Title 58 — INSURANCE

If transacting business on the assessment plan, the insurer will depend for the payment of losses and expenses principally upon assessments levied upon members either before or after such losses or expenses have been incurred. This provision shall not be construed to prevent any …

An insurer shall require a written application from each person desiring insurance. If the insurer is transacting business on the assessment plan, the applicant shall at the time of application give his obligation to the insurer for the payment of losses and expenses as provided …

All forms of application for insurance and of policies proposed to be used by an insurer shall be filed with the director at least thirty days in advance of any such use. The director shall disapprove any such form found by him to be unlawful, illegible, or misleading. An insurer…

A farm mutual insurer is not required to file any of its insurance rates with the director. No such rate shall discriminate between subjects of insurance having substantially the same insuring, exposure, and underwriting characteristics. Source: SL 1966, ch 111 , ch 17, § 28.

A farm mutual insurer may cede reinsurance to any other farm mutual insurer authorized to insure the risks ceded and to other authorized property insurers or reinsurers, and may accept reinsurance from other farm mutual insurers. A farm mutual insurer may also reinsure with a rei…

Any number, not less than five, of farm mutual insurers organized under this chapter may form a corporation for the purpose of reinsuring the risks of the members, on the mutual plan. The insurers proposing to form such reinsurance company shall file with the director a declarati…

The risk limitations set forth in §§ 58-35-35 and 58-35-36 shall not apply to reinsurance companies formed under §

The directors of a farm mutual insurer may invest the insurer's funds or any part of the insurer's funds in any of the following: (1) Bonds or other securities issued by the United States government or by any agency or instrumentality of the United States government, or by any Un…

An insurer may spend earnings of the preceding year for educational purposes. A complete and itemized report of such expenditures shall be filed by the insurer as part of its annual report required under §

Every member who shall sustain loss or damage for which the company is liable, shall immediately notify in writing the secretary, or in his absence the president, of the company specifying the property destroyed or damaged and the time and cause thereof. The secretary, or in his …

One hundred or more individuals residing in this state, each of whom is at least twenty - one years of age, who collectively own farm property as referred to in § 58-35-29 valued at not less than five hundred thousand dollars which they desire to insure, and each of whom owns far…

The directors or officers of an insurer are liable in their individual capacity to the person sustaining an insured loss, if they willfully refuse or neglect to make an assessment and collect the obligations owing to the insurer in accordance with the provisions of this chapter. …

The president and secretary of every insurer, on or before the first day of March of each year, shall prepare, affirm under oath, affix the corporate seal thereto, and file with the director, on forms furnished by the director, an annual statement as of December thirty - first of…

The director may suspend or revoke the certificate of authority of any insurer failing to file its annual statement. Source: SL 1966, ch 111 , ch 17, § 21 (2).

The annual statement of the insurer, as required to be filed with the director under § 58-35-54 , shall be presented at the next annual meeting. Source: SL 1966, ch 111 , ch 17, § 16.

The following chapters and sections of this title apply to farm mutual insurers to the extent not inconsistent with the express provisions of this chapter and the reasonable implications of the express provisions: (1) Chapter 58-1 . Definitions and General Provisions; (2) Chapter…

Nothing in the insurance laws of this state shall be deemed to apply to or govern either directly or indirectly domestic farm mutual insurers except as contained or referred to in this chapter. Source: SL 1966, ch 111 , ch 17, § 1 (3).

The financial reporting standards, procedures and accounting principles for farm mutuals are those set forth in the following National Association of Insurance Commissioners' manuals as amended as of December 31, 1993: Annual Statement Instructions, Property and Casualty; Examine…

Twenty - five or more individuals residing in this state, each of whom is an adult and owns farm or ranch land valued at not less than five thousand dollars located in the county of the principal office of the proposed insurer, or any county contiguous to the county of the princi…

Any two or more farm mutual corporations authorized to transact business pursuant to this chapter may merge into one farm mutual corporation pursuant to a plan of merger as provided in this section and §§ 58-35-61 to 58-35-74 , inclusive. The board of directors of each corporatio…

Following the adoption of the resolution approving the plan of merger required by § 58-35-60 , a meeting of the policyholders of each of the corporations shall be held to vote upon the proposed merger plan. Written notice of the meeting of the policyholders shall be given to all …

At the meeting of the policyholders, the policyholders shall vote on the proposed plan of merger. The plan of merger is approved if the majority of the policyholders present at the meeting vote for the proposed plan of merger. No policyholder may vote by proxy. Source: SL 1995, c…

If the plan of merger is approved, an original and one exact or conforming copy of the articles of merger shall be executed by each corporation by the chairman of the board of directors of the corporation or by its president or by another of its officers. The articles shall be ac…

If two or more companies propose to merge under the provisions of § 58-35-63 and their membership has approved the plan of merger, the plan of merger shall be filed with the director of the Division of Insurance, accompanied by the articles of merger, and a request for the approv…

If the director of the Division of Insurance does not approve any such plan and agreement, the director shall notify the corporations in writing, specifying the reasons. Source: SL 1995, ch 293 , § 6.

The director of the Division of Insurance, after approving the articles of merger, shall submit the proposed articles of merger to the attorney general for examination. If the attorney general finds that the articles of merger comply with the provisions of §§ 58-35-60 to 58-35-74…

Following the delivery of the articles of merger from the director of the Division of Insurance to the secretary of state, the secretary shall, on finding that the articles conform to law, if all required fees have been paid: (1) Endorse the word "filed" on the original and the c…

Upon the issuance of the certificate of merger by the secretary of state, the merger is effective. Source: SL 1995, ch 293 , § 9.

If a merger has been effected pursuant to §§ 58-35-60 to 58-35-74 , inclusive: (1) The several corporations to the plan of merger are a single corporation which is that corporation designated in the plan of merger as the surviving corporation; (2) The separate existence of all co…

The individuals proposing to form a farm mutual insurer as referred to in § 58-35-5 or 58-35-6 shall file with the director: (1) A declaration of their intention to form such a corporation signed by at least one hundred incorporators if a proposed state mutual insurer, or by at l…

If a merger or consolidation has been effected pursuant to §§ 58-35-60 to 58-35-74 , inclusive: (1) The surviving or new corporation thereupon and thereafter possesses all the rights, privileges, immunities, and franchises, of a public as well as of a private nature, of each of t…

If a merger or consolidation has been effected pursuant to this chapter: (1) The surviving or new corporation is thenceforth responsible and liable for all the liabilities and obligations of each of the corporations so merged; and (2) Any claim existing or action or proceeding pe…

If a merger has been effected pursuant to §§ 58-35-60 to 58-35-74 , inclusive, the articles of incorporation of the surviving corporation shall be deemed to be amended to the extent, if any, the changes in its articles of incorporation are stated in the plan of merger. Source: SL…

A farm mutual insurer may dissolve under the applicable procedures prescribed by the statutes of this state applying to corporations for profit and be subject to any additional requirements found in chapter 58-35 . Source: SL 1995, ch 293 , § 14.

The provisions of §§ 47-1A-1101 to 47-1A-1108 , inclusive, regarding the rights of dissenting members and proxy voting do not apply to mergers of farm mutual insurers pursuant to §§ 58-35-60 to 58-35-74 , inclusive. Source: SL 1995, ch 293 , § 15; SL 2005, ch 202 , § 28.

Any farm mutual may divide itself into two or more farm mutuals. A written plan of division shall be prepared by the board of directors or by a committee selected by the board for that purpose. The plan of division shall set forth all the terms of the division and the proposed ef…

The members of the farm mutual shall vote on the proposed plan of division in the manner provided in §§ 58-35-61 and

The articles of division of a farm mutual, if approved, shall set forth the approved plan and such other information as required by § 58-35-63 and shall be filed and approved as provided for by §

Any farm mutual insurer having direct premiums written in this state of more than two million dollars in any calendar year and more than two thousand policyholders or certificate holders of directly written policies nationwide at the end of a calendar year shall have an annual au…

The articles of incorporation required by § 58-35-7 shall state: (1) The name of the corporation, which shall include the words "farm mutual" and if a county mutual insurer the name of the county of its principal place of business; (2) If a county mutual insurer, the name of the …

At the time of filing the proposed articles of incorporation, the incorporators shall submit a fee of twenty - five dollars payable to the division and the applicable filing fee payable to the secretary of state. Source: SL 1966, ch 111 , ch 17, § 8 (3); SL 1993, ch 369 , § 2.

No certificate of authority shall, after June 30, 1966, be issued to any insurer, organized upon the mutual assessment, cooperative, or natural premium plan for the purpose of writing assessment life, or health insurance. It is a Class 2 misdemeanor for any such insurer to transa…

The members of any one church or of any one religious denomination may maintain for the exclusive benefit of their members, an association for the mutual insurance of the property of its members against loss or damage by fire, lightning, storm, or hail, or all of them. Any such c…

All actions of any religious society mutual which was organized pursuant to § 31.2919 of the 1960 Supplement to the South Dakota Code of 1939, are valid despite the repeal of the section. Source: SL 1978, ch 366 , § 2.

Any incorporated society, order, or supreme lodge, without capital stock, including one exempted under the provisions of subdivision 58-37A-38(2), whether incorporated or not, conducted solely for the benefit of its members and their beneficiaries and not for profit, operated on …

A domestic society organized on or after January 1, 1991, shall be formed according to this section. Seven or more citizens of the United States, a majority of whom are citizens of this state, who desire to form a fraternal benefit society, may sign and acknowledge before some of…

A domestic society may amend its laws in accordance with the provisions of this chapter by action of its supreme governing body at any regular or special meeting or, if its laws so provide, by referendum. A referendum may be held in accordance with the provisions of its laws by t…

A society may create, maintain, and operate, or may establish organizations to operate, not for profit institutions to further the purposes permitted by §

A domestic society may, by a reinsurance agreement, cede any individual risk to an insurer, other than another fraternal benefit society, having the power to make such reinsurance and authorized to do business in this state, or if not authorized, one which is approved by the dire…

A domestic society may consolidate or merge with any other society by complying with the provisions of this section and the applicable provisions of §§ 47-1A-1101 to 47-1A-1108 , inclusive, and chapter 58-5 . It shall file with the director: (1) A certified copy of the written co…