Title 58, INSURANCE

Failure to file a timely renewal application shall result in lapsing of the license. A business entity may reinstate its license in the same manner as an individual insurance producer as provided in § 58-30-154 . Source: SL 2018, ch 282 , § 2.

In the license renewal application, each business entity shall designate an individual licensed insurance producer responsible for the business entity's compliance with the insurance laws of this state. Source: SL 2018, ch 282 , § 3.

No insurance company may terminate the agency contract of an insurance producer writing fire and casualty lines of insurance except upon ninety days' notice in writing given by the company to the insurance producer. The company shall, upon a terminated insurance producer's reques…

The provisions of § 58-30-8.1 do not apply to those agency contracts in which the insurance producer agrees to represent exclusively one company or a group of companies under common management or to the termination of an insurance producer's contract for insolvency, abandonment, …

An insurance producer licensed as to limited lines insurance or limited lines credit insurance may solicit applications for and issue policies of personal travel accident insurance by means of mechanical vending machines and kiosks supervised by the insurance producer and placed …

All premiums or return premiums received by an insurance producer shall be trust funds received by the licensee in a fiduciary capacity, and the insurance producer or soliciting insurance producer shall account for and pay the same to the insured, insurer, or insurance producer e…

Any agent or soliciting agent who, not being lawfully entitled thereto, diverts or appropriates trust funds referred to in § 58-30-88 or any portion thereof to his own use shall upon conviction be guilty of theft and shall be punished as provided by law. Source: SL 1966, ch 111 ,…

Following termination of an agency appointment as to property, casualty, or surety insurance, and subject to the terms of any agreement between the insurance producer and the insurer, the insurance producer may continue to service and receive from the insurer commissions or other…

If an insurance producer establishes a separate account in which to deposit trust funds in order to avoid a commingling of trust funds with the insurance producer's own funds, the insurance producer may deposit and commingle in such account all such funds but the amount of such f…

The insurance producer shall keep at the insurance producer's place of business records pertaining to transactions under the insurance producer's license and the licenses of the insurance producer's soliciting insurance producers, for a period of at least five years after complet…

No authorized insurer may issue or cause to be issued any policy, duplicate policy, or insurance contract covering a subject of insurance that is resident, located or to be performed in this state through any person who is not licensed as an agent under this chapter. Violation of…

The director may suspend or revoke the certificate of authority of any insurer violating § 58-30-92 . Source: SL 1966, ch 111 , ch 9, § 32 (2).

Each licensed nonresident insurance producer shall appoint the director as the insurance producer's attorney to receive service of legal process issued against the agent in this state upon causes of action arising within this state out of transactions under the license. Source: S…

The appointment required by § 58-30-95 is irrevocable for as long as there could be any cause of action against the insurance producer arising out of the insurance producer's insurance transactions in or with respect to this state. Source: SL 1966, ch 111 , ch 9, § 31 (2); SL 197…

Duplicate copies of legal process against the insurance producer shall be served on the director by registered or certified mail. At the time of service the plaintiff shall pay the director the fee set forth in subdivision § 58-2-29(12)(c), which is taxable as costs in the action…

Upon receiving such service, the director shall send one of the copies of the process, by registered or certified mail with return receipt requested, to the defendant insurance producer at the insurance producer's last address of record with the director. Source: SL 1966, ch 111 …

The director shall keep a record of the day when served with all such legal process. Source: SL 1966, ch 111 , ch 9, § 31 (5); SL 2001, ch 286 , § 180.

It is declared that the purposes of this chapter are to provide orderly access for the insuring public of South Dakota to insurers not authorized to transact insurance in this state, through licensed surplus line brokers in South Dakota for insurance coverages not procurable from…

Within thirty days of issuance of a license as a resident surplus line broker and before procuring any insurance coverage for an insured, the broker shall file with the director, and thereafter for as long as the license remains in effect the broker shall keep in force, a bond in…

The director may suspend or revoke any surplus line broker's license: (1) If the broker fails to file his annual statement or to remit the tax as required by this chapter; or (2) If the broker fails to keep records, or to allow the director to examine his records as required by t…

The procedures provided by chapter 58-30 for suspension or revocation of licenses shall apply to suspension or revocation of a surplus line broker's license. Source: SL 1966, ch 111 , ch 11, § 13 (2).

Upon suspending or revoking a broker's surplus line license, the director shall also suspend or revoke all other licenses of the same individual under this title. Source: SL 1966, ch 111 , ch 11, § 13 (3).

No broker whose license has been so suspended or revoked shall again be so licensed until any fines or delinquent taxes owing by him have been paid, and, in case of revocation, until expiration of one year from the date that the revocation became final. Source: SL 1966, ch 111 , …

A licensed surplus line broker may accept and place surplus line business for any insurance producer licensed in this state for the kind of insurance involved, and may compensate the insurance producer for it. Source: SL 1966, ch 111 , ch 11, § 15; SL 1982, ch 366 ; SL 2001, ch 2…

If certain insurance coverages cannot be procured from authorized insurers, the coverages, hereinafter designated, surplus lines, may be procured from unauthorized insurers, subject to the conditions set forth in §§ 58-32-17 to 58-32-19 , inclusive. The provisions of §§ 58-32-16 …

On or before April first, each unauthorized insurer writing insurance business in South Dakota shall annually file with the director, on a form approved by the director, a true statement of all insurance business written in South Dakota in the preceding calendar year. Source: SL …

The full amount of insurance required must not be procurable, after diligent effort has been made to do so, from insurers authorized to transact and actually writing that kind and class of insurance in this state, and the amount of insurance exported shall be only the excess over…

Insurance must not be exported pursuant to § 58-32-16 if there is coverage readily available from an authorized insurer, unless the authorized insurer quotes a premium or terms not competitive with the premium or terms quoted by an unauthorized insurer. If one portion of the risk…

Insurance under § 58-32-16 must be procured through a licensed surplus line broker, subject to the provisions of §§ 58-32-47 to 58-32-55 , inclusive. Source: SL 1966, ch 111 , ch 11, § 4 (1).

"Broker" as used in this chapter means a surplus line broker duly licensed as such under this chapter. Source: SL 1966, ch 111 , ch 11, § 3 (1).

At the time of procuring, effecting, and issuing any such surplus line insurance, the broker shall execute an affidavit, in such form as is prescribed by the director, setting forth facts from which it can be determined whether such insurance was eligible for export under §§ 58-3…

The broker shall place surplus line insurance only in an insurer which meets the requirements of §§ 58-32-22 to 58-32-24 , inclusive. Violation of this section is a Class 2 misdemeanor. Source: SL 1966, ch 111 , ch 11, § 6 (2); SL 1978, ch 359 , § 2.

Surplus lines insurance may be placed by a surplus lines licensee if the insurer is authorized to write the type of insurance in its domiciliary jurisdiction, and either meets the criteria established through a multi-state agreement pursuant to § 58-32-45 or meets one of the foll…

Subdivision 58-32-22(3) shall not be deemed to place upon the director any duty or responsibility to determine the actual financial condition or claims practices of any unauthorized insurer; and the eligibility of an insurer hereunder shall indicate only that the insurer appears …

The insurer with which surplus line insurance is placed shall be in compliance with either subdivision 58-32-22(1), (2), or (3) and not be ineligible as a surplus line insurer by order of the director received by or known to the broker. The director may issue such an order of ine…

A broker shall not knowingly place surplus line insurance with an insurer that is unsound financially, or that is ineligible under §§ 58-32-21 to 58-32-24 , inclusive. The broker shall ascertain the financial condition of the unauthorized insurer to the extent that the same is sh…

A broker who violates any provision in §§ 58-32-21 to 58-32-25 , inclusive, is guilty of a Class 2 misdemeanor. If the director finds, after hearing conducted pursuant to chapter 1-26 , that the broker has violated any of such sections he shall revoke all licenses held by him und…

Upon placing a surplus line coverage, the broker shall promptly issue and deliver to the insured evidence of the insurance consisting either of the policy as issued by the insurer or, if such policy is not then available, the surplus line broker's certificate of insurance. Such a…

No broker shall issue any such certificate or purport or represent that insurance will be or has been granted by any unauthorized insurer, unless he has prior written authority from the insurer, or has received information from the insurer in the regular course of business that s…

If after the issuance and delivery of any such certificate there is any change as to the identity of the insurers, or the proportion of the direct risk assumed by an insurer as stated in the broker's original certificate, or in any other material respect as to the insurance cover…

To "export" means to place in an unauthorized insurer under this chapter insurance covering a subject of insurance resident, located, or to be performed in South Dakota. Source: SL 1966, ch 111 , ch 11, § 3 (2).

The term, home state, as used in this chapter, means, with respect to an insured: (1) The state in which an insured maintains its principal place of business or, in the case of an individual, the individual's principal residence; or (2) If one hundred percent of the insured risk …

Any surplus line broker who knowingly or negligently issues a false certificate, or who fails promptly to notify the insured of any material change with respect to such insurance by delivery to the insured of a substitute certificate as provided in § 58-32-29 , commits a Class 2 …

If a policy issued by the insurer is not available upon placement of the insurance and the broker has issued and delivered his certificate as provided in § 58-32-27 , upon request therefor by the insured, the broker shall as soon as reasonably possible procure from the insurer it…

Every insurance contract procured and delivered as a surplus line coverage pursuant to this chapter shall have stamped upon it, and be initialed by or bear the name of the surplus line broker who procured it in ten point or larger, boldface type, the following: "THIS INSURANCE CO…

Insurance contracts procured as surplus line coverage from unauthorized insurers shall be valid and enforceable as to all parties, the same as like contracts issued by authorized insurers. Source: SL 1966, ch 111 , ch 11, § 10.