South Dakota Administrative Code

Rule 20:06:10:03 Method of disclosure of required information. 20:06:10:03. Method of disclosure of required information. 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 r…

Rule 20:06:10:04 Form and content of health and life insurance advertisements or solicitations. 20:06:10:04. Form and content of health and life insurance advertisements or solicitations. Advertisements and solicitations must be truthful and not misleading in fact or by implicati…

Rule 20:06:10:04.01 Form and content of life insurance advertisements and solicitations. 20:06:10:04.01. Form and content of life insurance advertisements and solicitations. In addition to the information required in § 20:06:10:04, the form and content requirements of life insura…

Rule 20:06:10:05 Advertisements or solicitations of benefits payable, losses covered, or premiums payable. 20:06:10:05. Advertisements or solicitations of benefits payable, losses covered, or premiums payable. No health or life insurance advertisement or solicitation may omit inf…

Rule 20:06:10:05.01 Health insurance advertisements or solicitations of benefits payable, losses covered, or premiums payable. 20:06:10:05.01. Health insurance advertisements or solicitations of benefits payable, losses covered, or premiums payable. In addition to the requirement…

Rule 20:06:10:06 Exceptions, reductions, and limitations. 20:06:10:06. Exceptions, reductions, and limitations. 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…

Rule 20:06:10:07 Preexisting conditions in health insurance policies. 20:06:10:07. Preexisting conditions in health insurance policies. Preexisting conditions in health insurance policies are treated as follows: (1) An advertisement or solicitation of health insurance which is su…

Rule 20:06:10:08 Necessity for disclosing policy provisions relating to renewability, cancelability, and termination. 20:06:10:08. Necessity for disclosing policy provisions relating to renewability, cancelability, and termination. When an advertisement or solicitation refers to …

Rule 20:06:10:08.01 Health insurance advertisement rate disclosures. 20:06:10:08.01. Health insurance advertisement rate disclosures. 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 advert…

Rule 20:06:10:08.02 Health insurance advertisement or solicitation disclosure statements. 20:06:10:08.02. Health insurance advertisement or solicitation disclosure statements. Any health insurance advertisement or solicitation that includes a statement for which disclosure is req…

Rule 20:06:10:08.03 Short term major medical advertising disclosure. 20:06:10:08.03. Short term major medical advertising disclosure. No advertisement or solicitation of short term major medical insurance may be used in this state unless the following disclosure statement is prom…

Rule 20:06:10:09 Testimonials or endorsements by third parties. 20:06:10:09. Testimonials or endorsements by third parties. Requirements for testimonials or endorsements by third parties are as follows: (1) Testimonials used in advertisements or solicitations must be genuine, rep…

Rule 20:06:10:10 Use of statistics. 20:06:10:10. Use of statistics. 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 o…

Rule 20:06:10:11 Identification of plan or number of policies. 20:06:10:11. Identification of plan or number of policies. 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 …

Rule 20:06:10:12 Disparaging comparisons and statements. 20:06:10:12. Disparaging comparisons and statements. An advertisement or solicitation may not directly or indirectly make unfair or incomplete comparisons of policies or benefits or comparisons of noncomparable policies of …

Rule 20:06:10:13 Jurisdictional licensing and status of insurer. 20:06:10:13. Jurisdictional licensing and status of insurer. 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 beyo…

Rule 20:06:10:14 Identity of insurer and agent. 20:06:10:14. Identity of insurer and agent. 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 policie…

Rule 20:06:10:15 Group or quasi-group implications. 20:06:10:15. Group or quasi-group implications. 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 su…

Rule 20:06:10:16 Introductory, initial, or special offers. 20:06:10:16. Introductory, initial, or special offers. Requirements for introductory, initial, or special offers for health and life insurance are as follows: (1) An advertisement or solicitation of an individual policy m…

Rule 20:06:10:17 Statements about an insurer. 20:06:10:17. Statements about an insurer. 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…

Rule 20:06:10:18 Repealed. 20:06:10:18. Enforcement procedures. Repealed. Source: 4 SDR 6, effective August, 9, 1977; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 27 SDR 54, effective December 4, 2000; repealed, 34 SDR 297, effective June 4, 2008.

Rule 20:06:10:19 Repealed. 20:06:10:19. Severability provision.Repealed. Source: 4 SDR 6, effective August 9, 1977; 12 SDR 151, 12 SDR 155, effective July 1, 1986; repealed, 15 SDR 143, effective March 29, 1989.

Rule 20:06:10:20 Penalty. 20:06:10:20. Penalty. 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 Sou…

Rule 20:06:10:21 Disclosure requirements. 20:06:10:21. Disclosure requirements. 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 prem…

Rule 20:06:10:22 Equivalent level annual dividend of a life insurance policy. 20:06:10:22. Equivalent level annual dividend of a life insurance policy. The equivalent level annual dividend of a life insurance policy shall be calculated as follows: (1) Accumulate the annual cash d…

Rule 20:06:10:23 Equivalent level death benefit of a life insurance policy. 20:06:10:23. Equivalent level death benefit of a life insurance policy. The equivalent level death benefit for a life insurance policy or term life insurance rider shall be calculated as follows: (1) Accu…

Rule 20:06:10:24 Life insurance surrender cost index. 20:06:10:24. Life insurance surrender cost index. 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…

Rule 20:06:10:25 Life insurance net payment cost index. 20:06:10:25. Life insurance net payment cost index. 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 divi…

Rule 20:06:10:26 Life insurance policy summary. 20:06:10:26. Life insurance policy summary. The life insurance policy summary must contain, but is not limited to, the following: (1) A prominently placed title as follows: STATEMENT OF POLICY COST AND BENEFIT INFORMATION; (2) The n…

Rule 20:06:10:27 Life insurance policy summary requirements. 20:06:10:27. Life insurance policy summary requirements. The life insurance policy summary must be a separate document and all information required to be disclosed must be set out in such a manner that no portion is min…

Rule 20:06:10:28 Failure to comply. 20:06:10:28. Failure to comply. Failure of an insurer to provide or deliver a buyer's guide or a policy summary shall constitute an omission which misrepresents the benefits, advantages, conditions, or terms of an insurance policy and may be a …

Rule 20:06:10:29 Effective date. 20:06:10:29. Effective date. This chapter applies to all solicitations of life insurance commencing on or after April 15, 1980. Source: 38 SDR 116, effective January 10, 2012. General Authority: SDCL 58-33A-7. Law Implemented: SDCL 58-33-5, 58-33-…

20:06:10:30. Life insurance buyer's guide. An insurer must use the National Association of Insurance Commissioners Life Insurance Buyer's Guide. Source: 38 SDR 116, effective January 10, 2012; 52 SDR 66, effective January 1, 2025. General Authority: SDCL 58-33A-7, 58-33A-9. Law I…

Rule 20:06:11:01 Exemptions from restrictions on insiders' interests, board of directors. 20:06:11:01. Exemptions from restrictions on insiders' interests, board of directors. Subject to the provisions of § 20:06:11:04, SDCL 58-5-61 shall not prevent the receipt of any fee, broke…

Rule 20:06:11:02 Exemptions from restrictions on insiders' interests, officers. 20:06:11:02. Exemptions from restrictions on insiders' interests, officers. SDCL 58-5-61 shall not prevent the receipt of any fee, commission or other consideration by an officer, or by a corporation …

Rule 20:06:11:03 Definition of "pecuniarily interested". 20:06:11:03. Definition of "pecuniarily interested". Any officer or director, any member of any committee, or any employee charged with the duty of investing an insurer's funds shall be deemed not to be pecuniarily interest…

Rule 20:06:11:04 Exceptions. 20:06:11:04. Exceptions. Section 20:06:11:01 shall not apply if the number of directors who would be in violation of SDCL 58-5-61, were it not for the exemptions provided by § 20:06:11:01, exceeds two-fifths of the total elected membership of the boar…

Rule 20:06:11:05 Application for exemptions. 20:06:11:05. Application for exemptions. Any transaction or series of transactions not otherwise provided for under § 20:06:11:01 may be declared exempt from the application of SDCL 58-5-61, solely to enable the payment of reasonable c…

Rule 20:06:12:01 Repealed. 20:06:12:01. Compensation.Repealed. Source: 5 SDR 79, effective March 29, 1979; 7 SDR 99, effective April 26, 1981; 9 SDR 122, effective March 31, 1983; 12 SDR 151, 12 SDR 155, effective July 1, 1986; repealed, 19 SDR 160, effective April 27, 1993.

Rule 20:06:12:02 Repealed. 20:06:12:02. Guidelines for compensation. Repealed. Source: 5 SDR 79, effective March 29, 1979; 6 SDR 28, effective September 30, 1979; 7 SDR 99, effective April 26, 1981; 9 SDR 122, effective March 31, 1983; 12 SDR 151, 12 SDR 155, effective July 1, 19…

Rule 20:06:12:03 Examiner I qualifications. 20:06:12:03. Examiner I qualifications. An examiner I shall have the following education or experience: (1) A bachelor's degree from an accredited college or university with at least 15 college credits in accounting and a major in eithe…

Rule 20:06:12:04 Examiner II qualifications. 20:06:12:04. Examiner II qualifications. An examiner II shall have the following education or experience: (1) A bachelor's degree from an accredited college or university with a major in either accounting, finance, insurance, statistic…

Rule 20:06:12:05 Examiner III qualifications. 20:06:12:05. Examiner III qualifications. An examiner III shall have the following education and experience: (1) A bachelor's degree from an accredited college or university with a major in accounting, finance, insurance, statistics, …

Rule 20:06:12:06 Classification of examiners appointed prior to effective date of this chapter. 20:06:12:06. Classification of examiners appointed prior to effective date of this chapter. Examiners appointed prior to the effective date of this chapter may retain the classificatio…

20:06:12:07. Guidelines for examination reports. The insurer's examination report must be prepared in accordance with standards adopted by the National Association of Insurance Commissioners in the Financial Condition Examiners Handbook, 2025 edition. Source: 21 SDR 144, effectiv…

Rule 20:06:12:08 Applicability. 20:06:12:08. Applicability. Sections 20:06:12:01 to 20:06:12:07, inclusive, apply to financial examinations and do not apply to market conduct examinations. Source: 29 SDR 84, effective December 15, 2002. General Authority: SDCL 58-3-11, 58-3-26. L…

Rule 20:06:12:09 Examination facilitation. 20:06:12:09. Examination facilitation. Facilitation for purposes of SDCL 58-3-7 for any examination, including financial, market conduct, and agency examinations, includes prompt and accurate production of accounts, records, documents, f…

Rule 20:06:13:01 Repealed. 20:06:13:01. Disclosure form required.Repealed. Source: 5 SDR 108, effective June 27, 1979; repealed, 8 SDR 174, effective July 1, 1982.

Rule 20:06:13:02 Definitions. 20:06:13:02. Definitions. Terms defined in SDCL 58-17A-1 have the same meaning when used in this chapter. In addition, terms used in this chapter mean: (1) "1990 Standardized Medicare supplement benefit plan," a group or individual policy of Medicare…

Rule 20:06:13:02.01 Requirements for definition of "accident" and similar words in policies. 20:06:13:02.01. Requirements for definition of "accident" and similar words in policies. "Accidental injury" or "accidental means" shall be defined in a Medicare supplement policy by empl…