Title 58, INSURANCE

No action shall lie against any subscriber upon any obligation claimed against the insurer until a final judgment has been obtained against the insurer and remains unsatisfied for thirty days. Source: SL 1966, ch 111 , ch 19, § 22 (1).

Any such judgment shall be binding upon each subscriber only in such proportion as his interest may appear and in an amount not exceeding his contingent liability, if any. Source: SL 1966, ch 111 , ch 19, § 22 (2).

If a reciprocal insurer has a surplus of assets over all liabilities at least equal to the minimum capital stock required of a domestic stock insurer authorized to transact like kinds of insurance, upon application of the attorney and as approved by the subscribers' advisory comm…

The director shall not authorize a domestic reciprocal insurer so to extinguish the contingent liability of any of its subscribers or in any of its policies to be issued, unless it qualifies to and does extinguish such liability of all its subscribers and in all such policies for…

Upon impairment of the surplus required by § 58-34-46 , the director shall forthwith revoke the certificate of authority to extinguish the contingent liability of subscribers. Such revocation shall not render subject to contingent liability any policy then in force and for the re…

A reciprocal insurer may from time to time return to its subscribers any unused premiums, savings, or credits accruing to their accounts. Any such distribution shall not unfairly discriminate between classes of risks, or policies, or between subscribers, but this shall not preven…

Authorized reciprocal insurers existing on July 1, 1966, shall after said date comply with the provisions of this chapter, and shall make such amendments to their subscribers' agreements, power of attorney, policies, and other documents and accounts and perform such other acts as…

Upon the liquidation of a domestic reciprocal insurer, its assets remaining after discharge of its indebtedness and policy obligations, the return of any contributions of the attorney or other persons to its surplus made as provided in § 58-34-34 , and the return of any unused pr…

The annual statement of a reciprocal insurer shall be made and filed by its attorney. Source: SL 1966, ch 111 , ch 19, § 17 (1).

The annual statement of a reciprocal insurer shall be supplemented by such information as may be required by the director relative to the affairs and transactions of the attorney in so far as they relate to the reciprocal insurer. Source: SL 1966, ch 111 , ch 19, § 17 (2).

In determining the financial condition of a reciprocal insurer the director shall apply the rules set forth in §§ 58-34-54 to 58-34-60 , inclusive. Source: SL 1966, ch 111 , ch 19, § 18.

All premium deposits delinquent less than ninety days shall be allowed as assets. Source: SL 1966, ch 111 , ch 19, § 18 (4).

The surplus deposits of subscribers shall be allowed as assets, except that any premium deposits delinquent for ninety days shall first be charged against such surplus deposit. Source: SL 1966, ch 111 , ch 19, § 18 (2).

An assessment levied upon subscribers, and not collected, shall not be allowed as an asset. Source: SL 1966, ch 111 , ch 19, § 18 (5).

The contingent liability of subscribers shall not be allowed as an asset. Source: SL 1966, ch 111 , ch 19, § 18 (6).

The director shall charge as liabilities the same reserves as are required of incorporated insurers issuing nonassessable policies on a reserve basis. Source: SL 1966, ch 111 , ch 19, § 18 (1).

The computation of reserves shall be based upon premium deposits other than membership fees and without any deduction for expenses and the compensation of the attorney. Source: SL 1966, ch 111 , ch 19, § 18 (7).

Twenty - five or more persons domiciled in this state may organize a domestic reciprocal insurer and make application to the director for a certificate of authority. Source: SL 1966, ch 111 , ch 19, § 7 (1).

The surplus deposits of subscribers shall not be charged as a liability. Source: SL 1966, ch 111 , ch 19, § 18 (3).

A domestic reciprocal insurer shall not merge with another reciprocal insurer or be converted to a stock or mutual insurer. Source: SL 1966, ch 111 , ch 19, § 29.

If the assets of a reciprocal insurer are at any time insufficient to discharge its liabilities, other than any liability on account of funds contributed by the attorney or others, and to maintain the required surplus, its attorney shall forthwith make up the deficiency or levy a…

If the attorney fails to make up the deficiency described in § 58-34-62 or to make the assessment within thirty days after the director orders him to do so, or if the deficiency is not fully made up within sixty days after the date the assessment was made, the insurer shall be de…

If liquidation of a reciprocal insurer is ordered, an assessment shall be levied upon the subscribers for such an amount, subject to limits as provided by this chapter, as the director determines to be necessary to discharge all liabilities of the insurer, exclusive of any funds …

The proposed attorney shall execute and file with the director an application for a certificate of authority setting forth: (1) The name of the insurer; (2) The location of the insurer's principal office, which shall be the same as that of the attorney and shall be maintained wit…

Concurrently with the filing of the application provided for in § 58-34-7 , the attorney of a domestic reciprocal insurer shall file with the director a bond in favor of the State of South Dakota for the benefit of all persons damaged as a result of a breach of the conditions of …

The bond required by § 58-34-8 shall be in the penal sum of twenty - five thousand dollars, conditioned that the attorney will faithfully account for all moneys and other property of the insurer coming into his hands, and that he will not withdraw or appropriate to his own use fr…

This chapter applies to: (1) All domestic mutual hail, fire, and other casualty insurers of farm property and stock and rural buildings formed before July 1, 1966, and immediately prior to said date lawfully transacting business under sections 31.2701 through 31.2812, 31.2918, 31…

After the director approves the articles of incorporation, he shall submit the proposed articles of incorporation to the attorney general for examination. If the attorney general finds that the articles comply with the provisions of this chapter, and the Constitution and laws of …

If the director deems the name of the proposed corporation to be so similar to one already appropriated by another company as to be likely to mislead the public, he shall reject the name applied for and shall notify the incorporators thereof. Source: SL 1966, ch 111 , ch 17, § 9 …

The corporation shall not transact business as an insurer until it has received a certificate of authority as provided in this chapter. Violation of this section is a Class 2 misdemeanor. Source: SL 1966, ch 111 , ch 17, § 9 (4); SL 1978, ch 359 , § 2.

A farm mutual insurer may, by a two - thirds vote of those present in person or, if authorized by the bylaws, by proxy, at any annual meeting, or at any special meeting of members called for that purpose, amend its articles of incorporation to extend its corporate existence or in…

When applying for an original certificate of authority, a state mutual insurer must be otherwise qualified therefor under this title, and it must have received acceptable applications from one hundred persons, each for substantial insurance, aggregating at least five hundred thou…

When applying for an original certificate of authority, a county mutual insurer must be otherwise qualified therefor under this title, and it must have received acceptable applications from twenty - five persons for substantial insurance, aggregating at least one hundred thousand…

When applying for an original certificate of authority to insure growing crops against loss by hail, the insurer must be otherwise qualified therefor under this title, and it must have received applications for such insurance from not less than one hundred persons owning in the a…

Upon application, the director shall issue such a certificate of authority to every insurer qualified therefor under this chapter. The certificate of authority shall continue, unless revoked or otherwise terminated. Source: SL 1966, ch 111 , ch 17, § 12 (1); SL 2004, ch 297 , § 2…

The insurer shall pay to the director the fees specified in § 58-2-29 for each issuance and renewal of its certificate of authority. Source: SL 1966, ch 111 , ch 17, § 12 (2).

All insurers described in § 58-35-1 may be referred to as "farm mutual insurers." Source: SL 1966, ch 111 , ch 17, § 1 (2).

A certificate of authority shall be subject to suspension or revocation by the director for violation of or noncompliance with any law of this state. Source: SL 1966, ch 111 , ch 17, § 12 (3).

The initial board of directors of a farm mutual insurer shall adopt such bylaws as may be deemed necessary for the management of its affairs. The bylaws shall be subject to the approval of the insurer's members at their next succeeding meeting by a two - thirds vote of those pres…

The bylaws of a farm mutual insurer shall provide: (1) The extent of liability of each member for payment of the expenses and losses of the insurer; (2) The time when obligations of members for losses and expenses become due; (3) The terms of office of the directors; at least par…

The insurer shall promptly file with the director two certified copies of its bylaws and all amendments thereto. The director at the time of filing or at any time thereafter may disapprove any bylaw provision deemed by him to be unlawful, unreasonable, inadequate, unfair, or detr…

The total membership of the insurer shall at all times be not less than the number of persons required by § 58-35-5 or 58-35-6 to incorporate such an insurer. Source: SL 1966, ch 111 , ch 17, § 15.

Directors of a farm mutual insurer shall be elected by its members by ballot for terms not to exceed three years, and shall hold office until their respective successors are elected and qualified. Source: SL 1966, ch 111 , ch 17, § 18 (1).

No individual may serve as a director of a farm mutual insurer unless the individual is a member of the insurer or a member of one or more of the insurer’s affiliates. For the purposes of this section, “affiliate” means any entity that directly, or indirectly through one or more …

The board of directors of an insurer shall elect from their number a president and vice - president. The board shall also elect a secretary and treasurer or a secretary - treasurer of the insurer. Officers shall hold their offices for one year, and until their successors are elec…

The treasurer and secretary of an insurer shall each give bond to the insurer for the faithful performance of his duties, in such amount as is designated by the board of directors. Any such bond shall be issued by an authorized corporate surety. Source: SL 1966, ch 111 , ch 17, §…