Title 58 — INSURANCE

Terms used in this chapter mean: (1) "Affiliate of, or a person affiliated with, a specific person," any person who directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the person specified; (2) "Control," inc…

The public hearing required by § 58-5A-9 shall be held within thirty days after the statement required by § 58-5A-3 is filed, and at least twenty days' notice thereof shall be given by the director to the person filing the statement. Not less than seven days' notice of such publi…

If a proposed acquisition of control requires the approval of more than one director or commissioner, the public hearing referred to in § 58-5A-10 may be held on a consolidated basis upon request of the person filing the statement referred to in § 58-5A-2 , 58-5A-3 , or

If an insurer subject to this chapter is deemed by the director to be in a hazardous financial condition, as defined by chapters 58-4 and 58-29B , or a condition that would be grounds for supervision, conservation, or a delinquency proceeding, then the director may require the in…

All records and data of the insurer held by an affiliate are and remain the property of the insurer, are subject to control of the insurer, must be identifiable, and must be segregated or readily capable of segregation, at no additional cost to the insurer, from all other persons…

Premiums and other funds belonging to the insurer that are collected by or held by an affiliate are the exclusive property of the insurer and are subject to the control of the insurer. Any right of offset in the event an insurer is placed into receivership is subject to chapter 5…

Any affiliate that is party to an agreement or contract with a domestic insurer that is referenced in subdivision 58-5A-56 (4) is subject to the jurisdiction of any supervision, seizure, conservatorship or receivership proceedings against the insurer and to the authority of any s…

At the public hearing required by § 58-5A-9 , the person filing the statement, the insurer, any person to whom notice of hearing was sent, and any other person whose interests may be affected thereby shall have the right to present evidence, examine and cross - examine witnesses,…

If the director appoints a hearing officer to preside at the hearing pursuant to § 58-5A-9 , the cost of employing the hearing officer shall be borne entirely by the entity making the filing of the information statement required by §

The director shall make a determination within thirty days after the conclusion of the public hearing required by §

All statements, amendments, or other material filed pursuant to §§ 58-5A-3 to 58-5A-7 , inclusive, and all notices of public hearings held pursuant to §§ 58-5A-9 to 58-5A-12 , inclusive, shall be mailed by the insurer to its shareholders within five business days after the insure…

58-5A-16 Acquisitions exempt from information and approval requirements by order of director. 58-5A-17

The provisions of §§ 58-5A-3 to 58-5A-13 , inclusive, shall not apply to any transaction which is subject to the provisions of chapter 58-5 and dealing with the merger or consolidation of two or more insurers. Source: SL 1972, ch 267 , § 11 (2).

The provisions of §§ 58-5A-3 to 58-5A-13 , inclusive, shall not apply to any offer, request, invitation, agreement, or acquisition which the director by order shall exempt therefrom as not having been made or entered into for the purpose and not having the effect of changing or i…

58-5A-19 Jurisdiction of court in Hughes County--Director as attorney for service of process. 58-5A-20 Registration of subsidiary insurer--Time for registration--Statement required of foreign insurer. 58-5A-21 Form and contents of registration statement. 58-5A-22 Initial and annu…

No person may effectuate or attempt to effectuate an acquisition of control of, divestiture of, or merger with, a domestic insurer unless it has been approved by the director. A violation of this section is a Class 2 misdemeanor. Source: SL 1972, ch 267 , §§ 12 (2), 36; SDCL Supp…

The court in Hughes County has jurisdiction over every person not resident, domiciled or authorized to do business in this state that is required to file a statement with the director under §§ 58-5A-3 to 58-5A-7 , inclusive, and over all actions involving such person arising out …

For purposes of §§ 58-5A-3 to 58-5A-18 , inclusive, a domestic insurer shall include any other person controlling a domestic insurer unless such other person is either directly or through its affiliates primarily engaged in business other than the business of insurance. Source: S…

Every insurer which is authorized to do business in this state and which is a member of an insurance holding company system shall register with the director. However, this requirement does not apply to a foreign insurer domiciled in a jurisdiction which has adopted by statute or …

Each insurer subject to registration pursuant to § 58-5A-20 shall file a registration statement with the director on a form and in the format provided by the division, which contains current information about: (1) The capital structure, general financial condition, ownership, and…

The initial fee for registration required under the provisions of this chapter shall be fifty dollars and an additional fee of fifty dollars shall be payable on July first of each calendar year thereafter so long as such registration continues. Source: SL 1972, ch 267 , § 16.

No information need be disclosed on the registration statement filed pursuant to the provisions of § 58-5A-20 if the information is not material for the purposes of this chapter. Unless the director by rule or order provides otherwise, sales, purchases, exchanges, loans, or exten…

Each registered insurer shall keep current the information required to be disclosed in its registration statement by reporting all material changes or additions on forms provided by the division on or before the fifteenth day of the following month in which it learns of each such…

The director shall terminate the registration of any insurer which demonstrates that it no longer is a member of an insurance holding company system. Source: SL 1972, ch 267 , § 19.

Two or more affiliated insurers subject to registration hereunder may file a consolidated registration statement or consolidated reports amending their respective consolidated statements or their individual registration statements so long as such consolidated filings correctly re…

The director may allow any insurer which is authorized to do business in this state and which is part of an insurance holding company system to register on behalf of any affiliated insurer which is required to register under § 58-5A-20 , and to file all information and material r…

The provisions of §§ 58-5A-20 to 58-5A-34 , inclusive, shall not apply to any insurer, information or transaction if and to the extent that the director by rule, regulation, or order shall exempt the same from the provisions hereof as not comprehended within the purposes thereof.…

The ultimate controlling person of each insurer subject to registration shall also file an annual enterprise risk report. The report shall, to the best of the ultimate controlling person's knowledge and belief, identify the material risks within the insurance holding company syst…

No person other than the issuer may make a tender offer for or a request or invitation for tenders of, or enter into any agreement to exchange securities for, seek to acquire, or acquire, in the open market or otherwise, any voting security of a domestic insurer if, after the con…

For purposes of this chapter, any controlling person of a domestic insurer seeking to divest the controlling interest in the domestic insurer, in any manner, shall file with the director, with a copy to the insurer, confidential notice of its proposed divestiture at least thirty …

Failure to file a registration statement, enterprise risk report, or keep the registration statement current within the time specified in this chapter is a violation of this title. Any insurer failing, without just cause, to file any registration statement or amendment as require…

The provisions for filings required under the provisions of §§ 58-5A-20 to 58-5A-29 , inclusive, except for subsection 58-5A-21(2)(e), shall be satisfied by the simultaneous filing with the director of duplicate copies of all filings of an insurer or person in control of an insur…

Any material transaction by a registered insurer with an affiliate is subject to the following standards: (1) The terms shall be fair and reasonable; (2) The books, accounts, and records of each party shall be maintained to clearly and accurately disclose the precise nature and d…

58-5A-35 Notice to director of extraordinary distribution--Approval by director. 58-5A-36 Application for approval of extraordinary distribution--Contents. 58-5A-37 Examination of insurers and affiliates. 58-5A-38 Grounds for director's examination. 58-5A-38.1 Production of recor…

For purposes of this chapter in determining whether an insurer's surplus to policyholders is reasonable in relation to the insurer's outstanding liabilities and adequate to its financial needs, the following factors, among others, shall be considered: (1) The size of the insurer …

No insurer subject to this chapter may pay any extraordinary dividend or make any other extraordinary distribution to its stockholders until thirty days after the director has received notice of the declaration thereof and has approved or has not disapproved the payment within th…

Requests for approval of extraordinary dividends or any other extraordinary distribution to security holders shall include the following: (1) The date established for payment of the dividend; (2) A statement as to whether the dividend is to be in cash or other property and, if in…

Subject to the limitations contained in this section and §§ 58-5A-38 to 58-5A-40 , inclusive, and in addition to the powers which the director has under the provision of this title relating to the examination of insurers, the director may examine any registered insurer and the in…

The director shall exercise his power under § 58-5A-37 only if the examination of the insurer under the provisions of this title is inadequate or the interests of the policyholders of such insurer may be adversely affected. Source: SL 1972, ch 267 , § 32.

The director may order any registered insurer to produce records, books, or other information papers in the possession of the insurer or the insurer's affiliates as are reasonably necessary to determine compliance with the provisions of this chapter. The director may order any re…

If the insurer fails to comply with an order made pursuant to § 58-5A-38.1 , the director may examine the registered insurer's affiliates to obtain the information. The director may issue subpoenas, administer oaths, and examine under oath any person for purposes of determining c…

The department may retain at the registered insurer's expense such attorneys, actuaries, accountants, and other experts not otherwise a part of the director's staff as shall be reasonably necessary to assist in the conduct of the examination under §

The statement to be filed with the director as required pursuant to § 58-5A-3 shall be made under oath or affirmation and shall contain the following information: (1) The name and address of each person by whom or on whose behalf the merger or other acquisition of control referre…

Each registered insurer producing for examination records, books, and papers pursuant to § 58-5A-37 shall be liable for and shall pay the expense of such examination. Source: SL 1972, ch 267 , § 34.

Documents, materials, or other information including filings in the possession or control of the Division of Insurance that are obtained by or disclosed to the director or any other person in the course of an examination or investigation made pursuant to this chapter and all info…

Neither the director nor any person who receives documents, materials, or other information while acting under the authority of the director or with whom the documents, materials, or other information are shared pursuant to the provisions of § 58-5A-41 is permitted or required to…

To assist in the performance of the duties assigned to the director pursuant to the provisions of this chapter: (1) The director may, upon request, share documents, materials, or other information, including the confidential and privileged documents, materials, or information, in…

The director must enter into written agreements with the NAIC and any third-party consultant designated by the director governing the sharing and use of information provided pursuant to this chapter that: (1) Specify procedures and protocols regarding the confidentiality and secu…

Any document, material, or other information in the possession or control of the NAIC or a third-party consultant as designated by the director, shared pursuant to this chapter, is confidential by law and privileged, is not subject to subpoena, open records laws, and is not subje…

No waiver of any applicable privilege or claim of confidentiality in the documents, materials, or information may occur as a result of disclosure to the director pursuant to this chapter or as a result of sharing as authorized pursuant to this chapter. Source: SL 2015, ch 246 , §…