Title 58, INSURANCE

No rating organization may adopt any rule the effect of which would prohibit or regulate the payment of dividends, savings, or unabsorbed premium deposits allowed or returned by insurers to their policyholders, members, or subscribers. Source: SL 1966, ch 111 , ch 15, § 6 (3); SL…

An insurer may market insurance through a group insurance or mass marketing plan, franchise, or blanket policy for any line of insurance regulated under this chapter if: (1) The insured group was not formed solely for the purpose of purchasing insurance; and (2) The premium is pa…

Cooperation among rating organizations or among rating organizations and insurers in rate - making or in other matters within the scope of this chapter is hereby authorized, provided the filings resulting from such cooperation are subject to all the provisions of this chapter whi…

Any member or subscriber to a rating organization may appeal to the director from the action or decision of the rating organization in approving or rejecting any proposed change in or addition to the filings of the rating organization. The director shall, after a hearing held upo…

If an appeal under § 58-24-47 is based upon the failure of the rating organization to make a filing on behalf of the member or subscriber, which is based on a system of expense provisions which differs, in accordance with the right granted in § 58-24-8 , from the system of expens…

Every member of or subscriber to a rating organization shall adhere to the filings made on its behalf by such organization except that any such insurer may make written application to the director to file a deviation from the class rates, schedules, rating plans, or rules respect…

Rates shall not be excessive, inadequate, or unfairly discriminatory. Source: SL 1966, ch 111 , ch 15, § 3 (1) (a).

As to all forms of casualty insurance, including workers' compensation or any combination thereof, no application shall be granted under § 58-24-51 unless the requested deviation is based upon a uniform percentage decrease or increase to be applied to the premiums produced by suc…

In considering the application to file such deviation, the director shall give consideration to the available statistics and the principles for rate - making as provided in §§ 58-24-5 to 58-24-9 , inclusive. The director shall issue an order permitting the deviation for such insu…

Each deviation permitted to be filed shall remain in effect for a period of not less than one year from the effective date unless sooner withdrawn by the insurer with the approval of the director or until terminated in accordance with the provisions of §§ 58-24-21 to 58-24-24 , i…

Each group, association, or other organization of insurers, whether located within or outside this state, which assists insurers which make their own filings or rating organizations in rate-making, by the collection and furnishing of loss or expense statistics, or by the submissi…

Each advisory organization shall file with the director the requirements of § 58-24-35 and an agreement that the director may examine the advisory organization in accordance with the provisions of § 58-24-59 . Source: SL 1966, ch 111 , ch 15, § 10 (2); SL 2014, ch 239 , § 16.

If the director finds that an advisory organization has furnished information or assistance that involves any act or practice which is unfair or unreasonable or otherwise inconsistent with the provisions of this chapter, the director may issue an order specifying in what respect …

No insurer that makes its own filings or any rating organization that submits filings with the division may support its filings by statistics or adopt rate-making recommendations furnished to it by an advisory organization which has not complied with § 58-24-54 or with an order o…

Every group, association, or other organization of insurers which engages in joint underwriting or joint reinsurance shall be subject to regulation with respect thereto as provided in this title. Source: SL 1966, ch 111 , ch 15, § 11 (1).

If, after a hearing, the director finds that any activity or practice of any group identified in § 58-24-57 is unfair or unreasonable or otherwise inconsistent with the provisions of this chapter, the director may issue an order specifying in what respect the activity or practice…

As often as the director deems necessary, the director shall examine each rating organization licensed in this state as provided in §§ 58-24-35 to 58-24-39 , inclusive, each advisory organization referred to in § 58-24-53 , and each group, association, or other organization refer…

To determine whether rates are excessive, inadequate, or unfairly discriminatory, the director may consider: (1) Past and prospective loss experience within this state; (2) Conflagration and catastrophic hazards; (3) Reasonable margin for the underwriting profit and contingencies…

One rate is unfairly discriminatory in relation to another in the same class if it clearly fails to reflect equitably the difference in expected losses and expenses. Rates are not unfairly discriminatory because different premiums result for policyholders with like loss exposures…

The director may, if the director finds that any person or organization has violated any provision of this chapter, issue an order which imposes a penalty of not more than five hundred dollars for each violation, but if the director finds a violation to be willful the director ma…

The director may suspend the license of any rating organization or insurer that fails to comply with an order of the director after the time prescribed for an appeal therefrom has expired or the order has been affirmed on appeal. The director may determine when a suspension of li…

No penalty shall be imposed and no license shall be suspended or revoked except upon a written order of the director, stating his findings, made after a hearing held upon not less than ten days' written notice to such person or organization specifying the alleged violation. Sourc…

Any insurer or rating organization aggrieved by any order or decision of the director made without a hearing, may, within thirty days after notice of the order to the insurer or organization, make written request to the director for a hearing thereon. The director shall issue a n…

Any order or decision of the director in proceedings arising under this chapter shall be subject to rehearing and review on appeal in the same manner and by the same procedure as provided by chapter 1-26 , and such procedure shall be exclusive of all other remedies. Source: SL 19…

At least fifteen days before any rating organization makes a loss cost filing required by § 58-24-10 for workers' compensation insurance, the rating organization shall give the director of the Division of Insurance notice of its intent to make a loss cost filing. Source: SL 1990,…

Within thirty days of receipt of a notice pursuant to § 58-24-66 , the director of the Division of Insurance shall schedule an informal hearing and send notice of the intent to conduct the informal hearing to organizations of purchasers of workers' compensation insurance and insu…

For the purposes of §§ 58-24-68 to 58-24-74 , inclusive, the term, exempt commercial policyholder, means any person who applies for or procures any kind of property casualty insurance, except title or workers' compensation insurance, through the use of a risk manager employed or …

For the purposes of §§ 58-24-68 to 58-24-74 , inclusive, the term, risk manager, means an employee of the exempt commercial policyholder, or a third - party consultant retained by the policyholder who provides skilled services in loss prevention, loss reduction, or risk and insur…

Risks may be grouped by classifications for the establishment of rates and minimum premiums. Classification rates may be modified to produce rates for individual risks in accordance with rating plans which establish standards for measuring variations in hazards or expense provisi…

An insurer issuing a policy to an exempt commercial policyholder is exempt, except as provided for in §§ 58-24-68 to 58-24-74 , inclusive, from the rate filing requirements of chapter 58-24 and the form filing requirements of § 58-11-12 . At the time of soliciting an exempt comme…

If a third - party consultant is retained by the exempt commercial policyholder to act as the policyholder's risk manager when a quote for insurance is delivered to the policyholder, the consultant shall disclose, in writing, the existence of any commission, fee, or contingency a…

The director may promulgate rules, pursuant to chapter 1-26 , to carry out the provisions of §§ 58-24-68 to 58-24-74 , inclusive, to ensure that insurers make policyholders aware of their exempt status and that insurers keep separate records of exempt policies. The rules may incl…

The insurer shall maintain copies of the disclosures required by §§ 58-24-68 to 58-24-73 , inclusive. The copies are subject to examination. The insurer shall provide the copies to the division upon request as provided by this title. Source: SL 2004, ch 307 , § 6.

Any insurer who sells any kind of insurance to an exempt commercial policyholder shall maintain records relating to the insurance sales as required by §§ 58-24-68 to 58-24-74 , inclusive. At a minimum, the records shall include: any data, statistics, rates, rating plans, rating s…

No insurer may increase the premium or rate of an insured at policy issuance, during the term of a policy, or at renewal because of an accident if the insured was lawfully engaged in the performance of official duties as a law enforcement officer, firefighter, emergency medical t…

The systems of expense provisions included in the rates for use by any insurer or group of insurers may differ from those of other insurers or group of insurers to reflect the requirements of the operating methods of any such insurer or group of insurers with respect to any kind …

Except to the extent necessary to meet the provisions of § 58-24-5 , uniformity among insurers in any matters within the scope of §§ 58-24-4 to 58-24-8 , inclusive, is neither required nor prohibited. Source: SL 1966, ch 111 , ch 15, § 3 (2).

This chapter applies to all kinds and classes of insurance which insure or guarantee titles to real or leasehold property or any estate therein, or against loss by reason of defects, encumbrances, liens, or charges on real or leasehold property or any estate therein; or which ins…

Any filing made pursuant to §§ 58-25-7 to 58-25-9 , inclusive, shall be approved by the director, unless he finds that such filing does not meet the requirements of this chapter or shall otherwise be contrary to law. As soon as reasonably possible after the filing has been made, …

If at any time after the approval of a filing, the director should find that the filing does not meet the requirements of §§ 58-25-7 to 58-25-10 , inclusive, or is otherwise contrary to law, or if any party having an interest in such filing should make complaint in writing, setti…

No insurer shall make or issue any contract, policy, or guarantee of insurance except in accordance with filings approved as provided in § 58-25-10 , except as to special or unusual risks for which no filing has been provided in §§ 58-25-7 and 58-25-8 . Violation of this section …

Every insurer shall hold to the rates or premiums as approved by the director and may not deviate therefrom nor allow to or for the account of any insured a rebate or discount on the rates or premiums payable. As compensation for procuring business, an insurer may pay or allow a …

In order to further more equitable establishment and adjustment of rates and premiums and forms of contracts, policies, or guarantees of insurance, the director and every insurer may exchange information and experience data with each other, and with the insurance supervisory offi…

No person or organization shall knowingly give false or misleading information to the director, to any insurer or to any other person which will in any manner affect the proper determination of rates or premiums, or the proper issuance of a contract, policy, or guarantee of insur…

No insurance company shall issue any policy of title insurance or certificate of title or other guarantee of title, covering any property located within the State of South Dakota, unless the same is countersigned by a person, partnership, or corporation, who has met the requireme…

The director may, if he finds that any person or organization has violated any provision of this chapter, impose a penalty of not more than two hundred fifty dollars for each such violation, but, if he finds such violation to be willful he may impose a penalty of not more than on…