Title 58, INSURANCE

No foreign insurance company may be admitted to do business in the State of South Dakota until it has fully complied with the following requirements, in addition to such other requirements as may be specifically provided: (1) Such company shall have had two continuous calendar ye…

No insurer shall be formed or authorized to transact insurance in this state which has or uses a name or principal identifying name factor which is the same as or deceptively similar to that of another insurer earlier so authorized. Source: SL 1966, ch 111 , ch 3, § 8 (1).

No life insurer shall be authorized to transact insurance in this state which has or uses a name deceptively similar to that of another insurer authorized to transact insurance in this state within the preceding ten years if life insurance policies originally issued by such other…

No insurer shall hereafter be formed or newly authorized to transact insurance in this state which has or uses a name the same as or deceptively similar to the name of any foreign insurer doing business elsewhere than in this state if such foreign insurer has within the last prec…

No insurer shall be authorized to transact insurance in this state which has or uses a name which tends to deceive or mislead as to the type of organization of the insurer. Source: SL 1966, ch 111 , ch 3, § 8 (4).

In case of conflict of names hereafter between two insurers, or a conflict otherwise prohibited under §§ 58-6-14 to 58-6-17 , inclusive, the director may require, as a condition to the issuance of an original certificate of authority to an applicant insurer, the insurer to use in…

An insurer which otherwise qualifies therefor may be authorized to transact any one kind or combination of kinds of insurance as defined in this title except as provided by §§ 58-6-20 to 58-6-22 , inclusive. Source: SL 1966, ch 111 , ch 3, § 9.

No insurer shall from offices or by personnel or facilities located in this state solicit insurance applications or otherwise transact insurance in another state or country unless it holds a subsisting certificate of authority issued to it by the director authorizing it to transa…

An insurer authorized to engage in the business of life insurance may also grant annuities, but shall not be authorized to engage in any other kind of insurance business except health; except, that the director shall, if the insurer otherwise qualifies therefor, continue so to au…

A reciprocal insurer may not transact life or title insurance. Source: SL 1966, ch 111 , ch 3, § 9 (2); SL 1996, ch 290 .

A title insurer shall not transact any other kind of insurance. Source: SL 1966, ch 111 , ch 3, § 9 (3).

To qualify for authority to transact any one kind of insurance or combination of kinds of insurance as shown below, a foreign insurer, or a domestic stock insurer applying for its original certificate of authority in this state, or any insurer reapplying for a certificate of auth…

Capital and surplus requirements of § 58-6-23 are based upon all kinds of insurance transacted by the insurer in any and all areas in which it operates or proposes to operate, whether or not only a portion of such kinds are to be transacted in this state. Source: SL 1966, ch 111 …

If within three years after date of its initial certificate of authority in this state such an insurer requests authority to transact an additional kind or kinds of insurance, it shall not be so authorized unless it then possesses basic surplus or additional surplus in such an am…

As to surplus required for qualification to transact one or more kinds of insurance and thereafter to be maintained, domestic mutual insurers formed after June 30, 1966, are governed by chapters 58-5 and 58-35 and domestic reciprocal insurers formed after June 30, 1966, are gover…

A domestic or foreign insurer holding a valid certificate of authority to transact insurance in this state immediately prior to July 1, 1966, may continue to transact the same kinds of insurance as permitted by such certificate of authority by maintaining thereafter unimpaired no…

An insurer described by § 58-6-27 shall not hereafter be granted authority to transact any other or additional kind of insurance unless it then fully complies with the requirements as to capital and surplus, as applied to all the kinds of insurance it then proposes to transact, a…

A life insurer may also grant annuities without additional capital or additional surplus. Source: SL 1966, ch 111 , ch 3, § 12 (1).

The state hereby preempts the field of regulating insurers and their insurance producers and solicitors; and all political subdivisions of the state are prohibited from requiring of any insurer, insurance producer, or solicitor regulated under this title any authorization, permit…

A health insurer may also issue insurance against congenital defects without additional capital or additional surplus. Source: SL 1966, ch 111 , ch 3, § 12 (2).

A casualty insurer may also be authorized to transact health insurance without additional capital or additional surplus. Source: SL 1966, ch 111 , ch 3, § 12 (3).

A property insurer may without additional capital or additional surplus include such amount and kind of insurance against legal liability for injury, damage, or loss to the person or property of others, and for medical, hospital, and surgical expense related to such injury, as th…

Sections 58-6-34 and 58-6-35 shall apply as to all insurers other than title insurers, existing mutual casualty insurers writing a single line of insurance, and mutual assessment life insurance. Source: SL 1966, ch 111 , ch 3, § 13 (1).

The director may not authorize any insurer to transact insurance in this state unless it makes and thereafter maintains in trust through the director for the protection of all its policyholders in the United States, a deposit of cash or securities eligible for deposit under the p…

Deposits of foreign insurers or deposits of alien insurers under subdivision 58-6-34(2) in another state shall be in cash or securities of a quality comparable to those eligible for deposit in this state by domestic insurers. Source: SL 1966, ch 111 , ch 3, § 13 (3).

No title insurer shall be authorized to transact business in this state unless it deposits and maintains on deposit in this state through the director, cash or securities eligible for deposit as set forth in the chapter hereof relating to deposits and administration of deposits, …

The deposit shall be known as a "guaranty fund," and shall be held as security for the faithful performance by the insurer of all its undertakings and liabilities under its title policies or other guarantees of title to property, but shall not be subject to any other liabilities …

Every insurer applying for an initial certificate of authority shall file the following documents with the director: (1) A certified copy of its articles of incorporation with all amendments; (2) A certified copy of its bylaws with all amendments; (3) A copy of its annual stateme…

Each insurer applying for authority to engage in the insurance business in this state shall appoint the director, and his successors in office, as its attorney to receive service of legal process issued against it in South Dakota. The appointment shall be made on a form designate…

A certificate of authority shall not be required of an insurer with respect to the following: (1) Investigation, settlement, or litigation of claims under its policies lawfully written in this state, or liquidation of assets and liabilities of the insurer, other than collection o…

Upon the filing and completion of an application for an original certificate of authority, the director shall have sixty days in which to approve the application by issuing an appropriate certificate of authority or to disapprove the application by issuing an order setting forth …

The certificate, if issued, shall specify the kinds of insurance the insurer is authorized to transact in South Dakota. At the insurer's request, the director may issue a certificate of authority limited to particular types of insurance or insurance coverages within the scope of …

The certificate of authority issued by the director to an insurer shall not require annual reissuance but shall remain in force as long as the insurer pays the annual renewal fee provided in § 58-2-29 on or before the thirtieth day of April of each year and as long as the insurer…

A foreign insurer authorized to transact insurance in this state and fully complying with this title shall be exempt from complying with other provisions of the South Dakota Code concerning foreign corporations. Source: SL 1966, ch 111 , ch 3, § 24.

The director shall refuse to renew, or shall suspend or revoke, an insurer's certificate of authority: (1) If such action is required by any provision of this title; or (2) If a foreign insurer, it no longer meets the requirements for the authority, on account of deficiency of as…

Except in cases of insolvency or impairment of required capital or surplus, or suspension or revocation by another state as referred to in subdivision 58-6-44(4), the director shall so refuse, suspend, or revoke the certificate of authority only after a hearing granted to the ins…

The director may refuse to renew or may suspend or revoke an insurer's certificate of authority if the director finds after a hearing thereon that the insurer has violated or failed to comply with any lawful order of the director, any laws of this state relevant to the business o…

The director shall suspend or revoke an insurer's certificate of authority on any of the following grounds if he finds after a hearing thereon that the insurer: (1) Is in unsound condition, or in such condition or using such methods and practices in the conduct of its business, a…

The director may without advance notice or a hearing thereon, immediately suspend the certificate of authority of any insurer as to which proceedings for receivership, conservatorship, rehabilitation, or other delinquency proceedings, have been commenced in any state by the publi…

Each suspension or revocation of, or refusal to renew, an insurer's certificate of authority shall be by the director's order given to the insurer as provided by § 58-4-17 . If the director finds that the public health, safety, and welfare of insureds is imperiled due to being co…

A foreign insurer may make investments in this state without a certificate of authority as provided by § 58-6-1 . Such an insurer shall not be subject to any other provisions of this title. Source: SL 1966, ch 111 , ch 3, § 3.

Upon suspending or revoking or refusing to renew the insurer's certificate of authority, the director shall forthwith give, by registered or certified mail, notice thereof to the insurer's insurance producers in this state of record in the department, and shall likewise suspend o…

The director may also publish notice of such suspension, revocation, or refusal in one or more newspapers of general circulation in this state. Source: SL 1966, ch 111 , ch 3, § 20 (3).

Suspension of an insurer's certificate of authority shall be for such period as the director specifies in the order of suspension, but not to exceed one year. During the suspension the director may rescind or shorten the suspension by his further order. Source: SL 1966, ch 111 , …

During the suspension period the insurer shall not solicit or write any new business in this state, but shall file its annual statement, pay fees, licenses, and taxes as required under this title, and may service its business already in force in this state, as if the certificate …

After an insurer has been suspended and if the insurer's certificate of authority has not terminated, the insurer's certificate of authority shall be reinstated if the insurer can demonstrate to the satisfaction of the director that cause for suspension no longer exists. Source: …