reglab/statecodes huggingface dataset:
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-51.2 - Additional investment authority--Property and casualty insurers.

58-27-51.2. Additional investment authority--Property and casualty insurers.
In addition to the authority provided under §58-27-51, an insurer authorized to write property and casualty insurance may invest a percentage of the amount by which the insurer's total adjusted capital equals or exceeds two hundred percent of its company action level risk-based capital in investments of any kind, in the discretion of the insurer, without regard to any condition of, restriction in, or exclusion prescribed in chapter 58-27, and regardless of whether the same or a similar type of investment has been included in, or omitted from, any such section, subject to an aggregate limitation equal to the greatest of:
(1)Fifty percent of the excess of total adjusted capital over the risk-based capital threshold if the insurer has total adjusted capital that equals or exceeds two hundred twenty five percent of its company action level risk-based capital;
(2)Seventy-five percent of the excess of total adjusted capital over the risk-based capital threshold if the insurer has total adjusted capital that equals or exceeds two hundred fifty percent of its company action level risk-based capital; or
(3)One hundred percent of the excess of total adjusted capital over the risk-based capital threshold if the insurer has total adjusted capital that equals or exceeds two hundred seventy-five percent of its company action level risk-based capital.
For the purpose of this section, risk-based capital threshold means two hundred percent of an insurer's company action level risk-based capital. The director shall promulgate rules pursuant to chapter 1-26 to define company action level risk-based capital and total adjusted capital.
Source:
SL 1997, ch 294, §12.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-51.3 - Additional investment authority--Valuation of investments.

58-27-51.3. Additional investment authority--Valuation of investments.
Any investment purchased and held pursuant to §58-27-51.1 or 58-27-51.2 shall be valued in accordance with chapters 58-26 and 58-27 or in accordance with the methods established by the National Association of Insurance Commissioners. If valuation methods are not prescribed by chapter 58-26 or 58-27, or the National Association of Insurance Commissioners has not established a valuation method for any investment, the investment must be valued at the lower of cost or market.
Source:
SL 1997, ch 294, §13.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-52 - Limits on categories of investments.

58-27-52. Limits on categories of investments.
Except as otherwise provided in this chapter, an insurer shall invest in or hold as admitted assets categories of investments only within applicable limits as prescribed by §§58-27-53 to 58-27-60, inclusive.
Source:
SL 1966, ch 111, ch 6, §5; SL 1997, ch 294, §14.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-53 - Maximum amount of investments or loans with one person, institution, corporation, or municipal corporation--Exceptions.

58-27-53. Maximum amount of investments or loans with one person, institution, corporation, or municipal corporation--Exceptions.
An insurer may not, except with the consent of the director, have any combination of investments in or loans upon the security of the obligations, property, or securities of any one person, institution, corporation, or municipal corporation aggregating an amount exceeding five percent of the insurer's assets. This restriction does not apply to the following:
(1)Bonds, notes, debentures, certificates, participations, or interest or other obligations issued by, or the payment of which is guaranteed or insured by, the United States Government or any agency or instrumentality or subdivision thereof;
(2)Obligations of the Student Loan Marketing Association, the Federal National Mortgage Association, or the Federal Home Loan Mortgage Corporation;
(3)Bonds, notes, debentures, or other obligations issued by, or the payment of which is guaranteed by, the State of South Dakota or any state as defined in subdivision 58-1-2(17); or
(4)Policy loans made under §58-27-31 or investments made pursuant to either §58-27-25 or 58-27-26, or both.
Source:
SL 1966, ch 111, ch 6, §5 (1); SL 1983, ch 376, §6; SL 1993, ch 364, §1; SL 1997, ch 294, §15; SL 2000, ch 245, §1; SL 2017, ch 214, §1.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-54 - Maximum amount of investment in voting stock of corporation--Exceptions.

58-27-54. Maximum amount of investment in voting stock of corporation--Exceptions.
An insurer may not invest in or hold at any one time more than ten percent of the outstanding voting stock of any corporation, except with respect to voting rights of preference stock during default and of dividends; this section does not apply to stock of a majority owned subsidiary of the insurer or to controlling stock of an insurer acquired under §§58-27-24 to 58-27-26, inclusive.
Source:
SL 1966, ch 111, ch 6, §5 (2); SL 1983, ch 376, §7.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-55 - Maintenance of invested funds--Minimum amount--Guaranteed securities--Real property.

58-27-55. Maintenance of invested funds--Minimum amount--Guaranteed securities--Real property.
An insurer, other than title insurer, shall invest and maintain invested funds not less in amount than the minimum paid-in capital stock required under this title of a domestic stock insurer transacting like kinds of insurance, only in cash and the securities provided for under §§58-27-9 to 58-27-15, inclusive, and under §§58-27-32 to 58-27-40, inclusive.
Source:
SL 1966, ch 111, ch 6, §5 (3).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-56 - Minimum investments by life insurer.

58-27-56. Minimum investments by life insurer.
A life insurer shall also invest and keep invested its funds in amount not less than the reserves under its life insurance policies and annuity contracts in force, in cash or investments provided for under this chapter.
Source:
SL 1966, ch 111, ch 6, §5 (4).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-57 - Maximum amount of investment in certain classes of securities.

58-27-57. Maximum amount of investment in certain classes of securities.
Except with the director's consent, no insurer may have invested at any one time more than forty percent of its assets in the class of securities described in subdivisions 58-27-17(1), (2), (3), and (4) and in §58-27-28, exclusive of obligations of the Student Loan Marketing Association, public utilities and securities described in §§58-27-103 and 58-27-104, and obligations guaranteed or insured by the United States government or any instrumentality or subdivision thereof or any state as defined in subdivision 58-1-2(17). For purposes of determining compliance with this section, the investments under subdivision 58-27-17(4) are limited to those mutual funds that are investing at least ninety percent in bonds defined in subdivisions 58-27-17(1), (2), and (3) and §§58-27-9 to 58-27-13, inclusive.
Source:
SL 1966, ch 111, ch 6, §5 (5); SL 1992, ch 350, §21; SL 1993, ch 364, §5; SL 1997, ch 294, §16; SL 2001, ch 284, §1; SL 2017, ch 214, §2.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-58 - Limitations on investments in corporate stock--Exceptions.

58-27-58. Limitations on investments in corporate stock--Exceptions.
An insurer may invest and have invested at any one time in aggregate amount not more than twenty percent of its assets in all investments under §§58-27-23 and 58-27-24 and not more than twenty-five percent of its assets in all investments under subdivisions 58-27-17(4) and (5) and §§58-27-23 and 58-27-24. Determination of the amount which an insurer has invested for the purposes of this section shall be based on the cost of such investments to the insurer. This section does not apply to stock of a controlled or subsidiary insurance corporation or other corporation under §§58-27-25 and 58-27-26. This section does not apply to §58-27-101. For purposes of determining compliance with this section, the investments under subdivision 58-27-17(4) are limited to those mutual funds investing less than ninety percent in bonds defined in subdivisions 58-27-17(1), (2), and (3) and §§58-27-9 to 58-27-13, inclusive.
Source:
SL 1966, ch 111, ch 6, §5 (6); SL 1983, ch 376, §8; SL 1992, ch 350, §22; SL 1997, ch 294, §17.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-60 - Limits of investments in real estate--Law governing.

58-27-60. Limits of investments in real estate--Law governing.
Limits as to investments in the category of real estate shall be as provided in §58-27-50.
Source:
SL 1966, ch 111, ch 6, §5 (8).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-61 - Investment or loans on own capital stock.

58-27-61. Investment or loans on own capital stock.
In addition to investments excluded pursuant to other provisions of this title, no insurer may invest in or lend its funds upon the security of issued shares of its own capital stock except out of unborrowed surplus, or except in connection with a pension plan approved by the director for the benefit of the insurer's officers, employees, representatives, or insurance producers. No such stock may, however, constitute an asset of the insurer in any determination of its financial condition.
Source:
SL 1966, ch 111, ch 6, §34 (1) (a); SL 2001, ch 286, §135.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-62 - Loan secured by own stock as collateral.

58-27-62. Loan secured by own stock as collateral.
In addition to investments excluded pursuant to other provisions of this title, an insurer shall not invest in or lend its funds upon the security of any note or other evidence of indebtedness secured by its own stock as collateral or other than as authorized by §§58-27-31, 58-27-36, and 58-27-37, either directly or indirectly, to any of its officers, directors, or affiliates, except that it may make loans of the type described in §§58-27-32 to 58-27-40, inclusive, to corporate affiliates, provided that no such loan or loans to an affiliate or affiliates, so made or acquired, shall in the aggregate exceed forty percent of the surplus of the insurer, and no single loan shall exceed twenty percent of such surplus. The real estate involved in any such loan to an affiliate shall be worth at least double the amount loaned thereon, as justified by the appraisal report of an independent, competent, and recognized appraiser or appraisers. The investments authorized by this section may be made notwithstanding the provisions of §§47-1A-830 to 47-1A-833.1, inclusive, to the contrary and without liability on the part of the officers and directors specified therein.
Source:
SL 1966, ch 111, ch 6, §34 (1) (c); SL 2005, ch 202, §25.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-64 - Affiliate defined.

58-27-64. Affiliate defined.
The term "affiliate" when used in §§58-27-62 to 58-27-66, inclusive, shall mean any person, firm, trust, corporation, or other business entity, which by stock ownership or by any contractual arrangement whatsoever, has the power, either directly or indirectly, to control twenty-five percent or more of the voting shares or voting rights of such insurer or any such organization which is similarly controlled by any such insurer to such extent and all other affiliates of any such affiliate.
Source:
SL 1966, ch 111, ch 6, §34 (1) (e).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-65 - Finding of director that security designed to evade chapter--Investment or loan prohibited.

58-27-65. Finding of director that security designed to evade chapter--Investment or loan prohibited.
In addition to investments excluded pursuant to other provisions of this title, an insurer shall not invest in or lend its funds upon the security of any investment or security which is found by the director to be designed to evade any prohibition of this chapter.
Source:
SL 1966, ch 111, ch 6, §34 (1) (b).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-66 - Pension or profit-sharing trust agreement not prohibited.

58-27-66. Pension or profit-sharing trust agreement not prohibited.
The provisions of §§58-27-62 and 58-27-65 shall not be construed to prohibit the making of pension or profit-sharing trust agreements involving the employees of affiliates or consolidations, mergers, or other transactions otherwise authorized by this title.
Source:
SL 1966, ch 111, ch 6, §34 (1) (f).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-67 - Underwriting of securities or property prohibited.

58-27-67. Underwriting of securities or property prohibited.
No insurer shall underwrite or participate in the underwriting of an offering of securities or property by any other person.
Source:
SL 1966, ch 111, ch 6, §34 (2).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-68 - Foreign insurer--Permitted investment portfolio--Domicile of alien insurer.

58-27-68. Foreign insurer--Permitted investment portfolio--Domicile of alien insurer.
The investment portfolio of a foreign insurer shall be as permitted by the laws of its domicile but shall be of a quality substantially as high as that required under this chapter for similar funds of like domestic insurers. For the purposes of this provision, the domicile of an alien insurer, other than a life insurer formed under the laws of Canada, shall be deemed to be that state in which it maintains its principal deposit.
Source:
SL 1966, ch 111, ch 6, §35.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-69 - Authorization of investment or loan by board or committee of insurer.

58-27-69. Authorization of investment or loan by board or committee of insurer.
An insurer may not make any investment or loan, other than policy loans or annuity contract loans of a life insurer, unless the same is authorized, approved, or ratified by the insurer's board of directors or by a committee authorized by such board and charged with the supervision or making of such investment or loan. The minutes of any such committee shall be recorded and regular reports of such committee shall be submitted to the board of directors.
Source:
SL 1966, ch 111, ch 6, §4; SL 1997, ch 294, §19.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-70 - Disposal of real estate unnecessary for transaction of insurance business--Time limit.

58-27-70. Disposal of real estate unnecessary for transaction of insurance business--Time limit.
Except as stated in §58-27-72, the insurer shall dispose of real estate acquired under subdivision 58-27-50(1) within five years after it has ceased to be necessary for the convenient accommodation of the insurer in the transaction of its business.
Source:
SL 1966, ch 111, ch 6, §31 (1).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-71 - Disposal of real estate acquired in satisfaction of debt, as part payment of consideration on sale of real estate, as gift or devise, or through merger, consolidation, or bulk reinsurance--Time limit.

58-27-71. Disposal of real estate acquired in satisfaction of debt, as part payment of consideration on sale of real estate, as gift or devise, or through merger, consolidation, or bulk reinsurance--Time limit.
Except as stated in §58-27-72, the insurer shall dispose of real estate acquired under subdivisions 58-27-50(2), (3), and (4) within five years after the date of acquisition. The insurer may agree to sell such real estate by contract for deed upon the best terms obtainable.
Source:
SL 1966, ch 111, ch 6, §31 (2).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-72 - Extension of time for disposal of real estate--Election to hold as investment for income purposes, acquisition cost.

58-27-72. Extension of time for disposal of real estate--Election to hold as investment for income purposes, acquisition cost.
Upon proof satisfactory to him that the interests of the insurer will suffer materially by the forced sale thereof, the director may by order grant a reasonable extension of the period, as specified in such order, within which the insurer shall dispose of any particular parcel of such real estate; unless the insurer elects to hold such real estate as an investment for income purposes under subdivision 58-27-50(6), in which event thereafter such real estate shall be deemed to have been acquired at a cost equal to its book value at the time of such election and to be held under, and subject to, the provisions of subdivision 58-27-50(6).
Source:
SL 1966, ch 111, ch 6, §31 (3).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-73 - Immediate disposal of ineligible property or security unlawfully acquired.

58-27-73. Immediate disposal of ineligible property or security unlawfully acquired.
Any ineligible property or security unlawfully acquired by an insurer shall be disposed of forthwith, and for failure so to do within thirty days after order of the director requiring such disposal, the director may suspend or revoke the insurer's certificate of authority.
Source:
SL 1966, ch 111, ch 6, §32 (3).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-74 - Disposal of lawfully acquired ineligible property--Extension of time.

58-27-74. Disposal of lawfully acquired ineligible property--Extension of time.
Any personal property or securities lawfully acquired by an insurer which it could not otherwise have invested in or loaned its funds upon at the time of such acquisition, shall be disposed of by the insurer within one year from date of acquisition, unless within such period the security has attained the standard for eligibility. The director, upon application and proof that forced sale of any such property or security would be against the best interests of the insurer, may extend the disposal period for an additional reasonable time.
Source:
SL 1966, ch 111, ch 6, §32 (1).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-75 - Ineligible personal property or securities not allowable as assets of insurer.

58-27-75. Ineligible personal property or securities not allowable as assets of insurer.
While any property or security described in §58-27-74 remains so ineligible it shall not be allowed as an asset of the insurer.
Source:
SL 1966, ch 111, ch 6, §32 (2).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-76 - Expiration of period for disposal of ineligible property or securities--Disallowance as admitted asset.

58-27-76. Expiration of period for disposal of ineligible property or securities--Disallowance as admitted asset.
Any real estate, personal property, or securities acquired and held by an insurer after expiration of the period for disposal thereof or any extension of such period granted by the director, as provided in §§58-27-50 and 58-27-70 to 58-27-75, inclusive, shall not be allowed as an admitted asset of the insurer.
Source:
SL 1966, ch 111, ch 6, §33 (1).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-77 - Immediate disposal of ineligible investment unlawfully acquired.

58-27-77. Immediate disposal of ineligible investment unlawfully acquired.
The insurer shall forthwith dispose of any ineligible investment unlawfully acquired by it, and the director may suspend or revoke the insurer's certificate of authority if the insurer fails to dispose of the investment within such reasonable time as the director may, by his order, specify.
Source:
SL 1966, ch 111, ch 6, §33 (2).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-78 - Nominee holding investments--Definitions.

58-27-78. Nominee holding investments--Definitions.
Terms used in §§58-27-78 to 58-27-84, inclusive, mean:
(1)"Clearing corporation," a corporation as defined in subdivision 57A-8-102(5);
(2)"Custodian bank," any bank or trust company which is supervised or examined by a state or federal authority having supervision over banks and which may act as custodian for an insurer;
(3)"Member bank," a national bank, state bank, or trust company which is a member of the United States Federal Reserve System;
(4)"Securities lending transaction," a transaction in which securities are loaned by an insurer to an institution that is obligated to return equivalent or substantially similar securities to the insurer, either within a specified period of time or upon demand;
(5)"Reverse repurchase transaction," a transaction in which an insurer sells securities to an institution and is obligated to repurchase equivalent or substantially similar securities from the institution at a specified price, either within a specified period of time or upon demand;
(6)"Repurchase transaction," a transaction in which an insurer purchases securities from an institution that is obligated to repurchase equivalent or substantially similar securities from the insurer at a specified price, either within a specified period of time or upon demand;
(7)"Dollar roll transaction," two simultaneous transactions with different settlement dates no more than ninety-six days apart, so that in the transaction with the earlier settlement date, an insurer sells to an institution, and in the other transaction, the insurer is obligated to purchase from the same institution, substantially similar securities of the following type:
(a)Securities issued, assumed, or guaranteed by the Government National Mortgage Association, the Federal National Mortgage Association, or the Federal Home Loan Mortgage Corporation, or their respective successors;
(b)Securities referred to in Section 106 of Title I of the Secondary Mortgage Market Enhancement Act of 1984 (15 U.S.C. §77r-1), as adopted by the director pursuant to rules promulgated pursuant to chapter 1-26;
(c)Any other securities approved by the director;
(8)"Substantially similar securities," securities of the same issuer having similar features that meet all criteria for substantially similar or equivalent securities specified in the National Association of Insurance Commissioners Accounting Practices and Procedures Manual, as adopted by the director pursuant to rules promulgated pursuant to chapter 1-26; and
(9)"Securities," any investment of the type authorized or permitted under chapter 58-27.
Source:
SL 1983, ch 377, §1; SL 1997, ch 294, §20; SL 2017, ch 214, §3.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-79 - Name in which investments held.

58-27-79. Name in which investments held.
A company's investments shall be held in its own name or the name of its nominee. However, this provision does not apply under the circumstances outlined in §§58-27-80 to 58-27-83, inclusive.
Source:
SL 1983, ch 377, §2.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-80 - Holding in name of clearing corporation, custodian bank or nominee--Conditions.

58-27-80. Holding in name of clearing corporation, custodian bank or nominee--Conditions.
Investments may be held in the name of a clearing corporation or of a custodian bank or in the name of the nominee of either under the following conditions:
(1)The clearing corporation, custodian bank, or nominee is legally authorized to hold the particular investment for the account of others;
(2)If the investment is evidenced by a certificate and held in the name of a custodian bank or the nominee of a custodian bank, a written agreement shall provide that certificates so deposited shall at all times be kept separate and apart from other deposits with the depository so that at all times they may be identified as belonging solely to the company making the deposit; and
(3)If a clearing corporation is to act as depository, the investment may be merged or held in bulk in the clearing corporation's or its nominee's name with other investments deposited with the clearing corporation by any other person if a written agreement provides that adequate evidence of the deposit is to be obtained and retained by the company or a custodian bank.
Source:
SL 1983, ch 377, §3.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-81 - Securities lending, repurchase, reverse repurchase and dollar roll transactions--Agreement required.

58-27-81. Securities lending, repurchase, reverse repurchase and dollar roll transactions--Agreement required.
An insurer may enter into securities lending, repurchase, reverse repurchase, and dollar roll transactions subject to the following requirements:
(1)A written plan or investment policy that specifies guidelines and objectives relating to such transactions shall be adopted by the insurer's board of directors or a committee authorized and charged by such board with the supervision or making of investments or loans;
(2)All transactions entered into pursuant to this section, other than dollar roll transactions, shall be subject to a written agreement, including a master agreement for a series of transactions or an agreement with an agent acting on behalf of the insurer, which provides that:
(a)Transactions authorized in this section shall be fully collateralized by cash or eligible securities as permitted or authorized under chapter 58-27 excluding any investments acquired under §58-27-51.1 or 58-27-51.2;
(b)The collateral shall be marked to market each business day and adjusted as needed to comply with subsection (a) of this subdivision;
(c)For purposes of this agreement, market value shall include accrued interest; and
(d)The insurer may retain the collateral or use the collateral to purchase investments equivalent to the loaned securities if the borrower defaults under the terms of the agreement and the borrower remains liable for any losses and expenses incurred by the insurer due to default that are not covered by the collateral;
(3)Any transaction entered into pursuant to this section may be terminated at a specified time or upon the earlier demand of the insurer;
(4)Any cash received by an insurer in a transaction under this section shall be invested in accordance with chapter 58-27 and in a manner that recognizes the liquidity needs of the transaction or used by the insurer for its general corporate purposes;
(5)An insurer is limited to no more than five percent of its admitted assets being subject to securities lending, repurchase, or reverse repurchase transactions outstanding with any one institution under this section;
(6)No more than forty percent of an insurer's admitted assets in the aggregate may be subject to securities lending, repurchase, and reverse repurchase transactions.
The director of the Division of Insurance may promulgate rules pursuant to chapter 1-26 to establish financial solvency standards, valuation standards, and reporting requirements for investments and transactions under this section.
Source:
SL 1983, ch 377, §4; SL 1997, ch 294, §21.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-82 - Participation in federal reserve book-entry system.

58-27-82. Participation in federal reserve book-entry system.
A company may participate through a member bank in the federal reserve book-entry system and the records of the member bank shall at all times show that the investments are held for the company or for specific accounts of the company.
Source:
SL 1983, ch 377, §5.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-83 - Interest in pool of obligations--Fractional interest in an obligation--Requirements.

58-27-83. Interest in pool of obligations--Fractional interest in an obligation--Requirements.
An investment may consist of an individual interest in a pool of obligations or a fractional interest in a single obligation if the certificate of participation or interest or the confirmation of participation or interest in the investment is issued in the name of the company or the name of the custodian bank or the nominee of either and if the certificate or confirmation must, if held by a custodian bank, be kept separate and apart from the investments of others so that at all times the participation may be identified as belonging solely to the company making the investment.
Source:
SL 1983, ch 377, §6.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-84 - Evidence of investment required in absence of certificate.

58-27-84. Evidence of investment required in absence of certificate.
If an investment is not evidenced by a certificate, except as provided in §58-27-82, adequate evidence of the insurer's investment shall be obtained and retained by the insurer, a custodian bank, or clearing corporation. Adequate evidence, for purposes of this section, means a written receipt or other verification issued by the depository or issuer or a custodian bank which shows that the investment is held for the insurer, or if applicable under §58-27-111, limited partnership or joint venture documentation. Transfers of ownership of investments held as described in subdivision 58-27-80(3), §§58-27-82 and 58-27-83 may be evidenced by bookkeeping entry on the books of the issuer of the investment or its transfer or recording agent or the clearing corporation without physical delivery of certificates, if any, evidencing the insurer's investment.
Source:
SL 1983, ch 377, §7; SL 1997, ch 294, §22.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-85 - Banking business authorized--Acquisition of banks--Regulation of such banking business.

58-27-85. Banking business authorized--Acquisition of banks--Regulation of such banking business.
Any insurance company, directly or through subsidiaries, may engage in all facets of the banking business. Any such insurance company may acquire all or substantially all of the shares of an existing bank which is established under the laws of this state or any other state. Any such banking business is subject to the same laws and regulations and the application thereof by the Division of Banking as are applicable to the operation of banks which are unaffiliated with insurance companies.
Source:
SL 1983, ch 376, §10.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-86 - Approval of banking acquisition required--Considerations in determining--Conditions.

58-27-86. Approval of banking acquisition required--Considerations in determining--Conditions.
Any acquisition under §58-27-85 is subject to approval by the Division of Insurance. In considering an application for approval, the division may consider whether, in the case of an insurance company, the economic advantages to the state in terms of employment and capital investment are adequate to permit approval of the application. Any approval granted to an insurance company or an insurance holding company by the division is subject to such conditions as the division deems necessary and to the division's continuing authority to ascertain the insurance company's compliance with the provisions of this section and the conditions of approval.
Source:
SL 1983, ch 376, §11.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-87 - Banking patronage as prerequisite to issuance of insurance policy prohibited.

58-27-87. Banking patronage as prerequisite to issuance of insurance policy prohibited.
No insurance company as a prerequisite to the sale of an insurance policy may require the insured or those purchasing insurance on his behalf to do banking business with any insurance company or a subsidiary bank.
Source:
SL 1983, ch 376, §12.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-88 - Limitation on application of Secondary Mortgage Market Enhancement Act to certain investments.

58-27-88. Limitation on application of Secondary Mortgage Market Enhancement Act to certain investments.
Any investments set forth in section 106 of the Secondary Mortgage Market Enhancement Act of 1984 (PL 98-440) shall be approved by the director. The director may limit the amount in each investment or disapprove the investment.
Source:
SL 1991, ch 403.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-89 - Definition of terms.

58-27-89. Definition of terms.
Terms used in §§58-27-89 to 58-27-102, inclusive, mean:
(1)"Admitted assets," assets as shown by the insurer's annual statement as of the December thirty-first next preceding date of acquisition of the investment by the insurer, or as shown by a current financial statement filed with the director, computed in the same manner as admitted assets in chapter 58-26, and for purposes of computing any limitation based upon admitted assets, the insurer shall deduct from the amount of its admitted assets the amounts specified in subdivisions (1) to (3) of §58-27-6;
(2)"Aggregate amount of medium to lower quality obligations," the aggregate statutory statement value thereof;
(3)"Lower grade obligations," obligations and preferred shares which are rated four, five, or six by the Securities Valuation Office of the National Associations of Insurance Commissioners;
(4)"Medium grade obligations," obligations and preferred shares which are rated three by the Securities Valuation Office of the National Association of Insurance Commissioners.
Source:
SL 1992, ch 350, §1; SL 1994, ch 384, §3; SL 1997, ch 294, §23.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-90 - Limitations on acquiring medium or lower grade obligations.

58-27-90. Limitations on acquiring medium or lower grade obligations.
No domestic insurer may acquire, directly or indirectly, any medium or lower grade obligation of any institution if, after acquisition, the aggregate amount of all medium and lower grade obligations then held by the domestic insurer would exceed twenty percent of its admitted assets. Of that twenty percent, no more than ten percent may consist of obligations rated four, five, or six. Of the ten percent, not more than three percent may be a combination of obligations rated five and six. Obligations rated six may not exceed one percent. Attaining or exceeding the limit of any one category does not preclude an insurer from acquiring obligations in other categories subject to the specific and multi-category limits. An insurer may exceed the limit of any one category if the rating of an obligation changes after the purchase, but at no time may the insurer exceed the twenty percent limitation.
Source:
SL 1992, ch 350, §2.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-91 - Obligations contracted prior to July 1, 1992.

58-27-91. Obligations contracted prior to July 1, 1992.
A domestic insurer is not prohibited from acquiring an obligation if, before July 1, 1992, it was contractually committed to acquire and it would have been permitted to acquire but it shall notify the director of the acquisition and submit a copy of the contract.
Source:
SL 1992, ch 350, §3.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-92 - Multiple obligations in same institution.

58-27-92. Multiple obligations in same institution.
Notwithstanding the requirements of §§58-27-89 and 58-27-90, a domestic insurer may acquire an obligation of an institution in which the insurer already has one or more obligations, if the obligation is acquired in order to protect an investment previously made in the obligations of the institution, provided that all acquired obligations may not exceed one-half of one percent of the insurer's admitted assets.
Source:
SL 1992, ch 350, §4.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-93 - Written plans for making medium or lower grade obligations--Contents of plan--Deadline.

58-27-93. Written plans for making medium or lower grade obligations--Contents of plan--Deadline.
The board of directors of any domestic insurance company which acquires or invests in, directly or indirectly, medium or lower grade obligations of any institution, shall adopt a written plan for the making of those investments. The plan, in addition to guidelines with respect to the quality of the issues invested in, shall contain diversification standards including standards for issuer, industry, duration, liquidity, and geographic location. Within one year from July 1, 1992, the board shall have adopted a plan.
Source:
SL 1992, ch 350, §5.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-94 - Limit on amount invested in medium or lower grade obligations.

58-27-94. Limit on amount invested in medium or lower grade obligations.
No domestic insurer may invest more than an aggregate of one percent of its admitted assets in medium grade obligations issued, guaranteed, or insured by any one institution nor may it invest more than one-half of one percent of its admitted assets in lower grade obligations issued, guaranteed, or insured by any one institution. In no event, however, may a domestic insurer invest more than one percent of its admitted assets in any medium or lower grade obligations issued, guaranteed, or insured by any one institution.
Source:
SL 1992, ch 350, §6.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-95 - Restructuring of medium or lower grade obligation already held.

58-27-95. Restructuring of medium or lower grade obligation already held.
A domestic insurer is not prohibited from acquiring an obligation as a result of a restructuring of a medium or lower grade obligation already held.
Source:
SL 1992, ch 350, §7.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-96 - Conflicting provisions.

58-27-96. Conflicting provisions.
If any provision of this Title conflicts with the provisions of §§58-27-89 to 58-27-102, inclusive, and has a lesser standard of investment, the provisions of §§58-27-89 to 58-27-102, inclusive, shall prevail.
Source:
SL 1992, ch 350, §8.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-97 - Excess transactions.

58-27-97. Excess transactions.
If an insurer exceeds any one category, the excess is nonadmitted and the director may require the company to increase capital and surplus to protect policyholders. The insurer's excess transaction is also subject to §58-27-74.
Source:
SL 1992, ch 350, §9.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-98 - Promulgation of rules.

58-27-98. Promulgation of rules.
The director may promulgate rules, pursuant to chapter 1-26, for determining the quality and quantity of investments and assets.
Source:
SL 1992, ch 350, §10.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-99 - Application of §§ 58-27-89 to 58-27-102.

58-27-99. Application of §§58-27-89 to 58-27-102.
Sections 58-27-89 to 58-27-102, inclusive, applies to all persons doing insurance business notwithstanding any provision exempting them from other insurance laws except insurers licensed pursuant to chapter 58-35.
Source:
SL 1992, ch 350, §11.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-100 - Time limit for compliance with §§ 58-27-89 to 58-27-102.

58-27-100. Time limit for compliance with §§58-27-89 to 58-27-102.
All persons subject to §§58-27-89 to 58-27-102, inclusive, shall be in compliance with §§58-27-89 to 58-27-102, inclusive, by July 1, 1993. The director may establish limitations on the obligations or time frames for those persons to reduce obligations in violation of §§58-27-89 to 58-27-102, inclusive.
Source:
SL 1992, ch 350, §12.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-101 - Investment in money market funds.

58-27-101.Investment in money market funds.
The term, money market fund, means any open end, diversified management type of mutual fund registered under the Investment Company Act of 1940, 15 U.S. C. 80a-1 et seq., as adopted by the director pursuant to rules promulgated pursuant to chapter 1-26, the moneys of which are invested only in the following kinds of investments, none of which shall mature more than three hundred ninety-seven days from the date of acquisition by the mutual fund:
(1)Securities issued or guaranteed as to principal and interest by the government of the United States or by agencies, government sponsored enterprises, or instrumentalities thereof;
(2)Certificates of deposit and bankers' acceptances of banks chartered by the United States or any state thereof or foreign branches of such banks;
(3)Commercial paper and other obligation of corporations chartered by or under the laws of the United States or any state thereof;
(4)Repurchase agreements with respect to those investments; and
(5)Dollar-denominated unsecured promissory obligations of foreign corporations which have an investment grade rating from at least one rating agency recognized by the Securities Valuation Office of the National Association of Insurance Commissioners.
Insurance companies may invest in the shares of any one or more money market funds the objectives of which include the maintenance of a stable net asset value of a specified dollar amount per share and the shareholders of which may withdraw the value of their shares by check, telephone, or mail.
In addition to the forty percent investment limitation available for money-market fund investments pursuant to §58-27-57, an insurer may acquire additional money market funds pursuant to this section not to exceed ten percent of its admitted assets. The aggregate value of all money market shares which may be acquired under this section and §58-27-57 may not exceed fifty percent of the insurance company's total admitted assets. At the time of the investment, no insurance company's investment may exceed five percent of the outstanding shares of any one money market fund. No investment may exceed the lesser of the amount in this section or the amount in §58-27-53.
The limitations set forth in this section do not apply to investments in money market funds in which portfolio assets are invested entirely in the type of securities permitted pursuant to §§58-27-9 to 58-27-13, inclusive.
Source:
SL 1992, ch 350, §24; SL 1994, ch 384, §5; SL 1997, ch 294, §24.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-102 - Investment in company owned life insurance contracts.

58-27-102. Investment in company owned life insurance contracts.
An insurer may invest in company owned life insurance contracts if:
(1)The life insurance is whole life;
(2)The life insurance contract does not vest in any employee of the insurer; and
(3)The company is the beneficiary and has an insurable interest.
All cash values of life insurance contracts owned by the insurers under this section may not at any one time exceed five percent of the insurers' admitted assets.
Source:
SL 1992, ch 350, §25.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 27 - Loans And Investments Of Insurers › Section 58-27-103 - Investment in a collateralized pool of mortgages--Requirements--Restrictions.

58-27-103. Investment in a collateralized pool of mortgages--Requirements--Restrictions.
In addition to investment in mortgages in §§58-27-32 to 58-27-48, inclusive, an insurer may invest in obligations or certificates entitled to receive both principal and interest, or both principal and implied interest, from a pool collateralized by one or more commercial and residential mortgages. The collateral for the investments shall have been sold to and be currently owned by either a trust or institution established solely for the purpose of holding the mortgages or certificates for the benefit of the obligee. Any investment authorized under this section shall have a minimum quality rating of two by the Securities Valuation Office of the National Association of Insurance Commissioners and shall meet volatility standards. If at any time thereafter the quality rating drops below a rating of two the insurer is subject to §58-27-90. The director shall promulgate rules pursuant to chapter 1-26 to set volatility standards and reporting requirements for investments under this section.
An insurer's investments authorized under this section may not exceed forty percent of its admitted assets. This restriction does not apply to obligations of the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation and those issued, assumed, guaranteed, or insured by the United States or a government sponsored enterprise of the United States, if the instruments of the government sponsored enterprise are assumed, guaranteed, or insured by the United States or are otherwise backed or supported by the full faith and credit of the United States.
Any particular investment held by an insurer on February 7, 1995, under this section, which was a legal investment at the time it was made, and which is the type of investment the insurer was legally entitled to possess under this section immediately prior to February 7, 1995, is considered an eligible investment under this section. Any additional investment pursuant to this section may not be made if the total amount invested would at any time exceed forty percent of admitted assets.
Source:
SL 1993, ch 364, §2; SL 1994, ch 384, §6; SL 1995, ch 285, §2; SL 1995, ch 286; SL 1996, ch 299; SL 1997, ch 294, §25.