reglab/statecodes huggingface dataset:
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:58 - Mental Health Parity › Section 20:06:58:23 - Nonquantitative treatment limitations

Current through Register Vol. 51, page 10, July 15, 2024
A group health plan, or health insurance coverage, may not impose a nonquantitative treatment limitation with respect to mental health or substance use disorder benefits in any classification unless, under the terms of the plan, or health insurance coverage, any processes, strategies, evidentiary standards, or other factors used in applying the nonquantitative treatment limitation to mental health or substance use disorder benefits in the classification are comparable to, and are applied no more stringently than, the processes, strategies, evidentiary standards, or other factors used in applying the limitation with respect to medical or surgical benefits in the classification.
General Authority:
SDCL  58-17-87,  58-18-79,  58-18-79(15).
Law Implemented:
SDCL  58-17-87,  58-18-79,  58-18-80.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:58 - Mental Health Parity › Section 20:06:58:24 - Illustrative list of nonquantitative treatment limitations

Current through Register Vol. 51, page 10, July 15, 2024
Nonquantitative treatment limitations include:
(1) Medical management standards limiting or excluding benefits based on medical necessity or medical appropriateness, or based on whether the treatment is experimental or investigative;
(2) Formulary design for prescription drugs;
(3) Standards for provider admission to participate in a network, including reimbursement rates;
(4) Plan methods for determining usual, customary, and reasonable charges;
(5) Refusal to pay for higher-cost therapies until it can be shown that a lower-cost therapy is not effective, also known as fail-first policies or step therapy protocols;
(6) Exclusions based on failure to complete a course of treatment;
(7) For plans with multiple network tiers, such as preferred providers and participating providers, network tier design; and
(8) Restrictions based on geographic location, facility type, provider specialty, and other criteria that limit the scope or duration of benefits for services provided under the plan or coverage.
General Authority:
SDCL  58-17-87,  58-18-79,  58-18-79(15).
Law Implemented:
SDCL  58-17-87,  58-18-79,  58-18-80.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:58 - Mental Health Parity › Section 20:06:58:25 - Exemptions

Current through Register Vol. 51, page 10, July 15, 2024
The rules in §§
									20:06:58:07  to 20:06:58:25, inclusive, do not apply if a group health plan, or health insurance coverage, satisfies the requirements of §§
									20:06:58:32  and 20:06:58:33  or §§
									20:06:58:34  to 20:06:58:43, inclusive.
General Authority:
SDCL  58-17-87,  58-18-79,  58-18-79(15).
Law Implemented:
SDCL  58-17-87,  58-18-79,  58-18-80.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:58 - Mental Health Parity › Section 20:06:58:26 - Availability of plan information - Criteria for medical necessity determinations

Current through Register Vol. 51, page 10, July 15, 2024
The criteria for medical necessity determinations made under a group health plan with respect to mental health or substance use disorder benefits, or health insurance coverage offered in connection with the plan with respect to such benefits, must be made available by the plan administrator, or health insurance issuer offering such coverage, to any current or potential participant, beneficiary, or contracting provider upon request.
General Authority:
SDCL  58-17-87,  58-18-79,  58-18-79(15).
Law Implemented:
SDCL  58-17-87,  58-18-79,  58-18-80.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:58 - Mental Health Parity › Section 20:06:58:27 - Availability of plan information - Reasons for denial

Current through Register Vol. 51, page 10, July 15, 2024
The reason for any denial under a group health plan, or health insurance coverage offered in connection with such plan, of reimbursement or payment for services with respect to mental health or substance use disorder benefits in the case of any participant or beneficiary must be made available by the plan administrator, or the health insurance issuer offering such coverage, to the participant or beneficiary, in accordance with this section.
General Authority:
SDCL  58-17-87,  58-18-79,  58-18-79(15).
Law Implemented:
SDCL  58-17-87,  58-18-79,  58-18-80.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:58 - Mental Health Parity › Section 20:06:58:28 - Applicability and effective dates - Group health plans

Current through Register Vol. 51, page 10, July 15, 2024
The requirements of §§
									20:06:58:01  to 20:06:58:45, inclusive, apply to a group health plan offering, medical or surgical benefits, and mental health or substance use disorder benefits. If, under an arrangement or arrangements to provide health care benefits by an employer or employee organization including for this purpose a joint board of trustees of a multiemployer trust affiliated with one or more multiemployer plans, any participant or beneficiary can simultaneously receive coverage for medical or surgical benefits and coverage for mental health or substance use disorder benefits, then the requirements of §§
									20:06:58:01  to 20:06:58:45, inclusive, apply separately with respect to each combination of medical or surgical benefits and of mental health or substance use disorder benefits, that any participant or beneficiary can simultaneously receive from that employer's or employee organization's arrangement or arrangements to provide medical care benefits, and all such combinations are considered for purposes of §§
									20:06:58:01  to 20:06:58:45, inclusive, to be a single group health plan.
This chapter applies to group health plans in accordance with 45 C.F.R. §
										146.136 (i)(1) (December 3, 2014).
General Authority:
SDCL  58-18-79,  58-18-79(15).
Law Implemented:
SDCL  58-18-79,  58-18-80.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:58 - Mental Health Parity › Section 20:06:58:29 - Applicability and effective dates - Health insurance issuers

Current through Register Vol. 51, page 10, July 15, 2024
The requirements of §§
									20:06:58:01  to 20:06:58:45, inclusive, apply to a health insurance issuer offering health insurance coverage for mental health or substance use disorder benefits in connection with a group health plan subject to §
									20:06:58:28. This chapter applies to health insurance issuers offering group health insurance coverage in accordance with 45 C.F.R. §
										146.136 (i)(1) (December 3, 2014).
The requirements of §§
									20:06:58:01  to 20:06:58:45, inclusive, apply to health insurance coverage offered by health insurance issuer in the individual market in the same manner and to the same extent as such requirements apply to health insurance coverage offered by a health insurance issuer in connection with a group health plan in the large group market. This chapter applies to health insurance issuers in the individual market in accordance with 45 C.F.R. §
										147.160 (December 3, 2014). This chapter applies to non-grandfathered and grandfathered health plans.
General Authority:
SDCL  58-17-87,  58-18-79,  58-18-79(15).
Law Implemented:
SDCL  58-17-87,  58-18-79,  58-18-80.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:58 - Mental Health Parity › Section 20:06:58:30 - Scope

Current through Register Vol. 51, page 10, July 15, 2024
Sections 20:06:58:01 to 20:06:58:45, inclusive, do not:
(1) Require a group health plan, or health insurance issuer offering coverage in connection with a group health plan, to provide any mental health benefits or substance use disorder benefits, and the provision of benefits by a plan, or health insurance coverage, for one or more mental health conditions or substance use disorders does not require the plan, or health insurance coverage under §§
									20:06:58:01  to 20:06:58:45, inclusive, to provide benefits for any other mental health condition or substance use disorder;
(2) Require a group health plan, or health insurance issuer offering coverage in connection with a group health plan, that provides coverage for mental health or substance use disorder benefits only to the extent required under 29 C.F.R. § 2713 (December 3, 2014) to provide additional mental health or substance use disorder benefits in any classification in accordance with §§
									20:06:58:01  to 20:06:58:45, inclusive; or
(3) Affect the terms and conditions relating to the amount, duration, or scope of mental health or substance use disorder benefits under the plan, or health insurance coverage, except as specifically provided in §§
									20:06:58:02  to 20:06:58:25, inclusive.
General Authority:
SDCL  58-17-87,  58-18-79,  58-18-79(15).
Law Implemented:
SDCL  58-17-87,  58-18-79,  58-18-80.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:58 - Mental Health Parity › Section 20:06:58:31 - Coordination with EHB requirements

Current through Register Vol. 51, page 10, July 15, 2024
Nothing in §§
									20:06:58:32  to 20:06:58:43, inclusive, changes the requirements of 45 CFR 147.150 and 45 CFR 156.115 (December 3, 2014), providing that a health insurance issuer offering non-grandfathered health insurance coverage in the individual or small group market providing mental health and substance use disorder services, including behavioral health treatment services, as part of essential health benefits required under 45 CFR 156.110 (a)(5) and 156.115(a) (December 3, 2014), must comply with the provisions of 45 CFR 146.136 (December 3, 2014) to satisfy the requirement to provide essential health benefits.
General Authority:
SDCL  58-17-87,  58-18-79,  58-18-79(15).
Law Implemented:
SDCL  58-17-87,  58-18-79,  58-18-80.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:58 - Mental Health Parity › Section 20:06:58:32 - Small employer exemption

Current through Register Vol. 51, page 10, July 15, 2024
The requirements of §§
									20:06:58:01  to 20:06:58:45, inclusive, do not apply to a group health plan, or health insurance issuer offering coverage in connection with a group health plan, for a plan year of a small employer. For purposes of §§ 20:06:58:32  and 20:06:58:33, the term, small employer, means, in connection with a group health plan with respect to a calendar year and a plan year, an employer who employed at least a single individual, but not more than 50 employees on business days during the preceding calendar year and who employs at least a single individual on the first day of the plan year.
General Authority:
SDCL  58-17-87,  58-18-79,  58-18-79(15).
Law Implemented:
SDCL  58-17-87,  58-18-79,  58-18-80.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:58 - Mental Health Parity › Section 20:06:58:33 - Determining employer size

Current through Register Vol. 51, page 10, July 15, 2024
For purposes of §
									20:06:58:32:
(1) All persons treated as a single employer under subsections (b), (c), (m), and (o) of the Internal Revenue Code of 1986, codified at 26 U.S.C. 414, are treated as one employer;
(2) If an employer was not in existence throughout the preceding calendar year, whether it is a small employer is determined based on the average number of employees the employer reasonably expects to employ on business days during the current calendar year; and
(3) Any reference to an employer for purposes of the small employer exemption includes a reference to a predecessor of the employer.
General Authority:
SDCL  58-17-87,  58-18-79,  58-18-79(15).
Law Implemented:
SDCL  58-17-87,  58-18-79,  58-18-80.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:58 - Mental Health Parity › Section 20:06:58:34 - Increased cost exemption

Current through Register Vol. 51, page 10, July 15, 2024
If the application of §§
									20:06:58:01  to 20:06:58:45, inclusive, to a group health plan, or health insurance coverage offered in connection with such plans, results in an increase for the plan year involved of the actual total cost of coverage with respect to medical or surgical benefits and mental health and substance use disorder benefits as determined and certified under §
									20:06:58:36  by an amount that exceeds the applicable percentage described in §
									20:06:58:36  of the actual total plan costs, the provisions of this section shall not apply to such plan, or coverage, during the following plan year, and such exemption shall apply to the plan, or coverage, for one plan year. An employer or issuer may elect to continue to provide mental health and substance use disorder benefits in compliance with this section with respect to the plan or coverage involved regardless of any increase in total costs.
General Authority:
SDCL  58-17-87,  58-18-79,  58-18-79(15).
Law Implemented:
SDCL  58-17-87,  58-18-79,  58-18-80.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:58 - Mental Health Parity › Section 20:06:58:35 - Applicable percentage

Current through Register Vol. 51, page 10, July 15, 2024
With respect to a plan or coverage, the applicable percentage described in §§
									20:06:58:34  to 20:06:58:43, inclusive, is:
(1) Two percent in the case of the first plan year in which this section is applied to the plan or coverage; and
(2) One percent in the case of each subsequent plan year.
General Authority:
SDCL  58-17-87,  58-18-79,  58-18-79(15).
Law Implemented:
SDCL  58-17-87,  58-18-79,  58-18-80.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:58 - Mental Health Parity › Section 20:06:58:36 - Determinations by actuaries

Current through Register Vol. 51, page 10, July 15, 2024
Determinations as to increases in actual costs under a plan or coverage that are attributable to implementation of the requirements of §§
									20:06:58:01  to 20:06:58:45, inclusive, shall be made and certified by a qualified and licensed actuary who is a member in good standing of the American Academy of Actuaries. All such determinations must be based on the formula specified in paragraph §
									20:06:58:37  and shall be in a written report prepared by the actuary.
The group health plan or health insurance issuer shall maintain the written report described in this section, along with all supporting documentation relied upon by the actuary, for a period of six years following the notification made under §
									20:06:58:39.
General Authority:
SDCL  58-17-87,  58-18-79,  58-18-79(15).
Law Implemented:
SDCL  58-17-87,  58-18-79,  58-18-80.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:58 - Mental Health Parity › Section 20:06:58:37 - Formula

Current through Register Vol. 51, page 10, July 15, 2024
The formula to be used to make the determination under §
									20:06:58:36  is expressed mathematically as [(E1 -- E0)/T0] -- D>k. The components mean:
(1) E1 is the actual total cost of coverage with respect to mental health and substance use disorder benefits for the base period, including claims paid by the plan or issuer with respect to mental health and substance use disorder benefits and administrative costs, amortized over time, attributable to providing these benefits consistent with the requirements of §§
									20:06:58:01  to 20:06:58:45, inclusive;
(2) E0 is the actual total cost of coverage with respect to mental health and substance use disorder benefits for the length of time immediately before the base period and that is equal in length to the base period, including claims paid by the plan or issuer with respect to mental health and substance use disorder benefits and administrative costs, amortized over time, attributable to providing these benefits;
(3) T0 is the actual total cost of coverage with respect to all benefits during the base period;
(4) k is the applicable percentage of increased cost specified in paragraph §
									20:06:58:35  that is expressed as a fraction for purposes of this formula; and
(5) D is the average change in spending that is calculated by applying the formula (E1 -- E0)/T0 to mental health and substance use disorder spending in each of the five years and then calculating the average change in spending.
General Authority:
SDCL  58-17-87,  58-18-79,  58-18-79(15).
Law Implemented:
SDCL  58-17-87,  58-18-79,  58-18-80.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:58 - Mental Health Parity › Section 20:06:58:38 - Six month determination

Current through Register Vol. 51, page 10, July 15, 2024
If a group health plan or health insurance issuer seeks an exemption under §§
									20:06:58:34  to 20:06:58:43, inclusive, determinations under §
									20:06:58:36  may only be made after such plan or coverage has complied with §§
									20:06:58:01  to 20:06:58:45, inclusive, for at least the first six months of the plan year involved.
General Authority:
SDCL  58-17-87,  58-18-79,  58-18-79(15).
Law Implemented:
SDCL  58-17-87,  58-18-79,  58-18-80.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:58 - Mental Health Parity › Section 20:06:58:39 - Notification

Current through Register Vol. 51, page 10, July 15, 2024
A group health plan or health insurance issuer that, based on the certification described under §
									20:06:58:36, qualifies for an exemption under §§
									20:06:58:34  to 20:06:58:43, inclusive, and elects to implement the exemption, must notify participants and beneficiaries covered under the plan, the director, and the appropriate state agencies of such election.
General Authority:
SDCL  58-17-87,  58-18-79,  58-18-79(15).
Law Implemented:
SDCL  58-17-87,  58-18-79,  58-18-80.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:58 - Mental Health Parity › Section 20:06:58:40 - Participants and beneficiaries - Content of notice

Current through Register Vol. 51, page 10, July 15, 2024
The notice to participants and beneficiaries required pursuant to §
									20:06:58:39  must include the following information:
(1) A statement that the plan or issuer is exempt from the requirements of this section and a description of the basis for the exemption;
(2) The name and telephone number of the individual to contact for further information;
(3) The plan or issuer name and plan number (PN);
(4) The plan administrator's name, address, and telephone number;
(5) For single-employer plans, the plan sponsor's name, address, and telephone number, if different from subdivision 3 of this section, and the plan sponsor's employer identification number (EIN);
(6) The effective date of such exemption;
(7) A statement regarding the ability of participants and beneficiaries to contact the plan administrator or health insurance issuer to see how benefits may be affected as a result of the plan's or issuer's election of the exemption; and
(8) A statement regarding the availability, upon request and free of charge, of a summary of the information on which the exemption is based, as required under §
									20:06:58:43.
General Authority:
SDCL  58-17-87,  58-18-79,  58-18-79(15).
Law Implemented:
SDCL  58-17-87,  58-18-79,  58-18-80.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:58 - Mental Health Parity › Section 20:06:58:41 - Use of summary of material reductions in covered services or benefits

Current through Register Vol. 51, page 10, July 15, 2024
A plan or issuer may satisfy the requirements of §
									20:06:58:40  by providing participants and beneficiaries, in accordance with §
									20:06:58:42, with a summary of material reductions in covered services or benefits consistent with 29 CFR 2520.104b-3 (d) (December 3, 2014) that also includes the information specified in §
									20:06:58:40. However, in all cases, the exemption under §§
									20:06:58:34  to 20:06:58:43, inclusive, is not effective until 30 days after notice required pursuant to §
									20:06:58:39  has been sent.
General Authority:
SDCL  58-17-87,  58-18-79,  58-18-79(15).
Law Implemented:
SDCL  58-17-87,  58-18-79,  58-18-80.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:58 - Mental Health Parity › Section 20:06:58:42 - Delivery

Current through Register Vol. 51, page 10, July 15, 2024
The plan or issuer is required to provide the notice described in §§
									20:06:58:40  to 20:06:58:43, inclusive, to all participants and beneficiaries. The plan or issuer may furnish the notice by any method of delivery that satisfies the requirements of section 104(b)(1) of ERISA (29 U.S.C. 1024 (b)(1)) (December 3, 2014) and its implementing regulations. If the notice is provided to the participant and any beneficiaries at the participant's last known address, then the requirements of §§
									20:06:58:40  to 20:06:58:43, inclusive, are satisfied with respect to the participant and all beneficiaries residing at that address. If a beneficiary's last known address is different from the participant's last known address, a separate notice is required to be provided to the beneficiary at the beneficiary's last known address.
General Authority:
SDCL  58-17-87,  58-18-79,  58-18-79(15).
Law Implemented:
SDCL  58-17-87,  58-18-79,  58-18-80.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:58 - Mental Health Parity › Section 20:06:58:43 - Available documentation

Current through Register Vol. 51, page 10, July 15, 2024
The plan or issuer must make available to participants and beneficiaries, or their representatives, on request and at no charge, a summary of the information on which the exemption is based. For purposes of §§
									20:06:58:34  to 20:06:58:43, inclusive, an individual who is not a participant or beneficiary and who presents a notice described in §§
									20:06:58:40  to 20:06:58:43, inclusive, is considered to be a representative. A representative may request the summary of information by providing the plan a copy of the notice provided to the participant under §§
									20:06:58:40  to 20:06:58:43, inclusive, with any personally identifiable information redacted. The summary of information must include the incurred expenditures, the base period, the dollar amount of claims incurred during the base period that would have been denied under the terms of the plan of coverage absent amendments required to comply with §§
									20:06:58:02  to 20:06:58:25, inclusive, the administration costs related to those claims, and other administrative costs attributable to complying with the requirements of this section. In no event may the summary of information include any personally identifiable information.
General Authority:
SDCL  58-17-87,  58-18-79,  58-18-79(15).
Law Implemented:
SDCL  58-17-87,  58-18-79,  58-18-80.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:58 - Mental Health Parity › Section 20:06:58:44 - Sale of nonparity health insurance coverage

Current through Register Vol. 51, page 10, July 15, 2024
A health insurance issuer may not sell a policy, certificate, or contract of insurance that fails to comply with §§
									20:06:58:02  to 20:06:58:25, inclusive, except to a plan for a year for which the plan is exempt from requirements of §§
									20:06:58:01  to 20:06:58:45, inclusive, because the plan meets requirements under §§
									20:06:58:32  and 20:06:58:33  or §§
									20:06:58:34  to 20:06:58:43, inclusive.
General Authority:
SDCL  58-17-87,  58-18-79,  58-18-79(15).
Law Implemented:
SDCL  58-17-87,  58-18-79,  58-18-80.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:58 - Mental Health Parity › Section 20:06:58:45 - Special effective date for certain collective-bargained plans

Current through Register Vol. 51, page 10, July 15, 2024
For a group health plan maintained pursuant to one or more collective bargaining agreements ratified before October 3, 2008, the requirements of §§
									20:06:58:01  to 20:06:58:45, inclusive, do not apply to the plan, or health insurance coverage offered in connection with the plan, for plan years beginning before the date on which the last of the collective bargaining agreements terminates, determined without regard to any extension agreed to after October 3, 2008.
General Authority:
SDCL  58-17-87,  58-18-79,  58-18-79(15).
Law Implemented:
SDCL  58-17-87,  58-18-79,  58-18-80.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:59 - Principle-based reserving › Section 20:06:59:01 - Valuation manual - operative date

Current through Register Vol. 51, page 10, July 15, 2024
The valuation of reserve liabilities for life insurance contracts, annuity and pure endowment contracts, accident and health contracts, and deposit-type contracts must be calculated in accordance with the standards set forth in the Valuation Manual of the National Association of Insurance Commissioners, 2023 edition. The operative date for the valuation manual is January 1, 2023.
General Authority:
SDCL  58-26-45.1.
Law Implemented:
SDCL  58-26-44.1(11),  58-26-45.1.
The amended version of this section by 50 SDR 157, effective 7/1/2024 is not yet available.
Valuation Manual of the National Association of Insurance Commissioners
, 2023 edition, National Association of Insurance Commissioners. Copies may be obtained from the NAIC, 1100 Walnut Street, Ste. 1500, Kansas City, MO 64106-2197, (816) 783-8300;
http://www.naic.org
. Cost: $0.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:60 - Insurer corporate governance › Section 20:06:60:01 - Definition of Senior Management

Current through Register Vol. 51, page 10, July 15, 2024
"Senior Management." The term "senior management" means any corporate officer responsible for reporting information to the board of directors at regular intervals or providing this information to shareholders or regulators and includes, for example and without limitation, the Chief Executive Officer ("CEO"), Chief Financial Officer ("CFO"), Chief Operations Officer ("COO"), Chief Procurement Officer ("CPO"), Chief Legal Officer ("CLO"), Chief Information Officer ("CIO"), Chief Technology
Officer ("CTO"), Chief Revenue Officer ("CRO"), Chief Visionary Officer ("CVO"), or any other "C" level executive.
General Authority:
SDCL  58-5-166
Law Implemented:
SDCL  58-5-166
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:60 - Insurer corporate governance › Section 20:06:60:02 - Contents of Corporate Governance Annual Disclosure

Current through Register Vol. 51, page 10, July 15, 2024
The insurer or insurance group must be as descriptive as possible in completing the corporate governance annual disclosure, with inclusion of attachments or example documents that are used in the governance process, since these may provide a means to demonstrate the strengths of their governance framework and practices. If substantially similar information exists in other documents provided to the director, the insurer or insurance group must clearly reference the location of the relevant information and attach the referenced document if it is not already filed or available to the regulator.
General Authority:
SDCL  58-5-166
Law Implemented:
SDCL  58-5-163,  58-5-165,  58-5-166
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:60 - Insurer corporate governance › Section 20:06:60:03 - Annual Update

Current through Register Vol. 51, page 10, July 15, 2024
Each year following the initial filing of the corporate governance annual disclosure, the insurer or insurance group shall file an amended version of the previously filed corporate governance annual disclosure indicating where changes have been made. If no changes were made in the information or activities reported by the insurer or insurance group, the filing should so state.
General Authority:
SDCL  58-5-166
Law Implemented:
58-5-163, SDCL  58-5-166
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:60 - Insurer corporate governance › Section 20:06:60:04 - Description of Corporate Framework

Current through Register Vol. 51, page 10, July 15, 2024
The corporate governance annual disclosure shall describe the insurers or insurance groups corporate governance framework and structure including consideration of the following.
(1) The Board and various committees thereof ultimately responsible for overseeing the insurer or insurance group and the level(s) at which that oversight occurs (e.g., ultimate control level, intermediate holding company, legal entity, etc.). The insurer or insurance group shall describe and discuss the rationale for the current Board size and structure; and
General Authority:
SDCL  58-5-166 Law Implemented: SDCL  58-5-166
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:60 - Insurer corporate governance › Section 20:06:60:05 - Description of Policies and Practices

Current through Register Vol. 51, page 10, July 15, 2024
The insurer or insurance group shall describe the policies and practices of the most senior governing entity and significant committees thereof, including a discussion of the following factors:
(1) How the qualifications, expertise, and experience of each Board member meet the needs of the insurer or insurance group;
(2) How an appropriate amount of independence is maintained on the Board and its significant committees;
(3) The number of meetings held by the Board and its significant committees over the past year as well as information on director attendance;
(4) How the insurer or insurance group identifies, nominates and elects members to the Board and its committees. The discussion should include, for example:
(a) Whether a nomination committee is in place to identify and select individuals for consideration;
(b) Whether term limits are placed on directors;
(c) How the election and re-election processes function; and
(d) Whether a Board diversity policy is in place and if so, how it functions; and
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:60 - Insurer corporate governance › Section 20:06:60:06 - Description of Senior Management

Current through Register Vol. 51, page 10, July 15, 2024
The insurer or insurance group shall describe the policies and practices for directing Senior Management, including a description of the following factors:
(1) Any processes or practices, including suitability standards, to determine whether officers and key persons in control functions have the appropriate background, experience, and integrity to fulfill their prospective roles, including:
(a) Identification of the specific positions for which suitability standards have been developed and a description of the standards employed; and
(b) Any changes in an officers or key persons suitability as outlined by the insurers or insurance groups standards and procedures to monitor and evaluate such changes;
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:60 - Insurer corporate governance › Section 20:06:60:07 - Description of Board Oversight

Current through Register Vol. 51, page 10, July 15, 2024
The insurer or insurance group shall describe the processes by which the Board, its committees, and Senior Management ensure an appropriate amount of oversight to the critical risk areas impacting the insurers business activities, including a discussion of:
(1) How oversight and management responsibilities are delegated between the Board, its committees and Senior Management;
(2) How the Board is kept informed of the insurers strategic plans, the associated risks, and steps that Senior Management is taking to monitor and manage those risks; and
(3) How reporting responsibilities are organized for each critical risk area. The description should allow the Commissioner to understand the frequency at which information on each critical risk area is reported to and reviewed by Senior
Management and the Board. This description may include, for example, the following critical risk areas of the insurer:
(a) Risk management processes, which may refer to an Own Risk and Solvency Assessment (ORSA) Summary Report if filed pursuant to SDCL Ch. 58-5A;
(b) Actuarial function;
(c) Investment decision-making processes;
(d) Reinsurance decision-making processes;
(e) Business strategy/finance decision-making processes;
(f) Compliance function;
(g) Financial reporting/internal auditing; and (h) Market conduct decision-making processes.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:02 - Rules of practice › Section 20:07:02:01 - Petition for declaratory ruling

Current through Register Vol. 51, page 10, July 15, 2024
A person wishing the commission to issue its ruling as to the applicability to that person of a statutory provision or rule or order of the commission may file with the commission a petition in substantially the following form:
State of South Dakota
State Banking Commission
Petition for Declaratory Ruling
Pursuant to the provisions of SDCL  1-26-15, I,
(name of petitioner)
, of
(address of petitioner)
, am
(title or capacity of petitioner)
, and do hereby petition the South Dakota State Banking Commission for its declaratory ruling in regard to the following:
1. The state statute or State Banking Commission rule or order in question is: (here identify and quote the pertinent statute, rule or order).
2. The facts and circumstances which give rise to the issue to be answered by the Commission's declaratory ruling are:
3. The precise issue to be answered by the Commission's declaratory ruling is:
Dated at
(city and state)
, this ______ day of _________________, 19__.
(Signature of petitioner)
General Authority:
SDCL  51A-2-13.
Law Implemented:
SDCL  1-26-15.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:02 - Rules of practice › Section 20:07:02:02 - Commission action on petition

Current through Register Vol. 51, page 10, July 15, 2024
Upon receipt of the petition, the commission may request from the petitioner any other information it requires for the issuance of its ruling. Within 30 days following the receipt of the petition or within 30 days following receipt of the requested information, the commission shall issue its declaratory ruling and serve a copy of it by mail upon the petitioner.
General Authority:
SDCL  51A-2-13.
Law Implemented:
SDCL  1-26-15.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:03 - Internal management of banks › Section 20:07:03:01 - Bonds required

Current through Register Vol. 51, page 10, July 15, 2024
Each state bank must furnish the division with a bankers' blanket bond according to the schedule in §
									20:07:03:02.
General Authority:
SDCL  51A-2-13.
Law Implemented:
SDCL  51A-3-39.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:03 - Internal management of banks › Section 20:07:03:02 - Blanket bond schedule

Current through Register Vol. 51, page 10, July 15, 2024
Banker's blanket bonds required by §
									20:07:03:01  shall be furnished according to the following schedule. The numbers preceding the colon represent the range of assets and the numbers after the colon represent the amount of bonds.
(1)
Less than $ 19,999,999 :
$ 500,000
(2)
$ 20,000,000 to $ 24,999,999 :
$ 525,000
(3)
$ 25,000,000 to $ 34,999,999 :
$ 675,000
(4)
$ 35,000,000 to $ 49,999,999 :
$ 825,000
(5)
$ 50,000,000 to $ 74,999,999 :
$ 1,050,000
(6)
$ 75,000,000 to $ 99,999,999 :
$ 1,275,000
(7)
$ 100,000,000 to $ 149,999,999 :
$ 1,800,000
(8)
$ 150,000,000 to $ 249,999,999 :
$ 2,500,000
(9)
$ 250,000,000 to $ 499,999,999 :
$ 3,750,000
(10)
$ 500,000,000 to $ 999,999,999 :
$ 6,000,000
(11)
$ 1,000,000,000 and over:
$ 9,000,000
General Authority:
SDCL  51A-2-13.
Law Implemented:
SDCL  51A-3-39.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:03 - Internal management of banks › Section 20:07:03:03 - Copy of resolution required

Current through Register Vol. 51, page 10, July 15, 2024
With each bond filed with the division, a bank shall furnish a copy of the resolution adopted by its board of directors accepting the bond.
General Authority:
SDCL  51A-2-13.
Law Implemented:
SDCL  51A-3-39.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:03 - Internal management of banks › Section 20:07:03:03.01 - Accounting principles

Current through Register Vol. 51, page 10, July 15, 2024
The books and accounts of banks shall be kept in accordance with generally accepted accounting principles unless a regulatory requirement requires otherwise.
General Authority:
SDCL  51A-2-13.
Law Implemented:
SDCL  51A-13-1.
Accounting principles, § 20:37:11:08.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:03 - Internal management of banks › Section 20:07:03:04 - Records required

Current through Register Vol. 51, page 10, July 15, 2024
All state banks shall keep a record of all charge-offs, nonledger assets, and recoveries.
General Authority:
SDCL  51A-2-13.
Law Implemented:
SDCL  51A-13-1.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:03 - Internal management of banks › Section 20:07:03:06 - Chief executive officer of banks to be board member

Current through Register Vol. 51, page 10, July 15, 2024
Chief executive officers of all state banks shall be members of the board of directors of their respective banks.
General Authority:
SDCL  51A-2-13.
Law Implemented:
SDCL  51A-2-15.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:03 - Internal management of banks › Section 20:07:03:07 - Accounting for advances to borrowers

Current through Register Vol. 51, page 10, July 15, 2024
When a bank has made a loan, any advances made to the borrower, whether to protect the bank's security or otherwise, shall be considered as increasing the loan and not as protecting the security as far as the liability of SDCL  51A-12-8 is concerned. This includes advances made for the payment of taxes on the collateral security to the loan and any advances for operations.
General Authority:
SDCL  51A-2-13.
Law Implemented:
SDCL  51A-12-8.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:03 - Internal management of banks › Section 20:07:03:09 - Accounting for late payments - Installment note and conditional sales contract with acceleration clause

Current through Register Vol. 51, page 10, July 15, 2024
When installment notes or conditional sales contracts which contain an acceleration clause are delinquent one installment, only the amount of the delinquent payments shall be considered as past due when other information indicates that the maker expects to perform the contract.
General Authority:
SDCL  51A-2-13.
Law Implemented:
SDCL  51A-2-15.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:03 - Internal management of banks › Section 20:07:03:10 - Accrual accounting

Current through Register Vol. 51, page 10, July 15, 2024
The books and records of a bank with total assets of $25,000,000 or more shall be kept on an accrual basis.
General Authority:
SDCL  51A-2-13.
Law Implemented:
SDCL  51A-13-1.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:03 - Internal management of banks › Section 20:07:03:11 - Requirements for issuing securities

Current through Register Vol. 51, page 10, July 15, 2024
The director may approve the issuance of any security under SDCL  51A-3-16 if the following requirements are met:
(1) The issuing bank makes full disclosure of all material facts regarding the bank and the sale in writing to the prospective purchasers. The written disclosure shall be approved by the director prior to any offers to sell. Current stockholders of a bank shall be presumed to have knowledge of all material facts;
(2) The director determines the offering to be fair and equitable; and
(3) The director determines the offering to be in the best interest of the issuing bank.
General Authority:
SDCL  51A-2-13.
Law Implemented:
SDCL  51A-3-16.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:03 - Internal management of banks › Section 20:07:03:12 - Authorized general investments

Current through Register Vol. 51, page 10, July 15, 2024
A bank may purchase or hold the following for investment in accordance with SDCL  51A-4-25:
(1) Revenue bonds in any form issued by the United States; by any state or territory or its possession; by the District of Columbia; by any political subdivision of any state, territory, or possession; or by any public agency or instrumentality of one or more of any of these;
(2) Any securities acquired through foreclosure on collateral or acquired in good faith, by the way of compromise of a doubtful claim or to avoid a loss in connection with a debt previously contracted;
(3) Interest rate future contracts as a hedge;
(4) Corporate debt obligations which are rated in one of the top three rating bands by Moody's Investment Advisory Services or Standard and Poor's;
(5) Participation certificates in export programs sponsored by the United States or any of its agencies; and
(6) Annuities underwritten by any one company the value of which does not exceed 20 percent of the bank's capital stock and surplus and 10 percent of the bank's undivided profits as measured by the value of the annuities at the time of purchase.
General Authority:
SDCL  51A-2-13,  51A-4-25.
Law Implemented:
SDCL  51A-4-25.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:03 - Internal management of banks › Section 20:07:03:12.01 - Investment in mutual funds

Current through Register Vol. 51, page 10, July 15, 2024
A bank may purchase or hold shares of registered mutual funds that invest in authorized general investments as provided in subdivision 20:07:03:12(1). Those funds that engage in financial futures, options, or repurchase agreements may be purchased if they meet the following criteria:
(1) The fund is subject to investment guidelines that limit its investment in hedging and yield enhancement activities to 25 percent of the fund; and
(2) No more than 5 percent of the fund is invested in any single issue.
A bank may invest up to 100 percent of the bank's capital stock and surplus in mutual funds.
General Authority:
SDCL  51A-2-13,  51A-4-25.
Law Implemented:
SDCL  51A-4-25.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:03 - Internal management of banks › Section 20:07:03:16 - Charge-off requirements

Current through Register Vol. 51, page 10, July 15, 2024
Within 30 days after receipt of a report of examination, a bank shall charge off 100 percent of all assets classified as loss. If an asset has been collected or put in a bankable condition, the bank may apply within those 30 days to the director for a waiver of the charge-off requirements of this section.
General Authority:
SDCL  51A-2-13.
Law Implemented:
SDCL  51A-2-13.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:03 - Internal management of banks › Section 20:07:03:17 - Allowance for loan and lease losses

Current through Register Vol. 51, page 10, July 15, 2024
A bank must maintain an allowance for loan and lease losses (ALLL) at a level that appropriately covers estimated credit losses on individually evaluated loans as well as estimated credit losses inherent in the remainder of the loan and lease portfolio. The analysis must be performed at least quarterly and must be consistent with generally accepted accounting principles. Bank management must maintain supporting documentation to validate ALLL appropriateness. The bank's board of directors must review the analysis and results and ensure the ALLL is appropriately funded throughout the accounting cycle. The actions of the board of directors must be recorded in the meeting minutes of the board of directors.
General Authority:
SDCL  51A-2-13.
Law Implemented:
SDCL  51A-2-13.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:03 - Internal management of banks › Section 20:07:03:18 - Board member involvement required

Current through Register Vol. 51, page 10, July 15, 2024
Board members must demonstrate involvement in the affairs of the bank by attendance at a majority of board meetings as shown by the minutes or by other proof in writing furnished to the division which satisfactorily demonstrates participation by the board member.
General Authority:
SDCL  51A-2-13.
Law Implemented:
SDCL  51A-2-13.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:03 - Internal management of banks › Section 20:07:03:18.01 - Number and frequency of board meetings - Exception

Current through Register Vol. 51, page 10, July 15, 2024
A bank must establish through its bylaws that its board of directors hold meetings in a timely manner as is prudent, but not less than four meetings annually. The director, at the director's discretion, may require the bank to hold meetings of its board of directors more frequently than is provided for in its bylaws.
General Authority:
SDCL  51A-2-13,  51A-3-34.
Law Implemented:
SDCL  51A-3-34.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:03 - Internal management of banks › Section 20:07:03:23 - Loans made with the assistance of third parties

Current through Register Vol. 51, page 10, July 15, 2024
If a third party is not the vendor of property that ultimately will be collateral for a particular loan, a bank may make the loan with the assistance of the third party or in connection with prior arrangements between the bank and the third party subject to the following conditions:
(1) Final approval or disapproval of a proposed loan is made by the bank at an authorized bank office or branch based upon bank credit standards;
(2) Disbursements of loan proceeds are made at an authorized bank office or branch; and
(3) The bank maintains proof that the activities engaged in under this section are included in coverage by its banker's blanket bond or an equivalent form of insurance.
General Authority:
SDCL  51A-2-13.
Law Implemented:
SDCL  51A-2-14(4).
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:03 - Internal management of banks › Section 20:07:03:24 - Investment in federal home loan bank

Current through Register Vol. 51, page 10, July 15, 2024
A bank may purchase stock in a federal home loan bank and may borrow money from such a bank.
General Authority:
SDCL  51A-2-13.
Law Implemented:
SDCL  51A-4-13.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:03 - Internal management of banks › Section 20:07:03:25 - Time limit allowed on overdrafts

Current through Register Vol. 51, page 10, July 15, 2024
An overdraft may not be held as an asset by a bank for more than 60 consecutive days unless the overdraft is in the process of collection.
General Authority:
51A-2-13.
Law Implemented:
51A-4-21.