Title 58, INSURANCE

A farm mutual insurer may, by a two - thirds vote of those present in person or, if authorized by the bylaws, by proxy, at any annual meeting, or at any special meeting of members called for that purpose, amend its articles of incorporation to extend its corporate existence or in…

When applying for an original certificate of authority, a state mutual insurer must be otherwise qualified therefor under this title, and it must have received acceptable applications from one hundred persons, each for substantial insurance, aggregating at least five hundred thou…

When applying for an original certificate of authority, a county mutual insurer must be otherwise qualified therefor under this title, and it must have received acceptable applications from twenty - five persons for substantial insurance, aggregating at least one hundred thousand…

When applying for an original certificate of authority to insure growing crops against loss by hail, the insurer must be otherwise qualified therefor under this title, and it must have received applications for such insurance from not less than one hundred persons owning in the a…

Upon application, the director shall issue such a certificate of authority to every insurer qualified therefor under this chapter. The certificate of authority shall continue, unless revoked or otherwise terminated. Source: SL 1966, ch 111 , ch 17, § 12 (1); SL 2004, ch 297 , § 2…

The insurer shall pay to the director the fees specified in § 58-2-29 for each issuance and renewal of its certificate of authority. Source: SL 1966, ch 111 , ch 17, § 12 (2).

All insurers described in § 58-35-1 may be referred to as "farm mutual insurers." Source: SL 1966, ch 111 , ch 17, § 1 (2).

A certificate of authority shall be subject to suspension or revocation by the director for violation of or noncompliance with any law of this state. Source: SL 1966, ch 111 , ch 17, § 12 (3).

The initial board of directors of a farm mutual insurer shall adopt such bylaws as may be deemed necessary for the management of its affairs. The bylaws shall be subject to the approval of the insurer's members at their next succeeding meeting by a two - thirds vote of those pres…

The bylaws of a farm mutual insurer shall provide: (1) The extent of liability of each member for payment of the expenses and losses of the insurer; (2) The time when obligations of members for losses and expenses become due; (3) The terms of office of the directors; at least par…

The insurer shall promptly file with the director two certified copies of its bylaws and all amendments thereto. The director at the time of filing or at any time thereafter may disapprove any bylaw provision deemed by him to be unlawful, unreasonable, inadequate, unfair, or detr…

The total membership of the insurer shall at all times be not less than the number of persons required by § 58-35-5 or 58-35-6 to incorporate such an insurer. Source: SL 1966, ch 111 , ch 17, § 15.

Directors of a farm mutual insurer shall be elected by its members by ballot for terms not to exceed three years, and shall hold office until their respective successors are elected and qualified. Source: SL 1966, ch 111 , ch 17, § 18 (1).

No individual may serve as a director of a farm mutual insurer unless the individual is a member of the insurer or a member of one or more of the insurer’s affiliates. For the purposes of this section, “affiliate” means any entity that directly, or indirectly through one or more …

The board of directors of an insurer shall elect from their number a president and vice - president. The board shall also elect a secretary and treasurer or a secretary - treasurer of the insurer. Officers shall hold their offices for one year, and until their successors are elec…

The treasurer and secretary of an insurer shall each give bond to the insurer for the faithful performance of his duties, in such amount as is designated by the board of directors. Any such bond shall be issued by an authorized corporate surety. Source: SL 1966, ch 111 , ch 17, §…

A farm mutual insurer shall only insure the following described property against loss or damage by fire or other casualty: (1) Farm dwellings and buildings, including the usual contents therein, livestock, farm machinery, growing crops, and other forms of farm property; (2) Dwell…

A farm mutual insurer may, in connection with policies covering property insured under § 58-35-29 , afford coverage for additional expenses or loss of use resulting from fire or other casualty rendering the insured property unusable, and coverage for an insured's liability, assum…

An insurer authorized to insure property throughout the state, but including personal property temporarily removed therefrom, is a "state mutual insurer." Source: SL 1966, ch 111 , ch 17, § 2 (1).

No insurer may insure any property not owned by a member or by his spouse except for the following: (1) Property described in subdivision 58-35-29(3); and (2) Personal property in the care, custody, and control of a member or his spouse. Source: SL 1966, ch 111 , ch 17, § 3 (2); …

No contract of insurance covering any church, school, or community building referred to in § 58-35-29 shall be invalid because any director or officer of the insurer was or is a trustee, director, agent, custodian, or manager or in any way in control, supervision, or management o…

A state mutual insurer may issue policies of insurance insuring against legal liability for the death, injury, or disability of any human being, or for damage to property, excluding liability, loss, or expense resulting from or incidental to the ownership, maintenance, or use of …

Any member of an insurer may withdraw therefrom by surrendering his policy to the insurer for cancellation and paying all obligations then owing by him to the insurer. Source: SL 1966, ch 111 , ch 17, § 17 (1). 58-35-34

The maximum amount of insurance which an insurer shall retain on a single risk, after deduction of applicable reinsurance, shall not exceed ten percent of the admitted assets of the insurer or ten thousand dollars, whichever is the larger amount. Source: SL 1966, ch 111 , ch 17, …

For the purposes of § 58-35-35 , a "single risk" as to insurance against fire and hazards other than windstorm, earthquake, or other catastrophic perils, includes all properties insured by the same insurer which are reasonably susceptible to loss or damage from the same fire or t…

An insurer may transact business on either a cash premium plan or on an assessment plan as provided for in its articles of incorporation or bylaws. Source: SL 1966, ch 111 , ch 17, § 6 (1).

If transacting business on the cash premium plan, the insurer shall collect from each member before or at the effective date of the member's insurance the premium in such amount as the insurer deems will be adequate to cover losses and expenses incurred during the term of such in…

An insurer transacting business on the cash premium plan shall provide in its bylaws and policies for special assessment of its members if the cash premium charged is found to be inadequate to pay losses and expenses currently incurred. The bylaws shall provide that the amount wh…

An insurer authorized to insure only property located in the county of its principal office and in those counties contiguous to the county of its principal office in this state, but including personal property temporarily removed therefrom, is a "county mutual insurer." However, …

If transacting business on the assessment plan, the insurer will depend for the payment of losses and expenses principally upon assessments levied upon members either before or after such losses or expenses have been incurred. This provision shall not be construed to prevent any …

An insurer shall require a written application from each person desiring insurance. If the insurer is transacting business on the assessment plan, the applicant shall at the time of application give his obligation to the insurer for the payment of losses and expenses as provided …

All forms of application for insurance and of policies proposed to be used by an insurer shall be filed with the director at least thirty days in advance of any such use. The director shall disapprove any such form found by him to be unlawful, illegible, or misleading. An insurer…

A farm mutual insurer is not required to file any of its insurance rates with the director. No such rate shall discriminate between subjects of insurance having substantially the same insuring, exposure, and underwriting characteristics. Source: SL 1966, ch 111 , ch 17, § 28.

A farm mutual insurer may cede reinsurance to any other farm mutual insurer authorized to insure the risks ceded and to other authorized property insurers or reinsurers, and may accept reinsurance from other farm mutual insurers. A farm mutual insurer may also reinsure with a rei…

Any number, not less than five, of farm mutual insurers organized under this chapter may form a corporation for the purpose of reinsuring the risks of the members, on the mutual plan. The insurers proposing to form such reinsurance company shall file with the director a declarati…

The risk limitations set forth in §§ 58-35-35 and 58-35-36 shall not apply to reinsurance companies formed under § 58-35-45 . All reinsurance contracts of such reinsurer shall be submitted to the director for his approval, and he shall disapprove any reinsurance contracts which h…

The directors of a farm mutual insurer may invest the insurer's funds or any part of the insurer's funds in any of the following: (1) Bonds or other securities issued by the United States government or by any agency or instrumentality of the United States government, or by any Un…

An insurer may spend earnings of the preceding year for educational purposes. A complete and itemized report of such expenditures shall be filed by the insurer as part of its annual report required under § 58-35-54 . Source: SL 1966, ch 111 , ch 17, § 24; SL 1993, ch 373 .

Every member who shall sustain loss or damage for which the company is liable, shall immediately notify in writing the secretary, or in his absence the president, of the company specifying the property destroyed or damaged and the time and cause thereof. The secretary, or in his …

One hundred or more individuals residing in this state, each of whom is at least twenty - one years of age, who collectively own farm property as referred to in § 58-35-29 valued at not less than five hundred thousand dollars which they desire to insure, and each of whom owns far…

The directors or officers of an insurer are liable in their individual capacity to the person sustaining an insured loss, if they willfully refuse or neglect to make an assessment and collect the obligations owing to the insurer in accordance with the provisions of this chapter. …

The president and secretary of every insurer, on or before the first day of March of each year, shall prepare, affirm under oath, affix the corporate seal thereto, and file with the director, on forms furnished by the director, an annual statement as of December thirty - first of…

The director may suspend or revoke the certificate of authority of any insurer failing to file its annual statement. Source: SL 1966, ch 111 , ch 17, § 21 (2).

The annual statement of the insurer, as required to be filed with the director under § 58-35-54 , shall be presented at the next annual meeting. Source: SL 1966, ch 111 , ch 17, § 16.

The following chapters and sections of this title apply to farm mutual insurers to the extent not inconsistent with the express provisions of this chapter and the reasonable implications of the express provisions: (1) Chapter 58-1 . Definitions and General Provisions; (2) Chapter…

Nothing in the insurance laws of this state shall be deemed to apply to or govern either directly or indirectly domestic farm mutual insurers except as contained or referred to in this chapter. Source: SL 1966, ch 111 , ch 17, § 1 (3).