Title 58 — INSURANCE

If an agent or broker establishes loss reserves, the reinsurer shall annually obtain the opinion of an actuary attesting to the adequacy of loss reserves established for losses incurred and outstanding on business produced by the agent. This opinion shall be in addition to any ot…

Any person doing business as an agent or broker under §§ 58-14-24 to 58-14-42 , inclusive, is subject to examination by the director. The director shall have access to all books, bank accounts and records of the person in a form usable to the director. Any person contracting with…

Any agent or broker, insurer or reinsurer found by the director, after a hearing conducted in accordance with chapter 1-26 , to be in violation of any provision of §§ 58-14-24 to 58-14-42 , inclusive, shall: (1) For each separate violation, pay a penalty in an amount not exceedin…

Nothing contained in §§ 58-14-24 to 58-14-42 , inclusive, limits or restricts the rights of policyholders, claimants, creditors, or other third parties or confer any rights to those persons. Source: SL 1992, ch 345 , § 16.

No credit may be allowed, as an asset or as a deduction from liability, to any ceding insurer for reinsurance unless the reinsurance contract provides, in substance, that in the event of the insolvency of the ceding insurer, the reinsurance is payable under a contract reinsured b…

Notwithstanding § 58-14-4 , if a life and health insurance guaranty association has made the election to succeed to the rights and obligations of the insolvent insurer under the contract of reinsurance, the reinsurer's liability to pay covered reinsured claims continues under the…

The reinsurance agreement may provide that the domiciliary liquidator of an insolvent ceding insurer shall give written notice to the reinsurer of the pendency of a claim against such ceding insurer on the contract reinsured within a reasonable time after such claim is filed in t…

The director may adopt rules pursuant to chapter 1-26 for the implementation and administration of the provisions of §§ 58-14-24 to 58-14-42 , inclusive. Source: SL 1992, ch 345 , § 17.

Compliance with and application of §§ 58-14-24 to

For the purposes of §§ 58-14-24 to 58-14-42 , inclusive, a qualified United States financial institution is an institution that: (1) Is organized or licensed under the laws of the United States or any state; (2) Is regulated, supervised, and examined by United States federal or s…

No person may act as a broker in this state if the broker maintains an office either directly or as a member or employee of a firm or association, or an officer, director, or employee of a corporation: (1) In this state, unless the broker is a licensed producer in this state; or …

No person, firm, association, or corporation may act as an agent: (1) For a reinsurer domiciled in this state, unless the agent is a licensed producer in this state; (2) In this state, if the agent maintains an office either directly or as a member or employee of a firm or associ…

A ceding insurer shall file copies of all reinsurance contracts with the director and shall promptly inform the director in writing of the cancellation or any other change of any of its reinsurance treaties or arrangements. Source: SL 1966, ch 111 , ch 4, § 10 (4); SL 1992, ch 34…

The original insured has no interest in a contract of reinsurance. Source: SL 1966, ch 111 , ch 32, § 5.

Credit for reinsurance shall be allowed a domestic ceding insurer as either an asset or a reduction from liability on account of reinsurance ceded only when the reinsurer meets any one of the requirements of § 58-14-8 , 58-14-9 , 58-14-10 , 58-14-11 , 58-14-14 , or

Credit shall be allowed if the reinsurance is ceded to an assuming insurer which is licensed to transact insurance or reinsurance in this state. Source: SL 1992, ch 344 , § 2.

Credit shall be allowed if the reinsurance is ceded to an assuming insurer that is accredited as a reinsurer in this state. For a reinsurer to be accredited, the reinsurer shall: (1) File with the director evidence of its submission to this state's jurisdiction; (2) Submit to thi…

This chapter applies only to contracts of life insurance and annuities, other than reinsurance, group life insurance, and group annuities. Source: SL 1966, ch 111 , ch 23, § 1.

There shall be a provision that the policy, exclusive of provisions relating to health benefits or to additional benefits in the event of death by accident or accidental means, is incontestable, except for nonpayment of premiums or fraud on the part of the applicant or insured, a…

Upon receipt of information establishing knowledge of death, the insurer shall check its records to determine whether the insurer has any other policies, annuity contracts, or retained asset accounts for that insured. Upon receipt of information establishing knowledge of death of…

If the insurer has not been contacted by a beneficiary within one hundred twenty days of an insurer's receipt of information establishing the insurer's knowledge of death, the insurer shall commence a beneficiary search. The beneficiary search shall be completed within one year f…

An insurer may disclose the minimum necessary personal information about an insured or beneficiary to a person to whom the insurer reasonably believes may be able to assist the insurer to locate the beneficiary or a person otherwise entitled to payment of the proceeds. Source: SL…

An insurer or its service provider may not charge any beneficiary or other authorized representative for any fees or costs associated with a DMF search or verification of a DMF match conducted pursuant to §§ 58-15-94 to 58-15-108 , inclusive. Source: SL 2018, ch 280 , § 10.

If the insurer locates a beneficiary and has not received a claim from the beneficiary within thirty days after the date of location, the insurer shall provide appropriate claim forms or instructions to the beneficiary to make a claim. Source: SL 2018, ch 280 , § 11.

At no later than the policy delivery or the establishment of an account, and upon any change of insured or beneficiary, an insurer shall request information sufficient to ensure that all benefits or proceeds are distributed to the appropriate persons upon the death of the insured…

The insurer shall retain documentation of compliance with §§ 58-15-94 to 58-15-108 , inclusive, for five years. Source: SL 2018, ch 280 , § 13.

The director may promulgate rules, pursuant to chapter 1-26 , to provide definition of terms, notification requirements, exemption criteria, beneficiary searches, and forms. Source: SL 2018, ch 280 , § 14.

58-15-96 Comparison of policies, annuity contracts, and retained asset accounts against DMF. 58-15-97 Semi-annual comparison of lapsed policies, annuity contracts, and retained asset accounts against updated DMF. 58-15-98 Procedures for DMF comparisons--Validation of match. 58-15…

A clause in any policy of life insurance providing that such policy shall be incontestable after a specified period shall preclude only a contest of the validity of the policy, and shall not preclude the assertion at any time of defenses based upon provisions in the policy which …

There shall be a provision relative to the payment of premiums. Source: SL 1966, ch 111 , ch 23, § 13.

There shall be a provision that a grace period of thirty days, or of four weeks in the case of industrial life insurance policies the premiums for which are payable more frequently than monthly, shall be allowed within which the payment of any premium after the first may be made,…

The policy, at the insurer's option, may provide for automatic premium loan and may provide that such provisions do not become operative unless so elected by the party entitled to elect. Source: SL 1966, ch 111 , ch 23, § 9.

There shall be a provision that after three full years' premiums have been paid and after the policy has a cash surrender value and while no premium is in default beyond the grace period for payment, the insurer shall advance, on proper assignment or pledge of the policy and on t…

The loan value of a policy shall be determined in accordance with § 58-15-16 , but no policy may terminate in a policy year as the sole result of change in the interest rate during that policy year. The life insurer shall maintain coverage during that policy year until the time a…

The substance of the pertinent provisions of §§ 58-15-15.6 and 58-15-15.7 regarding the adjustable maximum interest rate shall be set forth in the policies to which they apply. Source: SL 1982, ch 358 , § 8.

The provisions of §§ 58-15-15.4 to 58-15-15.12 , inclusive, do not apply to any insurance contract issued before July 1, 1982, unless the policyholder agrees in writing to the applicability of the provisions. No other provision of the law applies to policy loan interest rates unl…

A private placement policy is a variable annuity contract or a variable life insurance policy that is: (1) Issued exclusively to a person who is an accredited investor or a qualified purchaser, as such terms are defined in the federal Securities Act of 1933 or the federal Investm…

Premium is the consideration for insurance by whatever name called. Any assessment, or any membership, policy, survey, inspection, service, or similar fee or other charge in consideration for an insurance contract is deemed part of the premium. For a private placement policy, wit…

58-15-15.5 Published monthly average defined. 58-15-15.6 Insurance policy loan--Permitted interest rates. 58-15-15.7 Insurance policy loan--Allowable rate under adjustable maximum interest rate. 58-15-15.8 Insurance policy loan--Determination of interest under adjustable maximum …

For purposes of §§ 58-15-15.5 to 58-15-15.12 , inclusive: (1) The rate of interest on policy loans permitted under §§ 58-15-15.5 to 58-15-15.12 , inclusive, includes the interest rate charged on reinstatement of policy loans for the period during and after any lapse of a policy; …

For purposes of §§ 58-15-15.4 to 58-15-15.12 , inclusive, the "published monthly average" means Moody's corporate bond yield average--monthly average corporates, as published by Moody's investors service, incorporated, by yearly order of the director, or in the event that Moody's…

Any policy issued on or after July 1, 1982, shall provide for policy loan interest rates through a provision permitting a maximum interest rate of not more than eight percent per annum or a provision permitting an adjustable maximum interest rate established from time to time by …

The rate of interest charged on a policy loan made under an adjustable maximum interest rate may not exceed the higher of the "published monthly average" for the calendar month ending two months before the date on which the rate is determined or the rate used to compute the cash …

The maximum rate of interest for each policy shall be determined at regular intervals at least once every twelve months, but not more frequently than once in any three - month period. At the intervals specified in the policy, the rate being charged may be increased whenever such …

The life insurer shall notify the policyholder at the time a cash loan is made of the initial rate of interest on the loan and shall notify the policyholder with respect to premium loans of the initial rate of interest on the loan as soon as it is reasonably practical to do so af…

In the case of those policies issued prior to the operative date specified in § 58-15-42 , the loan value referred to in § 58-15-15 is the reserve at the end of the current policy year on the policy and on any dividend additions thereto, computed according to a mortality table, i…

In the case of policies issued on or after the operative date specified in § 58-15-42 , the loan value referred to in § 58-15-15 shall be the cash surrender value at the end of the current policy year as required by §

The loan value of the policy shall be at least equal to the amount required by § 58-15-16 or 58-15-17 , provided that the insurer may deduct, either from such loan value or from the proceeds of the loan, any existing indebtedness not already deducted in determining such amount in…

The policy may also provide that if interest on any indebtedness is not paid when due it shall then be added to the existing indebtedness and shall bear interest at the same rate, and that if and when the total indebtedness on the policy, including interest due or accrued, equals…

For the purpose of this title "industrial life insurance" is that form of life insurance written under policies of face amount of one thousand dollars or less bearing the words "industrial policy" imprinted on the face thereof as part of the descriptive matter, and under which pr…