Title 58, INSURANCE

A company shall submit mortality, morbidity, policyholder behavior, or expense experience and other data as prescribed in the valuation manual. Source: SL 2015, ch 254 , § 35.

For purposes of this chapter, confidential information, means: (1) A memorandum in support of an opinion submitted pursuant to §§ 58-26-46 to 58-26-55.1 , inclusive, and any other document, material, and other information, including all working papers, and copies thereof, created…

(1) Except as provided in §§ 58-26-102 to 58-26-104 , inclusive, a company's confidential information is confidential by law and privileged, and is not subject to open records, freedom of information, sunshine or other appropriate phrase, is not subject to subpoena and is not sub…

Notwithstanding § 58-26-103 , any confidential information specified in subdivisions 58-26-102(1) and (4): (1) May be subject to subpoena for the purpose of defending an action seeking damages from the appointed actuary submitting the related memorandum in support of an opinion s…

The director may exempt specific product forms or product lines of a domestic company that is licensed and doing business only in South Dakota from the requirements of §§ 58-26-91 to 58-26-97 , inclusive, provided: (1) The director has issued an exemption in writing to the compan…

In any determination of the financial condition of an insurer, capital stock and liabilities to be charged against its assets shall include: (1) The amount of its capital stock outstanding, if any; (2) The amount, estimated consistently with the provisions of this title, necessar…

Assets may be allowed as deductions from corresponding liabilities, and liabilities may be charged as deductions from assets, and deductions from assets may be charged as liabilities, in accordance with the form of annual statement applicable to the insurer as prescribed by the d…

Every property and casualty and health insurer doing business in this state shall file with its annual statement an actuarial opinion which complies with the standards and procedures in the National Association of Insurance Commissioners Annual Statement Instructions: Property an…

Each domestic insurer shall comply with §§ 58-26-13.1 and 58-26-44 for the year ending December 31, 1993, and each year thereafter, unless the director permits otherwise. Each foreign insurer shall comply with §§ 58-26-13.1 and 58-26-44 for the year ending December 31, 1994, and …

All bonds or other evidences of debt having a fixed term and rate of interest held by an insurer may, if amply secured and not in default as to principal or interest, be valued as follows: (1) If purchased at par, at the par value; (2) If purchased above or below par, on the basi…

Securities, other than those referred to in § 58-26-2 , held by an insurer, shall be valued, in the discretion of the director, at their market value, or at their appraised value, or at prices determined by him as representing their fair market value. Source: SL 1966, ch 111 , ch…

For all health insurance policies the insurer shall maintain an active life reserve which shall place a sound value on its liabilities under such policies and be not less than the reserve according to appropriate standards set forth in regulations issued by the director and, in n…

An insurer shall maintain a reserve for outstanding losses under insurance against loss or damage from accident to or injuries suffered by an employee or other person and for which the insured is liable and which shall be computed as provided by §§ 58-26-32 to 58-26-35 , inclusiv…

For all workers' compensation claims under policies written in the three years immediately preceding the date as of which the statement is made, the reserve required by § 58-26-31 shall be calculated in accordance with the Annual Statement Instructions Manual prescribed by the Na…

For all workers' compensation claims under policies written more than three years prior to the date as of which the statement is made, the reserve required by § 58-26-31 shall be the present value at four per cent interest of the determined and the estimated future payments. Sour…

For all liability policies written during the three years immediately preceding the date as of which the statement is made, the reserve required by § 58-26-31 shall be calculated in accordance with the Annual Statement Instructions Manual prescribed by the National Association of…

An insurer shall maintain a reserve for outstanding losses under credit insurance policies in accordance with the Annual Statement Instructions Manual prescribed by the National Association of Insurance Commissioners as adopted by rule by the director pursuant to chapter 1-26 . B…

As to insurance against loss or damage to property, except as provided in § 58-26-41 , and as to all general casualty insurance and surety insurance, every insurer shall maintain an unearned premium reserve on all policies in force. Source: SL 1966, ch 111 , ch 5, § 5 (1).

The director may require that reserves required by § 58-26-36 shall be equal to the unearned portions of the gross premiums in force after deducting applicable reinsurance in solvent insurers as computed on each respective risk from the policy's date of issue. If the director doe…

In lieu of computation according to the table in § 58-26-37 , the insurer at its option may compute all of the reserves required by § 58-26-36 on a monthly or more frequent prorata basis. Source: SL 1966, ch 111 , ch 5, § 5 (3).

After adopting a method for computing the reserve required by § 58-26-36 , an insurer shall not change methods without approval of the director. Source: SL 1966, ch 111 , ch 5, § 5 (4).

Preferred or guaranteed stocks or shares while paying full dividends may be carried at a fixed value in lieu of market value, at the discretion of the director and in accordance with such method of computation as he may approve. Source: SL 1966, ch 111 , ch 5, § 13 (2).

Sections 58-26-36 to 58-26-39 , inclusive, do not apply to title insurance. Source: SL 1966, ch 111 , ch 5, § 5 (5).

As to marine and transportation insurance, the entire amount of premiums on trip risks not terminated shall be deemed unearned; and the director may require the insurer to carry a reserve equal to one hundred percent of premiums on trip risks written during the month ended as of …

If loss experience shows that an insurer's loss reserves, however computed or estimated, are inadequate, the director shall require the insurer to maintain loss reserves in such increased amount as is needed to make them adequate. Source: SL 1966, ch 111 , ch 5, § 9.

This chapter applies to all persons doing an insurance business notwithstanding any provision in this title exempting them from the insurance laws of this state. Source: SL 1992, ch 349 , § 3.

Terms used in §§ 58-26-45 to 58-26-105 , inclusive, apply on or after the operative date of the valuation manual and mean: (1) "Accident and health insurance," a contract that incorporates morbidity risk and provides protection against economic loss resulting from accident, sickn…

The director shall annually value the reserve liabilities for all outstanding life insurance policies and annuity and pure endowment contracts of every life insurance company doing business in this state issued on or after July 1, 1995, and prior to the operative date of the valu…

The director may, by rules promulgated pursuant to chapter 1-26 , adopt the manual of valuation instruction adopted by the NAIC after the NAIC notifies the director that the valuation manual is operative. After the director adopts the NAIC valuation manual of instruction, the dir…

Any life insurance company doing business in this state shall annually submit the opinion of a qualified actuary as to whether the reserves and related actuarial items held in support of the policies and contracts specified by the director are computed appropriately, are based on…

Any life insurance company shall also annually include in the opinion required by §§ 58-26-46 to 58-26-50 , inclusive, an opinion of the same qualified actuary as to whether the reserves and related actuarial items held in support of the policies and contracts specified by the di…

The director may provide by rules promulgated pursuant to chapter 1-26 for a transition period for establishing any higher reserves which the qualified actuary considers necessary in order to render the opinion required by §§ 58-26-46 to 58-26-50 , inclusive. Source: SL 1995, ch …

Each opinion required by §§ 58-26-47 and 58-26-48 shall be governed by the following provisions: (1) A memorandum, in form and substance acceptable to the director as specified by rules promulgated pursuant to chapter 1-26 , shall be prepared to support each actuarial opinion; (2…

Real property acquired pursuant to a mortgage loan or contract for sale, in the absence of a recent appraisal deemed by the director to be reliable, shall not be valued at an amount greater than the unpaid principal of the defaulted loan or contract at the date of such acquisitio…

Any opinion required by §§ 58-26-46 to 58-26-49 , inclusive, shall be governed by the following provisions: (1) The opinion shall be submitted with the annual statement reflecting the valuation of the reserve liabilities for each year ending on or after December 31, 1995; (2) The…

In the case of an opinion required to be submitted pursuant to §§ 58-26-46 to 58-26-49 , inclusive, by a foreign or alien company, the director may accept the opinion filed by that company with the insurance supervisory official of another state if the director determines that th…

For the purposes of the opinion required by §§ 58-26-46 to 58-26-50 , inclusive, qualified actuary means a member in good standing of the American Academy of Actuaries who meets the requirements set forth in rules promulgated pursuant to chapter 1-26 . Source: SL 1995, ch 284 , §…

Except in cases of fraud or willful misconduct, the qualified actuary is not liable for damages to any person, other than the insurance company and the director, for any act, error, omission, decision, or conduct with respect to the actuary's opinion. Source: SL 1995, ch 284 , § …

The director shall promulgate rules pursuant to chapter 1-26 to define disciplinary action that may be taken by the director against the company or the qualified actuary. Source: SL 1995, ch 284 , § 10.

Any memorandum in support of the opinion, required pursuant to §§ 58-26-46 to 58-26-49 , inclusive, and any other material provided by the company to the director in connection with the opinion, shall be kept confidential by the director, other than for the purpose of defending a…

(1) Every company with outstanding life insurance contracts, accident and health insurance contracts, or deposit-type contracts in this state and subject to regulation by the director shall annually submit the opinion of the appointed actuary as to whether the reserves and relate…

Except as provided in §§ 58-26-64 to 58-26-74 , inclusive, and § 58-26-84 , the minimum standard for the valuation of policies and contracts issued prior to July 1, 1995, shall be that provided by the laws in effect immediately prior to July 1, 1995. Except as otherwise provided …

The tables that shall be used for ordinary policies of life insurance issued on the standard basis, excluding any disability and accidental death benefits in the policies are: the Commissioners 1941 Standard Ordinary Mortality Table for policies issued prior to the operative date…

The tables that shall be used for all industrial life insurance policies issued on the standard basis, excluding any disability and accidental death benefits in the policies are: the 1941 Standard Industrial Mortality Table for policies issued prior to the operative date of § 58-…

The tables that shall be used for individual annuity and pure endowment contracts, excluding any disability and accidental death benefits in the policies are: the 1937 Standard Annuity Mortality Table, or at the option of the company, the Annuity Mortality Table for 1949, Ultimat…

Purchase money mortgages on real property referred to in § 58-26-5 shall be valued in an amount not exceeding the acquisition cost of the real property covered thereby or ninety per cent of the fair value of such real property, whichever is less. Source: SL 1966, ch 111 , ch 5, §…