South Dakota Administrative Code

Rule 20:06:04:14 Trust filing requirement. 20:06:04:14. Trust filing requirement. In the event that 10 percent of any class of any equity security of an insurer is held in a trust, that trust and the trustees thereof as such shall be deemed a person required to file the reports s…

Rule 20:06:04:15 Trustee report. 20:06:04:15. Trustee report. Not more than one report need be filed to report any holdings or with respect to any transaction in securities held by a trust, regardless of the number of officers, directors, or 10 percent stockholders who are either…

Rule 20:06:04:16 Definition of trustee. 20:06:04:16. Definition of trustee. As used in §§ 20:06:04:12 to 20:06:04:16, inclusive, the "immediate family" of a trustee means: (1) A son or daughter of the trustee, or a descendant of either; (2) A stepson or stepdaughter of the truste…

Rule 20:06:04:17 Determination of beneficial owner. 20:06:04:17. Determination of beneficial owner. In determining, for the purposes of SDCL 58-5-69, whether a person is the beneficial owner, directly or indirectly, or more than 10 percent of any class of any equity security, the…

Rule 20:06:04:18 Indirect interests. 20:06:04:18. Indirect interests. No report shall be required by any person, whether or not otherwise subject to the requirement of filing reports under SDCL 58-5-69, with respect to the person's indirect interest in portfolio securities held b…

Rule 20:06:04:19 Prior transactions. 20:06:04:19. Prior transactions. Nothing in §§ 20:06:04:12 to 20:06:04:18, inclusive, shall be deemed to impose any duties or liabilities with respect to reporting any transaction or holding prior to its effective date. Source: 4 SDR 6, effect…

Rule 20:06:04:20 Exemption for small transactions. 20:06:04:20. Exemption for small transactions. Any acquisition of securities shall be exempt from SDCL 58-5-69 where the person effecting the acquisition does not: (1) Within 6 months thereafter effect any disposition, otherwise …

Rule 20:06:04:21 Gifts. 20:06:04:21. Gifts. Any acquisition or disposition of securities by way of gift, where the total amount of such gifts does not exceed $3,000 in market value for any 6-month period, shall be exempt from SDCL 58-5-69 and may be excluded from the computations…

Rule 20:06:04:22 First report after transaction. 20:06:04:22. First report after transaction. Any person exempted by §§ 20:06:04:20 and 20:06:04:21 shall include in the first report filed by the person after a transaction within the exemption a statement showing the person's acqu…

Rule 20:06:04:23 Exemption from restrictions on profits, transactions which need not be reported under statements of ownership filings. 20:06:04:23. Exemption from restrictions on profits, transactions which need not be reported under statements of ownership filings. Any transact…

Rule 20:06:04:24 Exemption from restrictions on profits of certain transactions effected in connection with a distribution. 20:06:04:24. Exemption from restrictions on profits of certain transactions effected in connection with a distribution. Any transaction of purchase and sale…

Rule 20:06:04:25 Exemption from restrictions on profits of acquisitions of shares of stock and stock options under certain stock bonus, stock option, or similar plans. 20:06:04:25. Exemption from restrictions on profits of acquisitions of shares of stock and stock options under c…

Rule 20:06:04:26 Participation of officers. 20:06:04:26. Participation of officers. If the selection of any director or officer of the insurer to whom stock may be allocated or to whom qualified, restricted or employee stock purchase plan stock options may be granted pursuant to …

Rule 20:06:04:27 Participation of directors. 20:06:04:27. Participation of directors. With respect to the participation of directors: (1) By the board of directors of the insurer, a majority of which board and majority of the directors acting in the matter are disinterested perso…

Rule 20:06:04:28 Participation of officers who are not directors. 20:06:04:28. Participation of officers who are not directors. Discretion shall be exercised with respect to the participation of officers who are not directors: (1) By the board of directors of the insurer or a com…

Rule 20:06:04:29 Exclusions of options and equity securities acquired. 20:06:04:29. Exclusions of options and equity securities acquired. The provisions of § 20:06:04:28 shall not apply with respect to any option granted, or other equity security acquired, prior to the date that …

Rule 20:06:04:30 Limitations. 20:06:04:30. Limitations. As to each participant or as to all participants the plan shall effectively limit the aggregate dollar amount or the aggregate number of shares of stock which may be allocated, or which may be subject to qualified, restricte…

Rule 20:06:04:31 Additional definitions. 20:06:04:31. Additional definitions. Unless the context otherwise requires, all terms used in §§ 20:06:04:31 to 20:06:04:46, inclusive, shall have the same meaning as in SDCL 58-5-68 to 58-5-78, inclusive, and § 20:06:04:01. In addition, t…

Rule 20:06:04:32 Exemption from restrictions on profits of certain transactions in which securities are received by redeeming other securities. 20:06:04:32. Exemption from restrictions on profits of certain transactions in which securities are received by redeeming other securiti…

Rule 20:06:04:33 Exemption of long-term profits incident to sales within six months of the exercise of an option. 20:06:04:33. Exemption of long-term profits incident to sales within six months of the exercise of an option. To the extent specified in § 20:06:04:33 there is hereby…

Rule 20:06:04:34 Limitations on profits. 20:06:04:34. Limitations on profits. In respect of transactions specified in § 20:06:04:33 the profits inuring to the insurer shall not exceed the difference between the proceeds of sale and the lowest market price of any security of the s…

Rule 20:06:04:35 Exemption of plans or agreements of merger. 20:06:04:35. Exemption of plans or agreements of merger. There is also hereby exempted as not comprehended within the purposes of SDCL 58-5-71 to 58-5-73, inclusive, the disposition of a security, purchased in a transac…

Rule 20:06:04:36 Excluded. 20:06:04:36. Excluded. The exemptions provided by §§ 20:06:04:31 to 20:06:04:36, inclusive, shall not apply to any transaction made unlawful by SDCL 58-5-70 or by any rules and regulations passed thereunder. Source: 4 SDR 6, effective August 9, 1977; 12…

Rule 20:06:04:37 Establishing market price. 20:06:04:37. Establishing market price. The burden of establishing market price of a security for the purpose of §§ 20:06:04:31 to 20:06:04:37, inclusive, shall rest upon the person claiming the exemption. Source: 4 SDR 6, effective Aug…

Rule 20:06:04:38 Exemption from restrictions on profits of certain acquisitions and dispositions of securities pursuant to merger or consolidations. 20:06:04:38. Exemption from restrictions on profits of certain acquisitions and dispositions of securities pursuant to merger or co…

Rule 20:06:04:39 Merger defined. 20:06:04:39. Merger defined. A merger within the meaning of §§ 20:06:04:38 to 20:06:04:40, inclusive, shall include the sale or purchase of substantially all the assets of one insurer by another in exchange for stock which is then distributed to t…

Rule 20:06:04:40 Availability of exemption. 20:06:04:40. Availability of exemption. Notwithstanding § 20:06:04:39, if an officer, director or stockholder shall make any purchase, other than a purchase exempted by §§ 20:06:04:38 to 20:06:04:44, inclusive, of a security in any comp…

Rule 20:06:04:41 Exemption from restrictions on profits of certain securities received upon surrender of similar equity securities. 20:06:04:41. Exemption from restrictions on profits of certain securities received upon surrender of similar equity securities. Any receipt by a per…

Rule 20:06:04:42 Exemption from restrictions on profits of certain transactions involving an exchange of similar securities. 20:06:04:42. Exemption from restrictions on profits of certain transactions involving an exchange of similar securities. Any acquisition or disposition of …

Rule 20:06:04:43 Exemption of certain securities from insider trading. 20:06:04:43. Exemption of certain securities from insider trading. A security is exempt from the operation of SDCL 58-5-70 to the extent necessary to render lawful under that section the execution by a broker …

Rule 20:06:04:44 Exemption from insider trading of the act of certain transactions effected in connection with a distribution. 20:06:04:44. Exemption from insider trading of the act of certain transactions effected in connection with a distribution. Any security shall be exempt f…

Rule 20:06:04:45 Exemption from insider trading of the act of sales of securities to be acquired. 20:06:04:45. Exemption from insider trading of the act of sales of securities to be acquired. When any person is entitled, as an incident to the person's ownership of an issued secur…

Rule 20:06:04:46 Arbitrage transactions under insider trading. 20:06:04:46. Arbitrage transactions under insider trading. A director or officer of an insurer may not effect any foreign or domestic arbitrage transaction in any equity security of that insurer, unless the director o…

Rule 20:06:04:47 Approval of forms. 20:06:04:47. Approval of forms. Forms required by chapter 20:06:04 shall be filed with and approved by the director of insurance. Source: 4 SDR 6, effective August 9, 1977; 12 SDR 151, 12 SDR 155, effective July 1, 1986. General Authority: SDCL…

Rule 20:06:06:01 Premium rates -- Fifty percent loss ratio benchmark. 20:06:06:01. Premium rates -- Fifty percent loss ratio benchmark. A basic test of the reasonableness of the relation of benefits to the premium charged shall be the development of an anticipated loss ratio of c…

Rule 20:06:06:02 Prima facie acceptable credit insurance rates. 20:06:06:02 Prima facie acceptable credit insurance rates. It shall be presumed that premium rates charged or to be charged are not excessive in relation to the benefits if the premiums or premium rates as filed with…

Rule 20:06:06:03 Credit life insurance -- Acceptable rates. 20:06:06:03. Credit life insurance -- Acceptable rates. The acceptable rates for credit life insurance are as follows: (1) For decreasing term credit life insurance, a single premium of $.56 a year for each $100 of initi…

Rule 20:06:06:03.01 Premium rates presumed not excessive in relation to death benefits plan -- Restrictions allowed. 20:06:06:03.01. Premium rates presumed not excessive in relation to death benefits plan -- Restrictions allowed. The premium rates for credit life insurance specif…

Rule 20:06:06:03.02 Return of premium to debtor over eligibility age. 20:06:06:03.02. Return of premium to debtor over eligibility age. If a debtor exceeds the eligibility age but stated the age correctly in writing or otherwise and a certificate or policy is issued in error, the…

Rule 20:06:06:03.03 Joint credit life insurance rates. 20:06:06:03.03. Joint credit life insurance rates. Where credit life insurance on a single indebtedness is provided on two lives, it shall mean insurance on spouse, family member or business partners only, where both are join…

Rule 20:06:06:03.04 Determination of premiums by age. 20:06:06:03.04. Determination of premiums by age. If premiums are to be determined according to the age of the insured debtor or by age brackets, an insurer may determine premium rates on a basis actuarially consistent with th…

Rule 20:06:06:04 Credit health insurance -- Acceptable rates. 20:06:06:04. Credit health insurance -- Acceptable rates. The acceptable rates for credit health insurance are as follows: (1) The following table gives the single premium rates for each per $100 of initial insured ind…

Rule 20:06:06:04.01 Repealed. 20:06:06:04.01. Credit disability insurance prohibited on more than one life on single debt.Repealed. Source: 5 SDR 91, effective April 25, 1979; 12 SDR 151, 12 SDR 155, effective July 1, 1986; repealed, 16 SDR 208, effective June 3, 1990.

Rule 20:06:06:04.02 Credit health insurance -- Exclusions and restrictions allowed. 20:06:06:04.02. Credit health insurance -- Exclusions and restrictions allowed. The premium rates specified in § 20:06:06:04 are for policies which contain no exclusion for preexisting conditions …

Rule 20:06:06:04.03 Reduction of period of exclusion. 20:06:06:04.03. Reduction of period of exclusion. The policy shall provide that in event the indebtedness covered by the policy results from the refinancing in whole or part of a prior debt with the same creditor, any period o…

Rule 20:06:06:04.04 Joint credit disability insurance -- Acceptable rates. 20:06:06:04.04. Joint credit disability insurance -- Acceptable rates. Joint credit disability insurance may be issued at a premium rate that does not exceed the single disability rates specified in § 20:0…

Rule 20:06:06:05 Restricted coverages -- Rates. 20:06:06:05. Restricted coverages -- Rates. If a credit life or credit health insurance form provides for coverages which are more restrictive than provided for in § 20:06:06:03.01 or 20:06:06:04.02, the insurer shall demonstrate to…

Rule 20:06:06:06 Deviations from prima facie acceptable credit insurance rates. 20:06:06:06. Deviations from prima facie acceptable credit insurance rates. Deviations from prima facie acceptable credit insurance rates may be approved as follows: (1) Requests for rates higher than…

Rule 20:06:06:07 Refunds. 20:06:06:07. Refunds. If credit life insurance on a debtor terminates prior to expiration of the period for which the debtor has been charged because of early discharge of indebtedness for any reason other than payment of a death claim under the credit l…

Rule 20:06:06:07.01 Refinancing or consolidation. 20:06:06:07.01. Refinancing or consolidation. In any refinancing or consolidation of an indebtedness, no policy provision covering the new indebtedness shall operate to deny benefits which would have been payable had the refinanci…