Title 58, INSURANCE

The director may promulgate rules pursuant to chapter 1-26 concerning examinations, forms and procedures for reporting, examiners and their qualifications, investigations and hearing procedures. Source: SL 1992, ch 338 , § 20.

This chapter applies to all persons doing insurance business notwithstanding any provision exempting them from the insurance laws of this title. Source: SL 1992, ch 338 , § 22.

The director shall examine each insurer or rating organization receiving an initial certificate of authority to do business in this state within one year from the date of the licensure except those qualifying under §§ 58-3-4 and 58-6-13 . Source: SL 1966, ch 111 , ch 2, § 16 (2);…

Any insurer subject to chapter 58-3 shall pay to the Division of Insurance an annual examination assessment fee of three hundred dollars by March first of each year. There is established within the state treasury the insurance examination fund, into which shall be deposited the p…

All money in the insurance examination fund is continuously appropriated for the purposes specified in this chapter. All costs of examinations, including travel expenses, living expense allowances, and per diem as compensation of examiners shall be paid from the fund. The fund sh…

The director may require persons who are not employees of the division who have been retained by the director to conduct or participate in examinations to bill and receive payments directly from the insurance company being examined. An insurer paying the costs of its examination …

The provisions of §§ 58-3-3.1 to 58-3-3.3 , inclusive, 58-3-7.4 , and 58-3-11 do not apply to farm mutual insurers subject to chapter 58-35 and captive insurance companies subject to chapter 58-46 unless the farm mutual or captive insurance company wrote premiums in excess of one…

In lieu of making his own examination, the director may, in his discretion, accept a full report of the last recent examination of a foreign or alien insurer, or rating organization, certified to by the insurance supervisory official of another state, territory, commonwealth, or …

For the purpose of ascertaining compliance with this title, the director may as often as the director deems advisable examine the accounts, records, documents, and transactions, pertaining to or affecting its insurance affairs or proposed insurance affairs, of: (1) Any insurance …

The director shall conduct any such examination at the home office, if a domestic or foreign insurer, or United States branch office, if an alien insurer, of the insurer, or in any of its branch or agency offices; or with respect to persons other than insurers, at the office or o…

Every person being examined, its officers, employees, insurance producers, and representatives shall produce and make freely available to the director or the director's examiners the accounts, records, documents, files, assets, and other relevant information in their possession o…

The examiner shall observe those guidelines and procedures set forth in the Examiners Handbook adopted by the National Association of Insurance Commissioners as adopted by rule by the director pursuant to chapter 1-26 . The director may also establish additional guidelines or pro…

The refusal of any company, by its officers, directors, employees, or insurance producers, to submit to examination or to comply with any reasonable written request of the examiners constitutes grounds for suspension or refusal of, or nonrenewal of any license or authority held b…

The director or any examiner authorized by the director may issue subpoenas, administer oaths, and examine under oath any person as to any matter pertinent to the examination. Subpoenas may be enforced pursuant to chapters 1-26 , 15-6 , and 21-34 . Source: SL 1992, ch 338 , § 7.

Each insurer's claim files for policies or certificates are subject to examination pursuant to chapter 58-3 by the director of insurance. To aid in the examination: (1) The insurer shall maintain claim data that is accessible and retrievable for examination. An insurer shall be a…

If the director finds accounts to be inadequate, or inadequately kept or posted, he may employ experts to rewrite, post, or balance them at the expense of the person being examined if such person has failed to complete or correct such accounting after the director has given him n…

If the director deems it necessary to value any real estate involved in any such examination, he may make written request of the person being examined to appoint one or more competent appraisers approved by the director, for the purpose of appraising such property. If no such app…

Orders and notices of the director shall not be effective unless in writing signed by him or by his authority. Source: SL 1966, ch 111 , ch 2, § 15 (1).

Every such order shall state its effective date and shall concisely state: (1) Its intent or purpose; (2) The grounds on which based; and (3) The provisions of this title pursuant to which action is so taken or proposed to be taken, but failure to so designate a particular provis…

An order or notice may be given by delivery to the person to be ordered or notified or by mailing it, postage prepaid, addressed to him at his principal place of business as last of record in the director's office. Source: SL 1966, ch 111 , ch 2, § 15 (3).

The director shall prosecute an action in any court of proper venue to enforce any order made by him pursuant to the provisions of this title. Source: SL 1966, ch 111 , ch 2, § 12 (2).

Formal rules of pleading or evidence need not be observed at any hearing. Source: SL 1966, ch 111 , ch 2, § 24 (3).

In any case in which the director has the power to deny an application or registration, or to revoke, refuse to renew, or suspend the license of any insurance producer, administrator, licensee, or entity required to be registered under this title, or the certificate of authority …

The director shall promulgate rules, pursuant to chapter 1-26 , setting forth standards for determining the hazardous financial condition of an insurer under this title. Source: SL 1992, ch 339 , § 1.

In making a determination of an insurer's financial condition, the director may: (1) Disregard any credit or amount receivable resulting from transactions with a reinsurer which is insolvent, impaired, or subject to a delinquency proceeding; (2) Make appropriate adjustments to as…

If the director determines that the continued operation of an insurer licensed to transact business in this state may be hazardous to the policyholders, the creditors, or the general public, then the director may issue an order stating the reasons for the determination and requir…

Any insurer subject to an order under § 58-4-41 may request a hearing to review that order. The request shall be in writing and shall be made within ten days of the date of receipt of the order. The notice of hearing shall be served upon the insurer. Unless mutually agreed betwee…

Sections 58-4-39 to 58-4-42 , inclusive, apply to all insurers or persons doing insurance business notwithstanding any provision which exempts them from the insurance laws of this title. Source: SL 1992, ch 339 , § 5.

The director may investigate any person doing insurance business. The director may withhold from public inspection any examination or investigation report for so long as the director deems such withholding to be necessary for the protection of the person examined or investigated …

Internal memoranda and telephone notes or logs of division personnel are confidential. Medical records are confidential. Source: SL 1992, ch 340 , § 2.

Any person or corporation governed by this title providing information to the Division of Insurance is not liable for the release or subsequent use of such information. Source: SL 1992, ch 340 , § 3.

The division shall allow for the sharing of otherwise confidential information, administrative or judicial orders, or other action with other state, federal, and international regulatory officials if those officials are statutorily required to maintain its confidentiality. The di…

Any life and health and property and casualty insurer, and any insurer subject to chapters 58-37A , 58-38 , 58-39 , 58-40 , and 58-41 , domiciled in this state shall maintain minimum levels of risk - based capital to transact the business of insurance in this state. Each life and…

The status, existence, or outcome of any ongoing or completed investigation or examination performed pursuant to this title may be disclosed by the director to any person who has filed a complaint or report to the director pertaining to the specific investigation or examination. …

The director shall institute such suits or other legal proceedings as may be required for the enforcement of any provisions of this title. Source: SL 1966, ch 111 , ch 2, § 12 (1).

Terms used in §§ 58-4-50 to 58-4-54 , inclusive, mean: (1) "Return information," any information collected, prepared or received by the division which relates to a return, including the nature or amount of a taxpayer's income, receipts, deductions, net worth, tax liability, or de…

Each list of premium taxpayers compiled by the division is confidential. It is a Class 2 misdemeanor to disclose any list except to the extent necessary to carry out the official duties of the division. Source: SL 2012, ch 242 , § 3.

A premium tax return and premium tax return information is confidential. It is a Class 1 misdemeanor to disclose this information except pursuant to §§ 58-4-50 to

A premium tax return and premium tax return information may be disclosed to the following: (1) The taxpayer who is required to submit the information to the division, or his designee appointed in writing; or (2) As otherwise authorized by Title 58. Source: SL 2012, ch 242 , § 5. …

A premium tax return and premium tax return information may be disclosed in a judicial or administrative proceeding: (1) If the information is directly related to the resolution of an issue in the proceeding; or (2) To the extent required by a judicial or administrative order. So…

The director shall be represented by the attorney general, his assistants, or by such other attorney at law as may be designated by the attorney general. Source: SL 1966, ch 111 , ch 2, § 12 (3).

If the director of the Division of Insurance believes, from substantial evidence, that any person is violating or about to violate any provision of this title or any order or requirement of the director issued or promulgated pursuant to authority expressly granted by law, the dir…

The director may hold hearings for any purpose within the scope of this title deemed by him to be necessary. Source: SL 1966, ch 111 , ch 2, § 21 (1).

Terms used in §§ 58-4A-1 to 58-4A-17 , inclusive, mean: (1) "Insurer," in addition to those persons defined under subdivision 58-1-2(12), any person or entity transacting insurance with or without a certificate of authority issued by the director of insurance. The term also means…

Notwithstanding any other section of this chapter, the unit or its designees, and a person alleged to have committed a fraudulent insurance act as set forth in § 58-4A-2 , are not prohibited from entering into a written agreement upon commencement of a civil action in which the p…

For purposes of investigating and prosecuting insurance fraud, the insurance fraud prevention unit is subject to the provisions of this chapter and the procedures set forth in Title 15 or Title 23A if applicable and if not in conflict with this chapter. Source: SL 1999, ch 241 , …