reglab/statecodes huggingface dataset:
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05 - Organization And General Powers Of Insurers › Section 58-5-168 - Disclosure documents and other materials--Testimony prohibited.

58-5-168  .  Disclosure documents and other materials--Testimony prohibited.
No person, including the director, who received a document, materials, or other information related to the corporate governance annual disclosure, through examination or otherwise, while acting under the authority of the director, or with whom the document, materials, or other information is shared pursuant to the provisions of §§  58-5-161   to 58-5-171, inclusive, may be permitted or required to testify in any private civil action concerning any confidential document, materials, or information subject to the provisions of §§  58-5-161   to 58-5-171, inclusive.
Source:  SL 2020, ch 212, § 8.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05 - Organization And General Powers Of Insurers › Section 58-5-169 - Disclosure documents and other materials--Information sharing and receiving.

58-5-169  .  Disclosure documents and other materials--Information sharing and receiving.
In order to assist in the performance of the director's regulatory duties, the director may:
(1) Share any document, materials, or other information related to the corporate governance annual disclosure, including any confidential and privileged document, materials, or information, including any proprietary and trade secret document and materials, with other state, federal, and international financial regulatory agencies, including members of any supervisory college as defined in chapter   58-5A  , with the National Association of Insurance Commissioners, and with third party consultants pursuant to §§  58-5-161   to 58-5-171, inclusive, provided that the recipient agrees in writing to maintain the confidentiality and privileged status of the document, materials, or other information related to the disclosure and verifies in writing the legal authority to maintain confidentiality; and
(2) Receive any document, materials, or other information related to the corporate governance annual disclosure, including any otherwise confidential and privileged document, materials, or information, including proprietary and trade-secret information or documents from regulatory officials of other state, federal, and international financial regulatory agencies, including members of any supervisory college as defined in chapter   58-5A  , and from the National Association of Insurance Commissioners. The director shall maintain as confidential or privileged any   document, materials, or information received with notice or the understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the document, materials, or information.
No waiver of any applicable privilege or claim of confidentiality in any document, proprietary and trade-secret materials, or other information related to the corporate governance annual disclosure may occur as a result of disclosure of any information or documents related to the disclosure to the director under this section or as a result of sharing under this section by the director.
Source:  SL 2020, ch 212, § 9.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05 - Organization And General Powers Of Insurers › Section 58-5-170 - Disclosure review--Expert assistance.

58-5-170  .  Disclosure review--Expert assistance.
The director may retain, at the insurer's expense, any third-party consultant, including attorneys, actuaries, accountants, and other experts not otherwise a part of the director's staff as may be reasonably necessary to assist the director in reviewing the corporate governance annual disclosure and related information or the insurer's compliance with the provisions of §§  58-5-161   to 58-5-171, inclusive. Any person retained shall be under the direction and control of the director and shall act in an advisory capacity. The National Association of Insurance Commissioners and third-party consultants is subject to the same confidentiality standards and requirements as the director. As part of the retention process, a third-party consultant shall verify to the director, with notice to the insurer, that the third-party consultant is free of a conflict of interest and that the consultant has internal procedures in place to monitor compliance with a conflict and to comply with the confidentiality standards and requirements of §§  58-5-161   to 58-5-171, inclusive.
Source:  SL 2020, ch 212, § 10.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05 - Organization And General Powers Of Insurers › Section 58-5-171 - Disclosure information--Access by National Association of Insurance Commissioners--Requirements.

58-5-171  .  Disclosure information--Access by National Association of Insurance Commissioners--Requirements.
The director may enter a written agreement with the National Association of Insurance Commissioners, a third-party consultant, or both, governing the sharing and use of information provided pursuant to §§  58-5-161   to 58-5-171, inclusive, that expressly requires the written consent of the insurer prior to making any information related to the corporate governance annual disclosure available and contains the following:
(1) A provision specifying procedures and protocols for maintaining the confidentiality and security of information related to the disclosure that is shared with the National Association of Insurance Commissioners or a third-party consultant;
(2) A provision delineating procedures and protocols for sharing by the National Association of Insurance Commissioners with other state regulators from only those states in which the insurance group has domiciled insurers. The agreement must provide that the recipient agrees, in writing, to maintain the confidentiality and privileged status of the documents, materials or other information related to the disclosure and has verified in writing the legal authority to maintain confidentiality;
(3) A provision specifying that ownership of the information related to the disclosure that is shared with the National Association of Insurance Commissioners or a third-party consultant remains with the division and use by the National Association of Insurance Commissioners or a third-party consultant is subject to the direction of the director;
(4) A provision prohibiting the National Association of Insurance Commissioners or a third-party consultant from storing shared information related to the disclosure in a permanent database after the underlying analysis is completed;
(5) A requirement that the National Association of Insurance Commissioners or third-party consultant provide prompt notice to the director and to the insurer or insurance group regarding any subpoena, request for disclosure, or request for production of the insurer's information related to the disclosure; and
(6) A requirement that the National Association of Insurance Commissioners or a third-party consultant consent to intervention by an insurer in any judicial or administrative action in which the National Association of Insurance Commissioners or a third-party consultant may be required to disclose confidential information about the insurer shared with the National Association of Insurance Commissioners or a third-party consultant pursuant to the provisions of §§  58-5-161   to   58-5-171  , inclusive.
Source:  SL 2020, ch 212, § 11.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-2 - "Domestic insurer" defined.

58-5A-2. Domestic insurer defined.
For purposes of §§58-5A-3 to 58-5A-18, inclusive, a domestic insurer shall include any other person controlling a domestic insurer unless such other person is either directly or through its affiliates primarily engaged in business other than the business of insurance.
Source:
SL 1972, ch 267, §3.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-3 - Acquisition of control of or merger with domestic insurer--Information statement required--Approval by director required--Violation as misdemeanor.

58-5A-3. Acquisition of control of or merger with domestic insurer--Information statement required--Approval by director required--Violation as misdemeanor.
No person other than the issuer may make a tender offer for or a request or invitation for tenders of, or enter into any agreement to exchange securities for, seek to acquire, or acquire, in the open market or otherwise, any voting security of a domestic insurer if, after the consummation thereof, such person would, directly or indirectly (or by conversion or by exercise of any right to acquire) be in control of such insurer, and no person may enter into an agreement to merge with or otherwise to acquire control of a domestic insurer unless, at the time any such offer, request, or invitation is made or any such agreement is entered into, or prior to the acquisition of such securities if no offer or agreement is involved, such person has filed with the director and has sent to such insurer, and such insurer has sent to its shareholders, a statement containing the information required by §58-5A-4 and such offer, request, invitation, agreement, or acquisition has been approved by the director in the manner hereinafter prescribed.
A violation of this section is a Class 2 misdemeanor.
Source:
SL 1972, ch 267, §2; SL 1990, ch 158, §20.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-3.1 - Divestiture of controlling interest in domestic insurer--Notice to director and insurer.

58-5A-3.1. Divestiture of controlling interest in domestic insurer--Notice to director and insurer.
For purposes of this chapter, any controlling person of a domestic insurer seeking to divest the controlling interest in the domestic insurer, in any manner, shall file with the director, with a copy to the insurer, confidential notice of its proposed divestiture at least thirty days prior to the cessation of control. The director shall determine any instance in which a party seeking to divest or to acquire a controlling interest in an insurer is required to file for and obtain approval of the transaction.
The information shall remain confidential until the conclusion of the transaction unless the director determines that confidential treatment interferes with enforcement of this section. If the statement referred to in §58-5A-3 is otherwise filed, the provisions of this section do not apply.
Source:
SL 2015, ch 246, §2.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-5 - Information statement required of partners or members of syndicate or group--Violation as misdemeanor.

58-5A-5. Information statement required of partners or members of syndicate or group--Violation as misdemeanor.
If the person required to file the statement referred to in §58-5A-3 is a partnership, limited partnership, syndicate or other group, the director may require that the information called for by subdivisions 58-5A-4(1) to (14), inclusive, shall be given with respect to each partner of the partnership or limited partnership, each member of the syndicate or group, and each person who controls a partner or member.
A violation of this section is a Class 2 misdemeanor.
Source:
SL 1972, ch 267, §5; SL 1990, ch 158, §22; SL 2015, ch 246, §4.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-6 - Information required of corporations, officers, directors and certain owners of voting securities--Violation as misdemeanor.

58-5A-6. Information required of corporations, officers, directors and certain owners of voting securities--Violation as misdemeanor.
If any partner, member, or person is a corporation or the person required to file the statement referred to in §58-5A-3 is a corporation, the director may require that the information called for by subdivisions 58-5A-4(1) to (14), inclusive, shall be given with respect to a corporation, each officer and director of the corporation, and each person who is directly or indirectly the beneficial owner of more than ten percent of the outstanding voting securities of the corporation.
A violation of this section is a Class 2 misdemeanor.
Source:
SL 1972, ch 267, §5; SL 1990, ch 158, §23; SL 2015, ch 246, §5.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-7 - Amendment of information statement--Violation as misdemeanor.

58-5A-7. Amendment of information statement--Violation as misdemeanor.
If any material change occurs in the facts set forth in the statement filed with the director and sent to such insurer pursuant to §58-5A-3, an amendment setting forth such change, together with copies of all documents and other material relevant to such change, shall be filed with the director and sent to such insurer within two business days after the person learns of such change. Such insurer shall send such amendment to its shareholders.
A violation of this section is a Class 2 misdemeanor.
Source:
SL 1972, ch 267, §6; SL 1990, ch 158, §24.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-8 - Federal or state registration statements utilized in furnishing information.

58-5A-8. Federal or state registration statements utilized in furnishing information.
If any offer, request, invitation, agreement, or acquisition referred to in §58-5A-3 is proposed to be made by means of a registration statement under the Securities Act of 1933 or in circumstances requiring the disclosure of similar information under the Securities Exchange Act of 1934, or under a state law requiring similar registration or disclosure, the person required to file the statement referred to in §58-5A-3 may utilize such documents in furnishing the information called for by that statement.
Source:
SL 1972, ch 267, §7.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-9 - Approval by director of acquisition or merger--Grounds for disapproval.

58-5A-9. Approval by director of acquisition or merger--Grounds for disapproval.
The director shall approve any merger or other acquisition of control referred to in §§58-5A-3 and 58-5A-45 unless, after a public hearing he finds that:
(1)After the change of control the domestic insurer would not be able to satisfy the requirements for the issuance of a license to write the line or lines of insurance for which it is presently licensed;
(2)The effect of the merger or other acquisition of control would be substantially to lessen competition in insurance in this state or tend to create a monopoly. In applying the competitive standard in this subdivision:
(a)The informational requirements of §58-5A-48 and the standards of §58-5A-50 shall apply;
(b)The merger or other acquisition shall not be disapproved if the director finds that any of the situations meeting the criteria provided by §58-5A-50 exist; and
(c)The director may condition the approval of the merger or other acquisition on the removal of the basis of disapproval within a specified period of time;
(3)The financial condition of any acquiring party is such as might jeopardize the financial stability of the insurer, or prejudice the interest of its policyholders;
(4)The plans or proposals which the acquiring party has to liquidate the insurer, sell its assets or consolidate or merge it with any person, or to make any other material change in its business or corporate structure or management, are unfair and unreasonable to policyholders of the insurer and not in the public interest;
(5)The competence, experience, and integrity of those persons who would control the operation of the insurer are such that it would not be in the interest of policyholders of the insurer and of the public to permit the merger or other acquisition of control; or
(6)The acquisition is likely to be hazardous or prejudicial to the insurance buying public.
Source:
SL 1972, ch 267, §8; SL 1986, ch 416; SL 1992, ch 341, §5.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-9.1 - Disapproval of dividends or distributions for violation--Order of supervision.

58-5A-9.1. Disapproval of dividends or distributions for violation--Order of supervision.
If the director determines that any person fails to comply with the provisions of §58-5A-3, 58-5A-3.1, 58-5A-4, 58-5A-8, 58-5A-9, or 58-5A-45 preventing the full understanding of the enterprise risk to the insurer by the affiliates or by the insurance holding company system, the violation may serve as an independent basis for disapproving dividends or distributions. The director may place the insurer under an order of supervision pursuant to the provisions of chapter 58-29B.
Source:
SL 2015, ch 246, §26.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-10 - Time of hearing--Notice.

58-5A-10. Time of hearing--Notice.
The public hearing required by §58-5A-9 shall be held within thirty days after the statement required by §58-5A-3 is filed, and at least twenty days' notice thereof shall be given by the director to the person filing the statement. Not less than seven days' notice of such public hearing shall be given by the person filing the statement to the insurer and to such other persons as may be designated by the director. The insurer shall give such notice to its security holders.
Source:
SL 1972, ch 267, §9.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-10.1 - Request for public hearing on consolidated basis.

58-5A-10.1. Request for public hearing on consolidated basis.
If a proposed acquisition of control requires the approval of more than one director or commissioner, the public hearing referred to in §58-5A-10 may be held on a consolidated basis upon request of the person filing the statement referred to in §58-5A-2, 58-5A-3, or 58-5A-3.1. The statement shall be filed with the NAIC within five days of making the request for public hearing. A director or commissioner may opt out of a consolidated hearing, and shall provide notice to the applicant within ten days of the receipt of the statement. A hearing conducted on a consolidated basis shall be public and shall be held within the United States before the directors or commissioners of the states in which the insurers are domiciled. The directors or commissioners shall hear and receive evidence. A director or commissioner may attend the hearing, in person or by telecommunication.
Source:
SL 2015, ch 246, §22.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-11 - Procedure at hearing--Evidence admissible.

58-5A-11. Procedure at hearing--Evidence admissible.
At the public hearing required by §58-5A-9, the person filing the statement, the insurer, any person to whom notice of hearing was sent, and any other person whose interests may be affected thereby shall have the right to present evidence, examine and cross-examine witnesses, and offer oral and written arguments and in connection therewith shall be entitled to conduct discovery proceedings in the same manner as is presently allowed in the circuit court of this state. All discovery proceedings shall be concluded not later than three days prior to the commencement of the public hearing.
Source:
SL 1972, ch 267, §9.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-11.1 - Cost of hearing officer--Retention of various experts at acquiring person's expense.

58-5A-11.1. Cost of hearing officer--Retention of various experts at acquiring person's expense.
If the director appoints a hearing officer to preside at the hearing pursuant to §58-5A-9, the cost of employing the hearing officer shall be borne entirely by the entity making the filing of the information statement required by §58-5A-4.
The director may retain at the acquiring person's expense any attorneys, actuaries, accountants, and other experts not otherwise a part of the director's staff as may be reasonably necessary to assist the director in reviewing the proposed acquisition of control.
Source:
SL 1985, ch 388; SL 1992, ch 341, §6.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-12 - Time for director's determination after hearing.

58-5A-12. Time for director's determination after hearing.
The director shall make a determination within thirty days after the conclusion of the public hearing required by §58-5A-9.
Source:
SL 1972, ch 267, §9.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-13 - Statements and notices mailed to shareholders--Expenses of mailing--Security required.

58-5A-13. Statements and notices mailed to shareholders--Expenses of mailing--Security required.
All statements, amendments, or other material filed pursuant to §§58-5A-3 to 58-5A-7, inclusive, and all notices of public hearings held pursuant to §§58-5A-9 to 58-5A-12, inclusive, shall be mailed by the insurer to its shareholders within five business days after the insurer has received such statements, amendments, other material, or notices. The expenses of mailing shall be borne by the person making the filing. As security for the payment of such expenses, such person shall file with the director an acceptable bond or other deposit in an amount to be determined by the director.
Source:
SL 1972, ch 267, §10.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-15 - Mergers and consolidations exempt from information and approval requirements.

58-5A-15. Mergers and consolidations exempt from information and approval requirements.
The provisions of §§58-5A-3 to 58-5A-13, inclusive, shall not apply to any transaction which is subject to the provisions of chapter 58-5 and dealing with the merger or consolidation of two or more insurers.
Source:
SL 1972, ch 267, §11 (2).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-16 - Acquisitions exempt from information and approval requirements by order of director.

58-5A-16. Acquisitions exempt from information and approval requirements by order of director.
The provisions of §§58-5A-3 to 58-5A-13, inclusive, shall not apply to any offer, request, invitation, agreement, or acquisition which the director by order shall exempt therefrom as not having been made or entered into for the purpose and not having the effect of changing or influencing the control of a domestic insurer, or as otherwise not comprehended within the purposes of this chapter.
Source:
SL 1972, ch 267, §11 (3).
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-18 - Acquisition, divestiture, or merger without approval as misdemeanor.

58-5A-18. Acquisition, divestiture, or merger without approval as misdemeanor.
No person may effectuate or attempt to effectuate an acquisition of control of, divestiture of, or merger with, a domestic insurer unless it has been approved by the director. A violation of this section is a Class 2 misdemeanor.
Source:
SL 1972, ch 267, §§12 (2), 36; SDCL Supp, §58-5A-42; SL 1978, ch 359, §2; SL 2015, ch 246, §6.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-19 - Jurisdiction of court in Hughes County--Director as attorney for service of process.

58-5A-19. Jurisdiction of court in Hughes County--Director as attorney for service of process.
The court in Hughes County has jurisdiction over every person not resident, domiciled or authorized to do business in this state that is required to file a statement with the director under §§58-5A-3 to 58-5A-7, inclusive, and over all actions involving such person arising out of violations of this chapter. Each person shall appoint the director to be his true and lawful attorney for all lawful process in any action, suit or proceeding arising out of violations of this chapter. Copies of all lawful process shall be served on the director and forthwith transmitted by registered or certified mail by the director to such person at his last known address.
Source:
SL 1972, ch 267, §13; SL 1992, ch 341, §7.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-20 - Registration of subsidiary insurer--Time for registration--Statement required of foreign insurer.

58-5A-20. Registration of subsidiary insurer--Time for registration--Statement required of foreign insurer.
Every insurer which is authorized to do business in this state and which is a member of an insurance holding company system shall register with the director. However, this requirement does not apply to a foreign insurer domiciled in a jurisdiction which has adopted by statute or regulation disclosure requirements and standards substantially similar to those contained herein. Any insurer which is subject to registration under the provisions of this section shall register within fifteen days after it becomes subject to registration and annually thereafter by July first of each year for the previous calendar year, unless the director, for good cause shown, extends the time for registration, and then within the extended time. Nothing in this section prohibits the director from requesting any authorized insurer, which is a member of a holding company system, which is not subject to registration under the provisions of this section for a copy of the registration statement or other information filed by such insurance company with the insurance regulatory authority of its state of domicile.
Source:
SL 1972, ch 267, §14; SL 1992, ch 341, §43.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-21 - Form and contents of registration statement.

58-5A-21. Form and contents of registration statement.
Each insurer subject to registration pursuant to §58-5A-20 shall file a registration statement with the director on a form and in the format provided by the division, which contains current information about:
(1)The capital structure, general financial condition, ownership, and management of the insurer and any person controlling the insurer;
(2)The following agreements in force and transactions currently outstanding between the insurer and its affiliates:
(a)Loans, or other investments, or purchases, sales or exchanges of securities of the affiliate by the insurer or of the insurer by its affiliates;
(b)Purchases, sales, or exchanges of assets;
(c)Transactions not in the ordinary course of business;
(d)Guarantees or undertakings for the benefit of an affiliate which result in an actual contingent exposure of the insurer's assets to liability, other than insurance contracts entered into in the ordinary course of the insurer's business;
(e)All management and service contracts and all cost sharing arrangements;
(f)Dividends and other distributions to shareholders; and
(g)Consolidated tax allocation agreements;
(3)Other matters concerning transactions between a registered insurer and any affiliate as may be required by the director;
(4)The identity and relationship of each member of the insurance holding company system;
(5)Any pledge of the insurer's stock, including stock of any subsidiary of or controlling affiliate, for a loan made to any member of the insurance holding company system;
(6)The financial statement of or within an insurance holding company system, including each affiliate. The financial statement may include the annual audited financial statement filed with the U.S. Securities and Exchange Commission (SEC) pursuant to the Securities Act of 1933, as of January 1, 2015, or the Securities Exchange Act of 1934, as of January 1, 2015. An insurer required to file a financial statement pursuant to this section shall satisfy the requirements by providing the director with the most recently filed parent corporation financial statements that have been filed with the SEC;
(7)A statement that the insurer's board of directors oversees corporate governance and internal controls and that the insurer's officers or senior management have approved, implemented, and continue to maintain and monitor corporate governance and internal control procedures; and
(8)Any other information required by the director pursuant to law or rule.
All registration statements shall contain a summary outlining all items in the current registration statement representing changes from the prior registration statement.
Source:
SL 1972, ch 267, §15; SL 1992, ch 341, §16; SL 2015, ch 246, §7.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-22 - Initial and annual registration fees.

58-5A-22. Initial and annual registration fees.
The initial fee for registration required under the provisions of this chapter shall be fifty dollars and an additional fee of fifty dollars shall be payable on July first of each calendar year thereafter so long as such registration continues.
Source:
SL 1972, ch 267, §16.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-23 - Disclosure of immaterial information not required.

58-5A-23. Disclosure of immaterial information not required.
No information need be disclosed on the registration statement filed pursuant to the provisions of §58-5A-20 if such information is not material for the purposes of this chapter. Unless the director by rule, regulation, or order provides otherwise, sales, purchases, exchanges, loans, or extensions of credit, or investments, involving one percent or less of an insurer's admitted assets as of December thirty-first immediately preceding shall not be deemed material for purposes of this section.
Source:
SL 1972, ch 267, §17.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-24 - Report of changes required of registered insurer.

58-5A-24. Report of changes required of registered insurer.
Each registered insurer shall keep current the information required to be disclosed in its registration statement by reporting all material changes or additions on forms provided by the division on or before the fifteenth day of the following month in which it learns of each such change or addition.
Source:
SL 1972, ch 267, §18.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-25 - Termination of registration.

58-5A-25. Termination of registration.
The director shall terminate the registration of any insurer which demonstrates that it no longer is a member of an insurance holding company system.
Source:
SL 1972, ch 267, §19.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-26 - Consolidated registration statement or report by affiliated insurers.

58-5A-26. Consolidated registration statement or report by affiliated insurers.
Two or more affiliated insurers subject to registration hereunder may file a consolidated registration statement or consolidated reports amending their respective consolidated statements or their individual registration statements so long as such consolidated filings correctly reflect the condition of and transactions between such persons.
Source:
SL 1972, ch 267, §20.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-27 - Registration by insurer on behalf of affiliated insurer.

58-5A-27. Registration by insurer on behalf of affiliated insurer.
The director may allow any insurer which is authorized to do business in this state and which is part of an insurance holding company system to register on behalf of any affiliated insurer which is required to register under §58-5A-20, and to file all information and material required to be filed under the provisions hereof.
Source:
SL 1972, ch 267, §21.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-28 - Insurer exempt from registration requirements on order of director.

58-5A-28. Insurer exempt from registration requirements on order of director.
The provisions of §§58-5A-20 to 58-5A-34, inclusive, shall not apply to any insurer, information or transaction if and to the extent that the director by rule, regulation, or order shall exempt the same from the provisions hereof as not comprehended within the purposes thereof.
Source:
SL 1972, ch 267, §22.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-29 - Disclaimer of affiliation--Contents--Procedure on disallowance.

58-5A-29. Disclaimer of affiliation--Contents--Procedure on disallowance.
Any person may file with the director a disclaimer of affiliation with any authorized insurer or the disclaimer may be filed by the insurer or any member of an insurance holding company system. The disclaimer shall fully disclose all material relationships and basis for affiliation between the person and insurer as well as the basis for disclaiming the affiliation. A disclaimer of affiliation is deemed to have been granted unless the director, within thirty days following receipt of a complete disclaimer, notifies the filing party the disclaimer is disallowed. If disallowed, the disclaiming party may request an administrative hearing pursuant to chapter 1-26 within thirty days of the director's disallowance. A notice of hearing shall be issued within thirty days of a written request by the disclaiming party. The disclaiming party is relieved of the duty to register pursuant to this section if the director approves the disclaimer, or if the disclaimer is deemed to have been approved.
Source:
SL 1972, ch 267, §23; SL 2015, ch 246, §8.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-29.1 - Annual enterprise risk report.

58-5A-29.1. Annual enterprise risk report.
The ultimate controlling person of each insurer subject to registration shall also file an annual enterprise risk report. The report shall, to the best of the ultimate controlling person's knowledge and belief, identify the material risks within the insurance holding company system that could pose enterprise risk to the insurer. The report shall be filed with the lead state director of the insurance holding company system as determined by rules promulgated, pursuant to chapter 1-26, by the director.
Source:
SL 2015, ch 246, §9.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-30 - Failure to file registration statement or enterprise risk report--Penalty--Waiver.

58-5A-30. Failure to file registration statement or enterprise risk report--Penalty--Waiver.
Failure to file a registration statement, enterprise risk report, or keep the registration statement current within the time specified in this chapter is a violation of this title. Any insurer failing, without just cause, to file any registration statement or amendment as required in this chapter shall pay a penalty of not less than one hundred dollars for each day's delay, but not to exceed twenty-five thousand dollars. The director may reduce or waive the penalty if the insurer demonstrates to the director that the imposition of the penalty constitutes a financial hardship to the insurer.
Source:
SL 1972, ch 267, §§24, 36; SDCL Supp, §58-5A-42; SL 1978, ch 359, §2; SL 1992, ch 341, §19; SL 2015, ch 246, §10.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-31 - Registration requirements satisfied by duplicate copies of federal filings.

58-5A-31. Registration requirements satisfied by duplicate copies of federal filings.
The provisions for filings required under the provisions of §§58-5A-20 to 58-5A-29, inclusive, except for subsection 58-5A-21(2)(e), shall be satisfied by the simultaneous filing with the director of duplicate copies of all filings of an insurer or person in control of an insurer which are required by the Securities Act of 1933, the Securities Exchange Act of 1934, or the Investment Company Act of 1940, unless the director finds in any such case that the information relating to the insurer and any person controlling the insurer necessary to fairly disclose the relationship between them is not provided by such duplicate filings in which case he may by order after notice and hearing require additional filings.
Source:
SL 1972, ch 267, §25.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-32 - Standards for material transactions by registered insurers with affiliates--Nonconformity.

58-5A-32. Standards for material transactions by registered insurers with affiliates--Nonconformity.
Any material transaction by a registered insurer with an affiliate is subject to the following standards:
(1)The terms shall be fair and reasonable;
(2)The books, accounts, and records of each party shall be maintained to clearly and accurately disclose the precise nature and details of the transaction including information necessary to support the reasonableness of the charges or fees to the respective parties;
(3)The insurer's surplus to policyholders following any dividends or distributions to shareholders or affiliates shall be reasonable in relation to the insurer's outstanding liabilities and adequate to its financial needs;
(4)Charges or fees for services performed shall be reasonable;
(5)Expenses incurred and payment received shall be allocated to the insurer in conformity with customary insurance accounting practices consistently applied; and
(6)Any agreement for cost sharing services and management shall include provisions as required by law or rule.
Any transaction which is not in conformity with this section is subject to the provisions of §§58-5A-64, 58-5A-65, and 58-5A-67.
Source:
SL 1972, ch 267, §26; SL 1990, ch 158, §25; SL 1992, ch 341, §20; SL 2015, ch 246, §11.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-34 - Adequacy of insurer's surplus--Factors considered.

58-5A-34. Adequacy of insurer's surplus--Factors considered.
For purposes of this chapter in determining whether an insurer's surplus to policyholders is reasonable in relation to the insurer's outstanding liabilities and adequate to its financial needs, the following factors, among others, shall be considered:
(1)The size of the insurer as measured by its assets, capital and surplus, reserves, premium writings, insurance in force, and other appropriate criteria;
(2)The extent to which the insurer's business is diversified among the several lines of insurance;
(3)The number and size of risks insured in each line of business;
(4)The extent of the geographical dispersion of the insurer's insured risks;
(5)The nature and extent of the insurer's reinsurance program;
(6)The quality, diversification, and liquidity of the insurer's investment portfolio;
(7)The recent past and projected future trend in the size of the insurer's surplus to policyholders;
(8)The surplus to policyholders maintained by other comparable insurers;
(9)The adequacy of the insurer's reserves;
(10)The quality and liquidity of investments in affiliates made pursuant to this chapter and chapters 58-26 and 58-27. The director may treat any investment under this subdivision as a disallowed asset; and
(11)The quality of the company's earnings and the extent to which the reported earnings include extraordinary items.
Source:
SL 1972, ch 267, §28; SL 1992, ch 341, §26; SL 1993, ch 359, §4.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-35 - Notice to director of extraordinary distribution--Approval by director.

58-5A-35. Notice to director of extraordinary distribution--Approval by director.
No insurer subject to this chapter may pay any extraordinary dividend or make any other extraordinary distribution to its stockholders until thirty days after the director has received notice of the declaration thereof and has approved or has not disapproved the payment within the thirty-day period. For purposes of this section, an extraordinary dividend or distribution is any dividend or distribution which, together with other dividends or distributions made within the preceding twelve months, exceeds, as of December thirty-first of the year immediately preceding, the greater of ten percent of the insurer's surplus to policyholders, or the net gain from operations of the insurer if the insurer is a life insurer, or the net income if the insurer is not a life insurer but does not include pro rata distribution of any class of the insurer's own securities. For the purpose of this section, net gain from operations and net income includes net realized capital gains in an amount not to exceed twenty percent of net unrealized capital gains. An insurer may declare an extraordinary dividend or distribution which is conditional upon the director's approval thereof, and the declaration shall confer no rights upon stockholders until the director has approved or has not disapproved the payment within the thirty-day period.
Source:
SL 1972, ch 267, §29; SL 1993, ch 359, §1.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-36 - Application for approval of extraordinary distribution--Contents.

58-5A-36. Application for approval of extraordinary distribution--Contents.
Requests for approval of extraordinary dividends or any other extraordinary distribution to security holders shall include the following:
(1)The date established for payment of the dividend;
(2)A statement as to whether the dividend is to be in cash or other property and, if in property, a description thereof, its cost, and its fair market value together with an explanation of the basis for valuation;
(3)The amounts and dates of all dividends, including regular dividends, paid within the period of twelve consecutive months ending on the date fixed for payment of the proposed dividend for which approval is sought and commencing on the day after the same day of the same month in the last preceding year;
(4)A balance sheet and statement of income for the period intervening from the last annual statement filed with the director and the end of the month preceding the month in which the request for dividend approval is submitted;
(5)A brief statement as to the effect of the proposed dividend upon the insurer's surplus and the reasonableness of surplus in relation to the insurer's outstanding liabilities and the adequacy of surplus relative to the insurer's financial needs.
Source:
SL 1972, ch 267, §30.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-37 - Examination of insurers and affiliates.

58-5A-37. Examination of insurers and affiliates.
Subject to the limitations contained in this section and §§58-5A-38 to 58-5A-40, inclusive, and in addition to the powers which the director has under the provision of this title relating to the examination of insurers, the director may examine any registered insurer and the insurer's affiliates to ascertain the financial condition of the insurer, including enterprise risk to the insurer by the ultimate controlling party, or by any entity or combination of entities within the insurance holding company system, or by the insurance holding company on a consolidated basis.
Source:
SL 1972, ch 267, §31; SL 2015, ch 246, §12.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-38 - Grounds for director's examination.

58-5A-38. Grounds for director's examination.
The director shall exercise his power under §58-5A-37 only if the examination of the insurer under the provisions of this title is inadequate or the interests of the policyholders of such insurer may be adversely affected.
Source:
SL 1972, ch 267, §32.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-38.1 - Production of records, books, and other information.

58-5A-38.1. Production of records, books, and other information.
The director may order any registered insurer to produce records, books, or other information papers in the possession of the insurer or the insurer's affiliates as are reasonably necessary to determine compliance with the provisions of this chapter. The director may order any registered insurer to produce information not in the possession of the insurer if the insurer is able to obtain access to the information pursuant to contractual relationships, statutory obligations, or other method. If the insurer is unable to obtain the information requested by the director, the insurer shall provide the director a detailed explanation of the reason the insurer is unable to obtain the information and the identity of the holder of the information. If an insurer's detailed explanation is found to be without merit, it is grounds for the revocation of the insurer's license at a hearing held pursuant to chapter 1-26.
Source:
SL 2015, ch 246, §13.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-38.2 - Examination of registered insurer's affiliates to obtain information.

58-5A-38.2. Examination of registered insurer's affiliates to obtain information.
If the insurer fails to comply with an order made pursuant to §58-5A-38.1, the director may examine the registered insurer's affiliates to obtain the information. The director may issue subpoenas, administer oaths, and examine under oath any person for purposes of determining compliance with the provisions of §§58-5A-37 to 58-5A-40, inclusive. Each person is obliged to attend as a witness at the place specified in the subpoena, if the witness is subpoenaed within this state. The witness is entitled to the same fees and mileage, if claimed, as a witness in appearing in any state court and the fees shall be itemized and paid by the insurer being examined.
Source:
SL 2015, ch 246, §14.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-39 - Personnel employed by department for conduct of examination.

58-5A-39. Personnel employed by department for conduct of examination.
The department may retain at the registered insurer's expense such attorneys, actuaries, accountants, and other experts not otherwise a part of the director's staff as shall be reasonably necessary to assist in the conduct of the examination under §58-5A-37. Any person so retained shall be under the direction and control of the director and shall act in a purely advisory capacity.
Source:
SL 1972, ch 267, §33.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 05A - Insurance Holding Companies › Section 58-5A-40 - Insurer to pay expense of examination.

58-5A-40. Insurer to pay expense of examination.
Each registered insurer producing for examination records, books, and papers pursuant to §58-5A-37 shall be liable for and shall pay the expense of such examination.
Source:
SL 1972, ch 267, §34.