Title 58 — INSURANCE
79 chapters · 3,532 sections in this title.
SDCL § 58-29A-70 Investigation, adjustment, and payment or denial of claims--Review of previous settlements, releases, and judgments
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The association shall investigate claims brought against the association and adjust, compromise, settle, and pay covered claims to the extent of the association's obligation and deny any other claims and may review settlements, releases, and judgments to which the insolvent insur…
SDCL § 58-29A-71 Transfer or recovery of claim from certain covered persons
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The association, at its sole discretion, may transfer claims handling and financial responsibility for a covered claim to, or recover from, the following persons the amount of any covered claim paid on behalf of such person pursuant to this chapter: (1) Any insured whose net wort…
SDCL § 58-29A-72 Means of handling claims--Designation of servicing facility
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The association shall handle claims through its employees or through one or more insurers or other persons designated as servicing facilities. Designation of a servicing facility is subject to the approval of the director, but such designation may be declined by a member insurer.…
SDCL § 58-29A-73 Reimbursement of servicing facility--Payment of other expenses
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The association shall reimburse each servicing facility for obligations of the association paid by the facility and for expenses incurred by the facility while handling claims on behalf of the association and shall pay the other expenses of the association authorized by this chap…
SDCL § 58-29A-74 Separate accounts for administration and assessment
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For purposes of administration and assessment, the association shall be divided into three separate accounts: (1) The workers' compensation insurance account; (2) The automobile insurance account; and (3) The account for all other insurance to which this chapter applies. Source: …
SDCL § 58-29A-75 Allocation of claims, expenses, and assessments to separate accounts--Operating expenses excepted
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The association shall allocate claims paid and expenses incurred among the three accounts separately, and assess member insurers separately for each account amounts necessary to pay the obligations of the association under § 58-29A-68 subsequent to an insolvency, the expenses of …
SDCL § 58-29A-76 Administrative assessments for operating expenses
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In addition to any other assessments authorized by this chapter, the association may assess each member insurer an administrative assessment not to exceed five hundred dollars per annum. The administrative assessment shall be made for the purpose of paying operating expenses of t…
SDCL § 58-29A-77 Apportionment of assessments among members--Notice of assessment
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The assessments of each member insurer shall be in the proportion that the net direct written premiums of the member insurer for the preceding calendar year on the kinds of insurance in the account bears to the net direct written premiums of all member insurers for the preceding …
SDCL § 58-29A-78 Maximum assessment in relation to net premiums
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No member insurer may be assessed in any year on any account an amount greater than two percent of that member insurer's net direct written premiums for the preceding calendar year on the kinds of insurance in the account. Source: SL 2000, ch 247 , § 25.
SDCL § 58-29A-79 Offset of payments and expenses against assessment due
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Each member insurer may set off against any assessment, authorized payments made on covered claims and expenses incurred in the payment of such claims by the member insurer if they are chargeable to the account for which the assessment is made. Source: SL 2000, ch 247 , § 26.
SDCL § 58-29A-80 Exemption or deferment of assessments to avoid impairment of capital or surplus
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The association may exempt or defer, in whole or in part, the assessment of any member insurer, if the assessment would cause the member insurer's financial statement to reflect amounts of capital or surplus less than the minimum amounts required for a certificate of authority by…
SDCL § 58-29A-81 Proration of payments when assets insufficient for full payment
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If the maximum assessment, together with the other assets of the association in any account, does not provide in any one year in any account an amount sufficient to make all necessary payments from that account, the funds available shall be prorated and the unpaid portion shall b…
SDCL § 58-29A-82 Refund of surplus to member insurers
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The association may refund to the member insurers in proportion to the contribution of each member insurer to that account that amount by which the assets of the account exceed the liabilities, if, at the end of any calendar year, the board of directors finds that the assets of t…
SDCL § 58-29A-83 Plan of operation submitted to director--Approval
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The association shall submit to the director a plan of operation and any amendments necessary or suitable to assure the fair, reasonable, and equitable administration of the association. The plan of operation and any amendments is effective upon approval in writing by the directo…
SDCL § 58-29A-84 Required contents of plan of operation
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The plan of operation shall: (1) Establish the procedures whereby all the powers and duties of the association under §§ 58-29A-60 , 58-29A-68 to 58-29A-73 , inclusive, and §§ 58-29A-75 to 58-29A-82 , inclusive, will be performed; (2) Establish procedures for handling assets of th…
SDCL § 58-29A-85 Compliance with plan of operation--Violation as misdemeanor
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All member insurers shall comply with the plan of operation. Violation of this section is a Class 2 misdemeanor. Source: SL 2000, ch 247 , § 32.
SDCL § 58-29A-86 Delegation of functions to interstate organization--Reimbursement of organization--Approval of delegation
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The plan of operation may provide that any or all powers and duties of the association, except those under subdivision 58-29A-60(2) and those under §§ 58-29A-75 to 58-29A-81 , inclusive, are delegated to a corporation, association, or other organization which performs or will per…
SDCL § 58-29A-87 Director's rules promulgated in lieu of amendments to plan of operation
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If at any time the association fails to submit suitable amendments to the plan of operation, the director shall, after notice and hearing, promulgate such reasonable rules as are necessary or advisable to effectuate the provisions of this chapter. The rules shall continue in forc…
SDCL § 58-29A-88 Notice to association of insolvency of insurer
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The director shall notify the association of the existence of an insolvent insurer not later than three days after the director receives notice of the determination of the insolvency. The association is entitled to a copy of any complaint seeking an order of liquidation with a fi…
SDCL § 58-29A-89 Statement of members' premiums furnished to association
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The director shall, upon request of the board of directors, provide the association with a statement of the net direct written premiums of each member insurer. Source: SL 2000, ch 247 , § 36.
SDCL § 58-29A-90 Stay of default proceedings against insolvent insurer--Setting aside of prior proceedings
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Any proceeding in which the insolvent insurer is a party or is obligated to defend a party in any court in this state shall, subject to waiver by the association in specific cases involving covered claims, be stayed until the last day fixed by the court for the filing of claims a…
SDCL § 58-29A-91 Suspension or revocation of certificate of authority for failure to pay assessment or comply with plan--Fine as alternative
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The director may suspend or revoke, after notice and hearing, the certificate of authority to transact insurance in this state of any member insurer that fails to pay an assessment when due or fails to comply with the plan of operation. As an alternative, the director may levy a …
SDCL § 58-29A-92 Revocation of designation of servicing facility
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The director may revoke the designation of any servicing facility if the director finds claims are being handled unsatisfactorily. Source: SL 2000, ch 247 , § 39.
SDCL § 58-29A-93 Duplicate coverage--Insured to exhaust rights against solvent insurer
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Any person having a claim against an insurer, whether or not the insurer is a member insurer, under any provision in an insurance policy other than a policy of an insolvent insurer which is also a covered claim, shall be required to first exhaust any right under the policy. Any a…
SDCL § 58-29A-94 Duplicate coverage by insolvent insurers--Factors governing primary recovery
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Any person having a claim which may be recovered under more than one insurance guaranty association or its equivalent shall seek recovery first from the association of the place of residence of the insured except that if it is a first - party claim for damage to property with a p…
SDCL § 58-29A-95 Subrogation of association to rights of claimant
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Any person recovering under this chapter shall be deemed to have assigned that person's rights under the policy to the association to the extent of any recovery from the association. Every insured or claimant seeking the protection of this chapter shall cooperate with the associa…
SDCL § 58-29A-96 Restrictions on liability of insured to association
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The association has no cause of action against the insured of the insolvent insurer for any sums it has paid out, except such causes of action as the insolvent insurer would have had if the sums had been paid by the insolvent insurer and except as provided in §
SDCL § 58-29A-97 Liability of insureds for unpaid assessments
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In the case of an insolvent insurer operating on a plan with assessment liability, payments of claims of the association may not operate to reduce the liability of insureds to the receiver, liquidator, or statutory successor for unpaid assessments. Source: SL 2000, ch 247 , § 44.
SDCL § 58-29A-98 Settlements by association binding on successor of insolvent insurer--Priority of claim and expenses
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The receiver, liquidator, or statutory successor of an insolvent insurer is bound by determinations of covered claim eligibility under this chapter and by settlements of claims made by the association or a similar organization in another state. The court having jurisdiction shall…
SDCL § 58-29A-99 Association's statements of claims paid filed with receiver or liquidator
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The association shall periodically file with the receiver or liquidator of the insolvent insurer statements of the covered claims paid by the association and estimates of anticipated claims on the association which shall preserve the rights of the association against the assets o…
SDCL § 58-29B-1 Citation of chapter
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This chapter may be cited as the Insurers Supervision, Rehabilitation, and Liquidation Act. Source: SL 1989, ch 436 , § 1.
SDCL § 58-29B-10 SDCL 58-29B-10
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(6) "Domiciliary state," the state in which an insurer is incorporated or organized, or, in the case of an alien insurer, its state of entry; (7) "Fair consideration," is given for property or obligation: (a) When in exchange for such property or obligation, as a fair equivalent …
SDCL § 58-29B-100 Amounts for disbursements to associations
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The liquidator's proposal shall provide for disbursements to the associations in amounts estimated at least equal to the claim payments made or to be made thereby for which such associations could assert a claim against the liquidator, and shall further provide that if the assets…
SDCL § 58-29B-101 Insolvent insurer writing life or health insurance or annuities--Liquidator to include disbursements to guaranty in proposal
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The liquidator's proposal shall, with respect to an insolvent insurer writing life or health insurance or annuities, provide for disbursements of assets to any guaranty association or any foreign guaranty association covering life or health insurance or annuities or to any other …
SDCL § 58-29B-102 Notice of application for approval of proposal
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Notice of the application under § 58-29B-98 shall be given to the association and to the directors of insurance of each of the states. Any such notice shall be deemed to have been given when deposited in the United States' mail, with first class postage prepaid thereon, at least …
SDCL § 58-29B-103 Filing proof of claims--Exceptions
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Proof of all claims shall be filed with the liquidator in the form required by §§ 58-29B-106 to 58-29B-110 , inclusive, on or before the last day for filing specified in the notice required under §§ 58-29B-51 and 58-29B-52 , except that proof of claims for cash surrender values o…
SDCL § 58-29B-104 58-29B-107 Proof of claim--Contents
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58-29B-108 Failure to provide necessary information--Liquidator may require prescribed forms and additional information. 58-29B-109 Liquidator may request or otherwise obtain additional information or evidence. 58-29B-110 Judgment or order not evidence of liability or quantum of …
SDCL § 58-29B-105 Certain late filing claims of guaranty association--Right to share in distributions
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The liquidator shall permit late filing claims to share in distributions, whether past or future, as if they were not late, if such claims are claims of a guaranty association or foreign guaranty association for reimbursement of covered claims paid or expenses incurred, or both, …
SDCL § 58-29B-106 SDCL 58-29B-106
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Treatment of late claims not covered by §
SDCL § 58-29B-107 Proof of claim--Contents
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Proof of claim shall consist of a verified statement signed by the claimant that includes all of the following that are applicable: (1) The particulars of the claim including the consideration given for it; (2) The identity and amount of the security on the claim; (3) The payment…
SDCL § 58-29B-108 Failure to provide necessary information--Liquidator may require prescribed forms and additional information
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The liquidator need not consider or allow a claim if it does not contain all the information in § 58-29B-107 , which may be applicable. The liquidator may require that a prescribed form be used and may require that other information and documents be included. Source: SL 1989, ch …
SDCL § 58-29B-109 Liquidator may request or otherwise obtain additional information or evidence
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At any time the liquidator may request the claimant to present information or evidence supplementary to that required under § 58-29B-107 , and may take testimony under oath, require production of affidavits or depositions, or otherwise obtain additional information or evidence. S…
SDCL § 58-29B-11 Failure to cooperate--Obstruction or interference--Penalty
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Any person included within § 58-29B-9 who fails to cooperate with the director, or any person who obstructs or interferes with the director in the conduct of any delinquency proceeding or any investigation preliminary or incidental thereto, or who violates any order the director …
SDCL § 58-29B-110 Judgment or order not evidence of liability or quantum of damages
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No judgment or order against an insured or the insurer entered after the date of filing of a successful petition for liquidation and no judgment or order against an insured or the insurer entered at any time by default or by collusion need be considered as evidence of liability o…
SDCL § 58-29B-111 Claims of guaranty associations--Form and content
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All claims of a guaranty association or foreign guaranty association shall be in such form and contain such substantiation as may be agreed to by the association and the liquidator. Source: SL 1989, ch 436 , § 111.
SDCL § 58-29B-112 Third party's claim contingent on judgment against insured--Consideration
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The claim of a third party which is contingent only on his first obtaining a judgment against the insured shall be considered and allowed as if there were no such contingency. Source: SL 1989, ch 436 , § 112.
SDCL § 58-29B-113 Contingent claims allowed
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A claim may be allowed even if contingent, if it is filed in accordance with §§ 58-29B-103 to 58-29B-106 , inclusive. It may be allowed and may participate in all distributions declared after it is filed to the extent that it does not prejudice the orderly administration of the l…
SDCL § 58-29B-114 Treatment of claims due except for passage of time
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Claims that are due except for the passage of time shall be treated as settled claims are treated. However, such claims may be discounted at the rate specified in § 58-15-15.8 minus two percent. Source: SL 1989, ch 436 , § 114.
SDCL § 58-29B-115 Claims made under employment contracts by directors or similar personnel--Limit on payment
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Claims made under employment contracts by directors, principal officers, or persons in fact performing similar functions or having similar powers are limited to payment for services rendered prior to the issuance of any order of rehabilitation or liquidation under § 58-29B-32 or
SDCL § 58-29B-116 Third party claim against insured of insurer in liquidation filed with liquidator--Insured's filing--Late filing
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If any third party asserts a cause of action against an insured of an insurer in liquidation, the third party may file a claim with the liquidator. Whether or not the third party files a claim, the insured may file a claim on his own behalf in the liquidation. If the insured fail…