reglab/statecodes huggingface dataset:
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:09 - Insurance holding companies › Section 20:06:09:41 - Form D - Management agreements, service agreements, and cost-sharing agreements

Current through Register Vol. 51, page 10, July 15, 2024
The person making the Form D filing must provide the following information for management and service agreements and for cost-sharing arrangements:
(1) For management and service agreements:
(a) A brief description of the managerial responsibilities or the services to be performed;
(b) A brief description of the agreement, including a statement of its duration, together with brief descriptions of the basis for compensation and the terms under which payment or compensation is to be made;
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:09 - Insurance holding companies › Section 20:06:09:42 - Pre-acquisition notification

Current through Register Vol. 51, page 10, July 15, 2024
If a domestic insurer, including any person controlling a domestic insurer, is proposing a merger or acquisition pursuant to SDCL  58-5A-3, that person shall file a pre-acquisition notification form, Form E, which was developed pursuant to SDCL  58-5A-45. Additionally, if a non-domiciliary insurer licensed to do business in this state is proposing a merger or acquisition, that person shall file a pre-acquisition notification form, Form E. No pre-acquisition notification form need be filed if the acquisition is beyond the scope of SDCL  58-5A-47. In addition to the information required by Form E, the director may hire a consultant for expert opinion as to the competitive impact of the proposed acquisition.
General Authority:
SDCL  58-5A-70.
Law Implemented:
SDCL  58-5A-45,  58-5A-48 and  58-5A-70.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:09 - Insurance holding companies › Section 20:06:09:43 - Form E filing

Current through Register Vol. 51, page 10, July 15, 2024
The pre-acquisition notification form, or Form E, shall state the names and addresses of the persons who are providing notice of their involvement in a pending acquisition or change in corporate control. The Form E shall state the names and addresses of affiliated persons, and describe their affiliations. The Form E shall state the nature and purpose of the proposed merger or acquisition, and state the nature of the business performed by each persons identified.
A Form E filing must state specifically what market and market share in each relevant insurance market the person(s) identified in Form E currently enjoy in this state. Provide historical market and market share data for each person identified in Form E for the past five years and identify the source of such data. Provide a determination as to whether the proposed acquisition or merger, if consummated, would violate the competitive standards of the state as stated in SDCL chapter 58-5 A. If the proposed acquisition or merger violates competitive standards, provide justification of why the acquisition or merger would not substantially lessen competition or create a monopoly in this state. For purposes of this section, market means direct written insurance premium in this state for a line of business as contained in the annual statement required to be filed by insurers licensed to do business in this state.
General Authority:
SDCL  58-5A-70.
Law Implemented:
SDCL  58-5A-45,  58-5A-48 and  58-5A-70.
Note:
A copy of Form E may be obtained from the Division of Insurance, 124 South Euclid Avenue, 2nd Floor, Pierre, South Dakota 57501. (605) 773-3563, free of charge.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:09 - Insurance holding companies › Section 20:06:09:44 - Enterprise risk report

Current through Register Vol. 51, page 10, July 15, 2024
The ultimate controlling person of an insurer required to file an enterprise risk report pursuant to SDCL  58-5A-29.1 shall furnish the required information on Form F by July 1st of each year.
General Authority:
SDCL  58-5A-70.
Law Implemented:
SDCL  58-5A-29.1 and  58-5A-70.
Note: A copy of Form F may be obtained from the Division of Insurance, 124 South Euclid Avenue, 2nd Floor, Pierre, South Dakota 57501. (605) 773-3563, free of charge.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:09 - Insurance holding companies › Section 20:06:09:45 - Form F filing

Current through Register Vol. 51, page 10, July 15, 2024
The registrant, to the best of its knowledge and belief, must provide information regarding the following areas that could produce enterprise risk as defined in SDCL  58-5A-1(2A), unless the information is disclosed in the Insurance Holding Company System Annual Registration Statement filed on behalf of itself or another insurer for which it is the ultimate controlling person:
(1) Any material developments regarding strategy, internal audit findings, compliance or risk management affecting the insurance holding company system;
(2) Acquisition or disposal of insurance entities and reallocating of existing financial or insurance entities within the insurance holding company system;
(3) Any changes of shareholders of the insurance holding company system exceeding ten percent or more of voting securities;
(4) Developments in various investigations, regulatory activities or litigation that may have a significant bearing or impact on the insurance holding company system;
(5) Business plan of the insurance holding company system and summarized strategies for next twelve months;
(6) Identification of material concerns of the insurance holding company system raised by supervisory college, if any, in last year;
(7) Identification of insurance holding company system capital resources and material distribution patterns;
(8) Identification of any negative movement, or discussions with rating agencies which may have caused, or may cause, potential negative movement in the credit ratings and individual insurer financial strength ratings assessment of the insurance holding company system, including both the rating score and outlook;
(9) Information on corporate or parental guarantees throughout the holding company and the expected source of liquidity should such guarantees be called upon; and
(10) Identification of any material activity or development of the insurance holding company system that, in the opinion of senior management, could adversely affect the insurance holding company system.
The registrant may attach the appropriate form most recently filed with the U.S. Securities and Exchange Commission, provided the registrant includes specific references to those areas listed above for which the form provides responsive information. If the registrant is not domiciled in the U.S., it may attach its most recent public audited financial statement filed in its country of domicile, provided the registrant/applicant includes specific references to those areas listed above for which the financial statement provides responsive information.
General Authority:
SDCL  58-5A-70.
Law Implemented:
SDCL  58-5A-29.1 and SDCL  58-5A-70.
The amended version of this section by 50 SDR 157, effective 7/1/2024 is not yet available.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:09 - Insurance holding companies › Section 20:06:09:46 - Obligation to report

Current through Register Vol. 51, page 10, July 15, 2024
If the registrant has not disclosed any information pursuant to §
									20:06:09:45, a statement shall be included affirming that, to the best of its knowledge and belief, it has not identified enterprise risk subject to disclosure pursuant to §
									20:06:09:45.
General Authority:
SDCL  58-5A-70.
Law Implemented:
SDCL  58-5A-29.1 and SDCL  58-5A-70.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:09 - Insurance holding companies › Section 20:06:09:47 - Confidentiality

Current through Register Vol. 51, page 10, July 15, 2024
All materials submitted pursuant to this chapter are subject to the confidentiality provisions of SDCL chapter 58-5 A.
General Authority:
SDCL  58-5A-70.
Law Implemented:
SDCL  58-5A-70.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:09 - Insurance holding companies › Section 20:06:09:48 - ORSA guidance manual

Current through Register Vol. 51, page 10, July 15, 2024
The own risk and solvency assessment (ORSA) shall be conducted in accordance with the standards and requirements set forth in the National Association of Insurance Commissioners' ORSA Guidance Manual, 2022 edition.
General Authority:
SDCL  58-5A-93.
Law Implemented:
SDCL  58-5A-1(8),  58-5A-82 to  58-5A-84, inclusive, 58-5A-93.
National Association of Insurance Commissioners Own Risk and Solvency Assessment (ORSA) Guidance Manual
, 2022 edition. Copies may be obtained from 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 20:06:10 - Advertisements and solicitations of health and life insurance › Section 20:06:10:01 - Definitions

Current through Register Vol. 51, page 10, July 15, 2024
Terms used in this chapter are defined as follows:
(1) "Advertisement," as defined in SDCL  58-33A-3;
(2) "Buyer's guide," an explanation which accompanies a policy;
(3) "Cash dividend," the current illustrated dividend which can be applied toward payment of the gross premium;
(4) "Exception," a provision in a policy that eliminates or does not assume coverage for a specified hazard or risk;
(5) "Generic name," a short title which is descriptive of the premium and benefit patterns of a policy or a rider;
(6) "Limitation," a provision which restricts coverage under the policy other than an exception or reduction;
(7) "Policy," a plan, certificate, contract, agreement, statement of coverage, rider, or endorsement which provides benefits or payments on an indemnity, reimbursement, service, or prepaid basis;
(8) "Reduction," a provision which reduces the amount of the benefit or payment or the period covered.
General Authority:
SDCL  58-33A-7.
Law Implemented:
SDCL  58-33-5,  58-33-6,  58-33-7,  58-33-8,  58-33A-3.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:10 - Advertisements and solicitations of health and life insurance › Section 20:06:10:02 - Advertisements and solicitations subject to regulations

Current through Register Vol. 51, page 10, July 15, 2024
This chapter applies to any health or life insurance advertisement or solicitation, unless otherwise indicated, intended for presentation, distribution, or dissemination in this state when the presentation, distribution, or dissemination is made either directly or indirectly by or on behalf of an insurer, agent, broker, or solicitor. Each insurer shall establish and maintain a system of control over the content, form, and method of dissemination of all advertisements and solicitations of its policies. The insurer is responsible for all advertisements or solicitations, regardless of who writes, creates, designs, or presents them.
This chapter also applies to any solicitation, negotiation, or procurement of health or life insurance occurring within this state by an issuer of health or life insurance contracts, including fraternal benefit societies, with the exception of those contracts outlined in SDCL  58-33A-1.
General Authority:
SDCL  58-33A-7.
Law Implemented:
SDCL  58-33-5,  58-33-6,  58-33-7,  58-33-8,  58-33A-1,  58-33A-2.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:10 - Advertisements and solicitations of health and life insurance › Section 20:06:10:02.01 - General requirements

Current through Register Vol. 51, page 10, July 15, 2024
The following are general requirements for health and life insurance advertisements and solicitations:
(1) Each insurer must maintain at its home office or principal office a complete file containing one copy of each form authorized by the insurer for use pursuant to this chapter. Each authorized form must be kept in the file for five years following the date of its last authorized use;
(2) In recommending the purchase of a policy to a consumer, an agent must determine at the time of sale that the placement of the policy is not inappropriate for the consumer. The agent shall determine the appropriateness of a recommended purchase of insurance by examination of the totality of the particular consumer's circumstances, including the following:
(a) The consumer's financial condition, i.e., if a person is on a fixed income, premium costs;
(b) The consumer's need for insurance at the time of sale, i.e., existing policies, insured's finances;
(c) The values, benefits, and costs of the consumer's existing insurance program, if any, when compared to the values, benefits, and cost of the recommended policy or policies.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:10 - Advertisements and solicitations of health and life insurance › Section 20:06:10:03 - Method of disclosure of required information

Current through Register Vol. 51, page 10, July 15, 2024
All information required to be disclosed by this chapter must be set out conspicuously and in close conjunction with the statements to which the information relates or under appropriate prominent captions. The information may not be minimized, rendered obscure, presented in an ambiguous fashion, or intermingled with the context of the advertisement so as to confuse or mislead.
If an advertisement or solicitation refers to an insurer, it shall clearly and prominently provide the full name of the insurance company being advertised or solicited. If an advertisement refers to a policy, it shall clearly and prominently describe the type of policy discussed or advertised. The name, title, or description of a policy may not deceive or mislead a person as to the true nature of the policy or the benefits provided.
General Authority:
SDCL  58-33A-7.
Law Implemented:
SDCL  58-33-5,  58-33-6,  58-33-7,  58-33A-8,  58-33A-10.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:10 - Advertisements and solicitations of health and life insurance › Section 20:06:10:04 - Form and content of health and life insurance advertisements and solicitations

Current through Register Vol. 51, page 10, July 15, 2024
Advertisements and solicitations must be truthful and not misleading in fact or by implication. Words or phrases, the meaning of which is clear only by implication or by familiarity with insurance terminology, may not be used.
A display of guaranteed and nonguaranteed benefits in an advertisement or solicitation for a life insurance policy must be identified and must be placed adjacent to each other.
General Authority:
SDCL  58-33A-7.
Law Implemented:
SDCL  58-33-5,  58-33-6; 58-33A-8, 58-33A-10.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:10 - Advertisements and solicitations of health and life insurance › Section 20:06:10:04.01 - Form and content of life insurance advertisements and solicitations

Current through Register Vol. 51, page 10, July 15, 2024
In addition to the information required in §
									20:06:10:04, the form and content requirements of life insurance advertisements and solicitations are as follows:
(1) The terms "investment plan," "founder's plan," "charter plan," "expansion plan," "profit," "profit sharing," "interest plan," "savings," "savings plan," "vanishing," "vanishing premiums," "vanishing payments," or other similar terms may not be used in connection with a life insurance policy in a context or under such circumstances or conditions that they mislead or tend to mislead a purchaser or prospective purchaser of the policy into believing that the purchaser or prospective purchaser will receive, or that it is possible that the purchaser or prospective purchaser will receive, some benefit not available to other persons or something other than a policy;
(2) The terms "financial planner," "investment advisor," "financial consultant," or "financial counseling," or other similar terms may not be used to imply that an insurance company or its agents are engaged in an advisory business in which compensation is unrelated to sales unless that is actually the case;
(3) A reference to policy dividends must include a statement that dividends are not guaranteed;
(4) An advertisement or solicitation which does not recognize the time value of money through the use of appropriate interest adjustments may not be used for comparing the cost of two or more life insurance policies. An advertisement or solicitation which does not recognize the time value of money may be used for the purpose of demonstrating the cash flow pattern of a policy if the presentation is accompanied by a clear and prominent statement disclosing that the presentation does not recognize that a dollar beginning to earn interest at some time in the future will have less value than a dollar beginning to earn interest today;
(5) If life insurance cost indexes are used, an explanation must be included to the effect that the indexes are useful only for the comparison of the relative costs of similar policies. A life insurance cost index which gives dividends or an equivalent level annual dividend must be accompanied by a clear and prominent statement disclosing that it is based on the company's current dividend scale and is not guaranteed; and
(6) A reference to a policy with variable premiums must include a clear and prominent statement disclosing the maximum annual premium and the minimum annual premium.
General Authority:
SDCL  58-33A-7.
Law Implemented:
SDCL  58-33-5,  58-33-6,  58-33-7,  58-33A-8,  58-33A-10.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:10 - Advertisements and solicitations of health and life insurance › Section 20:06:10:05 - Advertisements or solicitations of benefits payable, losses covered, or premiums payable

Current through Register Vol. 51, page 10, July 15, 2024
No health or life insurance advertisement or solicitation may omit information or use words, phrases, statements, references, or illustrations if the omission of such information or use of such words, phrases, statements, references, or illustrations misleads or deceives or tends to mislead or deceive purchasers or prospective purchasers as to the nature or extent of a policy benefit payable, loss covered, or premium payable. The fact that the policy offered is made available to a prospective insurer for inspection prior to consummation of the sale or that an offer is made to refund the premium if the purchaser is not satisfied does not remedy omissions or deceptive or misleading statements.
An advertisement or solicitation of a direct response health or life insurance product may not imply that because "no insurance agent will call and no commissions will be paid to agents," it is "a low cost plan" or use similar words or phrases.
General Authority:
SDCL  58-33A-7.
Law Implemented:
SDCL  58-33-5,  58-33-6,  58-33-7,  58-33A-8,  58-33A-10.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:10 - Advertisements and solicitations of health and life insurance › Section 20:06:10:06 - Exceptions, reductions, and limitations

Current through Register Vol. 51, page 10, July 15, 2024
The exceptions, reductions, and limitations permitted are:
(1) When an advertisement or solicitation refers to either a dollar amount, or a period of time for which any benefit is payable, or the cost of the policy, or specific policy benefit, or the loss for which such benefit is payable, it shall also disclose those exceptions, reductions, and limitations affecting the basic provisions of the policy;
(2) If a policy contains a waiting, elimination, probationary, or similar time period between the effective date of the policy and the effective date of coverage under the policy or a time period between the date a loss occurs and the date benefits begin to accrue for such loss, an advertisement or solicitation which is subject to the requirements of § 20:06:10:06  shall disclose the existence of such periods;
(3) An advertisement or solicitation may not use the words "only", "just", "merely", "minimum" or similar words or phrases to describe the applicability of any exceptions and reductions, such as: "This policy is subject to the following minimum exceptions and reductions";
(4) A solicitation may not contain descriptions of a policy limitation, exception, or reduction worded in a positive manner to imply that it is a benefit, such as describing a waiting period as a "benefit builder" or stating "even preexisting conditions are covered after two years." Words and phrases used in a solicitation to describe such policy limitations, exceptions, and reductions must fairly and accurately describe the negative features of such limitations, exceptions, and reductions of the policy offered.
General Authority:
SDCL  58-33A-7.
Law Implemented:
SDCL  58-33-5,  58-33-6,  58-33-7,  58-33A-8,  58-33A-10.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:10 - Advertisements and solicitations of health and life insurance › Section 20:06:10:07 - Preexisting conditions in health insurance policies

Current through Register Vol. 51, page 10, July 15, 2024
Preexisting conditions in health insurance policies are treated as follows:
(1) An advertisement or solicitation of health insurance which is subject to the requirements of this chapter shall, in negative terms, disclose the extent to which any loss is not covered if the cause of the loss is traceable to a condition existing prior to the effective date of the policy. The term "preexisting condition" without a definition or description may not be used;
(2) If a policy does not cover losses resulting from preexisting conditions, no advertisement or solicitation of the policy may state or imply that the applicant's physical condition or medical history will not affect the issuance of the policy or payment of a claim under it. This subdivision prohibits the use of the phrase "no medical examination required" and similar phrases, but does not prohibit explaining "automatic issue." If an insurer requires a medical examination for a specified policy, the advertisement or solicitation must disclose that a medical examination is required;
(3) If an advertisement or solicitation contains an application form to be completed by the applicant and returned by mail for a direct response insurance product, the application form must contain a question or statement which reflects the preexisting condition provisions of the policy immediately preceding the blank space for the applicant's signature. The question or statement must be substantially as follows:
(a) "Do you understand that this policy will not pay benefits during the first _____ year(s) after the issue date for a preexisting medical condition which you now have or have had in the past?"
_____YES; or
(b) "I understand that the policy applied for will not pay benefits for any loss incurred during the first _____ year(s) after the issue date because of a preexisting medical condition which I now have or have had in the past."
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:10 - Advertisements and solicitations of health and life insurance › Section 20:06:10:08 - Necessity for disclosing policy provisions relating to renewability, cancelability, and termination

Current through Register Vol. 51, page 10, July 15, 2024
When an advertisement or solicitation refers to either a dollar amount or a period of time for which any benefit is payable, or the cost of the policy, or specific policy benefit, or the loss for which such benefit is payable, it shall disclose general policy exceptions, reductions, and limitations, in a manner which does not minimize or render obscure the qualifying conditions.
General Authority:
SDCL  58-33A-7.
Law Implemented:
SDCL  58-33-5,  58-33-6,  58-33-7,  58-33A-8,  58-33A-10.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:10 - Advertisements and solicitations of health and life insurance › Section 20:06:10:08.01 - Health insurance advertisement or solicitation rate disclosures

Current through Register Vol. 51, page 10, July 15, 2024
Unless the disclosure as required by §
									20:06:10:08.02 is provided, no individual or group health insurance policy or certificate may in its advertisements or solicitations include statements that directly or indirectly indicate that:
(1) Premiums or rates do not increase with age;
(2) Premiums or rates do not increase because of health conditions; or
(3) An insured will not be singled out for a rate or premium increase.
Policies for which no rate increase may be applied for any reason are exempt from the provisions of this section.
General Authority:
SDCL  58-33A-7.
Law Implemented:
SDCL  58-33-5,  58-33-6,  58-33A-2,  58-33A-8.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:10 - Advertisements and solicitations of health and life insurance › Section 20:06:10:08.02 - Health insurance advertisement or solicitation disclosure statements

Current through Register Vol. 51, page 10, July 15, 2024
Any health insurance advertisement or solicitation that includes a statement for which disclosure is required pursuant to §
									20:06:10:08.01 must contain in close proximity to any such statement and in an at least as conspicuous a form as the statement itself, the following disclosure or an alternative as may be approved by the director:
Premiums or rates may increase for other reasons such as an increase applicable to all persons covered under this type of policy or certificate in this state.
Failure to comply with any provision of this section creates a presumption that an advertisement or solicitation is deceptive, misrepresentative, or misleading.
General Authority:
SDCL  58-33A-7(13)(14)(15).
Law Implemented:
SDCL  58-33-5,  58-33-6,  58-33A-2,  58-33A-8.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:10 - Advertisements and solicitations of health and life insurance › Section 20:06:10:08.03 - Short term major medical advertising disclosure

Current through Register Vol. 51, page 10, July 15, 2024
No advertisement or solicitation of short term major medical insurance may be used in this state unless the following disclosure statement is prominently displayed in that advertisement or solicitation: "This short term major medical policy is nonrenewable/renewable."
No short term major medical policy may be sold in this state unless the following separate disclosure in bold 14 point type is signed and acknowledged by the applicant: "This short term major medical policy is nonrenewable/renewable. The duration of this policy is number of months. This policy has exclusions such as preexisting conditions and does not provide all coverage as provided for by the Patient Protection and Affordable Care Act."
If the application is taken by an agent, the agent is responsible for forwarding this signed disclosure to the insurer. For direct marketed solicitations, the insurer must provide this disclosure with the application. No insurer may issue a short term major medical policy unless a signed disclosure complaint with this section is received. If the transaction involves a replacement, the agent or, if forwarded by the agent to the insurer, the insurer must keep documentation in accordance with SDCL  58-1-26 that subdivision 20:06:10:08.02 has been complied with.
General Authority:
SDCL  58-33A-7(14).
Law Implemented:
SDCL  58-33A-2,  58-33A-8,  58-33A-10.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:10 - Advertisements and solicitations of health and life insurance › Section 20:06:10:09 - Testimonials or endorsements by third parties

Current through Register Vol. 51, page 10, July 15, 2024
Requirements for testimonials or endorsements by third parties are as follows:
(1) Testimonials used in advertisements or solicitations must be genuine, represent the current opinion of the author, be applicable to the policy advertised, and be accurately reproduced. The insurer, in using a testimonial, makes as its own all of the statements contained in it;
(2) If the person making a testimonial, an endorsement, or an appraisal has a financial interest in the insurer or a related entity as a stockholder, director, officer, employee, or otherwise, that fact must be disclosed in the advertisement or solicitation. If a person is compensated for making a testimonial, endorsement, or appraisal, that fact must be disclosed in the advertisement or solicitation by language substantially as follows: "Paid Endorsement." This section does not require disclosure of union scale wages required by union rules if the payment is actually made at the union scale rate for television or radio performances. The payment of substantial amounts, directly or indirectly, for "travel and entertainment" for filming or recording of television or radio advertisements remove the filming or recording from the category of an unsolicited testimonial and require disclosure of the compensation;
(3) An advertisement or solicitation may not state or imply that an insurer or a policy has been approved or endorsed by an individual, group of individuals, society, association, or other organizations unless that is the fact and unless any proprietary relationship between an organization and the insurer is disclosed. If the entity making the endorsement or testimonial has been formed by the insurer or is owned or controlled by the insurer or the person or persons who own or control the insurer, that fact must be disclosed in the advertisement or solicitation;
(4) If a testimonial refers to benefits received under a policy, the specific claim data, including claim number, date of loss, and other pertinent information must be retained by the insurer for inspection for five years.
General Authority:
SDCL  58-33A-7.
Law Implemented:
SDCL  58-1-26,  58-3-1,  58-33-5,  58-33-6,  58-33-7,  58-33A-8,  58-33A-10.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:10 - Advertisements and solicitations of health and life insurance › Section 20:06:10:10 - Use of statistics

Current through Register Vol. 51, page 10, July 15, 2024
Statistics shall be used as follows:
(1) An advertisement or solicitation relating to the dollar amounts of claims paid, the number of persons insured, or similar statistical information relating to any insurer or policy may not use irrelevant facts, and may not be used unless it accurately reflects all of the relevant facts. Such an advertisement or solicitation may not imply that such statistics are derived from the policy advertised unless such is the fact, and when applicable to other policies or plans shall specifically so state;
(2) An advertisement or solicitation may not represent or imply that claim settlements by the insurer are "liberal" or "generous", or use words of similar import, or that claim settlements are or will be beyond the actual terms of the contract. An unusual amount paid for a unique claim for the policy advertised is misleading and may not be used;
(3) The source of any statistics used in an advertisement or solicitation shall be identified in such advertisement or solicitation.
General Authority:
SDCL  58-33A-7.
Law Implemented:
SDCL  58-33-5,  58-33-6,  58-33-7,  58-33A-8,  58-33A-10.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:10 - Advertisements and solicitations of health and life insurance › Section 20:06:10:11 - Identification of plan or number of policies

Current through Register Vol. 51, page 10, July 15, 2024
When a choice of the amount of benefits is referred to, an advertisement or solicitation shall disclose that the amount of benefits provided depends upon the plan selected and that the premium will vary with the amount of the benefits selected. When an advertisement or solicitation refers to various benefits which may be contained in two or more policies, other than group master policies, the advertisement or solicitation shall disclose that such benefits are provided only through a combination of such policies.
General Authority:
SDCL  58-33A-7.
Law Implemented:
SDCL  58-33-5,  58-33-6,  58-33-7,  58-33A-8,  58-33A-10.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:10 - Advertisements and solicitations of health and life insurance › Section 20:06:10:12 - Disparaging comparisons and statements

Current through Register Vol. 51, page 10, July 15, 2024
An advertisement or solicitation may not directly or indirectly make unfair or incomplete comparisons of policies or benefits or comparisons of noncomparable policies of other insurers, and may not disparage competitors, their policies, services or business methods, and may not disparage or unfairly minimize competing methods of marketing insurance.
General Authority:
SDCL  58-33A-7.
Law Implemented:
SDCL  58-33-6,  58-33-7,  58-33-8,  58-33-10,  58-33A-8,  58-33A-10.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:10 - Advertisements and solicitations of health and life insurance › Section 20:06:10:13 - Jurisdictional licensing and status of insurer

Current through Register Vol. 51, page 10, July 15, 2024
An advertisement which is intended to be seen or heard beyond the limits of the jurisdiction in which the insurer is licensed may not imply licensing beyond those limits. An advertisement may not create the impression directly or indirectly that the insurer, its financial condition or status, the payment of its claims, or the merits, desirability, or advisability of its policy forms or kinds of plans of insurance are approved, endorsed, or accredited by a division or agency of local government, the state, or the federal government.
General Authority:
SDCL  58-33A-7.
Law Implemented:
SDCL  58-33-5,  58-33-6,  58-33-7,  58-33A-8,  58-33A-10.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:10 - Advertisements and solicitations of health and life insurance › Section 20:06:10:14 - Identity of insurer and agent

Current through Register Vol. 51, page 10, July 15, 2024
Health and life insurers or agents must be identified in advertisements or solicitations as follows:
(1) The name of the actual insurer or the agent, if any, and the form number of policies specifically advertised must be clearly identified in all advertisements or solicitations. An advertisement or solicitation may not use a trade name, insurance group designation, name of the parent company of the insurer, name of a particular division of the insurer, service mark, slogan, symbol, or other device which would mislead or deceive or tend to mislead or deceive as to the true identity of the insurer;
(2) No advertisement or solicitation may use any combination of words, symbols, or physical materials which by their content, phraseology, shape, color, or other characteristics are so similar to combinations of words, symbols, or physical materials used by agencies of the federal government, this state, or local government or confuse or mislead prospective insured's into believing that the advertisement or solicitation is in some manner connected with an agency of local government, the state, or the federal government;
(3) An agent shall inform the prospective purchaser, before beginning a health or life insurance sales presentation, that the agent is acting as a health or life insurance agent and shall identify, in writing, the agent and the complete name of the insurer which the agent is representing. An agent's business card is acceptable if it complies with this subdivision and this chapter. In sales situations in which an agent is not involved, the insurer shall inform the prospective purchaser of its complete name in writing;
(4) An advertisement or solicitation may not create the impression directly or indirectly that the insurer, its financial condition or status, or the payment of its claims or the merits, desirability, or advisability of its policy forms or kinds of plans of insurance are approved, endorsed, or accredited by a division or agency of a municipality, the state, or the federal government.
General Authority:
SDCL  58-33A-7.
Law Implemented:
SDCL  58-33-5,  58-33-6,  58-33-7,  58-33A-8,  58-33A-10.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:10 - Advertisements and solicitations of health and life insurance › Section 20:06:10:15 - Group or quasi-group implications

Current through Register Vol. 51, page 10, July 15, 2024
An advertisement or solicitation of a particular policy may not state or imply that prospective insured's become group or quasi-group members covered under a group policy and as such enjoy special rates or underwriting privileges, unless such is the fact.
General Authority:
SDCL  58-33A-7.
Law Implemented:
SDCL  58-33-5,  58-33-6,  58-33-7, 58-33-28,  58-33A-8,  58-33A-10.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:10 - Advertisements and solicitations of health and life insurance › Section 20:06:10:16 - Introductory, initial, or special offers

Current through Register Vol. 51, page 10, July 15, 2024
Requirements for introductory, initial, or special offers for health and life insurance are as follows:
(1) An advertisement or solicitation of an individual policy may not directly or by implication represent that a contract or combination of contracts is an introductory, initial, or special offer; that applicants will receive substantial advantages not available at a later date; or that the offer is available only to a specified group of individuals, unless that is the fact. An advertisement or solicitation may not contain words describing an enrollment period as "special" or "limited" or use similar words or phrases when the insurer uses such enrollment periods as the usual method of advertising health or life insurance;
(2) An advertisement or solicitation may not state or imply that only a specific number of policies will be sold or that a time is fixed for the discontinuance of the sale of the particular policy advertised because of special advantages available in the policy unless that is the fact;
(3) Different terms of renewability, an increase or decrease in the dollar amounts of benefits, or an increase or decrease in an elimination period for another policy are not sufficient to constitute the product being offered as a different product eligible for concurrent or overlapping enrollment periods;
(4) An advertisement or solicitation may not offer a policy which utilizes a reduced initial premium rate in a manner which overemphasizes the availability and the amount of the initial reduced premium. If an insurer charges an initial premium that differs in amount from the amount of the renewal premium payable on the same mode, the advertisement or solicitation may not display the amount of the reduced initial premium either more frequently or more prominently than the renewal premium, and both the initial reduced premium and the renewal premium must be stated in juxtaposition in each portion of the advertisement or solicitation where the initial reduced premium appears;
(5) Health advertisements or solicitations may not include special awards, such as a "safe driver's award," in connection with advertisements or solicitations of accident or accident and sickness insurance.
General Authority:
SDCL  58-33A-7.
Law Implemented:
SDCL  58-33-5,  58-33-6,  58-33-7,  58-33A-8,  58-33A-10.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:10 - Advertisements and solicitations of health and life insurance › Section 20:06:10:17 - Statements about an insurer

Current through Register Vol. 51, page 10, July 15, 2024
An advertisement or solicitation may not contain statements which are untrue in fact, or by implication misleading, with respect to the assets, corporate structure, financial standing, age, or relative position of the insurer in the insurance business. An advertisement or solicitation may not contain a recommendation by a commercial rating system unless it clearly indicates the purpose of the recommendation and the limitations of the scope and extent of the recommendation.
General Authority:
SDCL  58-33A-7.
Law Implemented:
SDCL  58-33-7,  58-33-8,  58-33-10,  58-33A-8,  58-33A-10.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:10 - Advertisements and solicitations of health and life insurance › Section 20:06:10:20 - Penalty

Current through Register Vol. 51, page 10, July 15, 2024
Any insurer failing to comply with the requirements of this chapter shall file for approval, prior to its use, any advertisement or solicitation used in connection with the solicitation of a contract of insurance in the state of South Dakota. The standard for approval is this chapter. Unless disapproved within 30 days, the filing shall be deemed approved.
General Authority:
SDCL  58-33A-7.
Law Implemented:
SDCL 58-33-l, 58-33-2, 58-33-5, 58-33-6, 58-33-7, 58-33-8, 58-33-38, 58-33A-11, 58-33A-12.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:10 - Advertisements and solicitations of health and life insurance › Section 20:06:10:21 - Disclosure requirements

Current through Register Vol. 51, page 10, July 15, 2024
The disclosure requirements for life insurance policies are as follows:
(1) The buyer's guide and any policy summary, shall be provided either prior to accepting an applicant's initial premium or premium deposit, or be delivered with the policy or prior to delivery of the policy. The policy summary must be provided to prospective purchasers only where the insurer has identified the policy form as one that will not be marketed with an illustration. The policy summary shall show guarantees only; and
(2) If a solicitation refers to either a dollar amount or a period of time for which a benefit is payable, to the cost of the policy, to a specific policy benefit, or to the loss for which the benefit is payable, it must disclose the provisions relating to renewal, cancellation, termination and modification of benefits; losses covered; or premiums, because of age or for other reasons in a manner which does not minimize or render obscure the qualifying conditions.
General Authority:
SDCL  58-33A-7.
Law Implemented:
SDCL  58-33-5,  58-33-6,  58-33-7.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:10 - Advertisements and solicitations of health and life insurance › Section 20:06:10:22 - Equivalent level annual dividend of a life insurance policy

Current through Register Vol. 51, page 10, July 15, 2024
The equivalent level annual dividend of a life insurance policy shall be calculated as follows:
(1) Accumulate the annual cash dividends at five percent interest compounded annually to the end of the tenth and twentieth policy years;
(2) Divide each accumulation in subdivision 20:06:10:22(1) by an interest factor that converts it into one equivalent level annual amount that, if paid at the beginning of each year, would accrue to the values in subdivision 20:06:10:22(1) over 10 or 20 years. If the period is 10 years, the factor is 13.207; and if the period is 20 years, the factor is 34.719; and
(3) Divide the results of subdivision 20:06:10:22(2) by the number of thousands of the equivalent level death benefit to arrive at the equivalent level annual dividend.
General Authority:
SDCL  58-33A-7.
Law Implemented:
SDCL  58-33-5,  58-33-6.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:10 - Advertisements and solicitations of health and life insurance › Section 20:06:10:23 - Equivalent level death benefit of a life insurance policy

Current through Register Vol. 51, page 10, July 15, 2024
The equivalent level death benefit for a life insurance policy or term life insurance rider shall be calculated as follows:
(1) Accumulate the guaranteed amount payable upon death, regardless of the cause of death, at the beginning of each policy year for 10 and 20 years at five percent interest compounded annually to the end of the tenth and twentieth policy years respectively; and
(2) Divide each accumulation of subdivision 20:06:14:06(1) by an interest factor that converts it into one equivalent level annual amount that, if paid at the beginning of each year, would accrue to the value in subdivision 20:06:10:23(1) over 10 or 20 years. If the period is 10 years, the factor is 13.207; and if the period is 20 years, the factor is 34.719.
General Authority:
SDCL  58-33A-7.
Law Implemented:
SDCL  58-33-5,  58-33-6.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:10 - Advertisements and solicitations of health and life insurance › Section 20:06:10:24 - Life insurance surrender cost index

Current through Register Vol. 51, page 10, July 15, 2024
The life insurance surrender cost index shall be calculated as follows:
(1) Determine any guaranteed cash surrender value available at the end of the tenth and twentieth policy years;
(2) For participating policies, add any terminal dividend payable upon surrender to the accumulation of the annual cash dividends at 5 percent interest compounded annually to the end of the period selected and add this sum to the amount determined in subdivision 20:06:10:24(1).
(3) Divide the result of subdivision 20:06:10:24(2) {subdivision 20:06:10:24(1) for guaranteed cost policies} by an interest factor that converts it into an equivalent level annual amount that, if paid at the beginning of each year, would accrue to the value in subdivision 20:06:10:24(2) {subdivision 20:06:10:24(1) for guaranteed cost policies} over 10 to 20 years. If the period is 10 years, the factor is 13.207 and if the period is 20 years, the factor is 34.719;
(4) Determine the equivalent level premium by accumulating each annual premium payable for the basic policy or rider at 5 percent interest compounded annually to the end of 10 or 20 years and dividing the results by 13.207 or 34.719, respectively. This amount is the annual premium payable for a level premium plan;
(5) Subtract the result of subdivision 20:06:10:24(3) from subdivision 20:06:10:24(4); and
(6) Divide the results of subdivision 20:06:10:24(5) by the number of thousands of the equivalent level death benefit to arrive at the life insurance surrender cost index.
General Authority:
SDCL  58-33A-7.
Law Implemented:
SDCL  58-33-5,  58-33-6.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:10 - Advertisements and solicitations of health and life insurance › Section 20:06:10:25 - Life insurance net payment cost index

Current through Register Vol. 51, page 10, July 15, 2024
The net payment cost index is calculated in the same manner as the comparable life insurance surrender cost index except that the cash surrender value and any terminal dividend are set at zero.
General Authority:
SDCL  58-33A-7.
Law Implemented:
SDCL  58-33-5,  58-33-6.