79. Publication requirements do not apply to fraternal or benevolent life association transactions nor to mutual insurance companies or associations.
Nothing in §§58-6-76 to 58-6-78, inclusive, which relates to the publication of statements shall relate to any fraternal or benevolent life association transacting business in this state, nor to any mutual insurance company or association organized under the laws of this state.
Source:
SL 1966, ch 111, ch 3, §27.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 06 - Authority To Transact Insurance In State › Section 58-6-80 - Confidentiality of analysis ratios and examination synopses--Participation in regulatory information system.

58-6-80. Confidentiality of analysis ratios and examination synopses--Participation in regulatory information system.
All financial analysis ratios and examination synopses concerning insurance companies that are submitted to the department by the National Association of Insurance Commissioners' Insurance Regulatory Information System are confidential and may not be disclosed by the department.
All insurers subject to this statute shall participate in the National Association of Insurance Commissioners Insurance Regulatory Information System.
Source:
SL 1992, ch 342, §3.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 06A - Risk Retention Groups › Section 58-6A-2 - Charter and license of risk retention group--Approval of plan of operation or feasibility study--Revision of plan or study--Notice to National Association of Insurance Commissioners.

58-6A-2. Charter and license of risk retention group--Approval of plan of operation or feasibility study--Revision of plan or study--Notice to National Association of Insurance Commissioners.
Any risk retention group seeking to be chartered in this state shall be chartered and licensed as a liability insurance company authorized by the insurance laws of this state and, except as provided in this chapter, shall comply with all of the laws, rules, and requirements applicable to such insurers chartered and licensed in this state. Before it may offer insurance in any state, each risk retention group shall also submit for approval to the director of insurance of this state a plan of operation or a feasibility study and revisions of such plan or study if the group intends to offer any additional lines of liability insurance. If any subsequent material change is made to the plan of operation or feasibility study, the risk retention group shall submit an appropriate revision to the director within ten days of any change. No group may offer any additional lines of liability insurance in this state or any other state until a revision of the plan or study is approved by the director.
When filing an application for charter, the risk retention group shall provide to the director a summary of information, including the name of the risk retention group, the identity of the initial members of the group, the identity of those persons who organized the group or who will provide administrative services or otherwise influence or control the activities of the group, the amount and nature of initial capitalization, the coverages to be afforded, and the states in which the group intends to operate. Upon receipt, the director shall forward the information to the National Association of Insurance Commissioners. Providing notification to the National Association of Insurance Commissioners is in addition, and is not sufficient, to satisfy the requirements of this chapter.
Source:
SL 1987, ch 372, §2; SL 2016, ch 232, §14.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 06A - Risk Retention Groups › Section 58-6A-3 - Information submitted to director.

58-6A-3. Information submitted to director.
Before offering insurance in this state, a risk retention group not chartered in this state shall submit to the director:
(1)A statement identifying the states in which the risk retention group is chartered and licensed as a liability insurance company, date of chartering, its principal place of business, and other information, including information on its membership, as the director of this state may require to verify that the risk retention group is qualified under this chapter;
(2)A copy of the group's plan of operations or a feasibility study and revisions of the plan or study submitted to its state of domicile. However, the provision relating to the submission of a plan of operation or a feasibility study does not apply with respect to any line or classification of liability insurance which was defined in the Product Liability Risk Retention Act of 1981, before October 27, 1986, and was offered before such date by any risk retention group which had been chartered and operating for not less than three years before such date;
(3)A statement of registration which designates the director as the group's agent for the purpose of receiving service of legal documents or process; and
(4)A copy of any material revision to the group's plan of operation or feasibility study within thirty days of the date of the approval of the revision by the director of the group's chartering state, or if no such approval is required, within thirty days of filing.
Source:
SL 1987, ch 372, §3; SL 2016, ch 232, §15.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 06A - Risk Retention Groups › Section 58-6A-3.1 - Majority of risk retention group directors to be independent--Board determinations as to material relationship.

58-6A-3.1. Majority of risk retention group directors to be independent--Board determinations as to material relationship.
The board of directors of the risk retention group shall have a majority of independent directors. If the risk retention group is a reciprocal, then the attorney-in-fact shall adhere to the same standards regarding independence of operation and governance as imposed on the risk retention group's board of directors or subscriber's advisory committee under these standards. In addition, to the extent permissible under state law, a service provider of a reciprocal risk retention group shall contract with the risk retention group and not the attorney-in-fact.
No director of the risk retention group qualifies as independent unless the board of directors affirmatively determines that the director of the risk retention group has no material relationship as described in §58-6A-3.2 with the risk retention group. Each risk retention group shall disclose these determinations to the group's domestic regulator, at least annually. For the purposes of this section, any person that is a direct or indirect owner of or subscriber in the risk retention group or is an officer, director of the risk retention group, or employee of such an owner and insured, unless some other position of the officer, director of the risk retention group, or an employee constitutes a material relationship, as contemplated by section 3901(a)(4)(E)(ii) of the Liability Risk Retention Act in effect as of January 1, 2016, is considered to be independent.
Source:
SL 2016, ch 232, §3.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 06A - Risk Retention Groups › Section 58-6A-3.2 - Criteria of material relationship.

58-6A-3.2. Criteria of material relationship.
A material relationship includes:
(1)The receipt in any one twelve-month period of compensation or payment of any other item of value greater than or equal to five percent of the risk retention group's gross written premium for the twelve-month period or two percent of the risk retention group's surplus, whichever is greater, as measured at the end of any fiscal quarter falling in the twelve-month period by a person with the risk retention group or:
(a)The person's immediate family member;
(b)A business with which the person is affiliated from the risk retention group; or
(c)A consultant or service provider to the risk retention group.
A person with the risk retention group or an immediate family member of the person is not independent until one year after the person's compensation from the risk retention group falls below the threshold;
(2)A relationship with an auditor where a director of the risk retention group or an immediate family member of a director of the risk retention group who is affiliated with or employed in a professional capacity by a present or former internal or external auditor of the risk retention group is not independent until one year after the end of the affiliation, employment, or auditing relationship; and
(3)A relationship with a related entity where a director of the risk retention group or an immediate family member of a director of the risk retention group who is employed as an executive officer of another company where any of the risk retention group's present executives serve on that other company's board of directors is not independent until one year after the end of the service or the employment relationship.
Source:
SL 2016, ch 232, §4.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 06A - Risk Retention Groups › Section 58-6A-3.3 - Material service provider contracts.

58-6A-3.3. Material service provider contracts.
The term of any material service provider contract with the risk retention group may not exceed five years. Any material service provider contract, or its renewal, requires the approval of the majority of the risk retention group's independent directors. The risk retention group's board of directors shall have right to terminate any service provider, audit, or actuarial contracts at any time for cause after providing adequate notice as defined in the contract. The service provider contract is deemed material if the amount to be paid for the contract is greater than or equal to five percent of the risk retention group's annual gross written premium or two percent of its surplus, whichever is greater.
Source:
SL 2016, ch 232, §5.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 06A - Risk Retention Groups › Section 58-6A-3.4 - Notice to director of intent to enter into service provider contract meeting criteria of material relationship.

58-6A-3.4. Notice to director of intent to enter into service provider contract meeting criteria of material relationship.
No service provider contract meeting the criteria of material relationship contained in §58-6A-3.2 may be entered into unless the risk retention group has notified the director in writing of the risk retention group's intention to enter into the contract at least thirty days before entering into the transaction and the director has not disapproved the contract within that period.
Source:
SL 2016, ch 232, §6.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 06A - Risk Retention Groups › Section 58-6A-3.5 - Written policy in plan of operation.

58-6A-3.5. Written policy in plan of operation.
The risk retention group's board of directors shall adopt a written policy in the plan of operation as approved by the board that requires the board to:
(1)Assure that all owners and insureds of the risk retention group receive evidence of ownership interest;
(2)Develop a set of governance standards applicable to the risk retention group;
(3)Oversee the evaluation of the risk retention group's management including the performance of the managing general underwriter or any other party responsible for underwriting, determination of rates, collection of premiums, adjusting or settling a claim, or the preparation of a financial statement;
(4)Review and approve the amount to be paid for each material service provider; and
(5)Review and approve, at least annually:
(a)The risk retention group's goals and objectives relevant to the compensation of officers and service providers;
(b)The officers' and service providers' performance in light of those goals and objectives; and
(c)The continued engagement of the officers and material service providers.
Source:
SL 2016, ch 232, §7.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 06A - Risk Retention Groups › Section 58-6A-3.6 - Members of audit committee.

58-6A-3.6. Members of audit committee.
The risk retention group shall have an audit committee composed of at least three independent board members as defined in §§58-6A-3.1 and 58-6A-3.2. A nonindependent board member may participate in the activities of the audit committee, if invited by the committee, but cannot be a member of the audit committee.
Source:
SL 2016, ch 232, §8.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 06A - Risk Retention Groups › Section 58-6A-3.7 - Purpose of audit committee.

58-6A-3.7. Purpose of audit committee.
The audit committee of the risk retention group shall have a written charter that defines the committee's purpose, which, at a minimum, shall:
(1)Assist board oversight of the integrity of financial statements, the compliance with legal and regulatory requirements, and the qualifications, independence, and performance of the independent auditor and actuary;
(2)Discuss the annual audited financial statements and quarterly financial statements with management;
(3)Discuss the annual audited financial statements with the group's independent auditor and, if advisable, discuss the group's quarterly financial statements with the group's independent auditor;
(4)Discuss policies with respect to risk assessment and risk management;
(5)Meet separately and periodically, either directly or through a designated representative of the committee, with management and the independent auditor;
(6)Review with the independent auditor any audit problems or difficulties and management's response;
(7)Set clear hiring policies of the risk retention group as to the hiring of employees or former employees of the independent auditor;
(8)Require the external auditor to rotate the lead or coordinating audit partner having primary responsibility for the risk retention group's audit as well as the audit partner responsible for reviewing that audit so that neither individual performs audit services for more than five consecutive fiscal years; and
(9)Report regularly to the board of directors.
Source:
SL 2016, ch 232, §9.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 06A - Risk Retention Groups › Section 58-6A-3.8 - Waiver of audit committee requirement.

58-6A-3.8. Waiver of audit committee requirement.
The domestic regulator may waive the requirement to establish an audit committee composed of independent board members if the risk retention group is able to demonstrate to the domestic regulator that it is impracticable to do so and the risk retention group's board of directors itself is otherwise able to accomplish the purposes of an audit committee, as described in §58-6A-3.7.
Source:
SL 2016, ch 232, §10.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 06A - Risk Retention Groups › Section 58-6A-3.9 - Governance standards.

58-6A-3.9. Governance standards.
The board of directors shall adopt and disclose governance standards and make the information available electronically through the risk retention group's website or by other means. The risk retention group shall provide the governance standards to members or insureds on request. The adopted governance standards shall include the following:
(1)Concerning the directors of the risk retention group:
(a)A process by which the directors are elected by the owners or insureds;
(b)Qualification standards;
(c)Responsibilities;
(d)Access to management and, as necessary and appropriate, independent advisors;
(e)Compensation; and
(f)Orientation and continuing education;
(2)The policies and procedures that are followed for management succession; and
(3)The policies and procedures that are followed for annual performance evaluation of the board.
Source:
SL 2016, ch 232, §11.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 06A - Risk Retention Groups › Section 58-6A-3.10 - Code of business conduct and ethics.

58-6A-3.10. Code of business conduct and ethics.
The board of directors shall adopt and disclose a code of business conduct and ethics for directors, officers, and employees. Each director, officer, and employee shall promptly disclose to the board of directors any waivers of the code. The code of business conduct and ethics shall include the following topics:
(1)Conflicts of interest;
(2)Matters covered under the corporate opportunities doctrine under the state of domicile;
(3)Confidentiality;
(4)Fair dealing;
(5)Protection and proper use of risk retention group assets;
(6)Compliance with all applicable laws, rules, and regulations; and
(7)Requiring the reporting of any illegal or unethical behavior which affects the operation of the risk retention group.
Source:
SL 2016, ch 232, §12.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 06A - Risk Retention Groups › Section 58-6A-3.11 - Notice to director of noncompliance with standards.

58-6A-3.11. Notice to director of noncompliance with standards.
If the manager, president, or chief executive officer of the risk retention group becomes aware of any material noncompliance with any standards described in §§58-6A-3.1 to 58-6A-3.11, inclusive, the manager, president, or officer shall promptly notify the domestic regulator in writing.
Source:
SL 2016, ch 232, §13.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 06A - Risk Retention Groups › Section 58-6A-3.12 - Application of §§ 58-6A-1 to 58-6A-3.11.

58-6A-3.12. Application of §§58-6A-1 to 58-6A-3.11.
Any retention group licensed before July 1, 2016, shall be in compliance with §§58-6A-1 to 58-6A-3.11, inclusive, by July 1, 2017. Any risk retention group licensed after June 30, 2016, shall be in compliance with §§58-6A-1 to 58-6A-3.11, inclusive, at licensure.
Source:
SL 2016, ch 232, §1.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 06A - Risk Retention Groups › Section 58-6A-4 - Financial information submitted to director.

58-6A-4. Financial information submitted to director.
Any risk retention group doing business in this state shall submit to the director:
(1)A copy of the group's financial statement submitted to its state of domicile, which shall be certified by an independent public accountant and contain a statement of opinion on loss and loss adjustment expense reserves made by a member of the American Academy of Actuaries or a qualified loss reserve specialist under criteria established by the National Association of Insurance Commissioners;
(2)A copy of each examination of the risk retention group as certified by the director or public official conducting the examination;
(3)Upon request by the director, a copy of any audit performed with respect to the risk retention group; and
(4)Such information as may be required to verify its continuing qualification as a risk retention group under this chapter.
Source:
SL 1987, ch 372, §4.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 06A - Risk Retention Groups › Section 58-6A-5 - Taxation of premiums--Payment by insurance producers or brokers--Payment by risk retention group--Report of premiums.

58-6A-5. Taxation of premiums--Payment by insurance producers or brokers--Payment by risk retention group--Report of premiums.
All premiums paid for coverages within this state to risk retention groups are subject to taxation at the same rate and subject to the same interest, fines, and penalties for nonpayment as that applicable to foreign admitted insurers. To the extent insurance producers are utilized, they shall report and pay the taxes for the premiums for risks which they have placed with or on behalf of a risk retention group not chartered in this state. To the extent insurance producers are not utilized or fail to pay the tax, each risk retention group shall pay the tax for risks insured within this state. Further, each risk retention group shall report all premiums paid to it for risks insured within this state.
Source:
SL 1987, ch 372, §5; SL 2001, ch 286, §88.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 06A - Risk Retention Groups › Section 58-6A-5.1 - Rate of taxation on premiums--Interest, fines and penalties--Payment.

58-6A-5.1. Rate of taxation on premiums--Interest, fines and penalties--Payment.
The premium tax imposed by chapter 10-44 and taxes on premiums paid for coverage of risks resident or located in this state by a purchasing group or any member of a purchasing group shall be imposed at the same rate and subject to the same interest, fines, and penalties as that applicable to premium taxes and taxes on premiums paid for similar coverage from a similar insurance source by other insureds. The tax may be paid first by such insurance source or the insurance producer for the purchasing group or by the purchasing group or by each member of a purchasing group.
Source:
SL 1988, ch 392, §1; SL 2001, ch 286, §89.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 06A - Risk Retention Groups › Section 58-6A-6 - Compliance with Unfair Trade Practices Act.

58-6A-6. Compliance with Unfair Trade Practices Act.
Any risk retention group, its insurance producers, and representatives shall comply with the Unfair Trade Practices Act of this state, §§58-33-66 to 58-33-69, inclusive.
Source:
SL 1987, ch 372, §6; SL 2001, ch 286, §90.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 06A - Risk Retention Groups › Section 58-6A-7 - Compliance with laws regarding deceptive, false, or fraudulent acts or practices--Injunction.

58-6A-7. Compliance with laws regarding deceptive, false, or fraudulent acts or practices--Injunction.
Any risk retention group shall comply with the laws of this state, chapter 58-33, regarding deceptive, false, or fraudulent acts or practices. However, if the director seeks an injunction regarding such conduct, the injunction shall be obtained from a court of competent jurisdiction.
Source:
SL 1987, ch 372, §7.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 06A - Risk Retention Groups › Section 58-6A-8 - Examination by director.

58-6A-8. Examination by director.
Any risk retention group shall submit to an examination by the director to determine its financial condition if the director of the jurisdiction in which the group is chartered has not initiated an examination or does not initiate an examination within sixty days after a request by the director of this state. Any such examination shall be coordinated to avoid unjustified repetition and conducted in an expeditious manner in accordance with the National Association of Insurance Commissioners' Examiners Handbook.
Source:
SL 1987, ch 372, §8.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 06A - Risk Retention Groups › Section 58-6A-9 - Notice contained on policy--Contents.

58-6A-9. Notice contained on policy--Contents.
Any policy issued by any person, firm, association, or corporation licensed pursuant to the provisions of chapter 58-6A, on business placed with risk retention groups or written through a purchasing group, shall inform each prospective insured of the provisions of the notice and shall contain in ten-point type on the front page and the declaration page, the following notice:
NOTICE
This policy is issued by your risk retention group. Your risk retention group may not be subject to all of the insurance laws and regulations of your state. State insurance insolvency guaranty funds are not available for your risk retention group.
Source:
SL 1987, ch 372, §9; SL 1988, ch 392, §2.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 06A - Risk Retention Groups › Section 58-6A-10 - Prohibited acts by risk retention group.

58-6A-10. Prohibited acts by risk retention group.
The following acts by a risk retention group are hereby prohibited:
(1)The solicitation or sale of insurance by a risk retention group to any person who is not eligible for membership in such group; and
(2)The solicitation or sale of insurance by, or operation of, a risk retention group that is in a hazardous financial condition or is financially impaired.
Source:
SL 1987, ch 372, §10.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 06A - Risk Retention Groups › Section 58-6A-11 - Insurance company as member or owner.

58-6A-11. Insurance company as member or owner.
No risk retention group shall be allowed to do business in this state if an insurance company is directly or indirectly a member or owner of such risk retention group, other than in the case of a risk retention group all of whose members are insurance companies.
Source:
SL 1987, ch 372, §11.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 06A - Risk Retention Groups › Section 58-6A-12 - Compliance with voluntary dissolution or delinquency order by group not chartered if financially impaired.

58-6A-12. Compliance with voluntary dissolution or delinquency order by group not chartered if financially impaired.
A risk retention group not chartered in this state and doing business in this state shall comply with a lawful order issued in a voluntary dissolution proceeding or in a delinquency proceeding commenced by a state insurance director if there has been a finding of financial impairment after an examination under this chapter.
Source:
SL 1987, ch 372, §12.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 06A - Risk Retention Groups › Section 58-6A-13 - Financial contribution to or benefit from insurance insolvency guaranty fund prohibited.

58-6A-13. Financial contribution to or benefit from insurance insolvency guaranty fund prohibited.
No risk retention group may be permitted to join or contribute financially to any insurance insolvency guaranty fund, or similar mechanism, in this state, nor shall any risk retention group, or its insureds, receive any benefit from any such fund for claims arising out of the operations of such risk retention group.
Source:
SL 1987, ch 372, §13.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 06A - Risk Retention Groups › Section 58-6A-14 - Countersignature on policy not required.

58-6A-14. Countersignature on policy not required.
A policy of insurance issued to a risk retention group or any member of that group is not required to be countersigned.
Source:
SL 1987, ch 372, §14; SL 2021, ch 210, § 3.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 06A - Risk Retention Groups › Section 58-6A-15 - Prohibited insurance coverage.

58-6A-15. Prohibited insurance coverage.
A risk retention group may not offer insurance coverage prohibited under the insurance laws of this state or declared unlawful by the Supreme Court of this state.
Source:
SL 1987, ch 372, §15.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 06A - Risk Retention Groups › Section 58-6A-16.1 - Exemptions for purchasing group and insurer in regard to liability insurance--Subject to other laws.

58-6A-16.1. Exemptions for purchasing group and insurer in regard to liability insurance--Subject to other laws.
A purchasing group and its insurer or insurers are subject to all applicable laws of this state, except that a purchasing group and its insurer or insurers are exempt, in regard to liability insurance for the purchasing group, from any law that would:
(1)Prohibit the establishment of a purchasing group;
(2)Make it unlawful for an insurer to provide or offer to provide insurance on a basis providing advantages to a purchasing group or its members based on their loss and expense experience, which coverage is not afforded to other persons with respect to rates, policy forms, coverages, or other matters;
(3)Prohibit a purchasing group or its members from purchasing insurance on a group basis as described in subdivision (2) of this section;
(4)Prohibit a purchasing group from obtaining insurance on a group basis because the group has not been in existence for a minimum period of time or because any member has not belonged to the group for a minimum period of time;
(5)Require that a purchasing group shall have a minimum number of members, common ownership or affiliation, or certain legal form;
(6)Require that a certain percentage of a purchasing group shall obtain insurance on a group basis;
(7)Otherwise discriminate against a purchasing group or any of its members; or
(8)Require that any insurance policy issued to a purchasing group or any of its members be countersigned by an insurance producer residing in this state.
Source:
SL 1988, ch 392, §4; SL 2001, ch 286, §91.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 06A - Risk Retention Groups › Section 58-6A-17 - Notice to director--Contents.

58-6A-17. Notice to director--Contents.
Any purchasing group which intends to do business in this state shall furnish notice to the director which shall:
(1)Identify the state in which the group is domiciled;
(2)Specify the lines and classifications of liability insurance which the purchasing group intends to purchase;
(3)Identify the insurance company from which the group intends to purchase its insurance and the domicile, together with the complete business address, of such company;
(4)Identify the principal place of business of the group, together with the complete business address;
(5)Provide such other information as may be required by the director to verify that the purchasing group is qualified under §58-6A-1;
(6)Identify all other states in which the group intends to do business; and
(7)Specify the method by which, and the person through whom insurance shall be offered to its members whose risks are resident or located in this state.
Source:
SL 1987, ch 372, §17; SL 1988, ch 392, §5.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 06A - Risk Retention Groups › Section 58-6A-17.1 - Notice to director of changes.

58-6A-17.1. Notice to director of changes.
A purchasing group shall, within ten days, notify the director of any changes in any of the items set forth in §58-6A-17.
Source:
SL 1988, ch 392, §6.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 06A - Risk Retention Groups › Section 58-6A-17.2 - Information required by director--Time for giving notice and information.

58-6A-17.2. Information required by director--Time for giving notice and information.
Each group that is required to give notice pursuant to §58-6A-17 shall also furnish such information as may be required by the director to:
(1)Verify that the entity qualifies as a purchasing group;
(2)Determine where the purchasing group is located; and
(3)Determine appropriate tax treatment.
Any purchasing group which was doing business in this state prior to July 1, 1988, shall, within thirty days thereafter, furnish notice to the director pursuant to the provisions of §58-6A-17 and furnish such information as may be required pursuant to §§58-6A-17.1 and 58-6A-18.
Source:
SL 1988, ch 392, §7.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 06A - Risk Retention Groups › Section 58-6A-18 - Designation of director as agent for purchasing group--Exceptions.

58-6A-18. Designation of director as agent for purchasing group--Exceptions.
The purchasing group shall register with and designate the director as its agent solely for the purpose of receiving service of legal documents or process, except that such requirements do not apply in the case of a purchasing group:
(1)Which was domiciled before April 1, 1986, and is domiciled on and after October 27, 1986, in any state of the United States;
(2)Which before October 27, 1986, purchased insurance from an insurance carrier licensed in any state, and since October 27, 1986, purchased its insurance from an insurance carrier licensed in any state;
(3)Which was a purchasing group under the requirements of the Product Liability Risk Retention Act of 1981 before October 27, 1986; and
(4)Which does not purchase insurance that was not authorized for purposes of an exemption under that act, as in effect before October 27, 1986.
Source:
SL 1987, ch 372, §18.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 06A - Risk Retention Groups › Section 58-6A-19.1 - Purchase from risk retention group not chartered or insurer not admitted in state prohibited--Exception.

58-6A-19.1. Purchase from risk retention group not chartered or insurer not admitted in state prohibited--Exception.
A purchasing group may not purchase insurance from a risk retention group that is not chartered in a state or from an insurer not admitted in the state in which the purchasing group is located, unless the purchase is effected through a licensed insurance producer acting pursuant to the surplus lines laws and regulations of such state.
Source:
SL 1988, ch 392, §9; SL 2001, ch 286, §92.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 06A - Risk Retention Groups › Section 58-6A-19.2 - Notice of unprotected risk when liability insurance obtained from insurer not admitted in this state or risk retention group.

58-6A-19.2. Notice of unprotected risk when liability insurance obtained from insurer not admitted in this state or risk retention group.
Any purchasing group which obtains liability insurance from an insurer not admitted in this state or a risk retention group shall inform each of the members of such group which have a risk resident or located in this state that such risk is not protected by an insurance insolvency guaranty fund in this state and that such risk retention group or such insurer may not be subject to all insurance laws and regulations of this state.
Source:
SL 1988, ch 392, §10.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 06A - Risk Retention Groups › Section 58-6A-19.3 - Purchase of insurance providing for deductible or self-induced retention applicable to whole group prohibited--Application to individuals allowed--Aggregate limits standards.

58-6A-19.3. Purchase of insurance providing for deductible or self-induced retention applicable to whole group prohibited--Application to individuals allowed--Aggregate limits standards.
No purchasing group may purchase insurance providing for a deductible or self-insured retention applicable to the group as a whole. However, coverage may provide for a deductible or self-insured retention applicable to individual members. Any purchase of insurance by purchasing groups is subject to the same standards regarding aggregate limits which are applicable to all purchases of group insurance.
Source:
SL 1988, ch 392, §11.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 06A - Risk Retention Groups › Section 58-6A-19.4 - Insurance producer or broker license required for purchasing liability insurance from risk retention group.

58-6A-19.4. Insurance producer or broker license required for purchasing liability insurance from risk retention group.
No person, firm, association, or corporation may act or aid in any manner in soliciting, negotiating, or procuring liability insurance in this state from a risk retention group unless the person, firm, association, or corporation is licensed as an insurance producer in accordance with Title 58.
Source:
SL 1988, ch 392, §12; SL 2001, ch 286, §93.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 06A - Risk Retention Groups › Section 58-6A-19.5 - Insurance producer or broker license required to solicit liability insurance for purchasing group from insurer or risk retention group.

58-6A-19.5. Insurance producer or broker license required to solicit liability insurance for purchasing group from insurer or risk retention group.
No person, firm, association, or corporation may act or aid in any manner in soliciting, negotiating, or procuring liability insurance in this state for a purchasing group from an authorized insurer or a risk retention group chartered in a state unless the person, firm, association, or corporation is licensed as an insurance producer in accordance with Title 58.
Source:
SL 1988, ch 392, §13; SL 2001, ch 286, §94.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 06A - Risk Retention Groups › Section 58-6A-19.6 - Insurance producer or broker license required to solicit liability insurance for member of purchasing group.

58-6A-19.6. Insurance producer or broker license required to solicit liability insurance for member of purchasing group.
No person, firm, association, or corporation may act or aid in any manner in soliciting, negotiating, or procuring liability insurance coverage in this state for any member of a purchasing group under a purchasing group's policy unless the person, firm, association, or corporation is licensed as an insurance producer in accordance with Title 58.
Source:
SL 1988, ch 392, §14; SL 2001, ch 286, §95.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 06A - Risk Retention Groups › Section 58-6A-19.7 - Surplus lines producer or excess line producer license required to solicit liability insurance from unauthorized insurer for purchasing group.

58-6A-19.7. Surplus lines producer or excess line producer license required to solicit liability insurance from unauthorized insurer for purchasing group.
No person, firm, association, or corporation may act or aid in any manner in soliciting, negotiating, or procuring liability insurance from an insurer not authorized to do business in this state on behalf of a purchasing group located in this state unless the person, firm, association, or corporation is licensed as a surplus lines producer or excess line producer in accordance with Title 58.
Source:
SL 1988, ch 392, §15; SL 2001, ch 286, §96.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 06A - Risk Retention Groups › Section 58-6A-20 - Director's use of enforcement powers--Injunctive authority.

58-6A-20. Director's use of enforcement powers--Injunctive authority.
The director may use any of the enforcement powers available under the laws of this state so long as those powers are not specifically preempted by the Product Liability Risk Retention Act of 1981, as amended by the risk retention amendments of 1986. This includes, but is not limited to, the director's administrative authority to investigate, issue subpoenas, conduct depositions and hearings, issue orders, and impose penalties. With regard to any investigation, administrative proceedings or litigation, the director may rely on the procedural law and regulations of this state. The injunctive authority of the director in regard to risk retention groups is restricted by the requirement that any injunction be issued by a court of competent jurisdiction.
Source:
SL 1987, ch 372, §20.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 06A - Risk Retention Groups › Section 58-6A-21 - Penalty for violation.

58-6A-21. Penalty for violation.
Any risk retention group which violates any provision of this chapter is subject to fines and penalties applicable to licensed insurers generally, including revocation of its license or the right to do business in this state.
Source:
SL 1987, ch 372, §21.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 06A - Risk Retention Groups › Section 58-6A-22 - Broker license--Waiver of residency requirements.

58-6A-22. Broker license--Waiver of residency requirements.
Any person acting, or offering to act, as an insurance producer for a risk retention group or purchasing group, which solicits members, sells insurance coverage, purchases coverage for its members located within this state, or otherwise does business in this state shall, before commencing any such activity, obtain a license from the Division of Insurance. The residency requirements shall be waived for any insurance producer license issued under this chapter.
Source:
SL 1987, ch 372, §22; SL 2001, ch 286, §97.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 06A - Risk Retention Groups › Section 58-6A-23 - Enforcement of injunction against risk retention group in hazardous financial condition.

58-6A-23. Enforcement of injunction against risk retention group in hazardous financial condition.
Any order issued by any district court of the United States enjoining a risk retention group from soliciting or selling insurance, or operating in any state or in all states or in any territory or possession of the United States upon a finding that such a group is in a hazardous financial condition is enforceable in the courts of this state.
Source:
SL 1987, ch 372, §23.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 06A - Risk Retention Groups › Section 58-6A-24 - Promulgation of rules.

58-6A-24. Promulgation of rules.
The director may promulgate, pursuant to chapter 1-26, such rules relating to risk retention groups as may be necessary or desirable to carry out the provisions of this chapter.
Source:
SL 1987, ch 372, §24.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 07 - Insurers' Deposits With State › Section 58-7-1 - Amounts required to be deposited by domestic insurers--Financial institutions to report to director.

58-7-1. Amounts required to be deposited by domestic insurers--Financial institutions to report to director.
All deposits required by this title shall be kept in a financial institution approved by the director. A domestic property and casualty or health insurer shall deposit an amount not less than fifty percent of the required unearned premium reserves on their outstanding policies. Domestic life insurers shall deposit an amount not less than the required reserves on their outstanding policies, including annuity and supplementary contracts, but excluding premium notes, policy loans, and other policy liens referred to in subdivision 58-26-1(3) and the net amount of uncollected and deferred premiums and annuity considerations referred to in subdivision 58-26-1(4). The financial institution shall report quarterly to the director the insurers that have deposits with it and the amounts and kinds of assets and securities. Withdrawal of securities and assets on deposit shall be pursuant to the custodial agreement.
Source:
SL 1966, ch 111, ch 7, §1 (1); SL 1977, ch 406; SL 1991, ch 398, §1.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 07 - Insurers' Deposits With State › Section 58-7-2 - Assets acceptable for deposit of reserves.

58-7-2. Assets acceptable for deposit of reserves.
Deposits of reserves of a domestic insurer under §58-7-1 shall consist of securities and assets which the insurer is authorized to hold as admitted assets.
Source:
SL 1966, ch 111, ch 7, §1 (4).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 07 - Insurers' Deposits With State › Section 58-7-3 - Credit of other deposit against reserve deposit.

58-7-3. Credit of other deposit against reserve deposit.
A domestic insurer may credit toward the deposit the amount of any other deposit of the insurer required by the director for the protection of its policyholders.
Source:
SL 1966, ch 111, ch 7, §1 (3); SL 1991, ch 398, §2.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 07 - Insurers' Deposits With State › Section 58-7-4 - Annual deposit of additional securities to cover increase of reserves.

58-7-4. Annual deposit of additional securities to cover increase of reserves.
Annually on or before April first, the insurer shall deposit any additional securities required under §58-7-1 and related to the increase of such reserves during the calendar year next preceding as determined from the insurer's annual statement as of December thirty-first of such preceding year.
Source:
SL 1966, ch 111, ch 7, §1 (2).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 07 - Insurers' Deposits With State › Section 58-7-5 - Ineligibility for deposit of securities in default.

58-7-5. Ineligibility for deposit of securities in default.
If default occurs in the payment of interest or principal of any deposited security and such default continues for a period of one hundred twenty days, the director may declare such security no longer eligible for deposit under §58-7-1.
Source:
SL 1966, ch 111, ch 7, §1 (5).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 07 - Insurers' Deposits With State › Section 58-7-6 - Authorized deposits of insurers.

58-7-6. Authorized deposits of insurers.
The following deposits of insurers shall be accepted and held, and are subject to the provisions of this chapter:
(1)Deposits required under this title for authority to transact insurance business in this state;
(2)Deposits of domestic insurers if made pursuant to the laws of other states, provinces, and countries as requirement for authority to transact insurance in that state, province, or country;
(3)Deposits of reserves made by domestic insurers;
(4)Deposits in additional amounts as are permitted to be made under §58-7-29.
Source:
SL 1966, ch 111, ch 7, §2; SL 1991, ch 398, §3.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 07 - Insurers' Deposits With State › Section 58-7-7 - Purpose of deposits.

58-7-7. Purpose of deposits.
Such deposits shall be held for purposes set forth in §§58-7-8 to 58-7-12, inclusive.
Source:
SL 1966, ch 111, ch 7, §3.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 07 - Insurers' Deposits With State › Section 58-7-8 - Certificates of deposit--Eligible securities--Purpose of deposits.

58-7-8. Certificates of deposit--Eligible securities--Purpose of deposits.
All such deposits required under §§58-6-33 to 58-6-35, inclusive, for authority to transact insurance in this state shall consist of certificates of deposit, or any combination of securities of the kinds described in §§58-27-9, 58-27-11, 58-27-12, 58-27-14, and 58-27-15. Deposits made in this state under §§58-6-33 to 58-6-35, inclusive, shall be held for the purpose stated in §58-6-34.
Source:
SL 1966, ch 111, ch 7, §§3 (1), 4 (1).