South Dakota Administrative Code

Rule 20:06:18:08 Approved course subject matter. 20:06:18:08. Approved course subject matter. (1) The director may approve the following insurance-related course subject matter for continuing education credit: (a) Actuarial mathematics, statistics, and probability; (b) Assigned r…

20:06:18:09. Maximum company-sponsored courses. Repealed. Source: 12 SDR 106, effective December 30, 1985; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 15 SDR 143, effective March 29, 1989; 19 SDR 160, effective April 27, 1993; 32 SDR 203, effective June 5, 2006; 38 SDR 219, e…

Rule 20:06:18:10 Independent study. 20:06:18:10. Independent study. A licensee who studies independently for an insurance course examination approved by the director and who passes the examination shall receive credit for the number of CEC hours assigned by the director. Source: …

Rule 20:06:18:11 Repealed. 20:06:18:11. Reporting of hours completed. Repealed. Source: 12 SDR 106, effective December 30, 1985; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 15 SDR 143, effective March 29, 1989; 16 SDR 208, effective June 3, 1990; 19 SDR 160, effective April 2…

Rule 20:06:18:12 Electronic fee. 20:06:18:12. Electronic fee. The fee required by SDCL 58-30-121 must be submitted electronically. Source: 12 SDR 106, effective December 30, 1985; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 31 SDR 67, effective November 14, 2004; 34 SDR 200, …

Rule 20:06:18:13 Time extension of continuing education requirements. 20:06:18:13. Time extension of continuing education requirements. The director may grant an extension of time to complete the requirements imposed by SDCL 58-30-116 and § 20:06:18:03. This extension shall be gr…

20:06:18:14. Instructor qualifications. An instructor for a continuing education course shall possess one of the following qualifications: (1) Three years of recent experience in the subject area being taught; (2) A degree related to the subject area being taught; or (3) Two year…

Rule 20:06:18:15 Grounds for revocation or denial of instructor status. 20:06:18:15. Grounds for revocation or denial of instructor status. The director may withdraw or deny instructor status from instructors: (1) Supplying incorrect or false information regarding their backgroun…

Rule 20:06:18:16 Course attendance -- Exceptions. 20:06:18:16. Course attendance -- Exceptions. A course may not be offered for less than the approved number of continuing education credits. Credit may not be issued to a participant who does not attend the entire continuing educa…

20:06:18:17. Advertisement of courses. A continuing education course may not be advertised as an approved course unless the division has approved the course in writing. Courses that are advertised prior to formal approval, but after application for approval has been made, must co…

Rule 20:06:18:18 Carry-over of credits prohibited. 20:06:18:18. Carry-over of credits prohibited. No continuing education credit hours may be carried over from one two-year period to the next two-year period. Source: 19 SDR 160, effective April 27, 1993. General Authority: SDCL 5…

Rule 20:06:18:19 Effective date of producer appointments. 20:06:18:19. Effective date of producer appointments. The effective date of an appointment is the date that the notice of appointment made pursuant to SDCL 58-30-176 is approved by the director. Source: 32 SDR 53, effectiv…

Rule 20:06:18:20 Maximum credit for a course during a two-year period. 20:06:18:20. Maximum credit for a course during a two-year period. Neither a student nor an instructor may earn credit for attending or instructing any continuing education course more than once during a two-y…

Rule 20:06:18:21 Definition of initial pretrail hearing. 20:06:18:21. Definition of initial pretrial hearing. For purposes of Title 58, initial pretrial hearing means either a defendant's arraignment or the first time that a defendant accused of a crime or the defendant's attorne…

Rule 20:06:18:22 Prohibited compensation arrangements. 20:06:18:22. Prohibited compensation arrangements. Each health insurance issuer must provide equal compensation to an insurance producer for the sale of a similar health benefit plan sold inside and outside of an Exchange. No…

Rule 20:06:19:01 Definitions. 20:06:19:01.Definitions. Terms used in this chapter mean: (1) "Call option," an exchange-traded option contract granting the holder of the option the right to purchase a specified amount of the underlying security in accordance with the terms of the …

Rule 20:06:19:02 Purchase and exercise of exchange-traded call and put options. 20:06:19:02. Purchase and exercise of exchange-traded call and put options. An insurance company's cost for the purchase or investment in call or put options, except in a closing purchase transaction,…

Rule 20:06:19:03 Sale and assignment of exchange-traded call and put options. 20:06:19:03. Sale and assignment of exchange-traded call and put options. An insurance company that sells or writes exchange-traded call options on securities it owns shall establish and maintain custod…

20:06:19:04. Accounting standards for transactions in exchange-traded call and put options. An insurance company that buys or sells exchange-traded call and put options shall record the details of the transactions in a manner consistent with National Association of Insurance Comm…

Rule 20:06:19:05 Accounting procedures for the purchase of call and put options. 20:06:19:05. Accounting procedures for the purchase of call and put options. Accounting procedures for the purchase of call and put options must be in accordance with the following principles: (1) Pa…

Rule 20:06:19:06 Accounting procedures for the sale or writing of call and put options. 20:06:19:06. Accounting procedures for the sale or writing of call and put options. Consideration for the sale or writing of a call or put option shall not be recognized as income at the time …

Rule 20:06:19:07 Valuation. 20:06:19:07. Valuation. Exchange-traded call or put options shall be valued as follows: (1) Exchange-traded call or put stock or stock index options purchased by an insurance company shall be valued at the current market price on a registered national …

Rule 20:06:19:08 Administration and record keeping. 20:06:19:08. Administration and record keeping. An insurance company must establish policies and procedures prior to engaging in call or put option transactions. These policies must be approved by the board of directors and revi…

Rule 20:06:20:01 Definitions. 20:06:20:01. Definitions. Terms used in this chapter mean: (1) "Commodity futures trading commission," the federal regulatory agency charged under the Commodity Futures Trading Commission Act of 1974 (7 U.S.C. 1 et seq.) with the regulation of exchan…

Rule 20:06:20:02 Transactions in financial futures. 20:06:20:02. Transactions in financial futures. Insurance companies may not enter into financial futures contracts except as part of a hedging transaction. If at any time during the life of a hedge the dollar variation between t…

Rule 20:06:20:03 Accounting for transactions in financial futures contracts. 20:06:20:03. Accounting for transactions in financial futures contracts. Gains and losses for hedging transactions may be deferred for hedged items carried at amortized cost under the following accountin…

Rule 20:06:20:04 Administrative policies and procedures. 20:06:20:04. Administrative policies and procedures. Insurance companies must establish policies and procedures for transactions in financial futures prior to engaging in any hedging transaction. The policies and procedures…

Rule 20:06:20:05 Repealed. 20:06:20:05. Record keeping requirements. Repealed. Source: 13 SDR 75, effective December 21, 1986; 22 SDR 110, effective March 1, 1996; 23 SDR 43, effective October 1, 1996; 25 SDR 13, effective August 9, 1998; 26 SDR 26, effective September 1, 1999; 2…

Rule 20:06:20:06 Authorization of future contracts. 20:06:20:06. Authorization of future contracts. Every financial futures contract transaction must be authorized pursuant to SDCL 58-27-69. Source: 13 SDR 75, effective December 21, 1986. General Authority: SDCL 58-4-1, 58-27-7. …

20:06:21:01. Definitions. Terms used in this chapter mean: (1) "Activities of daily living," bathing, dressing, eating, maintaining continence, toileting, and transferring; (2) "Acute condition," a medically unstable condition that requires frequent monitoring of an individual by…

20:06:21:01.01. Nature of care -- How defined. The policy or certificate shall contain definitions for the terms, skilled nursing care, personal care, specialized care, assisted living care, home care, and other services, in relation to the level of skill required, the nature of …

20:06:21:01.02. Service providers -- How defined. The policy or certificate shall contain definitions for all providers of services, including skilled nursing facilities, extended care facilities, convalescent nursing homes, personal care facilities, specialized care providers, a…

20:06:21:01.03. Long-term care insurance. The term, long-term care insurance, includes group and individual annuities and life insurance policies or riders that provide direct coverage or supplement long-term care insurance. The term also includes a policy or rider that provides …

20:06:21:01.04. Similar policy forms. For purposes of this chapter, similar policy forms, are all of the long-term care insurance policies and certificates issued by an insurer in the same long-term care benefit classification as the policy form being considered. Certificates of …

20:06:21:01.05. Treatment of accelerated benefits in life insurance. Accelerated benefits payable under a life insurance contract: (1) To a policyowner or certificateholder, during the lifetime of the insured, in anticipation of death or upon the occurrence of specified life-thre…

20:06:21:01.06. Claim and clean claim -- Defined. For purposes of §§ 20:06:21:104 to 20:06:21:108, inclusive, terms used mean: (1) "Claim," a request for payment of benefits under an in-force policy, regardless of whether the benefit claimed is covered under the policy or any ter…

20:06:21:02. Minimum standards for long-term care insurance policies. Long-term care insurance policies shall contain benefits that are reasonable in relation to the premium charged. Long-term care insurance policies that require prior hospitalization or institutionalization as a…

20:06:21:02.01. Annuity policies with long-term care benefits subject to waiting period. An annuity policy that provides long-term care benefits may contain a waiting period before long-term care benefits are payable in addition to an elimination period. The waiting period may no…

20:06:21:03. Renewability of group policies -- Required disclosures. Group long-term care insurance policies that are issued in this state or filed for approval pursuant to SDCL 58-17B-14 and that are neither guaranteed renewable or noncancelable shall prominently state on the fr…

20:06:21:04. Permissible exclusions from coverage. A long-term care insurance policy may exclude or limit coverage for the following: (1) Declared or undeclared war; (2) Suicide or self-inflicted injuries; (3) Alcoholism or drug abuse. This subdivision does not permit an exclusio…

20:06:21:05. Loss ratios. This section applies to all long-term care insurance policies or certificates except those covered under § 20:06:21:61 and §§ 20:06:21:63 to 20:06:21:69, inclusive. A long-term care insurance policy sold in this state shall meet or exceed the minimum los…

20:06:21:05.01. Relation of benefits to premium for accelerated death benefit on life insurance. A life insurance policy that funds long-term care benefits entirely by accelerating the death benefit is considered to provide reasonable benefits in relation to premiums paid, if the…

20:06:21:06. Cost-of-living adjustments -- Basis. The annual cost-of-living adjustment may be based on either the medical care component of the federal consumer price index or may be based on a fixed percentage increase of not less than five percent or more than ten percent. The …

20:06:21:06.01. Cost-of-living adjustments -- Minimum standards. An insurer may not offer a long-term care insurance policy unless the insurer also offers to the policyholder, in addition to any other inflation protection, the option to purchase a policy that provides for benefit…

20:06:21:06.02. Group cost-of-living adjustments -- Exceptions. If the policy is issued to a group, the offer required in SDCL 58-17B-13 and 58-17B-13.1 and in § 20:06:21:06.01 shall be made to the group policyholder. However, if the policy is issued to a group as defined in SDCL…

20:06:21:06.03. Cost-of-living adjustments -- Continuation of benefit increases. Inflation protection benefit increases under a policy which contains such benefits shall continue without regard to an insured's age, claim status, or claim history or the length of time the person h…

20:06:21:06.04. Cost-of-living adjustments -- Automatic increases -- Conspicuous offer of constant premium. An offer of inflation protection which provides for automatic benefit increases shall include an offer of a premium which the insurer expects to remain constant. The offer …

20:06:21:06.05. Cost-of-living adjustments -- Rejection by policyholder. Inflation protection as provided in §§ 20:06:21:06 to 20:06:21:06.04, inclusive, shall be included in a long-term care insurance policy unless an insurer obtains a rejection of inflation protection signed by…

20:06:21:07. Applicability of rules to long-term care insurance riders. Long-term care riders attached to or included in life insurance policies must comply with the long-term care rules in this chapter unless specifically excluded. Source: 16 SDR 208, effective June 3, 1990. Gen…

20:06:21:08. "Medically necessary" defined. When "medically necessary" is used as a condition to qualify for benefits, it may not be defined more restrictively than as requiring the certification of the insured's physician. If a policy does not have a prior hospitalization requir…