Title 58, INSURANCE

The director shall require the insurer to either assign to the director and his successors in office all securities being deposited under this title which are not negotiable by delivery or to give the director irrevocable power of attorney authorizing the transfer of the securiti…

If the insurer uses real estate as a deposit, the insurer shall execute and record a deed of trust to the director which shall be kept by the financial institution. Prior to the execution and recordation of the deed of trust, the insurer shall submit to the director a current app…

The director shall keep a record of the assets and securities comprising each deposit, showing as far as practical the amount and market value of each item. Source: SL 1966, ch 111 , ch 7, § 6 (2); SL 1991, ch 398 , § 8.

Upon release to the insurer, or other person entitled thereto, of any security that may have been assigned pursuant to § 58-7-13 , the director shall reassign the same to such insurer or other person entitled thereto. Source: SL 1966, ch 111 , ch 7, § 8 (2).

Deposits required under this title may be made in South Dakota safe deposit institutions, banks, or trust companies selected by the insurer with the director's prior approval or may be made in the depository outside of the state approved by the director. The director may, upon wr…

Deposits of reserves of a domestic insurer under § 58-7-1 shall consist of securities and assets which the insurer is authorized to hold as admitted assets. Source: SL 1966, ch 111 , ch 7, § 1 (4).

All depository or custodial arrangements shall comply in substance with the requirements of this title as to like deposits of other insurers, as to the amount, purposes, maintenance, replenishment, release, and withdrawal of such deposit or part thereof, as to the rights of the i…

The form and terms of all depository or custodial arrangements shall be prescribed or approved by the director consistent with the applicable provisions of this title. Source: SL 1966, ch 111 , ch 7, § 5 (6); SL 1991, ch 398 , § 12.

The compensation and expenses of the depository or custodian shall be borne by the insurer. Source: SL 1966, ch 111 , ch 7, § 5 (7).

The director and the State of South Dakota shall have no liability as to the safekeeping of any such deposit by the depository or custodian thereof. Source: SL 1966, ch 111 , ch 7, § 7.

The director may terminate any depository or custodial arrangement and require a new arrangement. No arrangement may be terminated without the written authorization of the director. Source: SL 1966, ch 111 , ch 7, § 5 (5); SL 1991, ch 398 , § 13.

If any domestic insurer is required to deposit with a public officer of any foreign state or any agency of that state any securities or assets for security of policyholders, to the extent that those securities or assets are admissible for that purpose under this chapter, and upon…

For the purpose of determining the sufficiency of its deposit in this state the assets and securities of the insurer on deposit shall be valued at current market value except bonds which may, in the discretion of the director, be valued as provided in § 58-26-2 . Source: SL 1966,…

If for any reason the current market value of such assets and securities falls below the amount of deposit required of the insurer under this title, the insurer shall promptly deposit other or additional assets or securities eligible for deposit and in amount sufficient to cure t…

The director may, prior to acceptance for deposit of any particular asset or security, or at any time thereafter while so deposited, have the same appraised or valued by appraisers approved by the director. The costs of any appraisal or valuation shall be borne by the insurer. So…

An insurer may so deposit and have on deposit assets or securities in an amount exceeding its deposit required or otherwise permitted under this title, for the purpose of absorbing fluctuations in the value of assets and securities deposited, and to facilitate the exchange and su…

A domestic insurer may credit toward the deposit the amount of any other deposit of the insurer required by the director for the protection of its policyholders. Source: SL 1966, ch 111 , ch 7, § 1 (3); SL 1991, ch 398 , § 2.

While the insurer remains solvent and is in compliance with this title it may: (1) Demand, receive, sue for, and recover the income from the assets or securities deposited; (2) Exchange and substitute for the deposited assets or securities, or any part thereof, other eligible ass…

No judgment creditor or other claimant of an insurer shall have the right to levy or to proceed by any remedies, provisional or otherwise, upon any of the assets or securities of the insurer held on deposit in this state. As to deposits pursuant to the retaliatory law, §§ 58-6-70…

Deposits made by foreign or alien insurers shall not be subject to taxation. Source: SL 1966, ch 111 , ch 7, § 5 (2).

Every deposit made in this state by an insurer pursuant to this title, including assets and securities held in another state under custodial arrangements, shall be held as long as there is outstanding any liability of the insurer as to which the deposit was so required; or if a d…

Upon the request of a domestic insurer, the director shall direct the depository or custodian to return to the insurer the whole or any portion of the assets and securities of the insurer held on deposit if the director is satisfied that the assets and securities to be returned a…

The director shall direct the depository or custodian to return to a foreign insurer any deposit made pursuant to this title by the insurer, if: (1) The insurer has ceased transacting business in this state, or in the United States, and the insurer is not subject to any liability…

Upon the merger or consolidation of an insurer that has made a deposit in this state, the director may, after preserving the interests of South Dakota policyholders, direct the depository or custodian to return the deposit to the resulting or surviving corporation, or to any pers…

If the insurer is subject to delinquency proceedings as defined in this title, upon the order of a court of competent jurisdiction, the director shall yield the assets and securities held on deposit to the receiver, conservator, rehabilitator, or liquidator of the insurer, or to …

No release of deposited assets and securities may be made except upon application to and the written order of the director and under the terms of the custodial or depository arrangement. The director is not personally liable for the release of any deposit made by him in good fait…

The provisions of the 1991 amendments to §§ 58-7-1 , 58-7-3 , 58-7-6 , 58-7-12 , 58-7-13 , 58-7-14 , 58-7-16 , 58-7-18 , 58-7-20 , 58-7-21 , 58-7-24 , 58-7-25 , 58-7-28 , 58-7-34 , 58-7-35 , 58-7-36 , 58-7-38 , and 58-7-39 shall supersede any and all depository or custodial requi…

Annually on or before April first, the insurer shall deposit any additional securities required under § 58-7-1 and related to the increase of such reserves during the calendar year next preceding as determined from the insurer's annual statement as of December thirty - first of s…

If default occurs in the payment of interest or principal of any deposited security and such default continues for a period of one hundred twenty days, the director may declare such security no longer eligible for deposit under § 58-7-1 . Source: SL 1966, ch 111 , ch 7, § 1 (5).

The following deposits of insurers shall be accepted and held, and are subject to the provisions of this chapter: (1) Deposits required under this title for authority to transact insurance business in this state; (2) Deposits of domestic insurers if made pursuant to the laws of o…

Such deposits shall be held for purposes set forth in §§ 58-7-8 to 58-7-12 , inclusive. Source: SL 1966, ch 111 , ch 7, § 3.

All such deposits required under §§ 58-6-33 to 58-6-35 , inclusive, for authority to transact insurance in this state shall consist of certificates of deposit, or any combination of securities of the kinds described in §§ 58-27-9 , 58-27-11 , 58-27-12 , 58-27-14 , and 58-27-15 . …

All other deposits of a domestic insurer held in this state pursuant to the laws of another state, province, or country shall be comprised of assets of the kinds described in § 58-7-8 , and of such additional securities required or permitted by the laws of such state, province, o…