reglab/statecodes huggingface dataset:
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:13 - Medicare supplement insurance › Appendix B - Form for Reporting Medicare Supplement Policies

Current through Register Vol. 51, page 10, July 15, 2024
APPENDIX B
FORM FOR REPORTING
MEDICARE SUPPLEMENT POLICIES
Company Name: ______________________________
Address: ______________________________
______________________________
Phone Number: ______________________________
Due March 1, annually
The purpose of this form is to report the following information on each resident of this state who has in force more than one Medicare supplement policy or certificate. The information is to be grouped by individual policyholder.
Policy and Date of
Certificate # Issuance
___________________________________
Signature
___________________________________
Name and Title (please type)
___________________________________
Date
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:16 - Premium tax › Section 20:06:16:01 - Claim form

Current through Register Vol. 51, page 10, July 15, 2024
The form to be used for requesting a premium tax refund shall be provided by the division and shall contain the following information:
(1) The date of the application;
(2) The name of the company requesting the refund;
(3) The address of the company requesting the refund;
(4) The period of time for which the refund is claimed;
(5) The amount of the claim;
(6) The basis for the claim;
(7) The signature and title of the person entitled to make the claim; and
(8) An attestation of the signature by a notary public.
General Authority:
SDCL  10-44-1.1.
Law Implemented:
SDCL  10-44-2.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:16 - Premium tax › Section 20:06:16:02 - Premium defined

Current through Register Vol. 51, page 10, July 15, 2024
For the purpose of calculating premium tax, premiums include payment to an insurer for any charges or fees associated with the processing of claims under a contract of insurance.
General Authority:
SDCL  10-44-1.1.
Law Implemented:
SDCL  10-44-2,  58-11-1.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:16 - Premium tax › Section 20:06:16:03 - Premium tax reporting

Current through Register Vol. 51, page 10, July 15, 2024
Any property and casualty company doing insurance business in this state shall report premiums as defined under SDCL  58-11-1 and  10-44-1 when written by the company, on their premium tax return pursuant to SDCL  58-6-68.
General Authority:
SDCL  10-44-1.1,  58-11-63(1)
Law Implemented:
SDCL  10-44-1,  10-44-2,  58-6-68.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:16 - Premium tax › Section 20:06:16:04 - Annuity considerations returned defined

Current through Register Vol. 51, page 10, July 15, 2024
For the purpose of calculating consideration for annuity contracts pursuant to SDCL  10-44-1(2), annuity considerations returned are only those refunds paid when annuity contracts are returned and cancelled pursuant to SDCL  58-15-59.1.
General Authority:
SDCL  10-44-1.1.
Law Implemented:
SDCL  10-44-1(2).
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:18 - Producer licensing › Section 20:06:18:01 - Definitions

Current through Register Vol. 51, page 10, July 15, 2024
Terms used in this chapter mean:
(1) "Approved course," an educational presentation offered in a class, a seminar, self-study, or a similar form of instruction involving insurance fundamentals, insurance-related law, insurance policies, claims and coverage, insurance needs and product changes, insurance risk management, or other areas that have been approved by the director under this chapter as expanding skills and knowledge of insurance principles, coverages, laws, or regulations in the lines of insurance for which the licensee is licensed;
(2) "CEC," continuing education credit;
(3) "Company-sponsored course," a correspondence, classroom, or internet course which only company agents are allowed to attend;
(4) "General credit hours," CEC credit hours that can be applied to either life/health or property/casualty credits;
(5) "Hour," fifty minutes of contact or classroom time, or for self-study courses, the equivalent of fifty minutes of classroom time as determined and approved by the director;
(6) "Licensee," a natural person who is licensed by the division as a resident agent or broker for a specific type of insurance;
(7) "Self-study," a correspondence course or program of independent study.
General Authority:
SDCL  58-30-117.
Law Implemented:
SDCL  58-30-114,  58-30-117.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:18 - Producer licensing › Section 20:06:18:01.01 - Information management system

Current through Register Vol. 51, page 10, July 15, 2024
The division may use a web-based management information system, to provide online processing and electronic storage of information. The division shall direct the information that is processed and stored and the information remains that of the division.
General Authority:
SDCL  58-30-117.
Law Implemented:
SDCL  58-30-114,  58-30-117.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:18 - Producer licensing › Section 20:06:18:02 - Applicability

Current through Register Vol. 51, page 10, July 15, 2024
Sections 20:06:18:01 to 20:06:18:18, inclusive do not apply to the following:
(1) A licensee holding a limited license to sell only credit life and credit health insurance;
(2) A licensee outside the United States or its territories;
(3) A licensee who is a resident attorney licensed to practice law in the state;
(4) A licensee who is a transportation ticket agent of common carriers holding a limited license to sell only travel accident and baggage insurance;
(5) A licensee who is an employee of a trade association holding a limited license to sell only surety bonds to its association members;
(6) A licensee holding a limited license to sell only bail bonds.
General Authority:
SDCL  58-4-1,  58-30-117.
Law Implemented:
SDCL  58-30-115,  58-30-117.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:18 - Producer licensing › Section 20:06:18:03 - Continuing education requirements for licensees

Current through Register Vol. 51, page 10, July 15, 2024
In each two-year period, a licensee shall fulfill the following continuing education requirements:
(1) Licensees who hold a property casualty line of authority shall obtain at least ten CEC hours in courses certified as property/casualty;
(2) Licensees who hold a life, variable contract, or health line of authority shall obtain at least ten CEC hours in courses certified as life/health;
(3) Licensees who hold only a crop hail line of authority shall obtain at least four CEC hours in courses certified as crop hail;
(4) Licensees who hold both property/casualty and life/health lines of authority shall complete at least 20 CEC hours;
(5) Licensees who hold a crop hail line of authority and only one of the lines of authority contained in subdivisions (1) and (2) shall obtain at least ten CEC hours. Two CEC hours must be in certified crop hail courses and only two CEC hours in certified crop hail courses will count towards the required ten CEC hours. If the licensee holds more than two lines of authority contained in subdivisions (1) and (2) including a crop hail line of authority, the licensee shall complete at least 20 CEC hours with two of these CEC hours in certified crop hail courses. Only two CEC hours in certified crop hail courses will count towards the required ten CEC hours as contained in subdivision (1).
General Authority:
SDCL  58-4-1,  58-30-117.
Law Implemented:
SDCL  58-30-116,  58-30-117.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:18 - Producer licensing › Section 20:06:18:03.01 - Continuing education requirements for licensees obtaining new lines of authority

Current through Register Vol. 51, page 10, July 15, 2024
Any licensee who obtains a new line of authority during the licensee's two-year continuing education period does not need to fulfill the requirements of §
									20:06:18:03  for the new line of authority until the next two-year period.
General Authority:
SDCL  58-4-1,  58-30-117.
Law Implemented:
SDCL  58-30-116,  58-30-117.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:18 - Producer licensing › Section 20:06:18:04.01 - Reciprocity between states

Current through Register Vol. 51, page 10, July 15, 2024
The Division of Insurance shall accept the Continuing Education Filing Form as prescribed by the director, or a substantially similar form, which may be obtained from the division, and the attachments as required for approval of courses submitted by a nonresident continuing education provider, for courses previously awarded credit by the continuing education provider's home state. Courses that have not previously been awarded credit in the provider's home state must be approved pursuant to §
									20:06:18:05.
The provider shall submit electronically the location and date of a previously approved course at least 14 days in advance of the course if, at the time of initial filing, all dates and locations had not been determined.
General Authority:
SDCL  58-30-117.
Law Implemented:
SDCL  58-30-117,  58-30-118.
The Continuing Education Filing Form can be obtained from the Division of Insurance website at http://dlr.sd.gov/insurance. Cost: $0.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:18 - Producer licensing › Section 20:06:18:05 - Guidelines for filing for course approval

Current through Register Vol. 51, page 10, July 15, 2024
Responsibilities of the provider or sponsor include seeking course approval, monitoring an agent's attendance, supervising the course, and certifying a licensee's successful completion of the course. The provider must maintain a record of all continuing education offered for two years. The provider or sponsor shall electronically apply to the director for course approval at least 45 days in advance of the scheduled date of the course. The 45 days are calculated from the postmark date. In addition to the application fee pursuant to SDCL  58-2-29, the request for course approval must include the following information:
(1) The name, provider identification number, telephone and facsimile numbers, and address of the provider, including e-mail and website addresses if available;
(2) The name of the sponsoring organization, if there is one in addition to the provider. The sponsor may be a national professional association, local or state chapters or affiliates of a national professional organization, an insurance company, or other similar organizations;
(3) The course title;
(4) The locations of the course including addresses and phone numbers, unless the course is a self-study course;
(5) The dates of course offering;
(6) The difficulty classification of the course;
(7) The number of CEC hours requested, including the number of course contact or classroom hours and/or the number of self-study hours;
(8) A topic outline. Topic outlines must list and summarize each topic covered in the course. The instructor's outline may also be included. A list of topics covered, with no other details, is not an acceptable topic outline. If substantial changes have been made in a course that has received prior approval, the content of the course must be refiled with the director;
(9) The names and qualifications of instructors;
(10) Identity of any other state the course has been approved in and the number of credit hours awarded;
(11) Whether a course is part of a national or professional designation program; and
(12) The contact person or coordinator of the proposed offering.
The provider or sponsor shall submit electronically the location and date of a previously approved course at least 14 days in advance of the course if, at the time of initial filing, all dates and locations had not been determined. The 14 days are calculated from the postmark date.
Course approval will expire five years from date of initial approval.
General Authority:
SDCL  58-30-117.
Law Implemented:
SDCL  58-30-117,  58-30-118.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:18 - Producer licensing › Section 20:06:18:05.01 - Course attendance roster

Current through Register Vol. 51, page 10, July 15, 2024
Except for self-study courses, a sponsor shall maintain for two years a copy of the original sign-in sheets for each course offering. The sign-in sheets shall consist of the original signature and producer license number of each class participant. A sponsor shall submit course completion information electronically within 14 days of the conclusion of each class offering.
General Authority:
SDCL  58-30-117.
Law Implemented:
SDCL  58-30-117,  58-30-118.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:18 - Producer licensing › Section 20:06:18:05.02 - Forms used for course approval

Current through Register Vol. 51, page 10, July 15, 2024
Courses submitted for approval pursuant to §
									20:06:18:05  shall be filed with an Application for Course Approval and an Instructor Qualification Form. The form may be obtained from the division at
www.dlr.sd.gov/insurance
. The application must be submitted electronically.
General Authority:
SDCL  58-30-117.
Law Implemented:
SDCL  58-30-117,  58-30-118.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:18 - Producer licensing › Section 20:06:18:05.03 - Guidelines for course renewal

Current through Register Vol. 51, page 10, July 15, 2024
A provider or sponsor must file to have course approval renewed prior to the approval expiration date. Courses submitted for renewal pursuant to this section shall use the form in 20:06:18:05:02. The fee for course renewal is $10.
General Authority:
SDCL  58-30-117.
Law Implemented:
SDCL  58-30-117,  58-30-118.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:18 - Producer licensing › Section 20:06:18:06 - Certification of courses

Current through Register Vol. 51, page 10, July 15, 2024
Upon receipt of the information required in §
									20:06:18:05, the director shall grant or deny certification. Based on the number of contact hours, the director shall assign the number of CEC hours awarded for an approved course and the line or lines of insurance for which it qualifies. Forty-five days after filing, a course may be considered approved for the number of CEC hours requested in the sponsor's course filing unless it has been formally approved or disapproved by the director within that period. The director may at any time, after notice and cause shown, withdraw a course approval. Licensees who attend a course prior to the time approval is withdrawn will receive CEC hours. No course may be established for less than one hour of continuing education credit. Courses submitted for approval must consist of a minimum of one hour of course instruction. Courses conducted in conjunction with other meetings must have a separate continuing education course component. The director may audit continuing education offerings or other related insurance education offerings with or without notice to the sponsor.
General Authority:
SDCL  58-4-1,  58-30-117.
Law Implemented:
SDCL  58-30-117,  58-30-118.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:18 - Producer licensing › Section 20:06:18:07 - Unapproved course subject matter

Current through Register Vol. 51, page 10, July 15, 2024
The director will not approve the following course subject matter for continuing education credit:
(1) Automation;
(2) Clerical functions;
(3) Computer science;
(4) Courses or presentations on computer skills or software;
(5) Compliance courses from the Financial Industry Regulatory Authority (FINRA), U.S. Securities and Exchange Commission (SEC), or National Association of Securities Dealers (NASD) on investments including stocks, bonds, and mutual funds;
(6) Courses that are primarily intended to impart knowledge of specific products of specific insurers;
(7) Customer service;
(8) General management training;
(9) Goal-setting;
(10) Health, stress, or exercise management;
(11) Marketing or telemarketing;
(12) Motivational training;
(13) Company and vendor-specific product launches;
(14) Office skills or equipment or procedures;
(15) Organizational procedures and internal policies of an individual insurer;
(16) Personal improvement;
(17) Prospecting;
(18) Psychology;
(19) Relationship building;
(20) Restoration courses promoting products or services;
(21) Sales training;
(22) Service standards or service vendors;
(23) Time management; and
(24) Other topics or courses not related to insurance knowledge or competence of the licensee.
This list does not limit the director's authority to disapprove any application which fails to meet the standards in this chapter for course approval.
General Authority:
SDCL  58-30-117.
Law Implemented:
SDCL  58-30-117,  58-30-118.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:18 - Producer licensing › Section 20:06:18:08 - Approved course subject matter

Current through Register Vol. 51, page 10, July 15, 2024
The director will approve the following insurance related course subject matter for continuing education credit:
(1) Actuarial mathematics, statistics and probability;
(2) Assigned risk;
(3) Claims adjusting;
(4) Courses leading to and maintaining insurance designations;
(5) Employee benefit plans;
(6) Errors and omissions;
(7) Estate planning or taxation;
(8) Ethics;
(9) Fundamentals or principles of annuity contracts, crop and hail, life, accident and health, or property and casualty insurance;
(10) Insurance accounting or actuarial considerations;
(11) Insurance contract or policy comparison and analysis;
(12) Insurance fraud;
(13) Insurance laws, rules, regulations and regulatory updates;
(14) Insurance policy provisions;
(15) Insurance product-specific knowledge;
(16) Insurance rating, underwriting, or claims;
(17) Insurance tax laws;
(18) Legal principles;
(19) Long-term care/partnership;
(20) Loss prevention, control and mitigation;
(21) Managed care;
(22) Principles of risk management;
(23) Proper uses of insurance products;
(24) Real Estate Settlement Procedures Act (RESPA);
(25) Restoration courses regarding claims, loss control issues and mitigation;
(26) Retirement planning;
(27) Securities;
(28) Suitability in insurance products;
(29) Surety bail bond;
(30) Underwriting principles; and
(31) Viatical or life settlements.
The director may approve other topics that contribute substantive knowledge relating to the field of insurance and expands competence of the licensee.
A licensee who studies independently for any part of the courses listed in this section shall receive credit whether or not a passing grade is received. If the course is failed, credits for that part of the course may not again be awarded until the licensee receives a passing score.
General Authority:
SDCL  58-30-117.
Law Implemented:
SDCL  58-30-117,  58-30-118.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:18 - Producer licensing › Section 20:06:18:09 - Maximum company-sponsored courses

Current through Register Vol. 51, page 10, July 15, 2024
A licensee may not receive more than one-half of the required CEC hours during any two-year period from courses sponsored by any one insurance company. This section does not apply to the CEC hours applicable to crop insurance.
General Authority:
SDCL  58-30-117.
Law Implemented:
SDCL  58-30-118.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:18 - Producer licensing › Section 20:06:18:10 - Independent study

Current through Register Vol. 51, page 10, July 15, 2024
A licensee who studies independently for an insurance course examination approved by the director and who passes the examination shall receive credit for the number of CEC hours assigned by the director.
General Authority:
SDCL  58-4-1,  58-30-117.
Law Implemented:
SDCL  58-30-117,  58-30-118.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:18 - Producer licensing › Section 20:06:18:12 - Electronic fee

Current through Register Vol. 51, page 10, July 15, 2024
The fee required by SDCL  58-30-121 must be submitted electronically.
General Authority:
SDCL  58-4-1,  58-30-117.
Law Implemented:
SDCL  58-30-117,  58-30-121.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:18 - Producer licensing › Section 20:06:18:13 - Time extension of continuing education requirements

Current through Register Vol. 51, page 10, July 15, 2024
The director may grant an extension of time to complete the requirements imposed by SDCL  58-30-116 and §
									20:06:18:03. This extension shall be granted only when the licensee can show good cause for the extension. "Good cause" includes disability, death, natural disaster, or other extenuating circumstances. Each request for a time extension shall be in writing from the licensee and shall include details to support the request. Each request must be received by the director not less than 21 days before the expiration of the two year period or the expiration of the time extension period.
General Authority:
SDCL  58-4-1,  58-30-117.
Law Implemented:
SDCL  58-30-117,  58-30-119.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:18 - Producer licensing › Section 20:06:18:14 - Instructor qualifications

Current through Register Vol. 51, page 10, July 15, 2024
Instructors shall possess one of the following qualifications:
(1) Three years of recent experience in the subject area being taught;
(2) A degree related to the subject area being taught; or
(3) Two years of recent experience and 60 hours of course work in the subject area being taught.
In addition, instructors and sponsors shall be trustworthy, of good character and reputation as to morals, integrity, and financial responsibility, and professional in manner and demeanor.
General Authority:
SDCL  58-30-117,  58-30-122.
Law Implemented:
SDCL  58-4-1,  58-30-122.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:18 - Producer licensing › Section 20:06:18:15 - Grounds for revocation or denial of instructor status

Current through Register Vol. 51, page 10, July 15, 2024
The director may withdraw or deny instructor status from instructors:
(1) Supplying incorrect or false information regarding their background or qualifications; or
(2) Failing to meet the requirements of §
									20:06:18:14.
General Authority:
SDCL  58-30-122.
Law Implemented:
SDCL  58-30-122.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:18 - Producer licensing › Section 20:06:18:16 - Course attendance - Exceptions

Current through Register Vol. 51, page 10, July 15, 2024
A course may not be offered for less than the approved number of continuing education credits. Credit may not be issued to a participant who does not attend the entire continuing education course unless a written appeal is made to the director showing good cause as to why the course could not be attended in its entirety. If the director approves less than full attendance for the participant, the director shall specify the credit to be awarded. "Good cause" is defined as personal emergency, sickness, family illness, death of a family member, or other extenuating circumstances not within the control of the participant.
General Authority:
SDCL  58-4-1,  58-30-117.
Law Implemented:
SDCL  58-30-117,  58-30-119.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:18 - Producer licensing › Section 20:06:18:17 - Advertisement of courses

Current through Register Vol. 51, page 10, July 15, 2024
Continuing education courses may not be advertised as an approved course unless the division has approved the course in writing.
Courses which are advertised prior to formal approval, but after application has been made, shall contain the following statement or a substantially similar statement: "Application has been made for continuing education credit; however, this does not guarantee approval."
All advertising related to an approved course shall contain the following information:
(1) The course title;
(2) The approved sponsor of the course;
(3) The line of authority for which the course is approved (life/health, property/casualty, crop/hail, or general);
(4) The number of approved continuing education credits; and
(5) A brief summary or outline of the course content.
The course sponsor shall provide a more detailed outline at no charge to anyone requesting it in writing.
General Authority:
SDCL  58-4-1,  58-30-117.
Law Implemented:
SDCL  58-30-117,  58-30-119.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:18 - Producer licensing › Section 20:06:18:18 - Carry-over of credits prohibited

Current through Register Vol. 51, page 10, July 15, 2024
No continuing education credit hours may be carried over from one two-year period to the next two-year period.
General Authority:
SDCL  58-4-1,  58-30-117.
Law Implemented:
SDCL  58-30-117,  58-30-119.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:18 - Producer licensing › Section 20:06:18:19 - Effective date of producer appointments

Current through Register Vol. 51, page 10, July 15, 2024
The effective date of an appointment is the date that the notice of appointment made pursuant to SDCL  58-30-176 is approved by the director.
General Authority:
SDCL  58-30-195(11).
Law Implemented:
SDCL  58-30-6,  58-30-176.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:18 - Producer licensing › Section 20:06:18:20 - Maximum credit for a course during a two-year period

Current through Register Vol. 51, page 10, July 15, 2024
Neither a student nor an instructor may earn credit for attending or instructing any continuing education course more than once during a two-year period.
General Authority:
SDCL  58-4-1,  58-30-117.
Law Implemented:
SDCL  58-30-117,  58-30-118.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:18 - Producer licensing › Section 20:06:18:21 - Definition of initial pretrial hearing

Current through Register Vol. 51, page 10, July 15, 2024
For purposes of Title 58, initial pretrial hearing means either a defendant's arraignment or the first time that a defendant accused of a crime or the defendant's attorney appears before a court in a criminal action in any jurisdiction, whichever occurs first.
General Authority:
SDCL  58-30-195(14).
Law Implemented:
SDCL  58-30-194.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:18 - Producer licensing › Section 20:06:18:22 - Prohibited compensation arrangements

Current through Register Vol. 51, page 10, July 15, 2024
Each health insurance issuer must provide equal compensation to an insurance producer for the sale of a similar health benefit plan sold inside and outside of an Exchange. No health insurance issuer may, directly or indirectly, enter into any contract, agreement, or arrangement with an insurance producer which provides for or results in the reduction and compensation paid to an insurance producer for the sale of a health benefit plan because the insured qualifies for coverage pursuant to SDCL 58-17-85. A health insurance issuer may pay a commission that does not vary based upon health status. A health insurance issuer may reimburse a producer for an insured who qualifies for coverage pursuant to SDCL 58-17-85 on a basis that varies the commission or that is based only upon the premium of a lesser rated risk only if the aggregate compensation the producer receives is not less than the compensation the health insurance issuer would pay for a similarly situated individual who qualifies for a lower rate. This section will apply to any policies or certificates issued after December 31, 2013.
General Authority:
SDCL  58-17-87(8),  58-18-79,  58-18B-36(10),  58-30-195(10).
Law Implemented:
SDCL  58-17-87(8),  58-18-80,  58-30-175.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:18 - Producer licensing › Appendix A - Midwest Zone Declaration Regarding Continuing Education Course Approval, Including Midwest Zone Standard Continuing Education Filing Form, repealed, 31 SDR 67, effective November 14, 2004

Current through Register Vol. 51, page 10, July 15, 2024
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:19 - Exchange-traded call and put options › Section 20:06:19:01 - Definitions

Current through Register Vol. 51, page 10, July 15, 2024
Terms used in this chapter mean:
(1) "Call option," an exchange-traded option contract granting the holder of the option the right to purchase a specified amount of the underlying security in accordance with the terms of the option contract;
(2) "Put option," an exchange-traded option contract granting the holder of the option the right to sell a specified amount of the underlying security in accordance with the terms of the option;
(3) "Closing purchase transaction," the purchase of an exchange-traded call or put option to reduce or eliminate the obligations of a call or put option writer on an option contract or contracts previously sold;
(4) "Closing sale transaction," the sale of an exchange-traded call or put option to reduce or eliminate the obligations of a call or put option purchase on an option contract or contracts previously purchased;
(5) "Escrowed securities," securities owned by an insurance company subject to a custodial agreement;
(6) "Exchange-traded," securities traded on the floor of a national securities exchange registered under the Securities Exchange Act of 1934 ( 15 U.S.C. 78(a) et seq.) that has been authorized to provide a market for option contracts pursuant to Rule 9b-1 of the Securities Exchange Act of 1934, as amended through October 13, 1982;
(7) "Guaranteed funds," cash or cash equivalents, as defined pursuant to Federal Reserve Regulation T in 12 C.F.R. section 220.1, et seq., as amended through June 26, 1985, owned by an insurance company on which a guarantee letter has been issued;
(8) "Underlying security," a stock, debt instrument, or index of a group of securities authorized or permitted under SDCL  58-27-9 to 58-27-19, inclusive, 58-27-21 to 58-27-26, inclusive, 58-27-28, 58-27-29, 58-27-32, 58-27-36, and 58-27-37 on which options are traded in a registered national securities exchange.
General Authority:
SDCL  58-4-1,  58-27-7.
Law Implemented:
SDCL  58-27-7.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:19 - Exchange-traded call and put options › Section 20:06:19:02 - Purchase and exercise of exchange-traded call and put options

Current through Register Vol. 51, page 10, July 15, 2024
An insurance company's cost for the purchase or investment in call or put options, except in a closing purchase transaction, is limited to the amount authorized in SDCL  58-27-51, substantiated by a trade confirmation or other proof of ownership issued to the insurance company by an entity meeting the requirements in subdivision 20:06:19:01(6).
An insurance company may not purchase exchange-traded call options for an underlying security in an amount which, when combined with its current security holdings, would exceed the limits in SDCL  58-27-15,  58-27-27,  58-27-29,  58-27-53,  58-27-54, and  58-27-57 to  58-27-60, inclusive.
General Authority:
SDCL  58-4-1,  58-27-7.
Law Implemented:
SDCL  58-27-7.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:19 - Exchange-traded call and put options › Section 20:06:19:03 - Sale and assignment of exchange-traded call and put options

Current through Register Vol. 51, page 10, July 15, 2024
An insurance company that sells or writes exchange-traded call options on securities it owns shall establish and maintain custodial agreements that require its escrowed securities to be kept segregated by the bank or other custodial agent from other securities owned by the insurance company deposited with the same bank or custodial agent and shall maintain in its possession documentation as required by §
									20:06:19:08  for all transactions relating to the escrowed securities.
An insurance company that sells or writes exchange-traded put options guaranteed by its funds shall establish and maintain custodial agreements for its guaranteed funds as required for call options and shall maintain in its possession a copy of a guarantee letter identifying in detail its escrowed guaranteed funds as required in §
									20:06:19:08.
An insurance company may not write or sell put options for the purchase of an underlying security in an amount which, when combined with its current securities holdings, would exceed the limits in SDCL  58-27-15,  58-27-27,  58-27-29,  58-27-53,  58-27-54, and  58-27-57 to  58-27-60, inclusive.
General Authority:
SDCL  58-4-1,  58-27-7.
Law Implemented:
SDCL  58-27-7.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:19 - Exchange-traded call and put options › Section 20:06:19:04 - Accounting standards for transactions in exchange-traded call and put options

Current through Register Vol. 51, page 10, July 15, 2024
An insurance company that buys or sells exchange-traded call and put options shall record the details of the transactions in a manner consistent with NAIC rules and procedures contained in the 2022 edition of the
Annual Statement Instructions - Life, Accident, and Health,
the 2022 edition of the
Annual Statement Instructions - Property and Casualty,
the 2023 edition of the
Financial Condition Examiners Handbook
, the 2023 edition of the
Accounting Practices and Procedures Manual
, and the 2022 edition of the
Purposes and Procedures Manual of the NAIC Investment Analysis Office
.
General Authority:
SDCL  58-27-7.
Law Implemented:
SDCL  58-6-75.
The amended version of this section by 50 SDR 157, effective 7/1/2024 is not yet available.
1.
Annual Statement Instructions - Life, Accident and Health
, 2022 edition, National Association of Insurance Commissioners. Cost: $174.
2.
Annual Statement Instructions - Property and Casualty
, 2022 edition, National Association of Insurance Commissioners. Cost: $174.
3.
Accounting Practices and Procedures Manual
, 2023 edition, National Association of Insurance Commissioners. Cost: Hard Copy, $550.
4.
Financial Condition Examiners Handbook
, 2023 edition, National Association of Insurance Commissioners. Cost: $342.
5.
Purposes and Procedures Manual of the NAIC Investment Analysis Office
, 2022 edition, National Association of Insurance Commissioners. Cost: $0.
Copies of references 1 through 5 may be obtained from the National Association of Insurance Commissioners, 1100 Walnut Street, Ste. 1500, Kansas City, MO 64106-2197, (816) 783-8300;
http://www.naic.org
.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:19 - Exchange-traded call and put options › Section 20:06:19:05 - Accounting procedures for the purchase of call and put options

Current through Register Vol. 51, page 10, July 15, 2024
Accounting procedures for the purchase of call and put options must be in accordance with the following principles:
(1) Payment for call or put options will be recognized as a deferred asset;
(2) Treat call or put options not exercised prior to expiration as a sale of the option on the expiration date and recognize the loss as a capital loss;
(3) If a call option is exercised, add the consideration paid for it to the purchase price paid for the underlying securities and treat it as a capital expenditure;
(4) If a put option is exercised, deduct the consideration paid for it from the price received for the underlying security and treat it as reduction of proceeds;
(5) If a call or put option is terminated through a closing sale transaction, treat the difference between the consideration paid for the purchase of the call or put option and the consideration received for the closing sale transaction as a capital gain or loss.
General Authority:
SDCL  58-4-1,  58-27-7.
Law Implemented:
SDCL  58-27-7.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:19 - Exchange-traded call and put options › Section 20:06:19:06 - Accounting procedures for the sale or writing of call and put options

Current through Register Vol. 51, page 10, July 15, 2024
Consideration for the sale or writing of a call or put option shall not be recognized as income at the time of receipt; the amount received shall be carried in a deferred account. Accounting procedures for call or put options sold or written by an insurance company must be in accordance with the following principles:
(1) If the call or put option is not exercised, treat the consideration for the option as income at the expiration date of the option;
(2) If the underlying security is sold through the exercise of the call option, treat the consideration received from the option as increasing the amount realized from the sale of the underlying security and include it in determining capital gain or loss;
(3) If the underlying security is purchased through the exercise of the put option, treat the consideration received for the option as reducing the cost basis of the security purchased;
(4) If the obligation under the call or put option is terminated because of a closing purchase transaction, treat the difference between the consideration received from the sale of the call or put option and the consideration paid in the closing purchase transaction as income or expense.
General Authority:
SDCL  58-4-1,  58-27-7.
Law Implemented:
SDCL  58-27-7.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:19 - Exchange-traded call and put options › Section 20:06:19:07 - Valuation

Current through Register Vol. 51, page 10, July 15, 2024
Exchange-traded call or put options shall be valued as follows:
(1) Exchange-traded call or put stock or stock index options purchased by an insurance company shall be valued at the current market price on a registered national securities exchange. This "adjusting to market" will result in an unrealized gain or loss;
(2) Stock owned by an insurance company on which it has sold a call option shall be valued at the current market price during the period the option exists;
(3) The amount held in a deferred account for call or put stock options sold or written shall be valued at the current market price. The adjustment will result in an unrealized gain or loss;
(4) Every call or put option on an underlying debt instrument purchased by an insurance company shall be valued at cost provided that, at the time of purchase, the insurance company anticipates its disposal or acquisition in the ordinary course of business of an asset or group of assets identified and associated with the option in the company records. Debt options purchased or recorded as set forth in this subdivision shall be valued at the current market price as provided in subdivision (1) of this section;
(5) Debt instruments owned by an insurance company on which it has sold or written a call option shall be valued in the same manner as other instruments owned by the insurer;
(6) The amount held in a deferred account for call or put debt options sold or written shall be valued at the current market price. The adjustment will result in an unrealized gain or loss.
General Authority:
SDCL  58-4-1,  58-27-7.
Law Implemented:
SDCL  58-27-7.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:19 - Exchange-traded call and put options › Section 20:06:19:08 - Administration and record keeping

Current through Register Vol. 51, page 10, July 15, 2024
An insurance company must establish policies and procedures prior to engaging in call or put option transactions. These policies must be approved by the board of directors and reviewed annually. These policies shall address but are not limited to investment strategies and objectives, record keeping, and accounting for these transactions.
The record keeping and accounting systems governing the purchase and sale of options must be sufficiently detailed so that the insurance examiners and internal auditors can police the insurer's policies and procedures for these transactions.
Every call or put option transaction must be authorized pursuant to SDCL  58-27-69.
General Authority:
SDCL  58-4-1,  58-27-7.
Law Implemented:
SDCL  58-27-7.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:20 - Interest rate futures › Section 20:06:20:01 - Definitions

Current through Register Vol. 51, page 10, July 15, 2024
Terms used in this chapter mean:
(1) "Commodity futures trading commission," the federal regulatory agency charged under the Commodity Futures Trading Commission Act of 1974 (7 U.S.C. 1 et seq.) with the regulation of exchanges;
(2) "Deferred gains or losses," the unrecognized increase or decrease in the value of financial futures contracts resulting from uncompleted hedging transactions or terminated financial futures contracts;
(3) "Exchange-traded," traded on an exchange designated as a contract market regulated by the commodity futures trading commission;
(4) "Financial futures contract," an exchange-traded contract to purchase or deliver a specified amount of financial instruments on a specified date;
(5) "Financial instrument," a security, currency, or index of a group of securities or currencies authorized or permitted under SDCL  58-27-9 to 58-27-19, inclusive, 58-27-28, 58-27-29, 58-27-32, 58-27-36, and 58-27-37;
(6) "Hedge," the positioning of a hedged item with one or more hedging transactions for the purpose of reducing an existing risk;
(7) "Hedged item," a company asset or liability, group of company assets or liabilities, or assets or liabilities or groups of assets or liabilities reasonably expected to be acquired or incurred by a company in the normal course of business. The assets or liabilities must bear price or interest rate risks;
(8) "Hedging transaction," the opening or closing, as may be adjusted from time to time, of one or more financial futures contracts reasonably expected to reduce the price or interest rate risk of a hedged item;
(9) "Margin," cash or securities required for deposit with a futures commission merchant, clearinghouse, or safekeeping agent to ensure performance of the terms of the financial futures contract, including maintenance margins, initial deposits to guarantee performance of the contract terms, and variance margins, subsequent deposits required as the market value of the contract fluctuates.
General Authority:
SDCL  58-4-1,  58-27-7.
Law Implemented:
SDCL  58-27-7.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:20 - Interest rate futures › Section 20:06:20:02 - Transactions in financial futures

Current through Register Vol. 51, page 10, July 15, 2024
Insurance companies may not enter into financial futures contracts except as part of a hedging transaction. If at any time during the life of a hedge the dollar variation between the hedged item and the hedging transaction is no longer expected to correlate, the transaction cannot be considered a hedging transaction and the financial futures contract must be closed. The amortized cost of the hedged item may not be increased above its fair market value. If the insurer no longer expects to acquire or incur the hedged item, the hedge must be terminated. An insurance company's transactions in financial futures must be evidenced by a trade confirmation or other proof of ownership issued from an authorized entity within the definition of "exchange-traded" in subdivision 20:06:20:01(3).
An insurance company may not have outstanding any form of margin and net deferred gains and losses from open, completed, or terminated financial futures contracts in an amount exceeding the limits in SDCL  58-27-51. Financial futures contracts must be in investments as described in subdivision 20:06:20:01(5) and, when combined with other current holdings, may not exceed the limits in SDCL 58-27, whether or not they are acquired at the delivery date.
General Authority:
SDCL  58-4-1,  58-27-7.
Law Implemented:
SDCL  58-27-7.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:20 - Interest rate futures › Section 20:06:20:03 - Accounting for transactions in financial futures contracts

Current through Register Vol. 51, page 10, July 15, 2024
Gains and losses for hedging transactions may be deferred for hedged items carried at amortized cost under the following accounting procedures:
(1) The initial cost and any subsequent cost of the hedging vehicle shall be carried in a deferred account until the hedge is completed or closed out;
(2) If the underlying transaction is completed, the hedge and the transaction shall be considered as one. In the case of an acquisition, the gain or loss on the hedge shall be amortized over the life of the security acquired. In the case of a disposition, the gain or loss on the hedge shall be combined with the gain or loss on the sale;
(3) If the hedge is closed out and the anticipated underlying transaction is canceled, the gain or loss from the hedge shall be treated as investment income or expense;
(4) Allocation of gains or losses to hedged items must be recorded under an accounting system pursuant to §
									20:06:20:05.
Gains or losses on opening hedging transactions on assets or liabilities carried at market value must be recognized currently.
General Authority:
SDCL  58-4-1,  58-27-7.
Law Implemented:
SDCL  58-27-7.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:20 - Interest rate futures › Section 20:06:20:04 - Administrative policies and procedures

Current through Register Vol. 51, page 10, July 15, 2024
Insurance companies must establish policies and procedures for transactions in financial futures prior to engaging in any hedging transaction. The policies and procedures must be approved by their board of directors and reviewed annually. The policies and procedures shall include, but are not limited to, the following:
(1) Authorized investments;
(2) Investment limitations;
(3) Authorization and approval procedures;
(4) Investment strategies and objectives;
(5) Accounting and reporting procedures; and
(6) Controls.
General Authority:
SDCL  58-4-1,  58-27-7.
Law Implemented:
SDCL  58-27-7.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:20 - Interest rate futures › Section 20:06:20:06 - Authorization of future contracts

Current through Register Vol. 51, page 10, July 15, 2024
Every financial futures contract transaction must be authorized pursuant to SDCL  58-27-69.
General Authority:
SDCL  58-4-1,  58-27-7.
Law Implemented:
SDCL  58-27-7.