Title 58 — INSURANCE
79 chapters · 3,532 sections in this title.
SDCL § 58-29A-100 Examination and regulation of association--Annual report
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The association is subject to examination and regulation by the director. The board of directors shall submit, not later than May thirtieth of each year, a financial report for the preceding calendar year in a form approved by the director. Source: SL 2000, ch 247 , § 47; SL 2011…
SDCL § 58-29A-101 Immunity from liability of persons acting under chapter
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There is no liability on the part of and no cause of action of any nature may arise against any member insurer, the association or its agents or employees, the board of directors, any person serving as a representative of any director, or the director or the director's representa…
SDCL § 58-29A-102 Judicial review of director's actions
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Any final action or order of the director under this chapter is subject to judicial review in a court of competent jurisdiction. Source: SL 2000, ch 247 , § 49.
SDCL § 58-29A-103 Premiums to include amounts sufficient for assessments
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The rates and premiums charged for insurance policies to which this chapter applies shall include amounts sufficient to recoup a sum equal to the amounts paid to the association by the member insurer less any amounts returned to the member insurer by the association and such rate…
SDCL § 58-29A-104 Unfair trade practice to advertise protection given by chapter
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It is unfair trade practice for any insurer or insurance producer to in any manner make use of the protection given policyholders by this chapter as a reason for buying insurance from the insurer or insurance producer. Source: SL 2000, ch 247 , § 51; SL 2001, ch 286 , § 138.
SDCL § 58-29A-105 Payment of claims to be made in any reasonable order
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The association shall pay claims in any order which it deems reasonable, including the payment of claims as such are received from the claimants or in groups or categories of claims. Source: SL 2000, ch 247 , § 52.
SDCL § 58-29A-106 Association to be recognized as claimant in liquidation of insolvent insurer--Priority of distribution
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The association and any similar organization in another state shall be recognized as claimants in the liquidation of an insolvent insurer for any amounts paid by them on covered claims obligations as determined under this chapter or similar laws in other states and shall receive …
SDCL § 58-29A-107 Insolvent insurer's records to be made available to board
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The liquidator, receiver, or statutory successor of an insolvent insurer covered by this chapter shall permit access by the board or its authorized representative to any of the insolvent insurer's records that are necessary for the board in carrying out its functions under this c…
SDCL § 58-29A-108 Jurisdiction over claims against association
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Except for actions by member insurers aggrieved by final actions or decisions of the association pursuant to subdivision 58-29A-84(7), any action relating to or arising out of this chapter against the association shall be brought in a court in this state. The courts in this state…
SDCL § 58-29A-109 Citation of chapter
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This chapter shall be known as the South Dakota Insurance Guaranty Association Act. Source: SL 2000, ch 247 , § 56.
SDCL § 58-29A-54 Scope of application of chapter
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This chapter applies to any kind of direct insurance, but does not apply to: (1) Life, annuity, health, or disability insurance; (2) Mortgage guaranty, financial guaranty, or other forms of insurance offering protection against investment risks; (3) Fidelity or surety bonds, or a…
SDCL § 58-29A-55 Definition of terms
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Terms used in this chapter mean: (1) "Account," any one of the three accounts created by this chapter; (2) "Affiliate," any person who, directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with another person on Decemb…
SDCL § 58-29A-56 Creation of association--Membership--Exercise of powers
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There is created a nonprofit unincorporated legal entity to be known as the South Dakota Insurance Guaranty Association. Any insurer defined as a member insurer in subdivision 58-29A-55(9) is a member of the association as a condition of its authority to transact insurance in thi…
SDCL § 58-29A-57 Board of directors--Appointment and terms of members--Vacancies on board
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The board of directors of the association shall consist of seven persons, each of whom shall be appointed by the director for a term of three years and until a successor has been appointed and qualified. The director shall consult with member insurers concerning their recommendat…
SDCL § 58-29A-58 Representation of member insurers on board--Domestic insurers
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In approving selections to the board, the director shall consider, among other things, whether all member insurers are fairly represented. No less than two members of the board shall be domestic insurers. Source: SL 2000, ch 247 , § 5.
SDCL § 58-29A-59 Reimbursement of director's expenses
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Members of the board may be reimbursed from the assets of the association for expenses incurred by them as members of the board of directors. Source: SL 2000, ch 247 , § 6.
SDCL § 58-29A-60 General corporate powers of association
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The association may: (1) Employ or retain such persons as are necessary to handle claims and perform other duties of the association; (2) Borrow funds necessary to effect the purposes of this chapter in accord with the plan of operation; (3) Sue or be sued. The power to sue inclu…
SDCL § 58-29A-61 Tax exemption of association
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The association is exempt from payment of all fees and all taxes levied by this state or any of its subdivisions except taxes levied on real property. Source: SL 2000, ch 247 , § 8.
SDCL § 58-29A-62 Notice to director of indications of member insolvency
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To aid in the detection and prevention of insurer insolvencies, it is the duty of the board of directors, upon majority vote, to notify the director of any information indicating any member insurer may be insolvent or in a financial condition hazardous to the policyholders or the…
SDCL § 58-29A-63 Examination of insurer on request by board--Cost of examination--Handling of report
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To aid in the detection and prevention of insurer insolvencies, the board of directors may, upon majority vote, request that the director order an examination of any member insurer which the board in good faith believes may be in a financial condition hazardous to the policyholde…
SDCL § 58-29A-64 Insolvency or hazardous condition reported to board of directors
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The director shall report to the board of directors when the director has reasonable cause to believe that any member insurer examined or being examined at the request of the board of directors may be insolvent or in a financial condition hazardous to the policyholders or the pub…
SDCL § 58-29A-65 Recommendations for detection and prevention of insolvencies
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The board of directors may, upon majority vote, make recommendations to the director for the detection and prevention of insurer insolvencies. Source: SL 2000, ch 247 , § 12.
SDCL § 58-29A-66 Recommendations on improving regulation for solvency
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The board of directors may, upon majority vote, make recommendations to the director on matters generally related to improving or enhancing regulation for solvency. Source: SL 2000, ch 247 , § 13.
SDCL § 58-29A-67 Report by directors on history and causes of insolvency
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The board of directors may, at the conclusion of any domestic insurer insolvency in which the association was obligated to pay covered claims, prepare a report on the history and causes of such insolvency, based on the information available to the association, and submit the repo…
SDCL § 58-29A-68 Obligation of association on claims against insolvent insurer--Deductible and maximum amounts
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The association is obligated to pay covered claims existing prior to the order of liquidation, arising within thirty days after the order of liquidation, or before the policy expiration date if less than thirty days after the order of liquidation, or before the insured replaces t…
SDCL § 58-29A-69 Association deemed insurer to extent of obligations on covered claims
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The association shall be deemed the insurer to the extent of its obligation on the covered claims and to such extent, subject to the limitations provided in this chapter, shall have all rights, duties, and obligations of the insolvent insurer as if the insurer had not become inso…
SDCL § 58-29A-70 Investigation, adjustment, and payment or denial of claims--Review of previous settlements, releases, and judgments
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The association shall investigate claims brought against the association and adjust, compromise, settle, and pay covered claims to the extent of the association's obligation and deny any other claims and may review settlements, releases, and judgments to which the insolvent insur…
SDCL § 58-29A-71 Transfer or recovery of claim from certain covered persons
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The association, at its sole discretion, may transfer claims handling and financial responsibility for a covered claim to, or recover from, the following persons the amount of any covered claim paid on behalf of such person pursuant to this chapter: (1) Any insured whose net wort…
SDCL § 58-29A-72 Means of handling claims--Designation of servicing facility
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The association shall handle claims through its employees or through one or more insurers or other persons designated as servicing facilities. Designation of a servicing facility is subject to the approval of the director, but such designation may be declined by a member insurer.…
SDCL § 58-29A-73 Reimbursement of servicing facility--Payment of other expenses
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The association shall reimburse each servicing facility for obligations of the association paid by the facility and for expenses incurred by the facility while handling claims on behalf of the association and shall pay the other expenses of the association authorized by this chap…
SDCL § 58-29A-74 Separate accounts for administration and assessment
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For purposes of administration and assessment, the association shall be divided into three separate accounts: (1) The workers' compensation insurance account; (2) The automobile insurance account; and (3) The account for all other insurance to which this chapter applies. Source: …
SDCL § 58-29A-75 Allocation of claims, expenses, and assessments to separate accounts--Operating expenses excepted
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The association shall allocate claims paid and expenses incurred among the three accounts separately, and assess member insurers separately for each account amounts necessary to pay the obligations of the association under § 58-29A-68 subsequent to an insolvency, the expenses of …
SDCL § 58-29A-76 Administrative assessments for operating expenses
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In addition to any other assessments authorized by this chapter, the association may assess each member insurer an administrative assessment not to exceed five hundred dollars per annum. The administrative assessment shall be made for the purpose of paying operating expenses of t…
SDCL § 58-29A-77 Apportionment of assessments among members--Notice of assessment
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The assessments of each member insurer shall be in the proportion that the net direct written premiums of the member insurer for the preceding calendar year on the kinds of insurance in the account bears to the net direct written premiums of all member insurers for the preceding …
SDCL § 58-29A-78 Maximum assessment in relation to net premiums
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No member insurer may be assessed in any year on any account an amount greater than two percent of that member insurer's net direct written premiums for the preceding calendar year on the kinds of insurance in the account. Source: SL 2000, ch 247 , § 25.
SDCL § 58-29A-79 Offset of payments and expenses against assessment due
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Each member insurer may set off against any assessment, authorized payments made on covered claims and expenses incurred in the payment of such claims by the member insurer if they are chargeable to the account for which the assessment is made. Source: SL 2000, ch 247 , § 26.
SDCL § 58-29A-80 Exemption or deferment of assessments to avoid impairment of capital or surplus
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The association may exempt or defer, in whole or in part, the assessment of any member insurer, if the assessment would cause the member insurer's financial statement to reflect amounts of capital or surplus less than the minimum amounts required for a certificate of authority by…
SDCL § 58-29A-81 Proration of payments when assets insufficient for full payment
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If the maximum assessment, together with the other assets of the association in any account, does not provide in any one year in any account an amount sufficient to make all necessary payments from that account, the funds available shall be prorated and the unpaid portion shall b…
SDCL § 58-29A-82 Refund of surplus to member insurers
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The association may refund to the member insurers in proportion to the contribution of each member insurer to that account that amount by which the assets of the account exceed the liabilities, if, at the end of any calendar year, the board of directors finds that the assets of t…
SDCL § 58-29A-83 Plan of operation submitted to director--Approval
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The association shall submit to the director a plan of operation and any amendments necessary or suitable to assure the fair, reasonable, and equitable administration of the association. The plan of operation and any amendments is effective upon approval in writing by the directo…
SDCL § 58-29A-84 Required contents of plan of operation
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The plan of operation shall: (1) Establish the procedures whereby all the powers and duties of the association under §§ 58-29A-60 , 58-29A-68 to 58-29A-73 , inclusive, and §§ 58-29A-75 to 58-29A-82 , inclusive, will be performed; (2) Establish procedures for handling assets of th…
SDCL § 58-29A-85 Compliance with plan of operation--Violation as misdemeanor
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All member insurers shall comply with the plan of operation. Violation of this section is a Class 2 misdemeanor. Source: SL 2000, ch 247 , § 32.
SDCL § 58-29A-86 Delegation of functions to interstate organization--Reimbursement of organization--Approval of delegation
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The plan of operation may provide that any or all powers and duties of the association, except those under subdivision 58-29A-60(2) and those under §§ 58-29A-75 to 58-29A-81 , inclusive, are delegated to a corporation, association, or other organization which performs or will per…
SDCL § 58-29A-87 Director's rules promulgated in lieu of amendments to plan of operation
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If at any time the association fails to submit suitable amendments to the plan of operation, the director shall, after notice and hearing, promulgate such reasonable rules as are necessary or advisable to effectuate the provisions of this chapter. The rules shall continue in forc…
SDCL § 58-29A-88 Notice to association of insolvency of insurer
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The director shall notify the association of the existence of an insolvent insurer not later than three days after the director receives notice of the determination of the insolvency. The association is entitled to a copy of any complaint seeking an order of liquidation with a fi…
SDCL § 58-29A-89 Statement of members' premiums furnished to association
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The director shall, upon request of the board of directors, provide the association with a statement of the net direct written premiums of each member insurer. Source: SL 2000, ch 247 , § 36.
SDCL § 58-29A-90 Stay of default proceedings against insolvent insurer--Setting aside of prior proceedings
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Any proceeding in which the insolvent insurer is a party or is obligated to defend a party in any court in this state shall, subject to waiver by the association in specific cases involving covered claims, be stayed until the last day fixed by the court for the filing of claims a…
SDCL § 58-29A-91 Suspension or revocation of certificate of authority for failure to pay assessment or comply with plan--Fine as alternative
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The director may suspend or revoke, after notice and hearing, the certificate of authority to transact insurance in this state of any member insurer that fails to pay an assessment when due or fails to comply with the plan of operation. As an alternative, the director may levy a …
SDCL § 58-29A-92 Revocation of designation of servicing facility
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The director may revoke the designation of any servicing facility if the director finds claims are being handled unsatisfactorily. Source: SL 2000, ch 247 , § 39.
SDCL § 58-29A-93 Duplicate coverage--Insured to exhaust rights against solvent insurer
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Any person having a claim against an insurer, whether or not the insurer is a member insurer, under any provision in an insurance policy other than a policy of an insolvent insurer which is also a covered claim, shall be required to first exhaust any right under the policy. Any a…