Title 58, INSURANCE

No person shall make or issue, or cause to be made or issued, any written or oral statement misrepresenting or making incomplete comparisons as to the terms, conditions, or benefits contained in any policy for the purpose of inducing or attempting or tending to induce a policyhol…

Any person acting without malice who provides information to, cooperates with or testifies pursuant to a subpoena for an authorized agency, an insurer, the National Association of Insurance Commissioners or any not - for - profit organization established to detect and prevent fra…

Notwithstanding the provisions of §§ 58-33-76 to 58-33-77 , inclusive, the authorized agency shall notify in writing, the policyholder of any request for information. Source: SL 1993, ch 368 , § 7.

Any authorized agency or insurer which receives any information furnished pursuant to §§ 58-33-75 to 58-33-81 , inclusive, shall hold the information in confidence until such time as its release is required pursuant to a criminal or civil proceeding. Any authorized agency, or its…

If any life insurance policy or health insurance policy is canceled before its renewal date or expiration date, other than by the death of the insured, and the insured has paid premiums in advance on the policy, the insurer shall refund to the owner of the policy the unearned por…

If any life insurance policy or health insurance policy is canceled before its renewal date or expiration date because of the death of the insured and the premiums have been paid in advance on the policy, the insurer shall refund the unearned portion of the premiums paid beyond t…

Any insurer subject to this chapter, including any group health plan, as defined in section 607(1) of the Employee Retirement Income Security Act of 1974, as amended to January 1, 1994, who are engaged in the business of health insurance is prohibited from denying enrollment of a…

Any insurer subject to this chapter who is engaged in the business of health insurance is prohibited from using information pertaining to medical assistance eligibility under Title XIX of the Social Security Act as amended to January 1, 1994, or any other state's equivalent medic…

Any insurer subject to this chapter who is engaged in the business of health insurance shall provide that payment for benefits with respect to any participant who receives benefits from the Department of Social Services medical assistance program under Title XIX of the Social Sec…

Any insurer subject to this chapter who is engaged in the business of health insurance is required in any case in which a dependent child has health insurance coverage through the insurer of the noncustodial parent to provide all information to the custodial parent as may be nece…

The Division of Insurance shall regularly report to the National Association of Insurance Commissioners regarding its regulatory activities and its complaint handling. The reports shall include information on all disciplinary actions taken and all consumer complaints received. In…

No persons shall make any false entry in any book, report, or statement of any insurer with intent to deceive any agent or examiner lawfully appointed to examine into its condition or into any of its affairs, or any public official to whom such insurer is required by law to repor…

No insurance producer may offer or sell any security in this state unless the insurance producer is properly registered or exempt from registration pursuant to chapter 47-31B . Source: SL 2001, ch 287 , § 1; SL 2004, ch 278 , § 67.

No insurance producer may offer or sell any security in this state unless the security is registered or exempt from registration pursuant to chapter 47-31B . Source: SL 2001, ch 287 , § 2; SL 2004, ch 278 , § 68.

No insurance producer may offer or sell any business opportunity in this state unless the business opportunity is registered or exempt from registration under chapter 37-25A . Source: SL 2001, ch 287 , § 3.

Terms used in §§ 58-33-93 to 58-33-116 , inclusive, mean: (1) "Admitted insurer," an insurer licensed to do an insurance business in this state including an entity authorized pursuant to § 58-18-88 , a health maintenance organization or nonprofit hospital, or medical service corp…

For purposes of §§ 58-33-93 to 58-33-116 , inclusive, any of the following acts in this state effected by mail or otherwise by a nonadmitted insurer or by any person acting with the actual or apparent authority of the insurer, on behalf of the insurer, constitutes the transaction…

For the purposes of §§ 58-33-93 to 58-33-116 , inclusive, the term, transacting of insurance, includes: (1) Issuing a stop loss policy covering an employer located in this state. Stop loss policy coverage of an employer for claims incurred under the employer's self-funded health …

For the purposes of §§ 58-33-93 to 58-33-116 , inclusive, the term, unauthorized health insurance, means health insurance offered by a nonadmitted insurer except to the extent the laws of this state allow the coverage to be offered by a nonadmitted insurer licensed in another sta…

Unauthorized health insurance does not include: (1) Health care benefits or coverage under an employee welfare benefit plan of the employees of two or more employers (including one or more self-employed individuals), that is established or maintained under or pursuant to a collec…

A licensee shall notify the division MEWA contact if the licensee knows a product is, or is about to be, offered to the public in this state, and the licensee, based on the information known to the licensee, reasonably should know the product is unauthorized health insurance. A l…

Circumstances where a licensee reasonably should know that a product is unauthorized health insurance include the following: (1) The licensee knows that the product is represented to be a self-funded plan and that it is offered widely to the multiple employers or generally to ind…

This chapter applies to all individual and group health policies which are solicited or sold in this state that are subject to chapters 58-15 , 58-16 , 58-17 , 58-18 , 58-18B , 58-37A , 58-38 , 58-39 , 58-40 , and 58-41 . However, this chapter does not apply to insurance policies…

Any advertisements shall be truthful and not materially misleading in fact or by implication. The form and content of an advertisement of a policy shall be sufficiently complete and clear so as to avoid deception. No advertisement may have the capacity and tendency to materially …

Each insurer shall maintain at its home or principal office a complete file containing a specimen copy of every printed, published, or prepared advertisement of its policies and specimen copies of typical printed, published, or prepared advertisements of its blanket, franchise, a…

If the director has reason to believe that an advertisement has the capacity and tendency to mislead or deceive the public or otherwise does not comply with this chapter or the rules promulgated pursuant to this chapter, the director may require an insurer or insurance producer t…

Terms used in §§ 58-33A-14 to 58-33A-27 , inclusive, mean: (1) "Annuity," an annuity that is an insurance product under state law that is individually solicited, whether the product is classified as an individual or group annuity; (2) "Cash compensation," any discount, concession…

Sections 58-33A-13 to 58-33A-27 , inclusive, apply to any recommendation or sale of an annuity. The purpose of §§ 58-33A-13 to 58-33A-27 , inclusive, is to require producers, as defined in § 58-33A-13 , to act in the best interest of the consumer when making a recommendation of a…

Unless otherwise specifically included, §§ 58-33A-13 to 58-33A-27 , inclusive, do not apply to any transactions involving: (1) A direct response solicitation if there is no recommendation based on information collected from the consumer pursuant to §§ 58-33A-13 to 58-33A-27 , inc…

A producer, when making a recommendation of an annuity, shall act in the best interest of the consumer under the circumstances known at the time the recommendation is made, without placing the producer’s or the insurer’s financial interest ahead of the consumer’s interest. For pu…

Producers must, in making a recommendation: (1) Exercise reasonable diligence, care, and skill to: (a) Know the consumer’s financial situation, insurance needs, and financial objectives; (b) Understand the available recommendation options after making a reasonable inquiry into op…

The requirements of § 58-33A-16.1 : (1) Apply to the particular annuity as a whole, the underlying subaccounts to which funds are allocated at the time of purchase or exchange of an annuity, and riders and similar product enhancements; (2) Create a regulatory obligation but do no…

In the case of an exchange or replacement of an annuity, the producer shall consider the whole transaction, which include taking into consideration whether: (1) The consumer will incur a surrender charge, be subject to the commencement of a new surrender period, lose existing ben…

Prior to or at the time of the recommendation or sale of an annuity, the producer shall have a reasonable basis to believe the consumer has been informed of various features of the annuity including the potential surrender period and surrender charge, potential tax penalty if the…

Prior to or at the time of the recommendation or sale of an annuity, the producer shall prominently disclose to the consumer on a form substantially similar to the form prescribed by the director and available on the division’s website: (1) A description of the scope and terms of…

Upon request of the consumer or the consumer’s designated representative, the producer shall disclose: (1) A reasonable estimate of the amount of cash compensation to be received by the producer, which may be stated as a range of amounts or percentages; and (2) Whether the cash c…

A producer shall identify and avoid or reasonably manage and disclose material conflicts of interest, including material conflicts of interest related to an ownership interest. The following factors, when considered in isolation, are not material conflicts of interest: (1) The pr…

Except as provided pursuant to § 58-33A-19 , a producer has no obligation to a consumer under §§ 58-33A-16.1 to 58-33A-16.3 , inclusive, and § 58-33A-17 related to any annuity transaction if: (1) A consumer refuses to provide relevant consumer profile information and the annuity …

An insurer's issuance of an annuity subject to § 58-33A-18 shall be reasonable under all the circumstances actually known to the insurer at the time the annuity is issued. Source: SL 2008, ch 273 , § 7; SL 2012, ch 250 , § 5; SL 2022, ch 186 , § 17, eff. Jan. 1, 2023.

A producer shall, at the time of the recommendation or sale: (1) Make a written record of any recommendation and the basis for the recommendation subject to the obligations required in §§ 58-33A-13 to 58-33A-27 , inclusive; (2) Obtain a consumer signed statement on a form substan…

Except as permitted under §§ 58-33A-18 and 58-33A-19 , an insurer may not issue an annuity recommended to a consumer unless there is a reasonable basis to believe the annuity would effectively address the particular consumer’s financial situation, insurance needs, and financial o…

The purpose of this chapter is to establish guidelines and permissible and impermissible standards of conduct in the solicitation of and advertising of life and health insurance in a manner which: (1) Prevents unfair, deceptive, and misleading advertising; (2) Is conducive to acc…

An insurer shall establish and maintain a supervision system that is reasonably designed to achieve compliance with §§ 58-33A-13 to 58-33A-27 , inclusive, including: (1) The insurer shall establish and maintain reasonable procedures to inform its producers of the requirements of …

Nothing in § 58-33A-20 or this section restricts an insurer from contracting for performance of a function required under § 58-33A-20 , including maintenance of procedures. An insurer is responsible for taking appropriate corrective action and may be subject to sanctions and pena…

No producer or insurer may dissuade, or attempt to dissuade, a consumer from: (1) Truthfully responding to an insurer's request for confirmation of consumer profile information; (2) Filing a complaint; or (3) Cooperating with the investigation of a complaint. Source: SL 2012, ch …

Recommendations and sales of annuities made in compliance with comparable standards shall satisfy the requirements of §§ 58-33A-13 to 58-33-27 , inclusive. This section applies to all recommendations and sales of annuities made by financial professionals in compliance with busine…