Title 58, INSURANCE

An insurer is responsible for compliance with §§ 58-33A-13 to 58-33A-27 , inclusive. If a violation occurs because of the action or inaction of the insurer or its producer, the director may order: (1) An insurer to take reasonably appropriate corrective action for any consumer ha…

Each insurer, general agent, independent agency and producer shall maintain or be able to make available to the director records of the information collected from the consumer, disclosures made to the consumer, including summaries of oral disclosures, and other information used i…

No multi-state plan as described in Section 1334 of the Patient Protection and Affordable Care Act, Pub. L. No. 111-148, 124 Stat. 119 (2010), as amended by the Health Care and Education Reconciliation Act of 2010, Pub. L. No. 111-152, 124 Stat. 1029 (2010) may sell, solicit, neg…

For the purposes of this chapter, the term, advertisement, includes: (1) Any printed and published material, audio visual material, and descriptive literature of an insurer used in direct mail, newspapers, magazines, radio scripts, TV scripts, billboards, and similar displays; (2…

For the purposes of this chapter, the term, advertisement, does not include: (1) Any material to be used solely for the training and education of an insurer's employees, representatives, or insurance producers; (2) Any material used in - house by insurers; (3) Any communications …

In order to provide for full and fair disclosure in the sale of health insurance policies or subscriber contracts of a nonprofit hospital, medical, or dental service association, no such policy or contract may be delivered or issued for delivery in this state unless the outline o…

The director shall prescribe the general format and content of the outline of coverage required by § 58-33A-5 . The term, format, means style, arrangement, and overall appearance, including such items as the size, color, prominence of type, and the arrangement of text and caption…

The director may promulgate rules pursuant to chapter 1-26 to establish specific standards consistent with § 58-33A-2 . The rules may include standards of full and fair disclosure, that set forth the manner, content, and required disclosure. Except for conversion policies issued …

Any information required to be disclosed by rules promulgated pursuant to this chapter shall be set out conspicuously and in close conjunction with the statements to which the information relates or under appropriate captions of such prominence that it does not minimize, render o…

Any insurer that is subject to § 58-33A-1 offering to provide health benefits in this state through a policy, contract, or certificate that contains a provision limiting coverage to usual, customary, or reasonable charges shall provide prominent disclosure that the policy, certif…

Prior to accepting the applicant's initial premium or premium deposit, the insurer shall provide, to all prospective life insurance purchasers, a buyer's guide, and a policy summary. However, in lieu of a policy summary, an insurer may provide an illustration which complies with …

"Reciprocal" insurance is that resulting from an interexchange among persons, known as "subscribers," of reciprocal agreements of indemnity, the interexchange being effectuated through an "attorney in fact" common to all such persons. Source: SL 1966, ch 111 , ch 19, § 1.

The bond required by § 58-34-8 shall provide that it is not subject to cancellation unless thirty days' advance notice in writing of cancellation is given to the attorney and the director. Source: SL 1966, ch 111 , ch 19, § 12 (3).

In lieu of the bond required under § 58-34-8 , the attorney may maintain on deposit through the office of the director, a like amount of cash or of securities eligible for deposit under §§ 58-7-8 to 58-7-10 , inclusive, and subject to the same conditions as the bond. Source: SL 1…

Action on the attorney's bond or to recover against any such deposit made in lieu thereof may be brought at any time by one or more subscribers suffering loss through a violation of its conditions or by a receiver or liquidator of the insurer. Amounts recovered on the bond shall …

A reciprocal insurer shall: (1) Have and use a business name. The name shall include the word "reciprocal," or "interinsurer," or "interinsurance," or "exchange," or "underwriters," or "underwriting." (2) Sue and be sued in its own name. Source: SL 1966, ch 111 , ch 19, § 5.

A domestic reciprocal insurer formed after June 30, 1966, may be authorized to transact insurance if it has otherwise complied with the applicable provisions of this title and has and thereafter maintains surplus funds as follows: (1) To transact property insurance, surplus of no…

In addition to surplus required to be maintained under § 58-34-14 , a domestic reciprocal insurer formed after June 30, 1966, shall have, when first authorized to transact insurance, expendable surplus equal to not less than one - half of the minimum amount of surplus required to…

A domestic reciprocal insurer may be authorized to transact additional kinds of insurance if it has otherwise complied with the provisions of this title therefor and possesses and maintains surplus funds not less in amount than the minimum capital stock required of a domestic sto…

A domestic reciprocal insurer, which held a valid certificate of authority to transact business in this state immediately prior to July 1, 1966, is governed, as to surplus required to be maintained, by §§ 58-6-27 and 58-6-28 . Source: SL 1966, ch 111 , ch 19, § 8 (1).

The certificate of authority of a reciprocal insurer shall be issued to its attorney in the name of the insurer. Source: SL 1966, ch 111 , ch 19, § 9 (1).

The director may refuse, suspend, or revoke the certificate of authority, in addition to other grounds therefor, for failure of the attorney to comply with any provision of this title. Source: SL 1966, ch 111 , ch 19, § 9 (2).

A "reciprocal insurer" means an unincorporated aggregation of subscribers operating individually and collectively through an attorney in fact to provide reciprocal insurance among themselves. Source: SL 1966, ch 111 , ch 19, § 2.

The rights and powers of the attorney of a reciprocal insurer shall be as provided in the power of attorney given it by the subscribers. Source: SL 1966, ch 111 , ch 19, § 10 (1).

The power of attorney described in § 58-34-20 must set forth: (1) The powers of the attorney; (2) That the attorney is empowered to accept service of process on behalf of the insurer and to authorize the director to receive service of process in actions against the insurer upon c…

The terms of any power of attorney or agreement collateral thereto shall be fair and equitable, and no such power or agreement shall be effective as to a domestic reciprocal insurer until approved by the director. Source: SL 1966, ch 111 , ch 19, § 10 (3).

Legal process shall be served upon a domestic reciprocal insurer by serving the insurer's attorney at his principal offices or by serving the director as the insurer's process agent under § 58-6-39 . Source: SL 1966, ch 111 , ch 19, § 15 (1).

Any judgment based upon legal process so served shall be binding upon each of the insurer's subscribers as their respective interests may appear, but in an amount not exceeding their respective contingent liabilities, if any, the same as though personal service of process was had…

Individuals, partnerships, associations, and corporations, public or private, of this state, hereby designated as subscribers, are authorized to exchange reciprocal or interinsurance contracts with each other, or with individuals, partnerships, associations, and corporations, pub…

Any corporation now or hereafter organized under the laws of this state shall, in addition to the rights, powers, and franchises specified in its articles of incorporation have full power and authority to exchange insurance contracts of the kind and character mentioned in § 58-34…

Any officer, representative, trustee, receiver, or legal representative of any such subscriber shall be recognized as acting for or on its behalf for the purpose of such contract but shall not be personally liable upon the contract by reason of acting in such representative capac…

The advisory committee of a domestic reciprocal insurer exercising the subscribers' rights shall be selected under such rules as the subscribers adopt. Source: SL 1966, ch 111 , ch 19, § 20 (1).

Not less than two - thirds of the advisory committee of a domestic reciprocal insurer shall be subscribers other than the attorney, or any person employed by, representing, or having a financial interest in the attorney. Source: SL 1966, ch 111 , ch 19, § 20 (2).

"Attorney," as used in this chapter, refers to the attorney in fact of a reciprocal insurer. The attorney may be an individual, firm, or corporation. Source: SL 1966, ch 111 , ch 19, § 6.

The advisory committee of a domestic reciprocal insurer shall: (1) Supervise the finances of the insurer; (2) Supervise the insurer's operations to such extent as to assure conformity with the subscribers' agreement and power of attorney; (3) Procure the audit of the accounts and…

Modifications of the terms of the subscribers' agreement or of the power of attorney of a domestic reciprocal insurer shall be made jointly by the attorney and the subscribers' advisory committee. No such modification shall be effective until approved by the director. Source: SL …

A reciprocal insurer may, upon qualifying therefor as provided for by this title, transact any kinds of business defined by this title, other than life or title insurance. Source: SL 1966, ch 111 , ch 19, § 4 (1).

A reciprocal insurer may purchase reinsurance, and may grant reinsurance as to any kind of insurance it is authorized to transact. Source: SL 1966, ch 111 , ch 19, § 4 (2).

The attorney or other parties may advance to a domestic reciprocal insurer upon reasonable terms such funds as it may require from time to time in its operations. Sums so advanced shall not be treated as a liability of the insurer, and, except upon liquidation of the insurer, sha…

The liability of each subscriber, other than as to a nonassessable policy, for the obligations of the reciprocal insurer shall be an individual, several and proportionate liability, and not joint. Source: SL 1966, ch 111 , ch 19, § 21 (1).

Except as to a nonassessable policy, each subscriber shall have a contingent assessment liability, in the amount provided for in the power of attorney or in the subscribers' agreement, for payment of actual losses and expenses incurred while his policy was in force. Such continge…

Each assessable policy issued by the insurer shall contain a statement of the contingent liability, set in type of the same prominence as the insuring clause. Source: SL 1966, ch 111 , ch 19, § 21 (3).

Assessments may be levied upon subscribers of a domestic reciprocal insurer liable therefor under the terms of their policies by the attorney upon approval by the subscribers' advisory committee and the director; or by the director in liquidation of the insurer. Source: SL 1966, …

Each subscriber's share of a deficiency for which an assessment is made, but not exceeding in any event his aggregate contingent liability as provided by this chapter, shall be computed by applying to the premium earned on the subscriber's policy or policies during the period to …

All authorized reciprocal insurers shall be governed by those sections of this chapter not expressly made applicable to domestic reciprocals. Source: SL 1966, ch 111 , ch 19, § 3 (1).

In computing the earned premiums for the purposes of § 58-34-39 , the gross premium received by the insurer for the policy shall be used as a base, deducting therefrom solely charges not recurring upon the renewal or extension of the policy. Source: SL 1966, ch 111 , ch 19, § 23 …