reglab/statecodes huggingface dataset:
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:06 - Credit life, health, and unemployment insurance › Section 20:06:06:08 - Filing of experience information

Current through Register Vol. 51, page 10, July 15, 2024
Insurers doing credit life or credit health insurance business, or both, in this state shall annually file with the division a report of its credit life insurance experience and credit health insurance experience on the following form prescribed by the director:
CREDIT LIFE INSURANCE EXPERIENCE EXHIBIT
All Credit Life Insurance Written Under the N.A.I.C.
Model Credit Insurance Bill in the State of South Dakota
Experience of Calendar year 19__ or of
Policy Years Ending in 19__ (Indicate Which)
To be filed on or before June 30
I. Single Premium Paid in Advance, Reducing Term
A. Other than Commercial and Savings Banks
a. Cash Loans (Small Loans, Industrial Bank Loans, etc.)
1. Mean insurance in force* $_____
2. Losses paid _____
3. Increase (+) or decrease (-) in loss reserves,
including incurred but unreported _____
4. Losses incurred (Item 2 + Item 3) _____
5. Losses per $100.00 mean insurance in force
(100 X Item 4 -:- Item 1) _____
6. Losses per $100.00 initial amount on basis of 12 months policy (13/24 X Item 5) _____
7. Premium rate per $100.00 initial amount on basis of 12 months policy:
(a) minimum ____
(b) maximum ____
(c) average, weighted by amounts of mean insurance
in force _____
8. Eligibility requirements (explain) (Footnote a) _____ _____
9. Underwriting limitations (explain) (Footnote b) _____ _____
10. Other limits on coverage (explain) _____ _____
11. Loss ratio (Item 6 -:- Item 7(c)) _____
______________________________
Name
______________________________
Company (Please Print)
_____
*Mean insurance in force after appropriate deduction for reducing term provision and terminations.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:06 - Credit life, health, and unemployment insurance › Section 20:06:06:09 - Minimum benefits of credit unemployment insurance policies

Current through Register Vol. 51, page 10, July 15, 2024
A credit unemployment insurance policy must contain coverage for unemployment for any reason except the following, which may be excluded:
(1) Voluntary forfeiture of salary, wage, or other employment income;
(2) Resignation;
(3) Retirement;
(4) General strike;
(5) Illegal walk out;
(6) War;
(7) Separation from the military;
(8) Willful misconduct or criminal misconduct or unlawful behavior; or
(9) Disability caused by injury, sickness, or pregnancy.
For unemployment insurance that provides for a monthly benefit in the event of unemployment, benefits must start after a waiting period of not longer than 30 days. The coverage must be retroactive to the first day of unemployment and must have a maximum benefit period that is no shorter than six months.
General Authority:
SDCL  58-19-34(6).
Law Implemented:
SDCL  58-19-26.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:06 - Credit life, health, and unemployment insurance › Section 20:06:06:10 - Limited eligibility requirements for credit unemployment insurance policies

Current through Register Vol. 51, page 10, July 15, 2024
A credit unemployment insurance policy may not contain eligibility requirements more restrictive than the following:
(1) Excluding the following persons for coverage:
(a) Self-employed individuals;
(b) Workers in seasonal or temporary jobs, defined as jobs designed to last six consecutive months or less;
(c) Debtors who have been notified either orally or in writing of any layoff or of employment termination immediately or within the next 60 days; or
(d) Debtors who have been notified either orally or in writing of any layoff or of employment termination prior to effective date of coverage;
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:06 - Credit life, health, and unemployment insurance › Section 20:06:06:11 - Disclosure requirements

Current through Register Vol. 51, page 10, July 15, 2024
Any application or other document disclosing the coverage provided for under credit life, credit health, credit property, or credit unemployment insurance shall clearly and prominently disclose the amount, type, and length of coverage provided or being applied for. If the credit insurance is associated with a loan that contains a balloon payment, the application and other documents provided to the insured shall clearly and prominently disclose whether or not the balloon payment is covered by the credit insurance. If the balloon payment is not covered, the mere listing of the number of months or other time frames for which the credit insurance provides coverage is insufficient disclosure. Separate and prominent disclosure that the balloon payment is not covered must be provided in any such application or other coverage or disclosure document. Examples of documents which do not comply with this section are found in Appendices A and B. This section applies to all applications taken and to any policy, certificate, or contract issued on or after September 1, 2006.
General Authority:
SDCL  58-19-34(9).
Law Implemented:
SDCL  58-19-26,  58-19-44,  58-19-50.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:07 - Variable annuity contracts › Section 20:06:07:01 - Definitions

Current through Register Vol. 51, page 10, July 15, 2024
Terms used in this chapter mean:
(1) "Contract on a variable basis" or "variable contract," a policy or contract which provides for insurance or annuity benefits which may vary according to the investment experience of any separate account or accounts maintained by the insurer for the policy or contract, as provided in SDCL 58-28;
(2) "NAIC," National Association of Insurance Commissioners.
General Authority:
SDCL  58-28-31.
Law Implemented:
SDCL  58-28-31.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:07 - Variable annuity contracts › Section 20:06:07:02 - Qualification of insurance companies to issue variable contracts

Current through Register Vol. 51, page 10, July 15, 2024
No company may deliver or issue for delivery variable contracts within this state unless it meets the following requirements:
(1) It is licensed or organized to do a life insurance or annuity business in this state and it is authorized to sell variable contracts in its state of domicile; and
(2) The director is satisfied that its condition or method of operation in connection with the issuance of such contracts will not render its operation hazardous to the public or its policyholders in this state. In this connection, the director shall consider among other things:
(a) The history and financial condition of the company;
(b) The character, responsibility, and fitness of the officers and directors of the company; and
(c) The law and regulation under which the company is authorized in the state of domicile to issue variable contracts; and
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:07 - Variable annuity contracts › Section 20:06:07:03 - Separate accounts

Current through Register Vol. 51, page 10, July 15, 2024
A domestic company issuing variable contracts shall establish one or more separate accounts pursuant to SDCL 58-28 subject to the following requirements:
(1) Investments shall be made as follows:
(a) Amounts allocated to any separate account and the accumulation on that account may be invested and reinvested without regard to any requirements or limitations prescribed by SDCL 58-27 governing the investments of life insurance companies. However, to the extent that the company's reserve liability with regard to benefits guaranteed as to dollar amount and duration and funds guaranteed as to principal amount or stated rate of interest is maintained in a separate account, a portion of the assets of that separate account at least equal to the reserve liability shall be invested, unless the director otherwise approves, in accordance with SDCL 58-27 governing the investments of life insurance companies. The investments in such a separate account or accounts may not be taken into account in applying the investment limitations applicable to the investments of the company;
(b) With respect to 75 percent of the market value of the total assets in a separate account, a company may not purchase or otherwise acquire the securities of any issuer, other than securities issued or guaranteed as to principal or interest by the United States, if immediately after the purchase or acquisition the market value of the investment, together with prior investments of the separate account in that security taken at market, would exceed 10 percent of the market value of the assets of the separate account. The director may waive this limitation if, in the director's opinion, the waiver will not render the operation of the separate account hazardous to the public or the policyholders in this state;
(c) A company, whether for its separate accounts or otherwise, may not invest in the voting securities of a single issuer in an amount in excess of ten percent of the total issued and outstanding voting securities of the issuer. This does not apply to securities held in separate accounts, the voting rights in which are exercisable only in accordance with instructions from persons having interests in the accounts;
(d) The limitations provided in subsections (b) and (c) of this subdivision do not apply to the investment of a separate account in the securities of an investment company registered under the Investment Company Act of 1940, provided that the investments of the investment company comply in substance with subsections (b) and (c) of this subdivision;
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:07 - Variable annuity contracts › Section 20:06:07:04 - Filing of contracts

Current through Register Vol. 51, page 10, July 15, 2024
The filing requirements applicable to variable contracts are those filing requirements otherwise applicable under existing statutes and regulations of this state governing individual and group life insurance and annuity contract form filings.
General Authority:
SDCL  58-28-31.
Law Implemented:
SDCL  58-11-12,  58-28-30,  58-28-31.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:07 - Variable annuity contracts › Section 20:06:07:05 - Contracts providing for variable benefits

Current through Register Vol. 51, page 10, July 15, 2024
Features required are as follows:
(1) Any variable contract providing benefits payable in variable amounts delivered or issued for delivery in this state shall contain a statement of the essential features of the procedures to be followed by the insurance company in determining the dollar amount of the variable benefits. Any such contract, including a group contract and any certificate issued under it, shall state that the dollar amount will vary to reflect investment experience. The contract shall contain on its first page a clear statement to the effect that the benefits under it are on a variable basis;
(2) Illustrations of benefits payable under any contract providing benefits payable in variable amounts shall not include projections of past investment experience into the future or attempted predictions of future investment experience. Nothing contained in this subdivision is intended to prohibit use of hypothetical assumed rates of return to illustrate possible levels of annuity payments;
(3) No individual variable annuity contract calling for the payment of periodic stipulated payments may be delivered or issued for delivery in this state unless it contains in substance the following provisions or provisions which in the opinion of the director are more favorable to the holders of such contracts:
(a) A provision that there shall be a period of grace of 30 days or of one month, within which any stipulated payment to the insurer falling due after the first may be made, during which period of grace the contract shall continue in force. The contract may include a statement of the basis for determining the date as of which any such payment received during the period of grace shall be applied to produce the values under the contract arising from the payment;
(b) A provision that, at any time within one year from the date of default in making periodic stipulated payments to the insurer during the life of the annuitant and unless the cash surrender value has been paid, the contract may be reinstated upon payment to the insurer of the overdue payments as required by the contract and of all indebtedness to the insurer on the contract, including interest. The contract may include a statement of the basis for determining the date as of which the amount to cover the overdue payments and indebtedness shall be applied to produce the values under the contract arising from them;
(c) A provision specifying the options available in the event of default in a periodic stipulated payment. Such options may include an option to surrender the contract for a cash value as determined by the contract and shall include an option to receive a paid-up annuity if the contract is not surrendered for cash. The amount of the paid-up annuity shall be determined by applying the value of the contract at the annuity commencement date in accordance with the terms of the contract;
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:07 - Variable annuity contracts › Section 20:06:07:06 - Required reports

Current through Register Vol. 51, page 10, July 15, 2024
Reports required are as follows:
(1) Any company issuing individual variable contracts providing benefits in variable amounts shall mail to the contract holder at least once in each second and succeeding contract year, at the address last known to the company, a statement or statements reporting the investments held in the separate account and, in the case of contracts under which payments have not yet commenced, a statement as of a date not more than four months previous to the date of mailing. This statement shall contain the following:
(a) The number of accumulation units credited to such contracts and the dollar value of a unit; or
(b) The value of the contract holder's account;
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:07 - Variable annuity contracts › Section 20:06:07:07 - Foreign companies

Current through Register Vol. 51, page 10, July 15, 2024
If the law or regulation in the place of domicile of a foreign company provides a degree of protection to the policyholders and the public which is substantially equal to that provided by this chapter, the director, in the director's discretion, may consider compliance with that law or regulation as compliance with this chapter.
General Authority:
SDCL  58-28-31.
Law Implemented:
SDCL  58-28-25,  58-28-26.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:07 - Variable annuity contracts › Section 20:06:07:08 - Variable contract agent license required prior to solicitation or sale

Current through Register Vol. 51, page 10, July 15, 2024
Before a person may sell a variable contract, the person must meet the following requirements:
(1) Have passed the life insurance examination and be licensed as a life insurance agent under SDCL Title 58;
(2) Have passed either a series 6, series 7, series 63, or series 66 examination given by the Financial Industry Regulatory Authority; and
(3) Have filed a form approved by the director requesting to have variable annuities, variable life, or both, added as lines to the license.
A nonresident agent must also submit an original home state certification which is not more than 90 days old.
General Authority:
SDCL  58-28-31
Law Implemented:
SDCL  58-28-31
Policy forms Filing with and approval by the director, SDCL  58-11-11.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:07 - Variable annuity contracts › Section 20:06:07:18 - Licensees required to report to director

Current through Register Vol. 51, page 10, July 15, 2024
A person licensed in this state to sell variable contracts shall immediately report the following to the director:
(1) Any suspension or revocation of the licensee's variable contract agent's license or life insurance agent's license in any other state or territory of the United States;
(2) The imposition of any disciplinary sanction, including suspension or expulsion from membership and suspension, revocation, or denial of registration, imposed upon the licensee by any national securities exchange or national securities association or any federal, state, or territorial agency with jurisdiction over securities or variable contracts;
(3) Any judgment or injunction entered against the licensee on the basis of conduct deemed to have involved fraud, deceit, misrepresentation, or violation of any insurance or securities law or regulation.
General Authority:
SDCL  58-28-31.
Law Implemented:
SDCL  58-28-31.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:07 - Variable annuity contracts › Section 20:06:07:19 - Rejection of applications - Suspension or revocation of license - Renewals

Current through Register Vol. 51, page 10, July 15, 2024
The director may reject any application or suspend, revoke, or refuse to renew any variable contract agent's license upon any ground that would bar the applicant or the agent from being licensed to sell life insurance contracts in this state. The rules governing any proceeding relating to the suspension or revocation of a life insurance agent's license shall also govern any proceeding for suspension or revocation of a variable contract agent's license.
Renewal of a variable contract agent's license shall follow the same procedure established for renewal of an agent's license to sell life insurance contracts in this state.
General Authority:
SDCL  58-28-31.
Law Implemented:
SDCL  58-28-31.
Suspension, revocation, or refusal of license -- Notice and hearing -- Grounds, SDCL 58-30-106; Renewal of license -- Fee -- Form of request, SDCL  58-30-74.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:08 - Life insurance and annuities › Section 20:06:08:42 - Uniform forms for cash surrender, maximum policy loan, and 1035 exchange

Current through Register Vol. 51, page 10, July 15, 2024
For the purposes of SDCL  58-15-82 the following are the uniform forms:
(1) For a maximum policy loan, Appendix A;
(2) For cash surrender, Appendix B; and
(3) For a 1035 exchange, Appendix C.
General Authority:
SDCL  58-15-82.
Law Implemented:
SDCL  58-15-82.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:08 - Life insurance and annuities › Section 20:06:08:43 - Permissible exclusions

Current through Register Vol. 51, page 10, July 15, 2024
A life insurance policy may exclude the following:
(1) Foreign travel outside the North American continent if the policy specifically lists the countries for which benefits are excluded when traveling thereto. This exclusion may not include any state, territory, or possession of the United States. The foreign travel exclusion is only permissible for policies with a face value of at least 2 million dollars or for policyholders who qualify as an accredited investor pursuant to 17 C.F.R. §
										230.501 (April 1, 2003) or for policyholders who qualify as a qualified purchaser pursuant to 15 U.S.C. §
										80a-2(a) (51); and
(2) Death as a result of the insured committing a felony.
General Authority:
SDCL  58-15-45.
Law Implemented:
SDCL  58-15-45.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:08 - Life insurance and annuities › Section 20:06:08:43.01 - Permissible exclusions for accidental death coverage

Current through Register Vol. 51, page 10, July 15, 2024
For policies or riders that limit coverage to accidental death, in addition to the exclusions listed in SDCL  58-15-45, the following may be excluded:
(1) Suicide, if sane;
(2) Intentional self-injury; and
(3) Death due to sickness or disease.
General Authority:
SDCL  58-15-45.
Law Implemented:
SDCL  58-15-45.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:08 - Life insurance and annuities › Section 20:06:08:43.02 - Permissible exclusions for accidental death and dismemberment policies issued as a supplemental benefit

Current through Register Vol. 51, page 10, July 15, 2024
An accidental death and dismemberment policy that is issued as a supplemental benefit with a life insurance policy may exclude, in addition to those excluded in SDCL  58-15-45, death or loss as follows:
(1) Death caused directly or indirectly by disease or infirmity of body, or medical or surgical treatment for such disease or infirmity;
(2) An infection not occurring as a direct result or consequence of the accidental bodily injury;
(3) Caused by any device used for testing or experimental purposes by or for any military authority or used for travel beyond the earth's atmosphere;
(4) Caused directly or indirectly by active participation in a riot, insurrection, or terrorist activity. An exclusion for riot or insurrection is limited to instigators and does not include civil commotion, disorder, injury as an innocent bystander, or injury for self defense;
(5) Occurring while the proposed insured is incarcerated if the incarceration is during a period of legal incarceration in a penal or correctional institution of more than seven days or during a period of legal detainment of more than seven days;
(6) Caused directly or indirectly by committing a felony;
(7) Caused directly or indirectly by riding or driving on land, air, or water if participating in a speed or endurance contest;
(8) Caused directly or indirectly by bungee jumping or rock or mountain climbing; or
(9) Occurring before the insured reaches the age of one.
General Authority:
SDCL  58-15-45.
Law Implemented:
SDCL  58-15-45,  58-15-52.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:08 - Life insurance and annuities › Section 20:06:08:44 - 2001 CSO Mortality Table effective date

Current through Register Vol. 51, page 10, July 15, 2024
The 2001 CSO Mortality Table may be used as the minimum standard for policies issued after December 31, 2003, and shall be used in determining minimum standards for policies issued after December 31, 2008, to which SDCL  58-15-31 to  58-15-43, inclusive, and  58-26-57  apply. If the insurer elects to use the 2001 CSO Mortality Table, it shall do so for both valuation and nonforfeiture purposes.
General Authority:
SDCL  58-26-57.
Law Implemented:
SDCL 58-26-57.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:08 - Life insurance and annuities › Section 20:06:08:45 - Conditions of use

Current through Register Vol. 51, page 10, July 15, 2024
The 2001 CSO Mortality Table shall be used in the following manner:
(1) For each plan of insurance with separate rates for smokers and nonsmokers an insurer may use:
(a) Composite mortality tables to determine minimum reserve liabilities and minimum cash surrender values and amounts of paid-up nonforfeiture benefits;
(b) Smoker and nonsmoker mortality tables to determine the valuation net premiums and additional minimum reserves, if any, required by SDCL  58-26-81 and  58-26-82 and use composite mortality tables to determine the basic minimum reserves, minimum cash surrender values and amounts of paid-up nonforfeiture benefits; or
(c) Smoker and nonsmoker mortality to determine minimum reserve liabilities and minimum cash surrender values and amounts of paid-up nonforfeiture benefits;
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:08 - Life insurance and annuities › Section 20:06:08:46 - Use of gender-blended tables

Current through Register Vol. 51, page 10, July 15, 2024
For any ordinary life insurance policy delivered or issued for delivery in South Dakota after December 31, 2003, that utilizes that same premium rates and charges for male and female lives or is issued in circumstances where applicable law does not permit distinctions on the basis of gender, a mortality table that is a blend of the 2001 CSO Mortality Table (M) and the 2001 CSO Mortality Table (F) may, at the option of the insurer for each plan of insurance, be substituted for the 2001 CSO Mortality Table for use in determining minimum cash surrender values and amounts of paid-up nonforfeiture benefits. No change in minimum valuation standards is implied by this rule. The insurer may choose from among the blended tables comprising the 2001 CSO Mortality Table. It is not, in and of itself, a violation of SDCL  58-33-12 for an insurer to issue the same kind of policy of life insurance on both a sex-distinct and sex-neutral basis.
General Authority:
SDCL  58-26-57.
Law Implemented:
SDCL  58-26-57.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:08 - Life insurance and annuities › Section 20:06:08:47 - Exclusions or restrictions after life insurance policy or certificate issued

Current through Register Vol. 51, page 10, July 15, 2024
Any exclusion or restriction on a life insurance policy or certificate, which is permitted by law to be part of a life insurance policy and which is to be added after policy or certificate date of issuance, must contain the written consent of the policyholder on the endorsement to the policy or certificate. Any endorsement excluding or restricting coverage must be filed and approved pursuant to SDCL  58-11-12 to  58-11-22, inclusive. Any endorsement sent to the insured must be accompanied by an explanation of the endorsement and must be a full and fair disclosure of the effect of signing the endorsement including that the signing of the endorsement is optional. Any written information accompanying the endorsement for signature by the policyholder or certificateholder must be filed with the director along with the endorsement.
This section applies to any provision that seeks to modify or amend a policy or certificate after the date of issuance, including any provision which seeks to modify or amend the incontestability clause of a policy or certificate. This rule applies to any amendment or modification to a policy or certificate in effect as of the effective date of this section as well as to any policy or certificate issued after the effective date of this section.
General Authority:
SDCL  58-11-63(4),  58-15-45(5),  58-33A-7(8).
Law Implemented:
SDCL  58-11-39,  58-15-45,  58-33A-2,  58-33A-7,  58-33A-7(8),  58-33A-8.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:08 - Life insurance and annuities › Section 20:06:08:48 - Exception to signed endorsement

Current through Register Vol. 51, page 10, July 15, 2024
An endorsement is not required to have the written consent of the policyholder as required by §
									20:06:08:47  provided that the endorsement is required by law, or the endorsement does not increase premiums and either increases benefits in the policy or does not adversely affect the insured.
General Authority:
SDCL  58-11-63(4),  58-15-45(5).
Law Implemented:
SDCL  58-11-39,  58-15-45.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:08 - Life insurance and annuities › Section 20:06:08:49.01 - Prima facie intent of policyholder

Current through Register Vol. 51, page 10, July 15, 2024
For purposes of a regulatory review of an individual transaction only, if a withdrawal, surrender, or borrowing involving the policy values of an existing policy is used to pay premiums on a new policy owned by the same policyholder and issued by the same company within four (4) months before or thirteen (13) months after the effective date of the new policy, it is prima facie evidence of the policyholder's intent to finance the purchase of the new policy with existing policy values. This prima facie standard is not intended to increase or decrease the monitoring obligations contained in §§
									20:06:08:49  to 20:06:08:65, inclusive.
General Authority:
SDCL  58-33A-7(10).
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 20:06:08 - Life insurance and annuities › Section 20:06:08:50 - Duties of producers

Current through Register Vol. 51, page 10, July 15, 2024
A producer who initiates an application shall submit to the insurer, with or as part of the application, a statement signed by both the applicant and the producer as to whether the applicant has existing policies or contracts.
If the applicant answers "no," the producer's duties with respect to replacement are complete.
If the applicant answers "yes," the producer shall present and read to the applicant, not later than at the time of taking the application, a notice regarding replacements in the form as described in Appendix D or other substantially similar form approved by the director. However, no approval is required when amendments to the notice are limited to the omission of references not applicable to the product being sold or replaced. The notice must be signed by both the applicant and the producer attesting that the notice has been read aloud by the producer or that the applicant did not wish the notice to be read aloud, in which case the producer need not have read the notice aloud, and left the notice with the applicant.
General Authority:
SDCL  58-33A-7(10).
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 20:06:08 - Life insurance and annuities › Section 20:06:08:51 - Notice requirements

Current through Register Vol. 51, page 10, July 15, 2024
The notice required by §
									20:06:08:50  must list all life insurance policies or annuities proposed to be replaced, properly identified by name of insurer, the insured or annuitant, and policy or contract number if available; and must include a statement as to whether each policy or contract will be replaced or whether a policy will be used as a source of financing for the new policy or contract. If a policy or contract number has not been issued by the existing insurer, alternative identification, such as an application or receipt number, must be listed.
General Authority:
SDCL  58-33A-7(10).
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 20:06:08 - Life insurance and annuities › Section 20:06:08:52 - Producer sales materials

Current through Register Vol. 51, page 10, July 15, 2024
In connection with a replacement transaction, the producer shall leave the original or a copy of sales material with the applicant at the time the application for a new policy or contract is completed. With respect to electronically presented sales material, the provider shall provide the material to the policy or contract owner in printed form no later than at the time of policy or contract delivery.
General Authority:
SDCL  58-33A-7(10).
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 20:06:08 - Life insurance and annuities › Section 20:06:08:53 - Producer submission to insurers

Current through Register Vol. 51, page 10, July 15, 2024
Except a provided in §
									20:06:08:61, in connection with a replacement transaction the producer shall submit to the insurer to which an application for a policy or contract is presented, a copy of each document required by §§
									20:06:08:50  to 20:06:08:52, inclusive, a statement identifying any preprinted or electronically presented company approved sales materials used, and copies of any individualized sales materials, including any illustrations related to the specific policy or contract purchased.
General Authority:
SDCL  58-33A-7(10).
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 20:06:08 - Life insurance and annuities › Section 20:06:08:54 - Insurer system of supervision and control

Current through Register Vol. 51, page 10, July 15, 2024
Each insurer shall maintain a system of supervision and control to insure compliance with the requirements of §§
									20:06:08:49  to 20:06:08:65, inclusive, that shall include at least the following:
(1) Inform its producers of the requirements of §§
									20:06:08:49  to 20:06:08:65, inclusive, and incorporate the requirements of §§
									20:06:08:49  to 20:06:08:65, inclusive, into all relevant producer training manuals prepared by the insurer;
(2) Provide each producer with a written statement of the company's position with respect to the acceptability of replacements, providing guidance to its producer as to the appropriateness of these transactions;
(3) A system to review the appropriateness of each replacement transaction that the producer does not indicate is in accord with subdivision 20:06:08:54(2);
(4) Procedures to confirm that the requirements of §§
									20:06:08:49  to 20:06:08:65, inclusive, have been met; and
(5) Procedures to detect transactions that are replacements of existing policies or contracts by the existing insurer, but that have not been reported as such by the applicant or producer.
Compliance with §§
										20:06:08:49  to 20:06:08:65, inclusive, may include, but is not limited to, systematic customer surveys, interviews, confirmation letters, or programs of internal monitoring.
General Authority:
SDCL  58-33A-7(10).
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 20:06:08 - Life insurance and annuities › Section 20:06:08:55 - Insurer record keeping requirements

Current through Register Vol. 51, page 10, July 15, 2024
Each insurer must have the capacity to monitor each producer's life insurance policy and annuity contract replacements for that insurer, and must produce, upon request, and make such records available to the director. The capacity to monitor must include the ability to produce records for each producer's:
(1) Life replacements, including financed purchases, as a percentage of the producer's total annual sales for life insurance;
(2) Number of lapses of policies by the producer as a percentage of the producer's total annual sales for life insurance;
(3) Annuity contract replacements as a percentage of the producer's total annual annuity contract sales;
(4) Number of transactions that are unreported replacements of existing policies or contracts by the existing insurer detected by the company's monitoring system as required by subdivision 20:06:08:54(5); and
(5) Replacements, indexed by replacing producer and existing insurer.
General Authority:
SDCL  58-33A-7(10).
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 20:06:08 - Life insurance and annuities › Section 20:06:08:56 - Signed statement requirements

Current through Register Vol. 51, page 10, July 15, 2024
Each insurer shall require with or as a part of each application for life insurance or an annuity a signed statement by both the applicant and the producer as to whether the applicant has existing policies or contracts. Each insurer shall require a completed notice regarding replacements as contained in Appendix D with each application for life insurance or an annuity that indicates an existing policy or contract.
General Authority:
SDCL  58-33A-7(10).
Law Implemented:
SDCL  58-33-5,  58-33-6,  58-33-7,  58-33A-1,  58-33A-2.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:08 - Life insurance and annuities › Section 20:06:08:57 - Required documents

Current through Register Vol. 51, page 10, July 15, 2024
When the applicant has existing policies or contracts, each insurer shall produce on request copies of any sales material required by §
									20:06:08:53, the basic illustration and any supplemental illustrations related to the specific policy or contract that is purchased, and the producer's and applicant's signed statements with respect to financing and replacement for at least five years after the termination or expiration of the proposed policy or contract. Each insurer must ascertain that the sales material and illustrations required by §
									20:06:08:53  meet the requirements of this chapter and are complete and accurate for the proposed policy or contract.
General Authority:
SDCL  58-33A-7(10).
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 20:06:08 - Life insurance and annuities › Section 20:06:08:58 - Insurer notifications

Current through Register Vol. 51, page 10, July 15, 2024
If an application does not meet the requirements of §§
									20:06:08:49  to 20:06:08:65, inclusive, the insurer must notify the producer and applicant and fulfill the outstanding requirements.
General Authority:
SDCL  58-33A-7(10).
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 20:06:08 - Life insurance and annuities › Section 20:06:08:59 - Record format

Current through Register Vol. 51, page 10, July 15, 2024
Each insurer shall maintain records in paper, photograph, microprocess, magnetic, mechanical or electronic media, or by any process that accurately reproduces the actual document.
General Authority:
SDCL  58-33A-7(10).
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 20:06:08 - Life insurance and annuities › Section 20:06:08:60 - Duties of replacing insurers using producers

Current through Register Vol. 51, page 10, July 15, 2024
Where a replacement is involved in the transaction, the replacing insurer shall:
(1) Verify the required forms are received and are in compliance with §§
									20:06:08:49  to 20:06:08:65, inclusive;
(2) Notify any other existing insurer that may be affected by the proposed replacement within five business days of receipt of a completed application indicating replacement or when the replacement is identified if not indicated on the application. The replacing insurer must mail a copy of the available illustration or policy summary for the proposed policy or available disclosure document for the proposed contract within five business days of a request from an existing insurer:
(3) Be able to produce copies of the notification regarding replacement required in §
									20:06:08:50, indexed by producer, for at least five years or until the next regular examination by the insurance department of a company's state of domicile, whichever is later; and
(4) Provide to the policy or contract owner notice of the right to return the policy or contract within 30 days of the delivery of the contract and receive an unconditional full refund of all premiums or considerations paid on it, including any policy fees or charges or, in the case of a variable or market value adjustment policy or contract, a payment of the cash surrender value provided under the policy or contract plus the fees and other charges deducted from the gross premiums or considerations or imposed under such policy or contract; such notice may be included in Appendix D or F.
In transactions where the replacing insurer and the existing insurer are the same or subsidiaries or affiliates under common ownership or control, allow credit for the period of time that has elapsed under the replaced policy's or contract's incontestability and suicide period up to the face amount of the existing policy or contract. With regard to financed purchases, the credit may be limited to the amount the face amount of the existing policy is reduced by the use of existing policy values to fund the new policy or contract.
General Authority:
SDCL  58-33A-7(10).
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 20:06:08 - Life insurance and annuities › Section 20:06:08:61 - Duties of replacing insurer using producers when company approved sales material required

Current through Register Vol. 51, page 10, July 15, 2024
If an insurer prohibits the use of sales material other than that approved by the company, as an alternative to the requirements made of an insurer pursuant to §
									20:06:08:53, the insurer may:
(1) Require with each application a statement signed by the producer that:
(a) Represents that the producer used only company-approved sales material; and
(b) States that copies of all sales material were left with the applicant in accordance with §
										20:06:08:52;
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:08 - Life insurance and annuities › Section 20:06:08:62 - Duties of existing insurer

Current through Register Vol. 51, page 10, July 15, 2024
Where a replacement is involved in the transaction, the existing insurer shall:
(1) Retain and be able to produce all replacement notifications received, indexed by replacing insurer, for at least five years or until the conclusion of the next regular examination conducted by the Insurance Department of its state of domicile, whichever is later;
(2) Send a letter to the policy or contract owner within five business days of receipt of a notice that an existing policy or contract is being replaced, notifying the owner of the right to receive information regarding the existing policy or contract values including, if available, an in-force illustration or policy summary if an in-force illustration cannot be produced. The insurer shall provide this information within five business days of receipt of the request from the policy or contract owner; and
(3) Upon receipt of a request to borrow, surrender, or withdraw any policy values, send a notice, advising the policy owner that the release of policy values may affect the guaranteed elements, non-guaranteed elements, face amount, or surrender value of the policy from which the values are released. The notice shall be sent separate from the check if the check is sent to anyone other than the policy owner. In the case of consecutive automatic premium loans, the insurer is only required to send the notice at the time of the first loan.
General Authority:
SDCL  58-33A-7(10).
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 20:06:08 - Life insurance and annuities › Section 20:06:08:63 - Requirements for direct response solicitation

Current through Register Vol. 51, page 10, July 15, 2024
In the case of an application that is initiated as a result of a direct response solicitation, the insurer shall require, with or as part of each completed application for a policy or contract, a statement asking whether the applicant, by applying for the proposed policy or contract, intends to replace, discontinue, or change an existing policy or contract. If the applicant indicates a replacement or change is not intended or if the applicant fails to respond to the statement, the insurer shall send the applicant, with the policy or contract, a notice regarding replacement in Appendix E, or other substantially similar form approved by the director.
If the insurer has proposed the replacement or if the applicant indicates a replacement is intended and the insurer continues with the replacement, the insurer shall:
(1) Provide the applicant or prospective applicant a notice, as described in Appendix F, or other substantially similar form approved by the director. The notice must be provided with the policy or contract. In this instance the insurer may delete the references to the producer, including the producer's signature, and references not applicable to the product being sold or replaced, without having to obtain approval of the form from the director. The insurer's obligation to obtain the applicant's signature is satisfied if the insurer can demonstrate that the insurer made a diligent effort to secure a signed copy of the notice referred to in this subdivision. The requirement to make a diligent effort is satisfied if the insurer includes in the mailing a self-addressed postage prepaid envelope with instructions for the return of the signed notice referred to in this subdivision; and
(2) Comply with the requirements of subdivision 20:06:08:60(2), if the applicant furnishes the names of the existing insurers, and the requirements of §
									20:06:08:60.
This section only applies to insurers with respect to direct response solicitations.
General Authority:
SDCL  58-33A-7(10).
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 20:06:08 - Life insurance and annuities › Section 20:06:08:64 - Compliance

Current through Register Vol. 51, page 10, July 15, 2024
The following constitute impermissible standards of conduct pursuant to SDCL  58-33A-2 and do not comply with the provisions of this chapter:
(1) Any deceptive or misleading information set forth in sales material;
(2) Failing to ask the applicant in completing the application the pertinent questions regarding the possibility of financing or replacement;
(3) The intentional incorrect recording of an answer;
(4) Advising an applicant to respond negatively to any question regarding replacement in order to prevent notice to the existing insurer; or
(5) Advising a policy or contract owner to write directly to the company in such a way as to attempt to obscure the identity of the replacing producer or company.
Policy and contract owners have the right to replace existing life insurance policies or annuity contracts after indicating in or as a part of applications for new coverage that replacement is not their intention; however, patterns of such action by policy or contract owners of the same producer is prima facie evidence of the producer's knowledge that replacement was intended in connection with the identified transactions, and these patterns of action shall be deemed prima facie evidence of the producer's intent to violate §§
										20:06:08:49  to 20:06:08:65, inclusive.
Where it is determined that the requirements of this regulation have not been met, the replacing insurer shall provide the policy owner with an in-force illustration if available or policy summary for the replacement policy or available disclosure document for the replacement contract and the appropriate notice regarding replacements in Appendix D or F.
General Authority:
SDCL  58-33A-7(10).
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 20:06:08 - Life insurance and annuities › Section 20:06:08:65 - Effective date

Current through Register Vol. 51, page 10, July 15, 2024
The effective date of §§
									20:06:08:49  to 20:06:08:65  is January 1, 2013. §§
									20:06:08:39, 20:06:08:40, and 20:06:08:41 are effective through December 31, 2012.
General Authority:
SDCL  58-33A-7(10).
Law Implemented:
SDCL  58-33-5,  58-33-6,  58-33-7,  58-33-8,  58-33A-1,  58-33A-2.