Title 58 — INSURANCE

Except with the approval of the director and under such conditions as to investments and other matters as he may prescribe, which shall recognize the guaranteed nature of the benefits provided, reserves for: (1) Benefits guaranteed as to dollar amount and duration and (2) Funds g…

Except as may be provided with respect to reserves for guaranteed benefits and funds referred to in § 58-28-14 , amounts allocated to any separate account and accumulations thereon may be invested and reinvested: (1) In any class of investments which are authorized by chapter 58-…

The income, gains, and losses, realized or unrealized, from assets allocated to a separate account shall be credited to or charged against the account, without regard to other income, gains, or losses of the insurer. Source: SL 1966, ch 111 , ch 6, § 36 (3); SL 1967, ch 131 ; SDC…

Amounts allocated to a separate account in the exercise of the power granted by this chapter shall be owned by the insurer, and the insurer shall not be, nor hold itself out to be, a trustee with respect to such amounts. Source: SL 1966, ch 111 , ch 6, § 36 (6); § 36 (5) as amend…

If and to the extent so provided under the applicable contracts, that portion of the assets of any such separate account equal to the reserves and other contract liabilities with respect to such account shall not be chargeable with liabilities arising out of any other business th…

To the extent such insurer deems it necessary to comply with any applicable federal or state laws, such insurer, with respect to any separate account, including without limitation any separate account which is a management investment company or a unit investment trust, may provid…

No sale, exchange, or other transfer of assets may be made by an insurer between any of its separate accounts or between any other investment account and one or more of its separate accounts unless, in case of a transfer into a separate account, such transfer is made solely to es…

Unless otherwise approved by the director, assets allocated to a separate account shall be valued at their market value on the date of valuation, or if there is no readily available market, then as provided under the terms of the contract or the rules or other written agreement a…

Notwithstanding § 58-28-21 , unless otherwise approved by the director, the portion, if any, of the assets of such separate account equal to the insurer's reserve liability with regard to the guaranteed benefits and funds referred to in § 58-28-14 shall be valued in accordance wi…

Any contract providing benefits payable in variable amounts delivered or issued for delivery in this state shall contain a statement of the essential features of the procedures to be followed by the insurer in determining the dollar amount of such variable benefits. Source: SL 19…

Any such contract under which the benefits vary to reflect investment experience, including a group contract and any certificate in evidence of variable benefits issued thereunder, shall state that such dollar amount will so vary and shall contain on its first page a statement to…

Every individual variable annuity contract issued for delivery in South Dakota on or after July 1, 1978, shall contain a provision, or a notice attached to the contract, to the effect that during a period of ten days from the date the contract is delivered to the contract owner, …

An insurance company or fraternal benefit society shall issue policies in this state for which an examination period is required in accordance with one of the following methods: (1) If the policy is delivered by an insurance producer, a receipt shall be signed by the policyowner …

No domestic life insurer and no other life insurer admitted to transact business in this state shall deliver or issue for delivery within this state variable contracts, unless the director is satisfied that its condition or method of operation in connection with the issuance of s…

In connection with § 58-28-25 , the director shall consider among other things: (1) The history and financial condition of the insurer; (2) The character, responsibility, and fitness of the officers and directors of the insurer; and (3) The law and regulation under which the insu…

If the insurer is a subsidiary of an admitted life insurer, or affiliated with such insurer through common management or ownership, it may be deemed by the director to have met the provisions of §§ 58-28-25 and 58-28-26 if either it or the parent or the affiliated insurer meets t…

Any individual variable life insurance or annuity contracts delivered or issued for delivery in this state shall contain grace, reinstatement, and nonforfeiture provisions appropriate to such a contract. Source: SL 1971, ch 266 , § 5; SL 1977, ch 412 , § 21.

The reserve liability for variable contracts shall be established in accordance with actuarial procedures that recognize the variable nature of the benefits provided and any mortality guarantees. Source: SL 1971, ch 266 , § 5.

Except for §§ 58-15-13 , 58-15-14 , 58-15-15 , 58-15-17 , 58-15-18 , 58-15-19 , 58-15-21 , 58-15-22 , 58-15-29 , 58-15-31 , 58-15-32 , 58-15-33 , 58-15-34 , 58-15-35 , 58-15-36 , 58-15-38 , 58-15-39 , and 58-27-108 , as in the case of a variable life insurance policy, §§ 58-15-57…

The director has sole authority to regulate the issuance and sale of variable contracts and promulgate rules to carry out the purposes and provisions of this chapter. The Division of Insurance may, upon request by the director, review the underlying investments in securities of v…

Except if variable death benefits are used to pay premiums, the payment of variable death benefits in excess of any minimum death benefits, cash values, policy loans, or partial withdrawals, or the payment of variable death benefits in excess of any partial surrenders, may be def…

The director may promulgate rules pursuant to chapter 1-26 relating to variable life insurance policies. In promulgating the rules, the director shall give substantial consideration to the standards contained in the National Association of Insurance Commissioners (NAIC) Variable …

Source: SL 2004, ch 311 , § 8; SL 2023, ch 166 , § 9.

Jan. 1, 2025.

The association is subject to examination and regulation by the director. The board of directors shall submit, not later than May thirtieth of each year, a financial report for the preceding calendar year in a form approved by the director. Source: SL 2000, ch 247 , § 47; SL 2011…

There is no liability on the part of and no cause of action of any nature may arise against any member insurer, the association or its agents or employees, the board of directors, any person serving as a representative of any director, or the director or the director's representa…

Any final action or order of the director under this chapter is subject to judicial review in a court of competent jurisdiction. Source: SL 2000, ch 247 , § 49.

The rates and premiums charged for insurance policies to which this chapter applies shall include amounts sufficient to recoup a sum equal to the amounts paid to the association by the member insurer less any amounts returned to the member insurer by the association and such rate…

It is unfair trade practice for any insurer or insurance producer to in any manner make use of the protection given policyholders by this chapter as a reason for buying insurance from the insurer or insurance producer. Source: SL 2000, ch 247 , § 51; SL 2001, ch 286 , § 138.

The association shall pay claims in any order which it deems reasonable, including the payment of claims as such are received from the claimants or in groups or categories of claims. Source: SL 2000, ch 247 , § 52.

The association and any similar organization in another state shall be recognized as claimants in the liquidation of an insolvent insurer for any amounts paid by them on covered claims obligations as determined under this chapter or similar laws in other states and shall receive …

The liquidator, receiver, or statutory successor of an insolvent insurer covered by this chapter shall permit access by the board or its authorized representative to any of the insolvent insurer's records that are necessary for the board in carrying out its functions under this c…

Except for actions by member insurers aggrieved by final actions or decisions of the association pursuant to subdivision 58-29A-84(7), any action relating to or arising out of this chapter against the association shall be brought in a court in this state. The courts in this state…

This chapter shall be known as the South Dakota Insurance Guaranty Association Act. Source: SL 2000, ch 247 , § 56.

This chapter applies to any kind of direct insurance, but does not apply to: (1) Life, annuity, health, or disability insurance; (2) Mortgage guaranty, financial guaranty, or other forms of insurance offering protection against investment risks; (3) Fidelity or surety bonds, or a…

Terms used in this chapter mean: (1) "Account," any one of the three accounts created by this chapter; (2) "Affiliate," any person who, directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with another person on Decemb…

There is created a nonprofit unincorporated legal entity to be known as the South Dakota Insurance Guaranty Association. Any insurer defined as a member insurer in subdivision 58-29A-55(9) is a member of the association as a condition of its authority to transact insurance in thi…

The board of directors of the association shall consist of seven persons, each of whom shall be appointed by the director for a term of three years and until a successor has been appointed and qualified. The director shall consult with member insurers concerning their recommendat…

In approving selections to the board, the director shall consider, among other things, whether all member insurers are fairly represented. No less than two members of the board shall be domestic insurers. Source: SL 2000, ch 247 , § 5.

Members of the board may be reimbursed from the assets of the association for expenses incurred by them as members of the board of directors. Source: SL 2000, ch 247 , § 6.

The association may: (1) Employ or retain such persons as are necessary to handle claims and perform other duties of the association; (2) Borrow funds necessary to effect the purposes of this chapter in accord with the plan of operation; (3) Sue or be sued. The power to sue inclu…

The association is exempt from payment of all fees and all taxes levied by this state or any of its subdivisions except taxes levied on real property. Source: SL 2000, ch 247 , § 8.

To aid in the detection and prevention of insurer insolvencies, it is the duty of the board of directors, upon majority vote, to notify the director of any information indicating any member insurer may be insolvent or in a financial condition hazardous to the policyholders or the…

To aid in the detection and prevention of insurer insolvencies, the board of directors may, upon majority vote, request that the director order an examination of any member insurer which the board in good faith believes may be in a financial condition hazardous to the policyholde…

The director shall report to the board of directors when the director has reasonable cause to believe that any member insurer examined or being examined at the request of the board of directors may be insolvent or in a financial condition hazardous to the policyholders or the pub…

The board of directors may, upon majority vote, make recommendations to the director for the detection and prevention of insurer insolvencies. Source: SL 2000, ch 247 , § 12.

The board of directors may, upon majority vote, make recommendations to the director on matters generally related to improving or enhancing regulation for solvency. Source: SL 2000, ch 247 , § 13.

The board of directors may, at the conclusion of any domestic insurer insolvency in which the association was obligated to pay covered claims, prepare a report on the history and causes of such insolvency, based on the information available to the association, and submit the repo…

The association is obligated to pay covered claims existing prior to the order of liquidation, arising within thirty days after the order of liquidation, or before the policy expiration date if less than thirty days after the order of liquidation, or before the insured replaces t…

The association shall be deemed the insurer to the extent of its obligation on the covered claims and to such extent, subject to the limitations provided in this chapter, shall have all rights, duties, and obligations of the insolvent insurer as if the insurer had not become inso…