Title 58 — INSURANCE

Terms used in §§ 58-30-141 to 58-30-195 , inclusive, and in §§ 58-30-209 to 58-30-218 , inclusive mean: (1) "Agent of the insurer," any insurance producer who is compensated directly or indirectly by an insurer and sells, solicits, or negotiates any product of that insurer; (2) "…

No person may sell, solicit, or negotiate insurance in this state for any line of insurance unless the person is licensed for that line of authority in accordance with §§ 58-30-141 to 58-30-195 , inclusive. Source: SL 2001, ch 286 , § 3.

Nothing in §§ 58-30-141 to 58-30-195 , inclusive, requires an insurer to obtain an insurance producer license. In this section, the term, insurer, does not include an insurer's officers, directors, employees, subsidiaries, or affiliates. A license as an insurance producer is not …

Any person acting as a consultant shall be licensed as an agent pursuant to this chapter. A consultant may collect a fee from an insurance customer for services provided as a consultant but may not collect a fee for any insurance placed with that insurance customer if a commissio…

A resident individual applying for an insurance producer license shall pass a written examination unless exempt pursuant to §

The director may make arrangements, including contracting with an outside testing service, for administering examinations and collecting the fee set forth in §

Each individual applying for an examination shall remit a fee as prescribed by the director as set forth in § 58-2-29 and pay any fees charged by the outside testing service. Source: SL 2001, ch 286 , § 7.

A person applying for a resident insurance producer license shall make application to the director on an application form or format as prescribed by the director and declare under penalty of refusal, suspension, or revocation of the license that the statements made in the applica…

A business entity acting as an insurance producer is required to obtain an insurance producer license. Application shall be made using a form or format prescribed by the director. The director shall consider the use of a uniform form or format. Before approving the application, t…

The director may require any documents reasonably necessary to verify the information contained in an application. Source: SL 2001, ch 286 , § 10.

An application for an insurance producer license must be deemed withdrawn if the director contacts an applicant under this chapter in writing regarding an incomplete application and the director does not receive a response from the applicant within sixty days of the date of the w…

Each insurer that sells, solicits, or negotiates any form of limited line credit insurance shall provide a program of instruction to each business entity acting as a licensed insurance producer for the insurer. Using the insurer's program of instruction, the insurer or the busine…

Unless denied licensure pursuant to § 58-30-167 , any person who has met the requirements of §§ 58-30-145 to 58-30-151 , inclusive, shall be issued an insurance producer license. An insurance producer may receive qualification for a license in one or more of the following lines o…

An insurance producer license shall remain in effect unless revoked, suspended, or expired as long as the fee set forth in § 58-2-29 is paid and the education requirements for resident individual insurance producers are met by the due date. Source: SL 2001, ch 286 , § 13.

An individual insurance producer who allows his or her license to lapse may, within twelve months from the due date of the renewal fee apply to reinstate the same license without the necessity of passing a written examination. A penalty in the amount of double the unpaid renewal …

A licensed insurance producer who is unable to comply with license renewal procedures due to military service or some other extenuating circumstance, such as a long - term medical disability, may request a waiver of those procedures. The producer may also request a waiver of any …

The license shall contain the licensee's name, address, personal identification number, the date of issuance, the lines of authority, the expiration date, and any other information the director determines to be necessary. Source: SL 2001, ch 286 , § 16.

A licensee shall inform the director in a form or format prescribed by the director of a change of address within thirty days of the change. Source: SL 2001, ch 286 , § 17.

In order to assist in the performance of the director's duties, the director may contract with nongovernmental entities, including the National Association of Insurance Commissioners (NAIC) or any affiliates or subsidiaries that the NAIC oversees to perform any ministerial functi…

Unless denied licensure pursuant to § 58-30-167 , a nonresident person is entitled to receive a nonresident insurance producer license if: (1) The person is currently licensed as a resident insurance producer and in good standing in the person's home state; (2) The person has sub…

A licensee as nonresident insurance producer shall at all times be qualified for and hold in the licensee's home state of domicile the license of that home state as a resident insurance producer covering all kinds of insurance covered or to be covered under the South Dakota nonre…

The director may verify the insurance producer's licensing status through databases maintained by the National Association of Insurance Commissioners, its affiliates, or subsidiaries. Source: SL 2001, ch 286 , § 21.

A nonresident insurance producer who moves from one state to another state or a resident insurance producer who moves from this state to another state shall file a change of address and provide certification from the new resident state within thirty days of the change of legal re…

The director shall waive any requirements for a nonresident license applicant with a valid license from the applicant's home state, except for the requirements imposed by § 58-30-159 , if the applicant's home state awards nonresident licenses to residents of this state on the sam…

An insurance producer doing business under any name other than the insurance producer's legal name is required to notify the director prior to using the assumed name. Source: SL 2001, ch 286 , § 24.

The director may issue a temporary insurance producer license for a period not to exceed one hundred eighty days without requiring an examination if the director determines that the temporary license is necessary for the servicing of an insurance business in the following cases: …

The director may by order limit the authority of any temporary licensee in any way determined to be necessary to protect insureds and the public. The director may require the temporary licensee to be under the supervision of a licensed insurance producer or insurer who assumes re…

The director may suspend for not more than twelve months, or may revoke or refuse to continue, any license issued under this chapter, or any license of a surplus lines broker after a hearing. Notice of such hearing and of the charges against the licensee shall be given to the lic…

No insurer may terminate the appointment of a producer based solely on the receipt of a notice of hearing pursuant to § 58-30-167 involving that producer. Source: SL 2006, ch 263 , § 2.

If the director has reasonable evidence that a licensed insurance producer has violated any provision of this title and the licensed producer has also violated subdivision 58-33-66 (1) for failing to respond to division inquiries regarding the same, the director may, after suffic…

An order under § 58-30-167.2 must allow sixty days for the producer to request a hearing in writing. If a timely request for hearing is received, the director shall issue a notice of hearing within thirty days. The office of hearing examiners shall hold the hearing, review the di…

If the director denies an application for a license or does not renew a license, the director shall notify the applicant or licensee and advise, in writing, the applicant or licensee of the reason for the denial or nonrenewal of the applicant's or licensee's license. The applican…

The license of a business entity may be suspended, revoked, refused, or the director may accept a monetary penalty in accordance with § 58-4-28.1 , or any combination thereof, if the director finds, after hearing, that an individual licensee's violation was known or should have b…

The director retains the authority to enforce the provisions of and impose any penalty or remedy authorized by §§ 58-30-141 to 58-30-195 , inclusive, and Title 58 against any person who is under investigation for or charged with any violation of §§ 58-30-141 to 58-30-195 , inclus…

No insurer or insurance producer may pay a commission, service fee, brokerage, or other valuable consideration to a person for selling, soliciting, or negotiating insurance in this state if that person is required to be licensed under §§ 58-30-141 to 58-30-195 , inclusive, and is…

An insurer may by contract prohibit an insurance producer from collecting a fee from an insurance customer for services provided as a consultant. Source: SL 2013, ch 255 , § 3.

No person may accept a commission, service fee, brokerage, or other valuable consideration for selling, soliciting, or negotiating insurance in this state if that person is required to be licensed or appointed under §§ 58-30-141 to 58-30-195 , inclusive, and is not so licensed or…

Renewal or other deferred commissions may be paid to a person for selling, soliciting, or negotiating insurance in this state if the person was required to be licensed under §§ 58-30-141 to 58-30-195 , inclusive, at the time of the sale, solicitation, or negotiation and was so li…

No insurer or insurance producer may pay or assign a commission, service fee, brokerage fee, or any other valuable consideration for a referral to any person not appropriately licensed pursuant to this chapter unless the payment or assignment is a fixed dollar amount that is not …

No insurance producer or business entity may act as an agent of an insurer unless the insurance producer becomes an appointed insurance producer of that insurer. An insurance producer who is not acting as an agent of an insurer is not required to become appointed. This section do…

To appoint an insurance producer or business entity as its agent, the appointing insurer shall file, in a format approved by the director, a notice of appointment within fifteen days from the date the agency contract is executed or the first insurance application is submitted. An…

Upon receipt of the notice of appointment, the director shall verify within a reasonable time, not to exceed thirty days, that the insurance producer is eligible for appointment. If the insurance producer is determined to be ineligible for appointment, the director shall notify t…

An insurer shall pay an appointment fee in the amount as set forth in § 58-2-29 in a manner prescribed by the director for each insurance producer appointed by the insurer. Source: SL 2001, ch 286 , § 38.

An insurer shall remit, in a manner prescribed by the director, a renewal appointment fee in the amount set forth in §

An insurer or authorized representative of the insurer that terminates the appointment, employment, contract, or other insurance business relationship with an insurance producer shall notify the director within thirty days following the effective date of the termination, using a …

The insurer or authorized representative of the insurer shall promptly notify the director in a written or electronic format if, upon further review or investigation, the insurer discovers additional information that would have been reportable to the director in accordance with §…

Within fifteen days after making the notification required by §§ 58-30-180 and 58-30-181 , the insurer shall mail, or if acceptable, send by electronic means, a copy of the notification to the insurance producer at the insurance producer's last known address. If the insurance pro…

Within thirty days after the insurance producer has received the original or additional notification, the insurance producer may file written comments concerning the substance of the notification with the director. The insurance producer shall simultaneously send a copy of the co…

In the absence of actual malice, an insurer, the authorized representative of the insurer, an insurance producer, the director, or an organization of which the director is a member that compiles the information and makes it available to other insurance directors, commissioners, o…

In any action brought against a person that may have immunity under § 58-30-184 for making any statement required by §§ 58-30-180 to 58-30-193 , inclusive, providing any information relating to any statement that may be requested by the director, the party bringing the action sha…