Title 58, INSURANCE

The liquidator shall give notice of the order to show cause by legal publication in the county of the principal place of business of the insurer and by first class mail to each member liable thereunder mailed to his last known address as it appears on the insurer's records, at le…

If a member does not appear and serve duly verified objections upon the liquidator on or before the return day of the order to show cause under § 58-29B-90 , the court shall make an order adjudging the member liable for the amount of the assessment against him, pursuant to § 58-2…

The liquidator may enforce any order or collect any judgment under § 58-29B-92 , by any lawful means. Source: SL 1989, ch 436 , § 93.

The amount recoverable by the liquidator from reinsurers may not be reduced as a result of delinquency proceedings, unless the reinsurance contract provides, in substance, that in the event of the insolvency of the ceding insurer, the reinsurance is payable under a contract reins…

Notwithstanding § 58-29B-94 , if a life and health insurance guaranty association has made the election to succeed to the rights and obligations of the insolvent insurer under the contract of reinsurance, the reinsurer's liability to pay covered reinsured claims continues under t…

No insurance producer, premium finance company, or any other person, responsible for the payment of a premium at the time of the declaration of insolvency, may be held liable for payment of collected or uncollected unearned premiums or for uncollected earned premiums as shown on …

Upon satisfactory evidence of a violation of § 58-29B-95 , the director may pursue either one or both of the following courses of action; suspend, revoke, or refuse to renew the licenses of such offending party or parties or impose a penalty of not more than one thousand dollars …

Before the director shall take any action as set forth in § 58-29B-96 , he shall give written notice to the person, company, association, or exchange accused of violating the law, stating specifically the nature of the alleged violation, and fixing a time and place, at least ten …

Within one hundred twenty days of a final determination of insolvency of an insurer by the court, the liquidator shall make application to the court for approval of a proposal to disburse assets out of marshaled assets, from time to time as such assets become available, to a guar…

The proposal under § 58-29B-98 shall include, but is not limited to, provisions for: (1) Reserving amounts for the payment of expenses of administration and the payment of claims of secured creditors to the extent of the value of the security held, and claims falling within the p…

This chapter shall be known and may be cited as the South Dakota Life and Health Insurance Guaranty Association Act. Source: SL 2003, ch 252 , § 1.

A. The purpose of this chapter is to protect, subject to certain limitations, the persons specified in subpart A of § 58-29C-46 against failure in the performance of contractual obligations, under life, health, and annuity policies, plans, or contracts specified in subpart B of §…

A. This chapter shall provide coverage for the policies and contracts specified in subpart B: (1) To persons who, regardless of where they reside (except for nonresident certificate holders under group policies or contracts), are the beneficiaries, assignees, or payees of the per…

This chapter shall be construed to effect the purpose under § 58-29C-45 . Source: SL 2003, ch 252 , § 4.

Terms used in this chapter mean: (1) "Account," either of the two accounts created under § 58-29C-49 ; (2) "Association," the South Dakota Life and Health Insurance Guaranty Association described in § 58-29C-49 ; (3) "Authorized assessment" or the term "authorized" when used in t…

A. There is hereby continued the nonprofit legal entity known as the South Dakota Life and Health Insurance Guaranty Association as created by former § 58-29C-1 . All member insurers shall be and remain members of the association as a condition of their authority to transact insu…

A. The board of directors of the association shall consist of not less than seven nor more than eleven member insurers serving terms as established in the plan of operation. The insurer members of the board shall be elected by member insurers subject to the approval of the direct…

A. If a member insurer is an impaired insurer, the association may, in its discretion, and subject to any conditions imposed by the association that do not impair the contractual obligations of the impaired insurer and that are approved by the director: (1) Guarantee, assume, rei…

A. For the purpose of providing the funds necessary to carry out the powers and duties of the association, the board of directors shall assess the member insurers, separately for each account, at the time and for the amounts as the board finds necessary. Assessments are due not l…

A. (1) The association shall submit to the director a plan of operation and any amendments thereto necessary or suitable to assure the fair, reasonable, and equitable administration of the association. The plan of operation and any amendments thereto shall become effective upon t…

In addition to the duties and powers enumerated elsewhere in this chapter, A. The director shall: (1) Upon request of the board of directors, provide the association with a statement of the premiums in this and any other appropriate states for each member insurer; (2) When an imp…

To aid in the detection and prevention of member insurer insolvencies or impairments, A. It is the duty of the director: (1) To notify the directors of all the other states, territories of the United States and the District of Columbia within thirty days following the action take…

A. A member insurer may offset against its premium tax liability to this state an assessment described in subpart 58-29C-52H to the extent of twenty percent of the amount of the assessment for each of the five calendar years following the year in which the assessment was paid. If…

A. This chapter may not be construed to reduce the liability for unpaid assessments of the insureds of an impaired or insolvent insurer operating under a plan with assessment liability. B. Records shall be kept of all meetings of the board of directors to discuss the activities o…

The association is subject to examination and regulation by the director. The board of directors shall submit to the director each year, not later than one hundred twenty days after the association's fiscal year, a financial report in a form approved by the director and a report …

The association shall be 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 2003, ch 252 , § 16.

There is no liability on the part of and no cause of action of any nature may arise against any member insurer or its agents or employees, the association or its agents or employees, members of the board of directors, or the director or the director's representatives, for any act…

All proceedings in which the insolvent insurer is a party in any court in this state shall be stayed one hundred eighty days from the date an order of liquidation, rehabilitation, or conservation is final to permit proper legal action by the association on any matters germane to …

A. No person, including a member insurer, agent, or affiliate of a member insurer may make, publish, disseminate, circulate, or place before the public, or cause directly or indirectly, to be made, published, disseminated, circulated, or placed before the public, in any newspaper…

Terms used in this chapter mean: (1) "Affiliate" or "affiliated," any entity or person who directly or indirectly through one or more intermediaries, controls or is controlled by, or is under common control with, a specified entity or person; (2) "Underwrites" or "underwriting," …

The insurer shall own the records generated by the administrator pertaining to the insurer. However, the administrator shall retain the right to continuing access to books and records to permit the administrator to fulfill all of its contractual obligations to insured parties, cl…

In the event the insurer and the administrator cancel their agreement, notwithstanding the provisions of § 58-29D-8 , the administrator may, by written agreement with the insurer, transfer all records to a new administrator rather than retain them for five years. In such cases, t…

An administrator may use only such advertising pertaining to the business underwritten by an insurer as has been approved in writing by the insurer in advance of its use. Source: SL 1992, ch 352 , § 12.

If an insurer utilizes the services of an administrator, the insurer is responsible for determining the benefits, premium rates, underwriting criteria and claims payment procedures applicable to such coverage and for securing reinsurance, if any. The rules pertaining to these mat…

All insurance charges or premiums collected by an administrator on behalf of or for an insurer or insurers, and the return of premiums received from that insurer or insurers, shall be held by the administrator in a fiduciary capacity. Such funds shall be immediately remitted to t…

If charges or premiums deposited in a fiduciary account have been collected on behalf of or for one or more insurers, the administrator shall keep records clearly recording the deposits in and withdrawals from the account on behalf of each insurer. The administrator shall keep co…

The administrator may not pay any claim by withdrawals from a fiduciary account in which premiums or charges are deposited. Withdrawals from such account shall be made as provided in the written agreement between the administrator and the insurer. The written agreement shall addr…

An administrator may not enter into any agreement or understanding with an insurer in which the effect is to make the amount of the administrator's commissions, fees, or charges contingent upon savings effected in the adjustment, settlement, and payment of losses covered by the i…

When the services of an administrator are utilized, the administrator shall provide a written notice approved by the insurer to covered individuals advising them of the identity of, and relationship among, the administrator, the policyholder, and the insurer. When an administrato…

For the purposes of this chapter, an administrator or third - party administrator or TPA is a person who directly or indirectly solicits or effects coverage of, underwrites, collects charges or premiums from, or adjusts or settles claims on residents of this state, or residents o…

Any policies, certificates, booklets, termination notices, or other written communications delivered by the insurer to the administrator for delivery to insured parties or covered individuals shall be delivered by the administrator promptly after receipt of instructions from the …

Any administrator for an employer self-funded health benefit plan shall provide, at the written request of the employer, annual reports of the claims experience of that employer for the immediate past policy period and for any time frame that is not more than three years prior to…

No person may act as, or offer to act as, or hold himself out to be an administrator in this state without a valid license or registration as an administrator issued by the director. Source: SL 1992, ch 352 , § 21; SL 2001, ch 285 , § 3.

An administrator shall apply to the director upon a form to be furnished by the director. The application shall include or be accompanied by the following information and documents: (1) All basic organizational documents of the administrator, including any articles of incorporati…

Any annual financial statement or report required under § 58-29D-22 must be audited. The applicant is presumed to be solvent if the applicant has a positive net worth. If the applicant has been in existence for less than two fiscal years, the applicant shall include in the applic…

The applicant shall make available for inspection by the director copies of all contracts with insurers or other persons utilizing the services of the administrator. Source: SL 1992, ch 352 , § 23.