Title 58, INSURANCE

Except for § 58-27-68 , this chapter applies to domestic insurers only. Source: SL 1966, ch 111 , ch 6, § 1.

An insurer may invest in loans guaranteed as to principal and interest by the United States of America or Canada, or by any agency or instrumentality of the United States or Canada. Source: SL 1966, ch 111 , ch 6, § 7.

All persons subject to §§ 58-27-89 to 58-27-102 , inclusive, shall be in compliance with §§ 58-27-89 to 58-27-102 , inclusive, by July 1, 1993. The director may establish limitations on the obligations or time frames for those persons to reduce obligations in violation of §§ 58-2…

The term, money market fund, means any open end, diversified management type of mutual fund registered under the Investment Company Act of 1940, 15 U.S.C. 80a-1 et seq., as adopted by the director pursuant to rules promulgated pursuant to chapter 1-26 , the moneys of which are in…

An insurer may invest in company owned life insurance contracts if: (1) The life insurance is whole life; (2) The life insurance contract does not vest in any employee of the insurer; and (3) The company is the beneficiary and has an insurable interest. All cash values of life in…

In addition to investment in mortgages in §§ 58-27-32 to 58-27-48 , inclusive, an insurer may invest in obligations or certificates entitled to receive both principal and interest, or both principal and implied interest, from a pool collateralized by one or more commercial and re…

An insurer may invest in an interest in a collateralized pool whose underlying assets are not addressed or may be prohibited by chapter 58-26 or 58-27 . An insurer may invest in interest - bearing obligations entitled to receive both principal and interest, or both principal and …

An insurer may invest in securities or other investments which are issued or denominated in the currency of countries other than the United States or whose obligor is domiciled in another country. The securities and investments shall meet the limitation, quality, and quantity req…

Any investment satisfying the provisions of § 58-27-53 , 58-27-57 , 58-27-103 , 58-27-104 , or 58-27-105 entered into before January 1, 1993, is hereby ratified. Source: SL 1993, ch 364 , § 7; SL 1997, ch 294 , § 29.

Any investment shall be rated and valued in accordance with standards promulgated by the Securities Valuation Office of the National Association of Insurance Commissioners as adopted by the director pursuant to rules promulgated pursuant to chapter 1-26 . The rating of the invest…

For purposes of this chapter, an institution is a corporation, a joint stock company, an association, a trust, a business partnership, a business joint venture, or a similar entity. Source: SL 1994, ch 384 , § 4.

An insurer may invest any of its funds in bonds, warrants, or other evidences of indebtedness which are general obligations of, or are secured by pledge of specific revenues by, this state or of any other state of the United States or province of Canada or of any of the political…

A domestic title insurer may make investments in title plants in an aggregate amount not exceeding twenty - five percent of the insurer's assets. Source: SL 1997, ch 294 , § 32.

Notwithstanding direct investment limitations applicable to real estate, securities, and other assets as provided in this chapter, an insurer may become a limited partner in a limited partnership or invest in a joint venture with equity interests in real estate, securities, or ot…

An insurer may invest in bonds, notes, or evidences of indebtedness of any state of the United States or province of Canada, or any political subdivision thereof or any agency or instrumentality of any of the foregoing, which are payable from revenues or earnings specifically ple…

An insurer may invest up to twenty percent of its admitted assets in any bonds, warrants, or evidence of indebtedness described in §§ 58-27-11 and 58-27-12 and not rated pursuant to § 58-27-108 . The valuation of such investments shall be the amortized cost of the investments or …

An insurer may invest in the obligations, or stock thereof where stated, of the following agencies of the government of the United States of America, whether or not such obligations are guaranteed by such government: (1) Commodity credit corporation; (2) Federal intermediate cred…

An insurer may invest in certificates of deposit in any bank that is a member of the federal deposit insurance corporation. Source: SL 1966, ch 111 , ch 6, § 18; SL 1971, ch 265 , § 1; SL 1974, ch 316 .

To the extent that such an account is insured by the Savings Association Insurance Fund (SAIF), or any successor organizations, an insurer may invest in share or savings accounts of savings and loan and building and loan associations. Source: SL 1966, ch 111 , ch 6, § 21; SL 1971…

To the extent that such an account is insured by the National Credit Union Share Insurance Fund (NCUSIF), or any successor organizations, an insurer may invest in member accounts of federal or state - chartered credit unions. Source: SL 1997, ch 294 , § 6.

An insurer may invest in obligations issued, assumed, or guaranteed by the International Bank for Reconstruction and Development, by the African Development Bank, or other development banks as approved by and reflected in the securities valuation manual of the National Associatio…

An insurer may invest in: (1) Bonds, debentures, notes, and other evidences of indebtedness, or participations thereon, issued, assumed, or guaranteed by any solvent institution existing under the laws of the United States of America or Canada, or any state or province thereof, a…

Insurers shall invest in or lend their funds on the security of, and shall hold as invested assets, only eligible investments as prescribed in this chapter. Violation of this section is a Class 2 misdemeanor. Source: SL 1966, ch 111 , ch 6, § 2 (1); SL 1978, ch 359 , § 2.

An insurer may invest in nonassessable common shares, trust certificates, or other equity interests, excluding preferred shares, insurance stocks, or acquisitions subject to subdivision 58-27-17(5) or § 58-27-111 , of any solvent institution existing under the laws of the United …

An insurer may invest in the stocks of other solvent insurers formed under the laws of this or another state, which stocks meet the applicable requirements of subdivision 58-27-17(5) and § 58-27-23 . Source: SL 1966, ch 111 , ch 6, § 15 (1); SL 1992, ch 350 , § 19.

An insurer may acquire and hold the controlling interest in the outstanding voting stock of another stock insurer formed under the laws of this or another state. All stocks under this section shall be subject to the limitation as to amount as provided in § 58-27-27 . Source: SL 1…

With the consent of the director of the Division of Insurance, an insurer may invest in the stock of its majority owned subsidiary insurance corporation; or in the stock of any other majority owned corporation. Source: SL 1966, ch 111 , ch 6, § 16; SL 1969, ch 130 ; SL 1983, ch 3…

The insurer's investments in the stock of its majority owned subsidiary insurance corporation under § 58-27-26 , together with its investments in insurance stocks under § 58-27-25 , may not at any time exceed the amount of the investing insurer's surplus, if a life insurer, or it…

An insurer may invest in equipment trust obligations or certificates adequately secured and evidencing an interest in transportation equipment, wholly or in part within the United States of America, which obligations or certificates carry the right to receive determined portions …

An insurer authorized to transact insurance in a foreign country may make investments, in aggregate amount not exceeding its deposit and obligations incurred in such country, in securities of or in such country possessing characteristics and of a quality similar to like investmen…

Eligibility of an investment shall be determined as of the date of its making or acquisition, except as stated in § 58-27-4 , and shall at all times be subject to the aggregate investment limitations set forth in this chapter. Source: SL 1966, ch 111 , ch 6, § 2 (3); SL 1997, ch …

An insurer may lend and thereby invest its funds upon the pledge of securities eligible for investment under this chapter. As of the date made, no such loan shall exceed in amount seventy - five percent of the market value of such collateral pledged. The amount so loaned shall be…

A life insurer may lend to its policyholder upon pledge of the policy as collateral security, any sum not exceeding the cash surrender value of the policy; or may lend against pledge or assignment of any of its supplementary contracts or other contracts or obligations, so long as…

An insurer may invest any of its funds in bonds, notes, or other evidences of indebtedness which are secured by first mortgages or deeds of trust on improved unencumbered real property located in the United States. Source: SL 1966, ch 111 , ch 6, § 24 (1).

For the purposes of § 58-27-32 , "improved real property" shall constitute only farm lands used for tillage, crop or pasture, and real estate on which permanent improvements, or improvements under construction or in process of construction, suitable for residence, institutional, …

Real property shall not be deemed to be encumbered within the meaning of § 58-27-32 by reason of the existence of instruments reserving mineral, oil, timber, or similar rights, rights - of - way, sewer rights, rights in walls, nor by reason of any liens for taxes or assessments n…

If under any of the exceptions set forth in § 58-27-34 there is any sum owing but not due or delinquent, the total amount of such sum shall be deducted from the amount which otherwise might be loaned on the property. The value of any mineral, oil, timber, or similar right reserve…

An insurer may invest any of its funds in bonds or notes secured by mortgage or trust deed guaranteed or insured by the federal housing administration under the terms of an act of Congress of the United States of June 27, 1934, entitled the "National Housing Act," as amended. Sou…

An insurer may invest any of its funds in bonds or notes secured by mortgage or trust deed guaranteed or insured as to principal in whole or in part by the administrator of veterans' affairs pursuant to the provisions of title III of an act of Congress of the United States of Jun…

An insurer may invest any of its funds in the equity of the seller of real property in a contract for deed, covering the entire balance due on a bona fide sale of such property, in amount not to exceed ten thousand dollars or the amount permissible under §§ 58-27-52 to 58-27-60 ,…

An insurer may invest any of its funds in evidences of debt secured by first mortgages or deeds of trust upon leasehold estates, running for a term of not less than fifteen years beyond the maturity of the loan as made or as extended, in improved real property, otherwise unencumb…

Any particular investment held by an insurer on July 1, 1997, and which was a legal investment at the time it was made, and which the insurer was legally entitled to possess immediately prior to July 1, 1997 shall be deemed to be an eligible investment. Source: SL 1966, ch 111 , …

An insurer may invest any of its funds in purchase money mortgages or like securities received by it upon the sale or exchange of real property acquired pursuant to § 58-27-50 . Source: SL 1966, ch 111 , ch 6, § 24 (3).

An insurer shall not make or acquire a loan or loans upon the security of any one parcel of real property in aggregate amount in excess of ten thousand dollars or more than the amount permissible under § 58-27-53 , whichever is the greater. Violation of this section is a Class 2 …

No mortgage loan or investment in a mortgage loan upon any one parcel of real property may exceed in amount at the time of acquisition: (1) Seventy - five percent of the fair value of the property if the property is a dwelling house primarily intended for occupancy by one family …

The extent to which a mortgage loan made under § 58-27-36 or 58-27-37 is guaranteed by the administrator of veterans' affairs may be deducted before application of the limitations contained in § 58-27-42 . The provisions of § 58-27-42 shall not apply to the bonds or notes describ…

The fair value of property shall be determined by appraisal by a competent appraiser at the time of the making or acquisition of a mortgage loan or investing in a contract for the deed thereon; except, that as to bonds or notes secured by mortgage or trust deed guaranteed or insu…

In connection with a mortgage loan on the security of real estate designed and used primarily for residential purposes only, which mortgage loan was acquired pursuant to §§ 58-27-32 to 58-27-40 , inclusive, an insurer may lend or invest an amount not exceeding twenty percent of t…

For the purposes of § 58-27-45 , the term "durable equipment" shall include only mechanical refrigerators, air conditioning equipment, mechanical laundering machines, heating and cooking stoves and ranges, and, in addition, in the case of apartment houses, motels and hotels, room…

Prior to the acquisition of a chattel mortgage under § 58-27-45 , items of property to be included therein shall be separately appraised by a qualified appraiser and the fair market value thereof determined. No such chattel mortgage loan shall exceed in amount the same ratio of l…