Title 58 — INSURANCE

Every person who is directly or indirectly the beneficial owner of more than ten percent of any class of any equity security of a domestic stock insurance company, or who is a director or an officer of such company, shall file in the office of the director of the Division of Insu…

The incorporators shall execute and acknowledge articles of incorporation in triplicate. The articles of incorporation must state: (1) The name of the corporation; if a mutual, the word "mutual" must be a part of the name. An alternative name or names may be specified for use in …

It shall be a Class 2 misdemeanor for any such beneficial owner, director, or officer, directly or indirectly, to sell any equity security of such company if the person selling the security or his principal: (1) Does not own the security sold; or (2) If owning the security, does …

For the purpose of preventing the unfair use of information which may have been obtained by such beneficial owner, director, or officer by reason of his relationship to such company, any profit realized by him from any purchase and sale, or any sale and purchase, of any equity se…

Suit to recover such profit may be instituted at law or in equity in any court of competent jurisdiction by the company, or by the owner of any security of the company in the name and in behalf of the company if the company shall fail or refuse to bring such suit within sixty day…

Sections 58-5-68 to 58-5-78 , inclusive, shall not be construed to cover any transaction where such beneficial owner was not such both at the time of the purchase and sale, or the sale and purchase, of the security involved, or any transaction which the director of the Division o…

The provisions of §§ 58-5-69 to 58-5-73 , inclusive, shall not apply to equity securities of a domestic stock insurance company if: (1) Such securities shall be registered, or shall be required to be registered, pursuant to section 12 of the Securities Exchange Act of 1934, as am…

The provisions of §§ 58-5-71 to 58-5-73 , inclusive, shall not apply to any purchase and sale, or sale and purchase, and the provisions of § 58-5-70 shall not apply to any sale of an equity security of a domestic stock insurance company not then or theretofore held by him in an i…

The provisions of §§ 58-5-69 to 58-5-73 , inclusive, shall not apply to foreign or domestic arbitrage transactions unless contrary to such rules and regulations as the insurance director may adopt in order to carry out the purpose of §§ 58-5-68 to 58-5-78 , inclusive. Source: SL …

The director of the Division of Insurance shall have the power to make such rules and regulations as may be necessary for the execution of the functions vested in him by §§ 58-5-68 to 58-5-76 , inclusive, and may for such purpose classify domestic stock insurance companies, secur…

No provision of §§ 58-5-69 to 58-5-73 , inclusive, imposing any liability shall apply to any act done or omitted in good faith in conformity with any rule or regulation of the insurance director, notwithstanding that such rule or regulation may, after such act or omission, be ame…

The specific purpose of §§ 58-5-80 to 58-5-84 , inclusive, is to facilitate the continued operation of all domestic insurers in the event a national emergency makes it impossible or impracticable for an insurer to conduct its business in strict accord with applicable provisions o…

The incorporators of a proposed domestic insurer shall deliver the original and two executed copies of the articles of incorporation to the director of the Division of Insurance together with the filing fees therefor specified in §

The board of directors of any domestic insurer may at any time adopt emergency bylaws, subject to repeal or change by action of those having power to adopt regular bylaws for the insurer, which shall be operative during such a national emergency and which may, notwithstanding any…

In the event that the board of directors of a domestic insurer has not adopted emergency bylaws, the following provisions shall become effective upon the occurrence of such a national emergency: (1) Three directors shall constitute a quorum for the transaction of business at all …

If there are no surviving directors, but at least three vice - presidents of the insurer survive, the three vice - presidents with the longest term of service shall be the directors and shall possess all of the powers of the previous board of directors and such powers as are gran…

At any time the board of directors of a domestic insurer may, by resolution, provide that in the event of such a national emergency and in the event of the death or incapacity of the president, the secretary or the treasurer of the insurer, such officers, or any of them, shall be…

At any time the board of directors of a domestic insurer may, by resolution, provide that in the event of such national emergency the home office or principal place of business of the insurer shall be at such location as is named or described in the resolution. Such resolution ma…

No domestic insurer shall make or participate in any contract whereby any person is granted or is to enjoy in fact the management of the insurer to the substantial exclusion of its board of directors, or to have the controlling or preemptive right to produce substantially all ins…

The director shall disapprove any such contract if he finds that it: (1) Subjects the insurer to excessive charges; or (2) Is to extend for an unreasonable length of time; or (3) Does not contain fair and adequate standards of performance; or (4) Contains any provision which the …

The contract shall be deemed approved unless disapproved by the director within twenty days after date of filing, subject to such reasonable extension of time as the director may require by notice given within such twenty days. Any disapproval shall be delivered to the insurer in…

Upon such approval, the director shall retain one copy of such articles and return the original and remaining copy thereof to the incorporators, who shall file the original with the secretary of state. Source: SL 1966, ch 111 , ch 16, § 7 (2).

Every domestic insurer shall have and maintain its principal place of business and home office in this state and shall keep therein complete records of its assets, transactions, and affairs in accordance with such methods and systems as are customary or suitable as to the kinds o…

Every domestic insurer shall have and maintain its assets in this state, except as to: (1) Real property and personal property appurtenant thereto lawfully owned by the insurer and located outside this state; and (2) Such property of the insurer as may be customary, necessary, an…

Removal of all or a material part of the records or assets of a domestic insurer from this state except pursuant to a plan of merger or consolidation approved by the director under this title, or for such reasonable purposes and periods of time as may be approved by the director …

Upon any removal or attempted removal of such records or assets or upon retention of such records or assets or material part thereof outside this state, beyond the period therefor specified in the director's consent under which the records were so removed thereat, or upon conceal…

Sections 58-5-93 to 58-5-96 , inclusive, shall not be deemed to prohibit or prevent an insurer from: (1) Establishing and maintaining branch offices or "regional home offices" in other states where necessary or convenient to the transaction of its business and keeping therein the…

Nothing in §§ 58-5-93 to 58-5-96 , inclusive, shall invalidate continued maintenance by any domestic insurer of branch or regional places of business or home offices established outside this state prior to July 1, 1959, or business practices in connection therewith established pr…

A "reciprocating" state, as used in §§ 58-5-100 to 58-5-103 , inclusive, is one under the laws of which limitations similar to those contained in said sections are imposed upon and enforced against insurers domiciled in that state. Source: SL 1966, ch 111 , ch 16, § 28 (4).

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

The public hearing required by § 58-5A-9 shall be held within thirty days after the statement required by § 58-5A-3 is filed, and at least twenty days' notice thereof shall be given by the director to the person filing the statement. Not less than seven days' notice of such publi…

If a proposed acquisition of control requires the approval of more than one director or commissioner, the public hearing referred to in § 58-5A-10 may be held on a consolidated basis upon request of the person filing the statement referred to in § 58-5A-2 , 58-5A-3 , or

If an insurer subject to this chapter is deemed by the director to be in a hazardous financial condition, as defined by chapters 58-4 and 58-29B , or a condition that would be grounds for supervision, conservation, or a delinquency proceeding, then the director may require the in…

All records and data of the insurer held by an affiliate are and remain the property of the insurer, are subject to control of the insurer, must be identifiable, and must be segregated or readily capable of segregation, at no additional cost to the insurer, from all other persons…

Premiums and other funds belonging to the insurer that are collected by or held by an affiliate are the exclusive property of the insurer and are subject to the control of the insurer. Any right of offset in the event an insurer is placed into receivership is subject to chapter 5…

Any affiliate that is party to an agreement or contract with a domestic insurer that is referenced in subdivision 58-5A-56 (4) is subject to the jurisdiction of any supervision, seizure, conservatorship or receivership proceedings against the insurer and to the authority of any s…

At the public hearing required by § 58-5A-9 , the person filing the statement, the insurer, any person to whom notice of hearing was sent, and any other person whose interests may be affected thereby shall have the right to present evidence, examine and cross - examine witnesses,…

If the director appoints a hearing officer to preside at the hearing pursuant to § 58-5A-9 , the cost of employing the hearing officer shall be borne entirely by the entity making the filing of the information statement required by §

The director shall make a determination within thirty days after the conclusion of the public hearing required by §

All statements, amendments, or other material filed pursuant to §§ 58-5A-3 to 58-5A-7 , inclusive, and all notices of public hearings held pursuant to §§ 58-5A-9 to 58-5A-12 , inclusive, shall be mailed by the insurer to its shareholders within five business days after the insure…

58-5A-16 Acquisitions exempt from information and approval requirements by order of director. 58-5A-17

The provisions of §§ 58-5A-3 to 58-5A-13 , inclusive, shall not apply to any transaction which is subject to the provisions of chapter 58-5 and dealing with the merger or consolidation of two or more insurers. Source: SL 1972, ch 267 , § 11 (2).

The provisions of §§ 58-5A-3 to 58-5A-13 , inclusive, shall not apply to any offer, request, invitation, agreement, or acquisition which the director by order shall exempt therefrom as not having been made or entered into for the purpose and not having the effect of changing or i…

58-5A-19 Jurisdiction of court in Hughes County--Director as attorney for service of process. 58-5A-20 Registration of subsidiary insurer--Time for registration--Statement required of foreign insurer. 58-5A-21 Form and contents of registration statement. 58-5A-22 Initial and annu…

No person may effectuate or attempt to effectuate an acquisition of control of, divestiture of, or merger with, a domestic insurer unless it has been approved by the director. A violation of this section is a Class 2 misdemeanor. Source: SL 1972, ch 267 , §§ 12 (2), 36; SDCL Supp…

The court in Hughes County has jurisdiction over every person not resident, domiciled or authorized to do business in this state that is required to file a statement with the director under §§ 58-5A-3 to 58-5A-7 , inclusive, and over all actions involving such person arising out …

For purposes of §§ 58-5A-3 to 58-5A-18 , inclusive, a domestic insurer shall include any other person controlling a domestic insurer unless such other person is either directly or through its affiliates primarily engaged in business other than the business of insurance. Source: S…

Every insurer which is authorized to do business in this state and which is a member of an insurance holding company system shall register with the director. However, this requirement does not apply to a foreign insurer domiciled in a jurisdiction which has adopted by statute or …

Each insurer subject to registration pursuant to § 58-5A-20 shall file a registration statement with the director on a form and in the format provided by the division, which contains current information about: (1) The capital structure, general financial condition, ownership, and…

The initial fee for registration required under the provisions of this chapter shall be fifty dollars and an additional fee of fifty dollars shall be payable on July first of each calendar year thereafter so long as such registration continues. Source: SL 1972, ch 267 , § 16.