reglab/statecodes huggingface dataset:
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:04 - Insider trading of equity securities › Section 20:06:04:19 - Prior transactions

Current through Register Vol. 51, page 10, July 15, 2024
Nothing in §§
									20:06:04:12  to 20:06:04:18, inclusive, shall be deemed to impose any duties or liabilities with respect to reporting any transaction or holding prior to its effective date.
General Authority:
SDCL  58-5-77.
Law Implemented:
SDCL  58-5-73.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:04 - Insider trading of equity securities › Section 20:06:04:20 - Exemption for small transactions

Current through Register Vol. 51, page 10, July 15, 2024
Any acquisition of securities shall be exempt from SDCL  58-5-69 where the person effecting the acquisition does not:
(1) Within 6 months thereafter effect any disposition, otherwise than by way of gifts, of securities of the same class; and
(2) Participate in acquisitions or in dispositions of securities of the same class having a total market value in excess of $3,000 for any 6-month period during which the acquisition occurs.
General Authority:
SDCL  58-5-73,  58-5-77.
Law Implemented:
SDCL  58-5-69.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:04 - Insider trading of equity securities › Section 20:06:04:21 - Gifts

Current through Register Vol. 51, page 10, July 15, 2024
Any acquisition or disposition of securities by way of gift, where the total amount of such gifts does not exceed $3,000 in market value for any 6-month period, shall be exempt from SDCL  58-5-69 and may be excluded from the computations prescribed in subdivision 20:06:04:20(2).
General Authority:
SDCL  58-5-77.
Law Implemented:
SDCL  58-5-69.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:04 - Insider trading of equity securities › Section 20:06:04:22 - First report after transaction

Current through Register Vol. 51, page 10, July 15, 2024
Any person exempted by §§
									20:06:04:20  and 20:06:04:21  shall include in the first report filed by the person after a transaction within the exemption a statement showing the person's acquisitions and dispositions for each six months' period or portion thereof which has elapsed since the last filing.
General Authority:
SDCL  58-5-77.
Law Implemented:
SDCL  58-5-69.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:04 - Insider trading of equity securities › Section 20:06:04:23 - Exemption from restrictions on profits, transactions which need not be reported under statements of ownership filings

Current through Register Vol. 51, page 10, July 15, 2024
Any transaction which has been or shall be exempted from the requirements of SDCL  58-5-69 shall, insofar as it is otherwise subject to the provisions of SDCL  58-5-71 to  58-5-73, inclusive, be likewise exempted from SDCL  58-5-71 to  58-5-73, inclusive.
General Authority:
SDCL  58-5-73,  58-5-77.
Law Implemented:
SDCL  58-5-71 to  58-5-73.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:04 - Insider trading of equity securities › Section 20:06:04:24 - Exemption from restrictions on profits of certain transactions effected in connection with a distribution

Current through Register Vol. 51, page 10, July 15, 2024
Any transaction of purchase and sale, or sale and purchase, of a security which is effected in connection with the distribution of a substantial block of securities shall be exempt from SDCL  58-5-71 to  58-5-73, inclusive, to the extent specified in this section as not comprehended within the purpose of said section, upon the following conditions:
(1) The person effecting the transaction is engaged in the business of distributing securities and is participating in good faith, in the ordinary course of such business, in the distribution of such block of securities;
(2) The security involved in the transaction is a part of such block of securities and is acquired by the person effecting the transaction, with a view to the distribution thereof, from the insurer or other person on whose behalf such securities are being distributed or from a person who is participating in good faith in the distribution of such block of securities or a security purchased in good faith by or for the account of the person effecting the transaction for the purpose of stabilizing the market price of securities of the class being distributed or to cover an over-allotment or other short position created in connection with such distribution;
(3) Other persons not within the purview of SDCL  58-5-71 to  58-5-73, inclusive, are participating in the distribution of such block of securities on terms at least as favorable as those on which such person is participating and to an extent at least equal to the aggregate participation of all persons exempted from the provisions of SDCL  58-5-71 to  58-5-73, inclusive, by this section. However, the performance of the functions of manager of a distributing group and the receipt of a bona fide payment for performing such functions shall not preclude an exemption which would otherwise be available under this section; and
(4) The exemption of a transaction pursuant to this section with respect to the participation therein of one party thereto shall not render such transaction exempt with respect to participation of any other party therein unless such other party also meets the conditions of this section.
General Authority:
SDCL  58-5-73,  58-5-77.
Law Implemented:
SDCL  58-5-71 to  58-5-73.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:04 - Insider trading of equity securities › Section 20:06:04:25 - Exemption from restrictions on profits of acquisitions of shares of stock and stock options under certain stock bonus, stock option, or similar plans

Current through Register Vol. 51, page 10, July 15, 2024
Any acquisition of shares of stock, other than stock acquired upon the exercise of an option, warrant or right, pursuant to a stock bonus, profit sharing, retirement, incentive, thrift, savings or similar plan, or any acquisition of a qualified or a restricted stock option pursuant to a qualified or a restricted stock option plan, or a stock option pursuant to an employee stock purchase plan, by a director or officer of an insurer issuing such stock or stock option shall be exempt from the operation of SDCL  58-5-71 to  58-5-73, inclusive, if the plan has been approved, directly or indirectly by the:
(1) Affirmative votes of the holders of a majority of the securities of such insurer present, or represented, and entitled to vote at a meeting duly held in accordance with the applicable laws of the state of South Dakota; or
(2) Written consent of the holders of a majority of the securities of such insurer entitled to vote;
(3) Such vote or written consent (subdivisions 20:06:04:05(1) and (2)) is to be solicited substantially in accordance with chapter 20:06:03. For the purposes of this subdivision, the term "insurer" includes a predecessor corporation if the plan or obligations to participate thereunder were assumed by the insurer in connection with the succession.
General Authority:
SDCL  58-5-73,  58-5-77.
Law Implemented:
SDCL  58-5-71 to  58-5-73.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:04 - Insider trading of equity securities › Section 20:06:04:26 - Participation of officers

Current through Register Vol. 51, page 10, July 15, 2024
If the selection of any director or officer of the insurer to whom stock may be allocated or to whom qualified, restricted or employee stock purchase plan stock options may be granted pursuant to the plan, or the determination of the maximum number of shares of stock which may be allocated to any such director or officer or which may be covered by qualified, restricted or employee stock purchase plan stock options granted to any such director or officer, is subject to the discretion of any person, then such discretion shall be exercised only as provided by §§
									20:06:04:27  to 20:06:04:29, inclusive.
General Authority:
SDCL  58-5-73,  58-5-77.
Law Implemented:
SDCL  58-5-71 to  58-5-73.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:04 - Insider trading of equity securities › Section 20:06:04:27 - Participation of directors

Current through Register Vol. 51, page 10, July 15, 2024
With respect to the participation of directors:
(1) By the board of directors of the insurer, a majority of which board and majority of the directors acting in the matter are disinterested persons;
(2) By, or only in accordance with the recommendations of, a committee of three or more persons having full authority to act in the matter, all of the members of which committee are disinterested persons; or
(3) Otherwise in accordance with the plan, if the plan:
(a) Specifies the number or maximum number of shares of stock which directors may acquire or which may be subject to qualified, restricted or employee stock purchase plan stock options granted to directors and the terms upon which, and the times at which, or the periods within which, such stock may be acquired or such options may be acquired and exercised; or
(b) Sets forth, by formula or otherwise, effective and determinable limitations with respect to the foregoing based upon earnings of the insurer, dividends paid, compensation received by participants, option prices, market value of shares, outstanding shares of percentages thereof outstanding from time to time, or similar factors.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:04 - Insider trading of equity securities › Section 20:06:04:28 - Participation of officers who are not directors

Current through Register Vol. 51, page 10, July 15, 2024
Discretion shall be exercised with respect to the participation of officers who are not directors:
(1) By the board of directors of the insurer or a committee of three or more directors; or
(2) By, or only in accordance with the recommendations of, a committee of three or more persons having full authority to act in the matter, all of the members of which committee are disinterested persons.
For the purpose of this section, a director or committee member shall be deemed to be a disinterested person only if such person is not at the time such discretion is exercised eligible and has not at any time within one year prior thereto been eligible for selection as a person to whom stock may be allocated or to whom qualified, restricted or employee stock purchase plan stock options may be granted pursuant to the plan or any other plan of the insurer or any of its affiliates entitling the participants therein to acquire stock or qualified, restricted or employee stock purchase plan stock options of the insurer or any of its affiliates.
General Authority:
SDCL  58-5-73,  58-5-77.
Law Implemented:
SDCL  58-5-71 to  58-5-73.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:04 - Insider trading of equity securities › Section 20:06:04:29 - Exclusions of options and equity securities acquired

Current through Register Vol. 51, page 10, July 15, 2024
The provisions of §
									20:06:04:28  shall not apply with respect to any option granted, or other equity security acquired, prior to the date that SDCL  58-5-69,  58-5-71 to  58-5-73, inclusive, and 58-5-70 first become applicable with respect to any class of equity securities of any insurer.
General Authority:
SDCL  58-5-73,  58-5-77.
Law Implemented:
SDCL  58-5-71 to  58-5-73.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:04 - Insider trading of equity securities › Section 20:06:04:30 - Limitations

Current through Register Vol. 51, page 10, July 15, 2024
As to each participant or as to all participants the plan shall effectively limit the aggregate dollar amount or the aggregate number of shares of stock which may be allocated, or which may be subject to qualified, restricted, or employee stock purchase plan stock options granted, pursuant to the plan. The limitations may be established on an annual basis, or for the duration of the plan, whether or not the plan has a fixed termination date and may be determined either by fixed or maximum dollar amounts or fixed or maximum numbers of shares or by formulas based upon earnings of the insurer, dividends paid, compensation received by participants, option prices, market value of shares, outstanding shares or percentages thereof outstanding from time to time, or similar factors which will result in an effective and determinable limitation. Such limitations may be subject to any provisions for adjustment of the plan or of stock allocable or options outstanding thereunder to prevent dilution or enlargement of rights.
General Authority:
SDCL  58-5-73,  58-5-77.
Law Implemented:
SDCL  58-5-71 to  58-5-73.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:04 - Insider trading of equity securities › Section 20:06:04:31 - Additional definitions

Current through Register Vol. 51, page 10, July 15, 2024
Unless the context otherwise requires, all terms used in §§ 20:06:04:31  to 20:06:04:46, inclusive, shall have the same meaning as in SDCL  58-5-68 to  58-5-78, inclusive, and §
									20:06:04:01. In addition, the following definitions apply:
(1) The term "plan" includes any plan, whether or not set forth in any formal written document or documents and whether or not approved in its entirety at one time;
(2) The definition of the terms "qualified stock option" and "employee stock purchase plan" that are set forth in sections 422 and 423 of the Internal Revenue Code of 1954 are to be applied to those terms where used in §§ 20:06:04:31  to 20:06:04:46, inclusive;
(3) The term "restricted stock option" as defined in section 424 (b) of the Internal Revenue Code of 1954 shall be applied to that term as used in §§ 20:06:04:31  to 20:06:04:46, inclusive, provided, however, that for the purposes of §§ 20:06:04:31  to 20:06:04:46, inclusive, an option which meets all of the conditions of section 424 (b), other than the date of issuance shall be deemed to be a "restricted stock option."
General Authority:
SDCL  58-5-73,  58-5-77.
Law Implemented:
SDCL  58-5-68 to  58-5-78.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:04 - Insider trading of equity securities › Section 20:06:04:32 - Exemption from restrictions on profits of certain transactions in which securities are received by redeeming other securities

Current through Register Vol. 51, page 10, July 15, 2024
Any acquisition of an equity security, other than a convertible security or right to purchase a security, by a director or officer of the insurer issuing such security shall be exempt from the operation of SDCL  58-5-71 to  58-5-73, inclusive, upon condition that:
(1) The equity security is acquired by way of redemption of another security of an insurer substantially all of whose assets other than cash or government bonds consist of securities of the insurer issuing the equity security so acquired, and which:
(a) Represented substantially and in practical effect a stated or readily ascertainable amount of such equity security;
(b) Had a value which was substantially determined by the value of such equity security;
(c) Conferred upon the holder the right to receive such equity security without the payment of any consideration other than the security redeemed;
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:04 - Insider trading of equity securities › Section 20:06:04:33 - Exemption of long-term profits incident to sales within six months of the exercise of an option

Current through Register Vol. 51, page 10, July 15, 2024
To the extent specified in § 20:06:04:33  there is hereby exempted as not comprehended within the purpose of SDCL  58-5-71 to  58-5-73, inclusive, any transaction or transactions involving the purchase and sale, or sale and purchase, of any equity security where such purchase is pursuant to the exercise of an option or similar right either acquired more than six months before its exercise, or acquired pursuant to the terms of an employment contract entered into more than six months before its exercise.
General Authority:
SDCL  58-5-73,  58-5-77.
Law Implemented:
SDCL  58-5-70 to  58-5-73.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:04 - Insider trading of equity securities › Section 20:06:04:34 - Limitations on profits

Current through Register Vol. 51, page 10, July 15, 2024
In respect of transactions specified in §
									20:06:04:33  the profits inuring to the insurer shall not exceed the difference between the proceeds of sale and the lowest market price of any security of the same class within six months before or after the date of sale. Nothing in §§
									20:06:04:33  and 20:06:04:34  shall be deemed to enlarge the amount of profit which would inure to such insurer in the absence of this section.
General Authority:
SDCL  58-5-73,  58-5-77.
Law Implemented:
SDCL  58-5-70 to  58-5-73.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:04 - Insider trading of equity securities › Section 20:06:04:35 - Exemption of plans or agreements of merger

Current through Register Vol. 51, page 10, July 15, 2024
There is also hereby exempted as not comprehended within the purposes of SDCL  58-5-71 to  58-5-73, inclusive, the disposition of a security, purchased in a transaction specified in §
									20:06:04:33, pursuant to a plan or agreement for merger or consolidation, or reclassification of the insurer's securities, or for the exchange of its securities for the securities of another person who has acquired its assets, or who is in control, as defined in section 368 (c) of the Internal Revenue Code of 1954, of a person who has acquired its assets, where the terms of such plan or agreement are binding upon all stockholders of the insurer except to the extent that dissenting stockholders may be entitled, under statutory provisions or provisions contained in the certificate of incorporation, to receive the appraised or fair value of their holdings.
General Authority:
SDCL  58-5-73,  58-5-77.
Law Implemented:
SDCL  58-5-70 to  58-5-73.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:04 - Insider trading of equity securities › Section 20:06:04:36 - Excluded

Current through Register Vol. 51, page 10, July 15, 2024
The exemptions provided by §§
									20:06:04:31  to 20:06:04:36, inclusive, shall not apply to any transaction made unlawful by SDCL  58-5-70 or by any rules and regulations passed thereunder.
General Authority:
SDCL  58-5-73,  58-5-77.
Law Implemented:
SDCL  58-5-70 to  58-5-73.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:04 - Insider trading of equity securities › Section 20:06:04:37 - Establishing market price

Current through Register Vol. 51, page 10, July 15, 2024
The burden of establishing market price of a security for the purpose of §§
									20:06:04:31  to 20:06:04:37, inclusive, shall rest upon the person claiming the exemption.
General Authority:
SDCL  58-5-73,  58-5-77.
Law Implemented:
SDCL  58-5-70 to  58-5-73.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:04 - Insider trading of equity securities › Section 20:06:04:38 - Exemption from restrictions on profits of certain acquisitions and dispositions of securities pursuant to merger or consolidations

Current through Register Vol. 51, page 10, July 15, 2024
The following transactions shall be exempt from the provisions of SDCL  58-5-71 to  58-5-73, inclusive, as not comprehended within the purpose of said sections:
(1) The acquisition of a security of an insurer, pursuant to a merger or consolidation, in exchange for a security of a company which, prior to said merger or consolidation, owned 85 percent or more of the equity securities of all other companies involved in the merger or consolidation except, in the case of consolidation, the resulting company;
(2) The disposition of a security, pursuant to a merger or consolidation of an insurer which, prior to said merger or consolidation, owned 85 percent or more of the equity securities of all other companies involved in the merger or consolidation except, in the case of consolidation, the resulting company;
(3) The acquisition of a security of an insurer, pursuant to a merger or consolidation, in exchange for a security of a company which, prior to said merger or consolidation, held over 85 percent of the combined assets of all the companies undergoing merger or consolidation, computed according to their book values prior to the merger or consolidation as determined by reference to their most recent available financial statements for a 12-month period prior to the merger or consolidation;
(4) The disposition of a security, pursuant to a merger or consolidation, of an insurer which, prior to said merger or consolidation, held over 85 percent of the combined assets of all the companies undergoing merger or consolidation, computed according to their book values prior to merger or consolidation, as determined by reference to their most recent available financial statements for a 12-month period prior to the merger or consolidation.
General Authority:
SDCL  58-5-73,  58-5-77.
Law Implemented:
SDCL  58-5-71 to  58-5-73.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:04 - Insider trading of equity securities › Section 20:06:04:39 - Merger defined

Current through Register Vol. 51, page 10, July 15, 2024
A merger within the meaning of §§
									20:06:04:38  to 20:06:04:40, inclusive, shall include the sale or purchase of substantially all the assets of one insurer by another in exchange for stock which is then distributed to the security holders of the insurer which sold its assets.
General Authority:
SDCL  58-5-73,  58-5-77.
Law Implemented:
SDCL  58-5-71 to  58-5-73.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:04 - Insider trading of equity securities › Section 20:06:04:40 - Availability of exemption

Current through Register Vol. 51, page 10, July 15, 2024
Notwithstanding §
									20:06:04:39, if an officer, director or stockholder shall make any purchase, other than a purchase exempted by §§
									20:06:04:38  to 20:06:04:44, inclusive, of a security in any company involved in the merger or consolidation and any sale, other than a sale exempted by §§
									20:06:04:38  to 20:06:04:40, inclusive, of a security in any other company involved in the merger or consolidation within any period of less than six months during which the merger or consolidation took place, the exemption provided by §§
									20:06:04:38  to 20:06:04:40, inclusive, shall be unavailable to such officer, director, or stockholder.
General Authority:
SDCL  58-5-73,  58-5-77.
Law Implemented:
SDCL  58-5-71 to  58-5-73.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:04 - Insider trading of equity securities › Section 20:06:04:41 - Exemption from restrictions on profits of certain securities received upon surrender of similar equity securities

Current through Register Vol. 51, page 10, July 15, 2024
Any receipt by a person from an insurer of shares of stock of a class having general voting power, upon the surrender by such person of an equal number of shares of stock of the insurer of a class which does not have general voting power, pursuant to provisions of the insurer's certificate of incorporation, for the purpose of and accompanied simultaneously or followed immediately by the sale of the shares so received, shall be exempt from the operation of SDCL  58-5-71 to  58-5-73, inclusive, as a transaction not comprehended within the purpose of said section, if the following conditions exist:
(1) The person so receiving such shares is not an officer or director, or the beneficial owner, directly or indirectly, immediately prior to such receipt, of more than ten percent of an equity security of the insurer;
(2) The shares surrendered and the shares issued upon such surrender shall be of classes which are freely transferable and entitle the holders thereof to participate equally per share in all distributions of earnings and assets;
(3) The surrender and issuance are made pursuant to provisions of a certificate of incorporation which require that the shares issued upon such surrender shall be registered upon issuance in the name of a person or persons other than the holder of the shares surrendered and may be required to be issued as of right only in connection with the public offering, sale and distribution of such shares and the immediate sale by such holder of such shares for that purpose, or in connection with a gift of such shares;
(4) Neither the shares so surrendered nor any shares of the same class, nor other shares of the same class as those issued upon such surrender, have been or are purchased, otherwise than in a transaction exempted by this section, by the person surrendering such shares, within six months before or after such surrender or issuance.
General Authority:
SDCL  58-5-73,  58-5-77.
Law Implemented:
SDCL  58-5-71 to  58-5-73.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:04 - Insider trading of equity securities › Section 20:06:04:42 - Exemption from restrictions on profits of certain transactions involving an exchange of similar securities

Current through Register Vol. 51, page 10, July 15, 2024
Any acquisition or disposition of securities made in an exchange of shares of a class, or series thereof, of stock of an insurer for an equivalent number of shares of another class, or series thereof, of stock of the same insurer, pursuant to a right of conversion under the terms of the insurer's charter or other governing instruments shall be exempt from the operation of SDCL  58-5-71 to  58-5-73, inclusive, if:
(1) The shares surrendered and those acquired in exchange therefor evidence substantially the same rights and privileges except that, pursuant to the provisions of the insurer's charter or other governing instruments, the board of directors may declare and pay a lesser dividend per share on shares of the class surrendered than on shares of the class acquired in exchange therefore, or may declare and pay no dividend on shares of the class surrendered; and
(2) The transaction was effected in contemplation of a public sale of the shares acquired in the exchange; provided, that this section shall not be construed to exempt from the operation of SDCL  58-5-71 to  58-5-73, inclusive, any purchase or sale of shares of the class surrendered and any sale or purchase of shares of the class acquired in the exchange, otherwise than in the transaction of exchange exempted by this section, within a period of less than six months.
General Authority:
SDCL  58-5-73,  58-5-77.
Law Implemented:
SDCL  58-5-71 to  58-5-73.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:04 - Insider trading of equity securities › Section 20:06:04:43 - Exemption of certain securities from insider trading

Current through Register Vol. 51, page 10, July 15, 2024
A security is exempt from the operation of SDCL  58-5-70 to the extent necessary to render lawful under that section the execution by a broker of an order for an account in which the broker has no direct or indirect interest.
General Authority:
SDCL  58-5-77.
Law Implemented:
SDCL  58-5-70.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:04 - Insider trading of equity securities › Section 20:06:04:44 - Exemption from insider trading of the act of certain transactions effected in connection with a distribution

Current through Register Vol. 51, page 10, July 15, 2024
Any security shall be exempt from the operation of SDCL  58-5-70 to the extent necessary to render lawful under such section any sale made by or on behalf of a dealer in connection with a distribution of a substantial block of securities upon the following conditions:
(1) The sale is represented by an over-allotment in which the dealer is participating as a member of an underwriting group, or the dealer or a person acting on the dealer's behalf intends in good faith to offset the sale with a security to be acquired by or on behalf of the dealer as a participant in an underwriting, selling, or soliciting-dealer group of which the dealer is a member at the time of the sale, whether or not the security to be so acquired is subject to a prior offering to existing security holders or some other class of persons; and
(2) Other persons not within the purview of SDCL  58-5-70 are participating in the distribution of such block of securities on terms at least as favorable as those on which such dealer is participating and to an extent at least equal to the aggregate participation of all persons exempted from the provisions of SDCL  58-5-70 by this section. However, the performance of the functions of manager of a distributing group and the receipt of a bona fide payment for performing such functions shall not preclude an exemption which would otherwise be available under this section.
General Authority:
SDCL  58-5-77.
Law Implemented:
SDCL  58-5-70.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:04 - Insider trading of equity securities › Section 20:06:04:45 - Exemption from insider trading of the act of sales of securities to be acquired

Current through Register Vol. 51, page 10, July 15, 2024
When any person is entitled, as an incident to the person's ownership of an issued security and without the payment of consideration, to receive another security "when issued" or "when distributed," the security to be acquired is exempt from the operation of SDCL  58-5-70 provided that:
(1) The sale is made subject to the same conditions as those attaching to the right of acquisition;
(2) The person exercises reasonable diligence to deliver the security to the purchaser promptly after the person's right of acquisition matures; and
(3) The person reports the sale on the appropriate form for reporting transaction by persons subject to SDCL  58-5-69.
This section may not be construed as exempting transactions involving both a sale of a security "when issued" or "when distributed" and a sale of the security by virtue of which the seller expects to receive the "when issued" or "when distributed" security, if the two transactions combined result in a sale of more units than the aggregate of those owned by the seller plus those to be received by the seller pursuant to the seller's right of acquisition.
General Authority:
SDCL  58-5-77.
Law Implemented:
SDCL  58-5-70.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:04 - Insider trading of equity securities › Section 20:06:04:46 - Arbitrage transactions under insider trading

Current through Register Vol. 51, page 10, July 15, 2024
A director or officer of an insurer may not effect any foreign or domestic arbitrage transaction in any equity security of that insurer, unless the director or officer includes the transaction in the statements required by SDCL  58-5-69 and accounts to the insurer for the profits arising from the transaction as provided in SDCL  58-5-71 to  58-5-73, inclusive, thereof. The provisions of SDCL  58-5-70 do not apply to such arbitrage transactions. The provisions of the Act do not apply to any bona fide foreign or domestic arbitrage transaction insofar as it is effected by any person other than the director or officer of the insurer.
General Authority:
SDCL  58-5-77.
Law Implemented:
SDCL  58-5-76.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:04 - Insider trading of equity securities › Section 20:06:04:47 - Approval of forms

Current through Register Vol. 51, page 10, July 15, 2024
Forms required by chapter 20:06:04 shall be filed with and approved by the director of insurance.
General Authority:
SDCL  58-5-77.
Law Implemented:
SDCL  58-5-69.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:06 - Credit life, health, and unemployment insurance › Section 20:06:06:01 - Premium rates - Fifty percent loss ratio benchmark

Current through Register Vol. 51, page 10, July 15, 2024
A basic test of the reasonableness of the relation of benefits to the premium charged shall be the development of an anticipated loss ratio of claims incurred to premiums earned of at least 50 percent. If the total current expected expenses, including acquisition expenses, exceed 50 percent of the premium dollar, this shall be considered prima facie evidence that a company intends to write credit business at a loss ratio not in compliance with this rule. Commissions, including retrospective premium refunds, bonuses, or acquisition expenses, shall not exceed 40 percent. If a company is not in compliance with this rule, it shall be required to show just cause why the premium rates as filed should not be disapproved.
General Authority:
SDCL  58-19-34.
Law Implemented:
SDCL  58-19-26.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:06 - Credit life, health, and unemployment insurance › Section 20:06:06:02 - Prima facie acceptable credit insurance rates

Current through Register Vol. 51, page 10, July 15, 2024
It shall be presumed that premium rates charged or to be charged are not excessive in relation to the benefits if the premiums or premium rates as filed with the director do not exceed the rates, or actuarially equivalent rates, in §§
									20:06:06:03  and 20:06:06:04.
General Authority:
SDCL  58-19-34.
Law Implemented:
SDCL  58-19-26.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:06 - Credit life, health, and unemployment insurance › Section 20:06:06:03 - Credit life insurance - Acceptable rates

Current through Register Vol. 51, page 10, July 15, 2024
The acceptable rates for credit life insurance are as follows:
(1) For decreasing term credit life insurance, a single premium of $.56 a year for each $100 of initial insured indebtedness. A premium payable monthly at the rate of $.88 for each $1,000 of outstanding unpaid insured indebtedness will be considered the actuarial equivalent of the foregoing rate; and
(2) For level term credit life insurance, a single premium of $1.02 a year for each $100 of initial indebtedness.
General Authority:
SDCL  58-19-34.
Law Implemented:
SDCL  58-19-26.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:06 - Credit life, health, and unemployment insurance › Section 20:06:06:03.01 - Premium rates presumed not excessive in relation to death benefits plan - Restrictions allowed

Current through Register Vol. 51, page 10, July 15, 2024
The premium rates for credit life insurance specified in §
									20:06:06:03  shall be presumed not excessive only in relation to a plan of death benefits, with or without requirements for evidence of insurability. The insurance shall contain no exclusions, exceptions, or limitations on coverage other than for suicide within one year from the effective date of the insurance and shall contain no age restrictions other than those making debtors 65 or over at the time the indebtedness is incurred ineligible for the coverage.
General Authority:
SDCL  58-19-34.
Law Implemented:
SDCL  58-19-26.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:06 - Credit life, health, and unemployment insurance › Section 20:06:06:03.02 - Return of premium to debtor over eligibility age

Current through Register Vol. 51, page 10, July 15, 2024
If a debtor exceeds the eligibility age but stated the age correctly in writing or otherwise and a certificate or policy is issued in error, the insurer has a period within 60 days from the effective date of insurance to terminate coverage and refund any premiums paid. Failure on the part of the insurer to return the premium within 60 days subjects it to the full risk. If the debtor dies within the 60-day period before the insurer terminates coverage, the insurer is liable for the amount of the debtor's insurance at death.
General Authority:
SDCL  58-19-34.
Law Implemented:
SDCL  58-19-26.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:06 - Credit life, health, and unemployment insurance › Section 20:06:06:03.03 - Joint credit life insurance rates

Current through Register Vol. 51, page 10, July 15, 2024
Where credit life insurance on a single indebtedness is provided on two lives, it shall mean insurance on spouse, family member or business partners only, where both are jointly and severally liable for the debt. The writing of insurance on more than two lives on the same indebtedness is prohibited. Decreasing or level joint credit life insurance shall be issued at a premium rate not to exceed the single life rate in §
									20:06:06:03  multiplied by a factor of 1.5. Joint life rates shall be filed and approved by the director.
General Authority:
SDCL  58-19-34.
Law Implemented:
SDCL  58-19-26.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:06 - Credit life, health, and unemployment insurance › Section 20:06:06:03.04 - Determination of premiums by age

Current through Register Vol. 51, page 10, July 15, 2024
If premiums are to be determined according to the age of the insured debtor or by age brackets, an insurer may determine premium rates on a basis actuarially consistent with the rates set forth in §
									20:06:06:03, but the rates shall be filed with and approved by the director.
General Authority:
SDCL  58-19-34.
Law Implemented:
SDCL  58-19-26.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:06 - Credit life, health, and unemployment insurance › Section 20:06:06:04 - Credit health insurance - Acceptable rates

Current through Register Vol. 51, page 10, July 15, 2024
The acceptable rates for credit health insurance are as follows:
(1) The following table gives the single premium rates for each per $100 of initial insured indebtedness:
No. of months
Nonretroactive
Benefits
Retroactive
Benefits
in which
14-day
30-day
14-day
30-day
indebtedness
Nonretroactive
nonretroactive
Retroactive
retroactive
is repayable
6 or less
$ .88
$ .34
$1.60
$1.15
7-9
1.06
.52
1.78
1.33
10-12
1.24
.70
1.96
1.51
13-15
1.42
.88
2.14
1.69
16-18
1.60
1.06
2.32
1.87
19-21
1.78
1.24
2.50
2.05
22-24
1.96
1.42
2.68
2.23
25-27
2.14
1.60
2.86
2.41
28-30
2.32
1.78
3.04
2.59
31-33
2.50
1.96
3.22
2.77
34-36
2.68
2.14
3.40
2.95
37-39
2.79
2.25
3.51
3.06
40-42
2.91
2.37
3.63
3.18
43-45
3.01
2.47
3.73
3.28
46-48
3.13
2.59
3.85
3.40
49-51
3.22
2.68
3.94
3.49
52-54
3.31
2.77
4.03
3.58
55-57
3.40
2.86
4.12
3.67
58-60
3.49
2.95
4.21
3.76
61-63
3.58
3.04
4.30
3.85
64-66
3.67
3.13
4.39
3.94
67-69
3.76
3.22
4.48
4.03
70-72
3.85
3.31
4.57
4.12
73-75
3.94
3.40
4.66
4.21
76-78
4.03
3.49
4.75
4.30
79-81
4.12
3.58
4.84
4.39
82-84
4.21
3.67
4.93
4.48
85-87
4.30
3.76
5.02
4.57
88-90
4.39
3.85
5.11
4.66
91-93
4.48
3.94
5.20
4.75
94-96
4.57
4.03
5.29
4.84
97-99
4.66
4.12
5.38
4.93
100-102
4.75
4.21
5.47
5.02
103-105
4.84
4.30
5.56
5.11
106-108
4.93
4.39
5.65
5.20
109-111
5.02
4.48
5.74
5.29
112-114
5.11
4.57
5.83
5.38
115-117
5.20
4.66
5.92
5.47
118-120
5.29
4.75
6.01
5.56
(2) Premiums payable other than on a single premium basis or for benefits on a basis different than illustrated above shall be actuarially consistent with the rates specified above.
General Authority:
SDCL  58-19-34.
Law Implemented:
SDCL  58-19-26.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:06 - Credit life, health, and unemployment insurance › Section 20:06:06:04.02 - Credit health insurance - Exclusions and restrictions allowed

Current through Register Vol. 51, page 10, July 15, 2024
The premium rates specified in §
									20:06:06:04  are for policies which contain no exclusion for preexisting conditions except for those conditions which manifested themselves to the insured by requiring medical diagnosis or treatment, or would have caused a reasonably prudent person to have sought medical diagnosis or treatment, within six months preceding the effective date of the insurance and which caused loss within the six months following the effective date of coverage; however, any disability commencing after that time resulting from such conditions shall be covered. For open end accounts, the effective date of coverage for each part of the insurance attributable to a different advance or charge to the plan or account is the date on which the advance or charge is posted to the plan or account. Any contract to which the credit health insurance rates apply may contain provisions excluding or restricting coverage in the event of total disability resulting from pregnancy, intentionally self-inflicted injuries, foreign travel or residence, flight in nonscheduled aircraft, war or military service. Except in unusual cases, such insurance shall not be sold to military persons, since their pay continues through periods of disability. The policies may contain the same age limitation on eligibility as set forth for credit life policies.
General Authority:
SDCL  58-19-34.
Law Implemented:
SDCL  58-17-97,  58-19-26.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:06 - Credit life, health, and unemployment insurance › Section 20:06:06:04.03 - Reduction of period of exclusion

Current through Register Vol. 51, page 10, July 15, 2024
The policy shall provide that in event the indebtedness covered by the policy results from the refinancing in whole or part of a prior debt with the same creditor, any period of exclusion for preexisting conditions shall be reduced by any period that creditor-debtor disability coverage was in force in connection with the prior indebtedness.
General Authority:
SDCL  58-19-34.
Law Implemented:
SDCL  58-19-26.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:06 - Credit life, health, and unemployment insurance › Section 20:06:06:04.04 - Joint credit disability insurance - Acceptable rates

Current through Register Vol. 51, page 10, July 15, 2024
Joint credit disability insurance may be issued at a premium rate that does not exceed the single disability rates specified in §
									20:06:06:04, multiplied by a factor of 1.75. Joint disability rates shall be filed with and approved by the director.
Joint credit disability insurance may only be issued when the indebtedness insured was granted based on both insureds' income.
General Authority:
SDCL  58-4-1,  58-19-34.
Law Implemented:
SDCL  58-19-12,  58-19-13,  58-19-14.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:06 - Credit life, health, and unemployment insurance › Section 20:06:06:05 - Restricted coverages - Rates

Current through Register Vol. 51, page 10, July 15, 2024
If a credit life or credit health insurance form provides for coverages which are more restrictive than provided for in §
									20:06:06:03.01 or 20:06:06:04.02, the insurer shall demonstrate to the satisfaction of the director that the schedule of premium rates applicable to such forms will, or can reasonably be expected to, produce a loss ratio of 50 percent in accordance with the basic test set forth in §
									20:06:06:01. In no event will an insurer limit pre-existing condition coverage to be more restrictive than that allowed in SDCL  58-17-97 or a suicide exclusion that is more restrictive than allowed in SDCL  58-15-45.
General Authority:
SDCL  58-19-34.
Law Implemented:
SDCL  58-15-45,  58-17-97,  58-19-26.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:06 - Credit life, health, and unemployment insurance › Section 20:06:06:06 - Deviations from prima facie acceptable credit insurance rates

Current through Register Vol. 51, page 10, July 15, 2024
Deviations from prima facie acceptable credit insurance rates may be approved as follows:
(1) Requests for rates higher than those established in this chapter for a debtor or a creditor or a class or classes of debtors or creditors may be approved on a satisfactory showing by the insurer that, because of the nature of the risk, the mortality or morbidity experience which may reasonably be anticipated will be significantly higher than the average anticipated experience upon which the applicable rate standard was based;
(2) In judging requests for higher rates, the director of insurance will consider the following:
(a) Available mortality and morbidity data pertaining to the debtors of a creditor or a class or classes of debtors of a creditor;
(b) Previous experience, if any, for an actuarially credible period of the creditor's debtors, including the experience of any subsidiary or affiliate of the creditor;
(c) Available age data; and
(d) A reasonable rate of expense;
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:06 - Credit life, health, and unemployment insurance › Section 20:06:06:07 - Refunds

Current through Register Vol. 51, page 10, July 15, 2024
If credit life insurance on a debtor terminates prior to expiration of the period for which the debtor has been charged because of early discharge of indebtedness for any reason other than payment of a death claim under the credit life insurance policy, a refund of the charge for insurance shall be made to the debtor or credited to the debtor's account, using one of the formulas following this paragraph. If credit accident and health insurance on a debtor terminates prior to expiration of the period for which the debtor has been charged for any reason except for payment of a lump sum disability insurance benefit, a refund of the charge for insurance shall be made to the debtor, the debtor's beneficiary, or the debtor's estate, as appropriate, using one of the following formulas:
(1) The amount of the refund in the case of reducing term credit life insurance or of credit health insurance on which the charges to the debtor are payable by other than a single sum of level term credit life insurance may not be less than the pro rata gross unearned amount charged;
(2) The amount of the refund in the case of reducing term credit life insurance or of credit health insurance on which the insurance charges to the debtor are paid in a single sum may not be less than the amount computed by the "sum of the digits" formula, commonly known as the "rule of 78"; and
(3) A premium refund or credit need not be made if the amount is less than one dollar.
General Authority:
SDCL  58-19-34.
Law Implemented:
SDCL  58-19-15.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:06 - Credit life, health, and unemployment insurance › Section 20:06:06:07.01 - Refinancing or consolidation

Current through Register Vol. 51, page 10, July 15, 2024
In any refinancing or consolidation of an indebtedness, no policy provision covering the new indebtedness shall operate to deny benefits which would have been payable had the refinancing or consolidation not taken place.
General Authority:
SDCL  58-19-34.
Law Implemented:
SDCL  58-19-19.