Title 58 — INSURANCE

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…

58-24-62 Suspension of license of rating organization or insurer. 58-24-63 Written order of director for imposition of penalty and suspension of license--Hearing, notice, findings. 58-24-64 Request for hearing on order or decision--Notice--Affirmance, reversal, or modification. 5…

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 §

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

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…

The director may suspend the license of any insurer who fails to comply with any lawful order of the director within the time limited by such order, or any extension thereof which the director may grant. The director shall not suspend the license of any insurer for failure to com…

No penalty shall be imposed and no license shall be suspended except upon 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 insurer and specifying the alleged violation. Source: SL 1966, ch…

All rates shall be made in accordance with the provisions of §§ 58-25-3 to 58-25-6 , inclusive. Source: SL 1966, ch 111 , ch 14, § 2.

Hearings before the director as to matters under this chapter shall be conducted in accordance with chapter 1-26 . Source: SL 1966, ch 111 , ch 14, § 7 (1); SL 1978, ch 359 , § 16. 58-25-21. Repealed by SL 2015, ch 259 , § 3.

A title insurance company shall establish and maintain a statutory premium reserve of not less than an amount computed in accordance with this section. The statutory premium reserve shall consist of the aggregate of the statutory premium reserve on January 1, 2002, and: (1) A sum…

The aggregate of the amounts set aside in this reserve in any calendar year pursuant to § 58-25-22 shall be released from the reserve and restored to net profits over a period of twenty years at an amortization rate not to exceed the following formula: thirty - five percent of th…

The insurer shall calculate an adjusted statutory or unearned premium reserve as of the year of first application of §

The aggregate of the amounts set aside in this reserve in any calendar year as adjustments to the insurer's statutory or unearned premium reserve pursuant to § 58-25-24 shall be released from the reserve and restored to net profits, or equity if the additions required by § 58-25-…

A title insurer shall establish and maintain a known claim reserve in an amount estimated to be sufficient to cover all unpaid losses, claims, and allocated loss adjustment expenses arising under title insurance policies, guaranteed certificates of title, guaranteed searches, and…

A supplemental reserve shall be established consisting of any other reserves necessary, when taken in combination with the reserves required by §§ 58-25-22 to 58-25-27 , inclusive, to cover the company's liabilities with respect to all losses, claims, and loss adjustment expenses…

Rates shall be reasonable and adequate for the class of risks to which they apply. Source: SL 1966, ch 111 , ch 14, § 2 (1).

Rates shall not discriminate unfairly between risks involving essentially the same hazards and expense elements. Source: SL 1966, ch 111 , ch 14, § 2 (2).

Guarantees may be grouped by classification for the establishment of rates and minimum premiums. A special or unusual guarantee, more hazardous to the insurer than ordinary title guarantees because of an alleged irregularity or a difference in interpretation or application of law…

Due consideration will be given to past and prospective loss experiences within and outside the state, reasonable margin for profit and contingencies, cost of participating insurance, percentage to be allocated to reserve, operating expenses and all other relevant factors fairly …

Every insurer must file with the director, any manual or schedule of rates or premiums which it proposes to use, together with any rules or regulations governing the setting or making of such rates or premiums, and indicate the character or extent of coverage contemplated under s…

Every insurer must file with the director, all forms of contracts, policies, or guarantees of insurance with any and all types of modifications thereof, except as to special or unusual risks, which it proposes to use. Source: SL 1966, ch 111 , ch 14, § 3 (2).

No change in rates or premiums or in the forms of contracts, policies, or guarantees of insurance shall be permitted to any insurer, unless and until a report indicating such change is filed and approved by the director. Source: SL 1966, ch 111 , ch 14, § 3 (3).

In any determination of the financial condition of an insurer, there shall be allowed as assets only such assets as are owned by the insurer and which consist of: (1) Cash in the possession of the insurer, or in transit under its control, and including the true balance of any dep…