Title 58 — INSURANCE

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…

Source: SL 1966, ch 111 , ch 19, § 8 (4).

Source: SL 1966, ch 111 , ch 19, § 15 (1).

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 …

58-35-14 Amendment of articles of incorporation. 58-35-15 Qualifications of state mutual insurer for certificate of authority. 58-35-16 Qualifications of county mutual insurer for certificate of authority. 58-35-17 Certificate of authority to insure against hail--Required qualifi…

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 shall serve as a director of a farm mutual insurer unless a member of the insurer. Source: SL 1966, ch 111 , ch 17, § 18 (2).

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, §…

A farm mutual insurer shall only insure the following described property against loss or damage by fire or other casualty: (1) Farm dwellings and buildings, including the usual contents therein, livestock, farm machinery, growing crops, and other forms of farm property; (2) Dwell…

A farm mutual insurer may, in connection with policies covering property insured under § 58-35-29 , afford coverage for additional expenses or loss of use resulting from fire or other casualty rendering the insured property unusable, and coverage for an insured's liability, assum…

An insurer authorized to insure property throughout the state, but including personal property temporarily removed therefrom, is a "state mutual insurer." Source: SL 1966, ch 111 , ch 17, § 2 (1).

No insurer may insure any property not owned by a member or by his spouse except for the following: (1) Property described in subdivision 58-35-29(3); and (2) Personal property in the care, custody, and control of a member or his spouse. Source: SL 1966, ch 111 , ch 17, § 3 (2); …

58-35-32.1 Liability insurance issued by state insurers--Medical and disability benefits--Snowmobiles. 58-35-33 Withdrawal from membership--Surrender of policy for cancellation--Payment of obligations. 58-35-34

No contract of insurance covering any church, school, or community building referred to in § 58-35-29 shall be invalid because any director or officer of the insurer was or is a trustee, director, agent, custodian, or manager or in any way in control, supervision, or management o…

A state mutual insurer may issue policies of insurance insuring against legal liability for the death, injury, or disability of any human being, or for damage to property, excluding liability, loss, or expense resulting from or incidental to the ownership, maintenance, or use of …

Any member of an insurer may withdraw therefrom by surrendering his policy to the insurer for cancellation and paying all obligations then owing by him to the insurer. Source: SL 1966, ch 111 , ch 17, § 17 (1). 58-35-34. Repealed by SL 2004, ch 297 , § 6

58-35-36 Single risk defined. 58-35-37 Cash premium or assessment plan for transacting business. 58-35-38 Cash premium plan--Collection of premiums. 58-35-39 Cash premium plan--Special assessment in case of inadequacy. 58-35-40 Assessment plan insurance--Levy of assessments befor…

The maximum amount of insurance which an insurer shall retain on a single risk, after deduction of applicable reinsurance, shall not exceed ten percent of the admitted assets of the insurer or ten thousand dollars, whichever is the larger amount. Source: SL 1966, ch 111 , ch 17, …

For the purposes of § 58-35-35 , a "single risk" as to insurance against fire and hazards other than windstorm, earthquake, or other catastrophic perils, includes all properties insured by the same insurer which are reasonably susceptible to loss or damage from the same fire or t…

An insurer may transact business on either a cash premium plan or on an assessment plan as provided for in its articles of incorporation or bylaws. Source: SL 1966, ch 111 , ch 17, § 6 (1).

If transacting business on the cash premium plan, the insurer shall collect from each member before or at the effective date of the member's insurance the premium in such amount as the insurer deems will be adequate to cover losses and expenses incurred during the term of such in…

An insurer transacting business on the cash premium plan shall provide in its bylaws and policies for special assessment of its members if the cash premium charged is found to be inadequate to pay losses and expenses currently incurred. The bylaws shall provide that the amount wh…

An insurer authorized to insure only property located in the county of its principal office and in those counties contiguous to the county of its principal office in this state, but including personal property temporarily removed therefrom, is a "county mutual insurer." However, …