reglab/statecodes huggingface dataset:
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 46 - Captive Insurance Companies › Section 58-46-8 - Capital and surplus requirements.

58-46-8. Capital and surplus requirements.
No captive insurance company, other than a trust captive insurance company, may be issued a certificate of authority unless it possesses and maintains unimpaired paid-in capital and surplus of two hundred fifty thousand dollars. A sponsored captive may include the capital and surplus of its protected cells in calculating its capital and surplus. No trust captive insurance company may be issued a certificate of authority unless it possesses and maintains unimpaired paid-in capital and surplus of one hundred thousand dollars or a greater amount of which shall be determined at the discretion of the director.
The initial capital and surplus may be in the form of cash or an irrevocable letter of credit issued by a bank chartered by the State of South Dakota or a member bank of the Federal Reserve System and approved by the director. The director may prescribe additional capital and surplus for any captive insurance company based upon the type, volume, and nature of insurance business transacted.
Source:
SL 1996, ch 287, §8; SL 2009, ch 272, §4; SL 2013, ch 257, §7.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 46 - Captive Insurance Companies › Section 58-46-9 - Dividends and distributions.

58-46-9. Dividends and distributions.
No captive insurance company may pay a dividend out of, or other distribution with respect to, capital or surplus, in excess of the limitations set forth in §58-5A-35, without the prior approval of the director.
Source:
SL 1996, ch 287, §9; SL 2009, ch 272, §5; SL 2013, ch 257, §8.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 46 - Captive Insurance Companies › Section 58-46-10 - Forms of incorporation.

58-46-10. Forms of incorporation.
A pure or agency captive insurance company may be incorporated as a stock corporation, a nonstock corporation, a nonprofit corporation, or may be formed as a limited liability company, business trust under chapter 47-14A, or other form of legal entity as approved by the director.
A group captive insurance company may be incorporated as a stock corporation or as a nonstock corporation, may be formed as a limited liability company, a business trust, or may be organized as a reciprocal insurer, or other form of legal entity as approved by the director.
A special purpose captive insurance company may be incorporated as a stock corporation or as a nonstock corporation, may be formed as a limited liability company, business trust or trust, or may be such other form of legal entity as approved by the director.
A trust captive insurance company may be incorporated as a stock corporation or as a nonstock corporation, or may be formed as a limited liability company, or business trust, or other form of legal entity as approved by the director.
A sponsored captive insurance company may be incorporated as a stock corporation or as a nonstock corporation, or may be formed as a limited liability company, or business trust, or other form of legal entity as approved by the director.
Source:
SL 1996, ch 287, §10; SL 2009, ch 272, §6; SL 2013, ch 257, §9; SL 2015, ch 257, §2.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 46 - Captive Insurance Companies › Section 58-46-11 - Organizers.

58-46-11. Organizers.
A captive insurance company shall have at least three organizers of whom at least one shall be a resident of this state.
Source:
SL 1996, ch 287, §11; SL 2013, ch 257, §10.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 46 - Captive Insurance Companies › Section 58-46-12 - Governing board.

58-46-12. Governing board.
At least one of the members of the governing board of a captive insurance company incorporated in this state shall be a resident of this state.
Source:
SL 1996, ch 287, §12; SL 2013, ch 257, §11.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 46 - Captive Insurance Companies › Section 58-46-13 - Privileges--Applicable law.

58-46-13. Privileges--Applicable law.
Any captive insurance company formed under the provisions of this chapter has the privileges and is subject to the provisions of title 47 or title 55, as applicable to the entity under which it is formed and is otherwise relevant, as well as the applicable provisions contained in this chapter. In the event of conflict between the provisions of this chapter and those of title 47 or title 55, the provisions of this chapter control.
Source:
SL 1996, ch 287, §13; SL 2013, ch 257, §12; SL 2014, ch 245, §2.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 46 - Captive Insurance Companies › Section 58-46-14 - Acquisitions, mergers and consolidation procedures.

58-46-14. Acquisitions, mergers and consolidation procedures.
The provisions of chapters 58-5 and 58-5A pertaining to acquisitions, mergers, and consolidations apply in determining the procedures to be followed by captive insurance companies in carrying out any of the transactions described by those chapters. However, the director may waive or modify the requirements for public notice and hearing in accordance with rules which the director may adopt pursuant to chapter 1-26, addressing categories of transactions. If a notice of public hearing is required and no one requests a hearing, the director may cancel the hearing.
Source:
SL 1996, ch 287, §14.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 46 - Captive Insurance Companies › Section 58-46-15 - Financial condition reporting--Independent audit.

58-46-15. Financial condition reporting--Independent audit.
Each group or sponsored captive insurance company shall submit annually to the director a report of its financial condition pursuant to §58-6-75, no later than six months after the close of its financial year. The report shall be audited by an independent certified public accountant pursuant to chapter 58-43. Each group or sponsored captive insurance company shall file with its annual report of financial condition an actuarial opinion pursuant to §58-26-13.1. If requested by the director, the group or sponsored captive insurance company shall submit quarterly reports of its financial condition pursuant to §58-6-75.
A pure, agency, or trust captive insurance company shall submit annually no later than six months after the close of its financial year to the director a report of its financial condition using statutory accounting principles certified under oath by two of its officers. A pure, agency, or trust captive insurance company shall provide a report of its financial condition audited by an independent certified public accountant every five years pursuant to chapter 58-43 if it has annual direct premiums written of less than two million five hundred thousand dollars. If a pure, agency, or trust captive insurance company has two million five hundred thousand dollars or more of annual direct premiums written, it shall provide a report of its financial condition audited by an independent certified public accountant every three years pursuant to chapter 58-43. Following its first year of operation, and in connection with its audited statement of financial condition (or more often if requested by the director), each pure, agency, or trust captive insurance company shall file an actuarial opinion pursuant to §58-26-13.1.
No later than six months after the close of its financial year, a special purpose captive insurance company shall submit to the director a report of its financial condition pursuant to §58-6-75. The report shall be audited by an independent certified public accountant pursuant to chapter 58-43. Following its first year of operation, and every three years thereafter, a special purpose captive insurance company shall file with its annual report of financial condition an actuarial opinion pursuant to §58-26-13.1. If requested by the director, the special purpose captive insurance company shall submit quarterly reports of its financial condition pursuant to §58-6-75.
Upon request to and approval by the director, a captive insurance company may use generally accepted accounting principles in lieu of statutory accounting principles in its certification of its financial condition and may use consolidated, nonconsolidated, or a similar type of reporting, as approved by the director.
Source:
SL 1996, ch 287, §15; SL 2009, ch 272, §7; SL 2013, ch 257, §13; SL 2015, ch 257, §3.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 46 - Captive Insurance Companies › Section 58-46-16 - Alternative reporting date.

58-46-16. Alternative reporting date.
A pure, agency, or trust captive insurance company may make written application for filing the report required by §58-46-15 on a fiscal year-end that is consistent with the parent company's fiscal year. If an alternative reporting date is granted, the annual report is due six months after its fiscal year-end.
Source:
SL 1996, ch 287, §16; SL 2009, ch 272, §8; SL 2013, ch 257, §14; SL 2015, ch 257, §4.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 46 - Captive Insurance Companies › Section 58-46-17 - Review of company financial condition--Compliance.

58-46-17. Review of company financial condition--Compliance.
At least once in five years and whenever the director determines it to be prudent, the director shall examine each captive insurance company to ascertain its financial condition and whether it has complied with the provisions of this chapter. Chapter 58-3 applies to any examination conducted under this section.
Source:
SL 1996, ch 287, §17.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 46 - Captive Insurance Companies › Section 58-46-18 - Suspension or revocation of certificate of authority by director.

58-46-18. Suspension or revocation of certificate of authority by director.
The certificate of authority of a captive insurance company to do insurance business in this state may be suspended or revoked by the director for any of the following reasons:
(1)Insolvency or impairment of capital or surplus;
(2)Failure to meet the requirements of §58-46-8;
(3)Refusal or failure to submit an annual report, as required by §58-46-15, or any other report or statement required by law or by lawful order of the director;
(4)Failure to comply with the provisions of its own organizational documents or bylaws;
(5)Failure to submit to examination or any legal obligation relative thereto, as required by §58-46-17;
(6)Use of methods that, although not otherwise specifically prohibited by law, nevertheless render its operation detrimental or its condition unsound with respect to the public or to its policyholders;
(7)Failure otherwise to comply with the laws of this state.
If the director finds, upon examination, hearing, or other evidence, that any captive insurance company has violated any of these provisions, its certificate of authority may be suspended or revoked if it is deemed to be in the best interest of the public and the policyholders of such captive insurance company, notwithstanding any other provisions of this chapter.
Source:
SL 1996, ch 287, §18; SL 2013, ch 257, §15.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 46 - Captive Insurance Companies › Section 58-46-19 - Allowable investments--Restrictions.

58-46-19. Allowable investments--Restrictions.
No pure, agency, or trust captive insurance company is subject to any restrictions on allowable investments. However, the director may prohibit or limit any investment that threatens the solvency or liquidity of any such company.
Unless the director has provided written approval of a different requirement or limitation, group, sponsored and special purpose captive insurance companies shall comply with the investment requirements and limitations applicable to other insurance companies pursuant to chapter 58-27.
Source:
SL 1996, ch 287, §19; SL 2009, ch 272, §9; SL 2013, ch 257, §16; SL 2015, ch 257, §5.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 46 - Captive Insurance Companies › Section 58-46-20 - Loan to parent or affiliated entity.

58-46-20. Loan to parent or affiliated entity.
A pure, agency, or trust captive insurance company may make a loan to its parent or affiliated entities. No loan to its parent or affiliated entities may be made without prior written approval of the director. A group, sponsored, or special purpose captive insurance company may make a loan to an affiliated entity if prior written approval by the director has been provided. The approval shall be evidenced by a note in a form approved by the director.
Source:
SL 1996, ch 287, §20; SL 2009, ch 272, §10; SL 2013, ch 257, §17; SL 2015, ch 257, §6.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 46 - Captive Insurance Companies › Section 58-46-21 - Ceding or taking credit for reserves.

58-46-21. Ceding or taking credit for reserves.
Any captive insurance company may take credit for reserves on risks or portions of risks ceded to reinsurers complying with provisions of chapter 58-14 or 58-46. Prior approval of the director shall be required for ceding or taking credit for reserves on risks or portions of risks ceded to reinsurers not complying with chapter 58-14 or 58-46.
Source:
SL 1996, ch 287, §21; SL 2013, ch 257, §18.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 46 - Captive Insurance Companies › Section 58-46-23 - Contribution to plan, pool, association, or guaranty or insolvency fund prohibited.

58-46-23. Contribution to plan, pool, association, or guaranty or insolvency fund prohibited.
No captive insurance company may join or contribute financially to any plan, pool, association, or guaranty or insolvency fund in this state. No captive insurance company or its parent or affiliated entities may receive any benefit from any such plan, pool, association, or guaranty or insolvency fund for claims arising out of the operations of the captive insurance company.
Source:
SL 1996, ch 287, §23; SL 2013, ch 257, §19.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 46 - Captive Insurance Companies › Section 58-46-23.1 - Risk management services.

58-46-23.1. Risk management services.
A pure or agency captive insurance company may enter into any arrangement to provide risk management services to a controlled unaffiliated business or an unaffiliated business but may not accept any insurance risk from an unaffiliated business. A trust captive insurance company may enter into any arrangement to provide risk management services to an affiliated entity and may accept insurance risk from an affiliated entity.
Source:
SL 2009, ch 272, §11; SL 2013, ch 257, §20; SL 2015, ch 257, §7.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 46 - Captive Insurance Companies › Section 58-46-23.2 - Prohibited insurance risks.

58-46-23.2. Prohibited insurance risks.
A captive insurance company may not insure:
(1)Any life or health risk; or
(2)Any personal lines property casualty risk.
Source:
SL 2013, ch 257, §21.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 46 - Captive Insurance Companies › Section 58-46-24 - Annual supervision fee.

58-46-24. Annual supervision fee.
Each captive insurance company shall pay to the Division of Insurance an annual supervision fee of the greater of five thousand dollars or eight one-hundredths of one percent on gross premiums, less return premiums, for insurance written on all risks or property resident, situated, or located within this state, and on risks and property situated elsewhere upon which no premium tax or fee is otherwise paid during the year ending on the preceding December thirty-first. A sponsored captive company shall pay for each protected cell an additional annual supervision fee of the greater of five hundred dollars or eight hundredths of one percent on gross premiums, less return premiums, for insurance written on all risks or property resident, situated, or located within this state, and on risks and property situated elsewhere upon which no premium tax or fee is otherwise paid during the year ending on the preceding December thirty-first. The annual supervision fee shall be due and payable on or before March first of each year. If the aggregate annual supervision fees to be paid by a captive insurance company calculated under this section amount to less than five thousand dollars in any year, such captive insurance company shall pay an annual supervision fee of five thousand dollars for the year. The aggregate annual supervision fees calculated under this section may not equal more than fifty thousand dollars.
Source:
SL 1996, ch 287, §24; SL 2013, ch 257, §22.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 46 - Captive Insurance Companies › Section 58-46-25 - Application of chapter 58-29B.

58-46-25. Application of chapter 58-29B.
The terms and conditions set forth in chapter 58-29B pertaining to insurers' supervision, rehabilitation, and liquidation apply to captive insurance companies formed under this chapter.
Source:
SL 1996, ch 287, §25.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 46 - Captive Insurance Companies › Section 58-46-26 - Application of Title 58.

58-46-26. Application of Title 58.
No provisions of Title 58, other than those contained in this chapter or contained in specific references contained in this chapter, apply to captive insurance companies.
Source:
SL 1996, ch 287, §26.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 46 - Captive Insurance Companies › Section 58-46-28 - Sponsor of sponsored captive insurance company.

58-46-28. Sponsor of sponsored captive insurance company.
A sponsor of a sponsored captive insurance company shall be any entity approved by the director. A risk retention group may not be a sponsor of a sponsored captive insurance company, and a risk retention group may be a participant of a sponsored captive insurance company only to the extent that it is the sole participant of one or more protected cells.
Source:
SL 2013, ch 257, §24.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 46 - Captive Insurance Companies › Section 58-46-29 - Participant in sponsored captive insurance company.

58-46-29. Participant in sponsored captive insurance company.
Any entity may be a participant in any sponsored captive insurance company. A sponsor may be a participant in a sponsored captive insurance company. A participant need not be an owner of the sponsored captive insurance company or any affiliate thereof.
Except as otherwise approved by the director, a participant may insure through a sponsored captive insurance company only its own risks and the risks of its affiliates who are participants.
Source:
SL 2013, ch 257, §25.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 46 - Captive Insurance Companies › Section 58-46-30 - Combination of assets of protected cells for purposes of investment.

58-46-30. Combination of assets of protected cells for purposes of investment.
Notwithstanding the provisions of §58-46-27, a sponsored captive insurance company may combine the assets of two or more protected cells for purposes of investing those assets. Such a combination of assets may not be construed as defeating the segregation of assets for purposes of §58-46-27, or for accounting or other purposes. A sponsored captive insurance company shall comply with investment requirements as may be approved by the director upon application by a sponsored captive insurance company.
Source:
SL 2013, ch 257, §26.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 46 - Captive Insurance Companies › Section 58-46-31 - Form of application--Confidentiality of information.

58-46-31. Form of application--Confidentiality of information.
The director shall prescribe the form for making an application and any application submitted shall contain such information as required. The applicant may, with approval of the director, designate confidential information.
All information the director generates in making an investigation or examination of a captive insurance company is confidential. All confidential information is the property of the division but shall be furnished to the captive insurance company for its confidential use. Under no circumstances may a captive insurance company disclose a report or any supporting documentation to anyone, other than directors and officers of the captive insurance company or anyone acting in a fiduciary capacity for the captive insurance company, without written permission from the director.
The director shall give ten days' prior written notice of intent to disclose confidential information to the affected captive insurance company. Any captive insurance company which receives a notice may object to the disclosure of the confidential information and shall be afforded the right to a hearing in accordance with the provisions of chapter 1-26. If a captive insurance company requests a hearing, the director may not reveal confidential information prior to the conclusion of the hearing and a ruling. Disclosure of confidential information shall be made only to formal regulatory bodies which clearly have a need for the confidential information. Prior to dissemination of any confidential information, the director shall require a written agreement not to reveal the confidential information by the party receiving the confidential information. In no event may the director disclose confidential information to the general public, any competitor, or any potential competitor of a captive insurance company, or its parents or affiliates.
The submission of any information to the division in the course of any application, investigation, or examination shall not be construed as waiving, destroying, or otherwise affecting any privilege any person may claim with respect to the information under South Dakota law or federal law.
For the purposes of this chapter, confidential information includes the names of stockholders, membership interest holders, or owners, ownership information, capital contributions, addresses, business affiliations, state and director findings through any examination or inquiry of any kind, and any information required to be reported or filed with the director.
The provisions of this section do not apply to the disclosure of information by the director in connection with the institution and prosecution of an action against a captive insurance company under this chapter. Disclosure of confidential information may be made only to formal governmental regulatory bodies which have a need for the confidential information.
Source:
SL 2013, ch 257, §27.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 46 - Captive Insurance Companies › Section 58-46-32 - Promulgation of rules.

58-46-32. Promulgation of rules.
The director may promulgate rules pursuant to chapter 1-26 to further the provisions of this chapter. The rules may include:
(1)Definition of terms;
(2)Requirements for doing business;
(3)Application requirements and procedures;
(4)Conditions for receiving a certificate of authority;
(5)Criteria for suspending or revoking a certificate of authority;
(6)Organizational structure;
(7)Financial condition;
(8)Pooling and sharing risks; and
(9)Notice requirements.
Source:
SL 2013, ch 257, §28.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 47 - Portable Electronics Insurance › Section 58-47-1 - Definitions.

58-47-1. Definitions.
Terms used in this chapter mean:
(1)"Customer," any person who purchases portable electronics;
(2)"Enrolled customer," any customer who elects coverage under a portable electronics insurance policy issued to a vendor of portable electronics;
(3)"Location," any physical location in the state or any website, call center site, or similar location directed to residents of this state;
(4)"Portable electronics," electronic devices and their accessories that are easily carried by a person;
(5)"Portable electronics transaction," the sale or lease of portable electronics by a vendor to a customer, or the sale of a service related to the use of portable electronics by a vendor to a customer;
(6)"Supervising entity," any licensed insurer, licensed business entity, or licensed insurance producer that is appointed by an insurer to supervise the administration of a portable electronics insurance program;
(7)"Vendor," any person in the business of engaging in portable electronics transactions directly or indirectly.
Source:
SL 2012, ch 251, §1; SL 2017, ch 215, §1.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 47 - Portable Electronics Insurance › Section 58-47-2 - Portable electronics insurance defined.

58-47-2. Portable electronics insurance defined.
Portable electronics insurance is insurance providing coverage for the repair or replacement of portable electronics which may provide coverage for portable electronics against any one or more of the following causes of loss: loss, theft, inoperability due to mechanical failure, malfunction, damage, or other similar causes of loss. It is not a service contract or extended warranty providing coverage limited to the repair, replacement, or maintenance of property for the operational or structural failure of property due to a defect in materials, workmanship, accidental damage from handling power surges, or normal wear and tear, a policy of insurance covering a seller's or a manufacturer's obligations under a warranty, or a homeowner's, renter's, private passenger automobile, commercial multi-peril, or similar coverage.
Source:
SL 2012, ch 251, §2.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 47 - Portable Electronics Insurance › Section 58-47-3 - Portable electronics license required to sell or offer portable electronics insurance coverage.

58-47-3. Portable electronics license required to sell or offer portable electronics insurance coverage.
A vendor must have a portable electronics license issued pursuant to this chapter to sell or offer coverage under a policy of portable electronics insurance. A portable electronics license issued under this chapter authorizes any employee or authorized representative of the vendor to sell or offer coverage under a policy of portable electronics insurance to a customer at each location at which the vendor engages in portable electronics transactions. Each supervising entity shall maintain a registry of vendor locations which are authorized to sell or solicit portable electronics insurance coverage in this state. The registry shall be open to inspection by the director during regular business hours of the supervising entity. The supervising entity shall be subject to examination pursuant to the applicable provisions of chapter 58-3 and must otherwise comply with §58-33-66.
Source:
SL 2012, ch 251, §3.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 47 - Portable Electronics Insurance › Section 58-47-4 - Brochures to be available at locations where portable electronics insurance offered--Contents.

58-47-4. Brochures to be available at locations where portable electronics insurance offered--Contents.
At every location where portable electronics insurance is offered to customers, brochures or other written materials must be made available by a vendor to a prospective customer which:
(1)Disclose that portable electronics insurance may provide a duplication of coverage already provided by a customer's homeowner's insurance policy, renter's insurance policy, or other source of coverage;
(2)State that the enrollment by the customer in a portable electronics insurance program is not required in order to purchase or lease portable electronics or services;
(3)Summarize the material terms of the insurance coverage, including:
(a)The identity of the insurer;
(b)The identity of the supervising entity;
(c)The amount of any applicable deductible and how it is to be paid;
(d)Benefits of the coverage; and
(e)Key terms and conditions of coverage such as whether portable electronics may be repaired or replaced with similar make and model reconditioned or nonoriginal manufacturer parts or equipment;
(4)Summarize the process for filing a claim, including a description of how to return portable electronics and the maximum fee applicable in the event the customer fails to comply with any equipment return requirements; and
(5)State that an enrolled customer may cancel enrollment for coverage under a portable electronics insurance policy at any time and the person paying the premium shall receive a refund or credit of any applicable unearned premium.
Source:
SL 2012, ch 251, §4.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 47 - Portable Electronics Insurance › Section 58-47-5 - Periodic basis as group or master commercial inland marine policy.

58-47-5. Periodic basis as group or master commercial inland marine policy.
Portable electronics insurance may be offered on a month to month or other periodic basis as a group or master commercial inland marine policy issued to a vendor of portable electronics for its enrolled customers. Eligibility and underwriting standards for customers electing to enroll in coverage shall be established by the insurer for each portable electronics insurance program.
Source:
SL 2012, ch 251, §5.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 47 - Portable Electronics Insurance › Section 58-47-6 - Insurance producer license not required for vendor employees or representatives under certain conditions.

58-47-6. Insurance producer license not required for vendor employees or representatives under certain conditions.
An employee or an authorized representative of a vendor may sell or offer portable electronics insurance to a customer and is not subject to licensure as an insurance producer if:
(1)The vendor obtains a portable electronics license to authorize its employees or authorized representatives to sell or offer portable electronics insurance pursuant to this chapter;
(2)The insurer issuing the portable electronics insurance either directly supervises or appoints a supervising entity to supervise the administration of the sale of portable electronic insurance; and
(3)No employee or authorized representative of a vendor of portable electronics may advertise, represent, or otherwise hold himself or herself out as a licensed insurance producer unless so licensed.
Source:
SL 2012, ch 251, §6.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 47 - Portable Electronics Insurance › Section 58-47-7 - Training program for vendor employees and representatives.

58-47-7. Training program for vendor employees and representatives.
The administration of the sale of portable electronics insurance includes the development of a training program for employees and authorized representatives of the vendors. The training shall be delivered to employees and authorized representatives of vendors who are directly engaged in the activity of selling or offering portable electronics insurance. The training may be provided in electronic form. However, if conducted in an electronic form, the supervising entity shall implement a supplemental education program regarding the portable electronics insurance product that is conducted and overseen by a licensed producer of the supervising entity. Each employee and authorized representative shall receive basic instruction about the portable electronics insurance offered to customers and the disclosures required under §58-47-4.
Source:
SL 2012, ch 251, §7.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 47 - Portable Electronics Insurance › Section 58-47-8 - Vendor permitted to collect charges for portable electronics insurance--Funds held in trust for insurer--Vendor compensation.

58-47-8. Vendor permitted to collect charges for portable electronics insurance--Funds held in trust for insurer--Vendor compensation.
Any charges for portable electronics insurance coverage may be billed and collected by the vendor of portable electronics. Each charge to the enrolled customer for coverage that is not included in the cost associated with the purchase or lease of portable electronics or related services shall be separately itemized on the enrolled customer's bill. If the portable electronics insurance coverage is included with the purchase or lease of portable electronics or related services, the vendor shall clearly and conspicuously disclose to the enrolled customer that the portable electronics insurance coverage is included with the portable electronics or related services. A vendor billing and collecting these charges is not required to maintain these funds in a segregated account if the vendor is authorized by the insurer to hold these funds in an alternative manner and remits such amounts to the supervising entity within sixty days of receipt. All funds received by a vendor from an enrolled customer for the sale of portable electronics insurance shall be considered funds held in trust by the vendor in a fiduciary capacity for the benefit of the insurer. A vendor may receive compensation for billing and collection services.
Source:
SL 2012, ch 251, §8.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 47 - Portable Electronics Insurance › Section 58-47-9 - Change in policy terms and conditions--Notice.

58-47-9. Change in policy terms and conditions--Notice.
An insurer may terminate or otherwise change the terms and conditions of a policy of portable electronics insurance only upon providing the vendor policyholder and enrolled customers with at least twenty days notice. If the insurer changes the terms and conditions, then the insurer shall provide the vendor policyholder with a revised policy or endorsement and each enrolled customer with a revised certificate, endorsement, updated brochure, or other evidence indicating a change in the terms and conditions has occurred and a summary of material changes.
Source:
SL 2012, ch 251, §9.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 47 - Portable Electronics Insurance › Section 58-47-10 - Termination of insurance upon twenty days notice.

58-47-10. Termination of insurance upon twenty days notice.
An insurer may terminate an enrolled customer's enrollment under a portable electronics insurance policy upon twenty days notice for nonpayment of premium, discovery of fraud, or material misrepresentation in obtaining coverage or in the presentation of a claim under the policy.
Source:
SL 2012, ch 251, §10.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 47 - Portable Electronics Insurance › Section 58-47-11 - Immediate termination of insurance.

58-47-11. Immediate termination of insurance.
An insurer may immediately terminate an enrolled customer's enrollment under a portable electronics insurance policy:
(1)If the enrolled customer ceases to have an active service with the vendor of portable electronics; or
(2)If an enrolled customer exhausts the aggregate limit of liability, if any, under the terms of the portable electronics insurance policy and the insurer sends notice of termination to the enrolled customer within thirty calendar days after exhaustion of the limit. However, if notice is not timely sent, enrollment shall continue notwithstanding the aggregate limit of liability until the insurer sends notice of termination to the enrolled customer.
Source:
SL 2012, ch 251, §11.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 47 - Portable Electronics Insurance › Section 58-47-12 - Notice of termination.

58-47-12. Notice of termination.
If a portable electronics insurance policy is terminated by a vendor policyholder, the vendor policyholder shall mail or deliver a written notice to each enrolled customer advising the enrolled customer of the termination of the policy and the effective date of termination. The written notice shall be mailed or delivered to the enrolled customer at least thirty days before the termination.
Source:
SL 2012, ch 251, §12.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 47 - Portable Electronics Insurance › Section 58-47-13 - Notice and correspondence requirements.

58-47-13. Notice and correspondence requirements.
If any notice or correspondence with respect to a policy of portable electronics insurance is required, the notice or correspondence shall be in writing and mailed within any notice period specified within the statute or regulation requiring the notice or correspondence. Notwithstanding any other law, any notice or correspondence may be mailed by postal or electronic means. If the notice or correspondence is mailed through any postal service, the notice or correspondence shall be sent to the vendor of portable electronics at the vendor's mailing address specified for that purpose and to its affected enrolled customer's last known mailing address on file with the insurer. Either the insurer or vendor of portable electronics shall maintain proof of mailing in a form authorized or accepted by the United States Postal Service or any other commercial mail delivery service. If the notice or correspondence is mailed by electronic means, the notice or correspondence shall be sent to the vendor of portable electronics at the vendor's electronic mail address specified for that purpose and to its affected enrolled customer's last known electronic mail address as provided by each enrolled customer to the insurer or vendor of portable electronics. An enrolled customer's provision of an electronic mail address to the insurer or vendor of portable electronics is deemed to be consent to receive notice or correspondence by electronic means so long as a disclosure is provided to the customer within a reasonable time following purchase of the portable electronics. The insurer or vendor of portable electronics shall maintain proof that any notice or correspondence was electronically mailed to an enrolled customer. Notice or correspondence may be sent on behalf of any insurer or vendor, by the supervising entity appointed by the insurer.
Source:
SL 2012, ch 251, §13; SL 2017, ch 215, §2.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 47 - Portable Electronics Insurance › Section 58-47-14 - Term of portable electronics license--Renewal.

58-47-14. Term of portable electronics license--Renewal.
A portable electronics license issued under this chapter is valid for one year unless suspended or revoked by the division. A license may be renewed upon expiration for another one-year period upon application of the vendor and payment of the fees as set forth in §58-2-29.
Source:
SL 2012, ch 251, §14.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 47 - Portable Electronics Insurance › Section 58-47-15 - Penalties for violation of chapter.

58-47-15. Penalties for violation of chapter.
If a vendor of portable electronics or its employee or authorized representative violates any provision of this chapter, the director may do any of the following:
(1)After notice and hearing, impose penalties permitted under this section that the director deems necessary and reasonable to carry out the purpose of this chapter, including, but not limited to:
(a)Suspending or revoking the privilege of transacting portable electronics insurance pursuant to this chapter at specific business locations where violations have occurred; and
(b)Suspending or revoking the ability of individual employees or authorized representatives to act under the license;
(2)Permit an applicant or licensee to elect in writing to pay a specified money penalty within a specified time in lieu of a license suspension or other permitted action. The money penalty may not exceed five hundred dollars per violation or five thousand dollars in aggregate.
Source:
SL 2012, ch 251, §16.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 47 - Portable Electronics Insurance › Section 58-47-16 - Application for license.

58-47-16. Application for license.
An application for a license under this chapter shall be made to and filed with the director on forms prescribed and furnished by the director. The application shall provide:
(1)The name, residence address, and other information required by the director for an employee or officer of the vendor that is designated by the applicant as the person responsible for the vendor's compliance with the requirements of this chapter; and
(2)The location of the applicant's home office.
Any vendor engaging in portable electronics insurance transactions on or before July 1, 2012 must apply for licensure within ninety days of the application being made available by the director. Any applicant commencing operations after July 1, 2012 must obtain a portable electronics license prior to offering portable electronics insurance.
Source:
SL 2012, ch 251, §17.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 48 - Insurance Innovation Waivers › Section 58-48-1 - Definitions.

58-48-1. Definitions.
Terms used in this chapter mean:
(1)"Applicant," a person applying for an insurance innovation waiver;
(2)"Consumer," a person that purchases or otherwise enters into a transaction or agreement to receive an innovative insurance product or service that is being tested by a participant;
(3)"Innovation," the use or incorporation of a new or emerging technology or a new use of existing technology, including blockchain technology, to address a problem, provide a benefit, or otherwise offer a product, service, business model, or delivery mechanism that is not known by the division to have a comparable widespread offering in the state;
(4)"Innovative insurance product or service," an insurance product or service that includes an innovation;
(5)"Insurance product or service," an insurance product or insurance service that requires state licensure, registration, or other authorization under this title, including an insurance product or insurance service that includes a business model, delivery mechanism, or element that requires a license, registration, or other authorization to do insurance business, act as an insurance producer, or otherwise requires division approval;
(6)"Insurance innovation waiver" or "waiver," a document issued pursuant to this chapter that allows a person to temporarily test an innovative insurance product or service on a limited basis without otherwise being licensed or authorized to act under the laws of the state or in full compliance with the provisions of this title;
(7)"Participant," an applicant whose application for a waiver is granted in accordance with this chapter; and
(8)"Test," to provide an innovative insurance product or service in accordance with a granted waiver.
Source:
SL 2021, ch 214, § 1.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 48 - Insurance Innovation Waivers › Section 58-48-2 - Grounds for innovation waiver.

58-48-2. Grounds for innovation waiver.
Subject to §§ 58-48-3 to 58-48-5, inclusive, the director may grant an insurance innovation waiver with respect to requirements imposed by any insurance law, regulation, or bulletin to enable a person to obtain limited access to the insurance market in this state to test an innovative insurance product or service without obtaining a license or other authorization that might otherwise be required or without coming into full compliance with any insurance law, regulation, or bulletin. To receive a waiver, an applicant shall demonstrate to the director's satisfaction that:
(1)The application of the law, regulation, or bulletin would inhibit the introduction of an innovative or more efficient insurance product or service that the applicant intends to test during the period for which the proposed waiver is granted;
(2)The public policy goals of the law, regulation, or bulletin will be or have been achieved by other means;
(3)The waiver will not unreasonably increase risk to consumers or create unreasonable unfair competition in the insurance market; and
(4)The waiver is in the public interest.
Source:
SL 2021, ch 214, § 2.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 48 - Insurance Innovation Waivers › Section 58-48-3 - Waiver not to restrict policyholder recovery or restrict director's authority.

58-48-3. Waiver not to restrict policyholder recovery or restrict director's authority.
The authority granted to the director under this chapter may not be construed to allow the director to grant a waiver that would abridge the recovery rights of policyholders and may not be interpreted to limit or otherwise affect the authority of the director to exercise discretion to waive or enforce requirements as permitted under any other requirement of this title, any regulation, or any bulletin. The waiver may not be construed to waive any requirements except those which inhibit the introduction of the innovative insurance product or service as addressed in the innovation waiver document.
Source:
SL 2021, ch 214, § 3.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 48 - Insurance Innovation Waivers › Section 58-48-4 - Limited scope of waiver.

58-48-4. Limited scope of waiver.
The director may not grant a waiver with respect to:
(1)Any law, regulation, bulletin, or other provision not subject to the director's jurisdiction;
(2)Any requirement as to the minimum amount of paid-in capital or surplus required to be possessed or maintained by any participant as determined by the director;
(3)Chapter 58-12 concerning unfair claims practices;
(4)Chapters 58-15, 58-16, 58-28, and 58-33A concerning life insurance;
(5)Chapters 58-17, 58-18, and 58-18B concerning health insurance;
(6)Chapter 58-17B concerning long-term care insurance;
(7)Chapter 58-20 concerning workers' compensation insurance;
(8)Chapter 58-25 concerning title insurance;
(9)Chapter 58-30 concerning sales through licensed insurance producers;
(10)Sections 58-33-1 to 58-33-47, inclusive, and §§ 58-33-66 to 58-33-69, inclusive, concerning certain unfair trade practices;
(11)Any laws, regulations, or bulletins directly relating to subdivisions (3) to (10), inclusive, of this section; and
(12)The application of any taxes or fees except as provided in subdivision 58-48-5(13).
Source:
SL 2021, ch 214, § 4.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 48 - Insurance Innovation Waivers › Section 58-48-6 - Application review--Additional information required.

58-48-6. Application review--Additional information required.
In addition to § 58-48-5, an applicant shall provide any additional information that the director determines is necessary, including proof of sufficient assets, accounts, liability coverage, surety bond coverage or other preparation by the applicant to ensure that consumers are protected, evidence that the applicant will be able to cover ongoing duties when the testing period terminates or terminates early, prior industry ratings, and past performance of the applicant. An applicant's failure to provide any information requested by the director forfeits the application for a waiver. The director may require the applicant to retain independent consultants to determine the accuracy of any information submitted by the applicant at the applicant's expense.
Source:
SL 2021, ch 214, § 6.
2023 South Dakota Codified Laws › Title 58 - Insurance › Chapter 48 - Insurance Innovation Waivers › Section 58-48-7 - Grant or denial of waiver--Duration of waiver--Waiver deemed authority to act.

58-48-7. Grant or denial of waiver--Duration of waiver--Waiver deemed authority to act.
The director shall grant or deny a waiver within ninety days after the director determines the applicant's waiver application to be complete. The director and the applicant may mutually agree to extend the ninety-day period. The director may deny a waiver application at the director's discretion based on the division's analysis of the application. The director's discretionary decision to grant or deny a waiver is not appealable and not subject to chapter 1-26. The director may grant a waiver for a period that may not exceed twenty-four months. A participant receiving a waiver has appropriate authority under the laws of this state to act for the purposes of any provision of federal law requiring state licensure or authorization and is not subject to chapter 58-8 for acts taken in compliance with a waiver.
Source:
SL 2021, ch 214, § 7.