Title 58 — INSURANCE

This chapter applies only to contracts of life insurance and annuities, other than reinsurance, group life insurance, and group annuities. Source: SL 1966, ch 111 , ch 23, § 1.

There shall be a provision that the policy, exclusive of provisions relating to health benefits or to additional benefits in the event of death by accident or accidental means, is incontestable, except for nonpayment of premiums or fraud on the part of the applicant or insured, a…

Upon receipt of information establishing knowledge of death, the insurer shall check its records to determine whether the insurer has any other policies, annuity contracts, or retained asset accounts for that insured. Upon receipt of information establishing knowledge of death of…

If the insurer has not been contacted by a beneficiary within one hundred twenty days of an insurer's receipt of information establishing the insurer's knowledge of death, the insurer shall commence a beneficiary search. The beneficiary search shall be completed within one year f…

An insurer may disclose the minimum necessary personal information about an insured or beneficiary to a person to whom the insurer reasonably believes may be able to assist the insurer to locate the beneficiary or a person otherwise entitled to payment of the proceeds. Source: SL…

An insurer or its service provider may not charge any beneficiary or other authorized representative for any fees or costs associated with a DMF search or verification of a DMF match conducted pursuant to §§ 58-15-94 to 58-15-108 , inclusive. Source: SL 2018, ch 280 , § 10.

If the insurer locates a beneficiary and has not received a claim from the beneficiary within thirty days after the date of location, the insurer shall provide appropriate claim forms or instructions to the beneficiary to make a claim. Source: SL 2018, ch 280 , § 11.

At no later than the policy delivery or the establishment of an account, and upon any change of insured or beneficiary, an insurer shall request information sufficient to ensure that all benefits or proceeds are distributed to the appropriate persons upon the death of the insured…

The insurer shall retain documentation of compliance with §§ 58-15-94 to 58-15-108 , inclusive, for five years. Source: SL 2018, ch 280 , § 13.

The director may promulgate rules, pursuant to chapter 1-26 , to provide definition of terms, notification requirements, exemption criteria, beneficiary searches, and forms. Source: SL 2018, ch 280 , § 14.

58-15-96 Comparison of policies, annuity contracts, and retained asset accounts against DMF. 58-15-97 Semi-annual comparison of lapsed policies, annuity contracts, and retained asset accounts against updated DMF. 58-15-98 Procedures for DMF comparisons--Validation of match. 58-15…

A clause in any policy of life insurance providing that such policy shall be incontestable after a specified period shall preclude only a contest of the validity of the policy, and shall not preclude the assertion at any time of defenses based upon provisions in the policy which …

There shall be a provision relative to the payment of premiums. Source: SL 1966, ch 111 , ch 23, § 13.

There shall be a provision that a grace period of thirty days, or of four weeks in the case of industrial life insurance policies the premiums for which are payable more frequently than monthly, shall be allowed within which the payment of any premium after the first may be made,…

The policy, at the insurer's option, may provide for automatic premium loan and may provide that such provisions do not become operative unless so elected by the party entitled to elect. Source: SL 1966, ch 111 , ch 23, § 9.

There shall be a provision that after three full years' premiums have been paid and after the policy has a cash surrender value and while no premium is in default beyond the grace period for payment, the insurer shall advance, on proper assignment or pledge of the policy and on t…

The loan value of a policy shall be determined in accordance with § 58-15-16 , but no policy may terminate in a policy year as the sole result of change in the interest rate during that policy year. The life insurer shall maintain coverage during that policy year until the time a…

The substance of the pertinent provisions of §§ 58-15-15.6 and 58-15-15.7 regarding the adjustable maximum interest rate shall be set forth in the policies to which they apply. Source: SL 1982, ch 358 , § 8.

The provisions of §§ 58-15-15.4 to 58-15-15.12 , inclusive, do not apply to any insurance contract issued before July 1, 1982, unless the policyholder agrees in writing to the applicability of the provisions. No other provision of the law applies to policy loan interest rates unl…

A private placement policy is a variable annuity contract or a variable life insurance policy that is: (1) Issued exclusively to a person who is an accredited investor or a qualified purchaser, as such terms are defined in the federal Securities Act of 1933 or the federal Investm…

Premium is the consideration for insurance by whatever name called. Any assessment, or any membership, policy, survey, inspection, service, or similar fee or other charge in consideration for an insurance contract is deemed part of the premium. For a private placement policy, wit…

58-15-15.5 Published monthly average defined. 58-15-15.6 Insurance policy loan--Permitted interest rates. 58-15-15.7 Insurance policy loan--Allowable rate under adjustable maximum interest rate. 58-15-15.8 Insurance policy loan--Determination of interest under adjustable maximum …

For purposes of §§ 58-15-15.5 to 58-15-15.12 , inclusive: (1) The rate of interest on policy loans permitted under §§ 58-15-15.5 to 58-15-15.12 , inclusive, includes the interest rate charged on reinstatement of policy loans for the period during and after any lapse of a policy; …

For purposes of §§ 58-15-15.4 to 58-15-15.12 , inclusive, the "published monthly average" means Moody's corporate bond yield average--monthly average corporates, as published by Moody's investors service, incorporated, by yearly order of the director, or in the event that Moody's…

Any policy issued on or after July 1, 1982, shall provide for policy loan interest rates through a provision permitting a maximum interest rate of not more than eight percent per annum or a provision permitting an adjustable maximum interest rate established from time to time by …

The rate of interest charged on a policy loan made under an adjustable maximum interest rate may not exceed the higher of the "published monthly average" for the calendar month ending two months before the date on which the rate is determined or the rate used to compute the cash …

The maximum rate of interest for each policy shall be determined at regular intervals at least once every twelve months, but not more frequently than once in any three - month period. At the intervals specified in the policy, the rate being charged may be increased whenever such …

The life insurer shall notify the policyholder at the time a cash loan is made of the initial rate of interest on the loan and shall notify the policyholder with respect to premium loans of the initial rate of interest on the loan as soon as it is reasonably practical to do so af…

In the case of those policies issued prior to the operative date specified in § 58-15-42 , the loan value referred to in § 58-15-15 is the reserve at the end of the current policy year on the policy and on any dividend additions thereto, computed according to a mortality table, i…

In the case of policies issued on or after the operative date specified in § 58-15-42 , the loan value referred to in § 58-15-15 shall be the cash surrender value at the end of the current policy year as required by §

The loan value of the policy shall be at least equal to the amount required by § 58-15-16 or 58-15-17 , provided that the insurer may deduct, either from such loan value or from the proceeds of the loan, any existing indebtedness not already deducted in determining such amount in…

The policy may also provide that if interest on any indebtedness is not paid when due it shall then be added to the existing indebtedness and shall bear interest at the same rate, and that if and when the total indebtedness on the policy, including interest due or accrued, equals…

For the purpose of this title "industrial life insurance" is that form of life insurance written under policies of face amount of one thousand dollars or less bearing the words "industrial policy" imprinted on the face thereof as part of the descriptive matter, and under which pr…

Sections 58-15-14 to 58-15-19 , inclusive, shall not apply to term policies nor to term insurance benefits provided by rider or supplemental policy provisions, or to industrial life insurance policies. Source: SL 1966, ch 111 , ch 23, § 9.

There shall be a provision for nonforfeiture benefits and cash surrender value in accordance with the requirements of § 58-15-30 or §§ 58-15-31 to 58-15-43 , inclusive. Source: SL 1966, ch 111 , ch 23, § 10.

There shall be a provision that unless: (1) The policy has been surrendered for its cash surrender value, or (2) Its cash surrender value has been exhausted, or (3) The paid - up term insurance, if any, has expired, the policy will be reinstated at any time within three years, or…

There shall be a provision in participating policies that, beginning not later than the end of the third policy year, the insurer shall annually ascertain and apportion the divisible surplus, if any, that will accrue on the policy anniversary or other dividend date specified in t…

Except as hereinafter provided, any dividend becoming payable shall at the option of the party entitled to elect such option be either: (1) Payable in cash, or (2) Applied to any one of such other dividend options as may be provided by the policy. If any such other dividend optio…

In participating industrial life insurance policies, in lieu of the provision required in §§ 58-15-23 and 58-15-24 , there shall be a provision that, beginning not later than the end of the fifth policy year, the policy shall participate annually in the divisible surplus, if any,…

There shall be a provision that when a policy becomes a claim by the death of the insured, settlement shall be made upon receipt of due proof of death and, at the insurer's option, surrender of the policy or proof of the interest of the claimant, or both. If an insurer shall spec…

Any insurer admitted to transact life insurance in this state shall pay interest on proceeds of, or payments under, any individual or group policy of life insurance which are payable to any beneficiary under a policy issued for delivery in this state. Source: SL 1987, ch 375 , § …

Interest payable pursuant to § 58-15-26.1 shall be computed from the date of death of the insured until the date of payment and shall be at the rate of four percent per annum or not less than the current rate of interest on death proceeds left on deposit with the insurer under an…

The provisions of § 58-15-26.1 do not require the payment of interest in any case in which the beneficiary elects in writing delivered to the insurer to receive the proceeds of or payments under a life insurance policy by any means other than a lump sum payment. Source: SL 1987, …

In any case in which interest on the proceeds of, or payments under, any policy of life insurance becomes payable pursuant to § 58-15-26.1 , the insurer shall notify the named beneficiary or beneficiaries at their last known address that interest will be paid on the proceeds of o…

The provisions of §§ 58-15-26.1 to 58-15-26.5 , inclusive, shall apply only to deaths of insureds which occur on or after July 1, 1987. Source: SL 1987, ch 375 , § 5.

An industrial life insurance policy shall have the name of the beneficiary designated thereon with a reservation of the right to change the beneficiary after the issuance of the policy. The policy may also provide that no designation or change of beneficiary shall be binding on t…

An industrial life policy may also provide that if the beneficiary designated in the policy does not make a claim under the policy or does not surrender the policy with due proof of death within the period stated in the policy, which shall not be less than thirty days after the d…

In case the policy provides that the proceeds may be payable in installments which are determinable at the time of issuance of the policy, there shall be a table showing the amounts of the guaranteed installments. Source: SL 1966, ch 111 , ch 23, § 11.

Personal representatives, conservators, and trustees may invest the funds of their trusts, in the absence of any provision pertaining to investments contained in the instrument under which they are acting, in insurance policies and annuities of life insurers authorized to do busi…

This section shall apply only to policies of life insurance issued prior to the operative date specified in §