58-33-124.Additional practices using personnel, services, or programs of the armed forces or depository institutions considered false, misleading, deceptive, or unfair.
The following acts or practices by an insurer or insurance producer constitute corrupt practices or improper influences or inducements and are declared to be false, misleading, deceptive, or unfair:
(1)Submitting, processing, or assisting in the submission or processing of any allotment form or similar device used by the armed forces of the United States to direct a service member's pay to a third party for the purchase of life insurance. The foregoing includes using or assisting in using a service member's MyPay account or other similar internet or electronic medium for such purposes. This subdivision does not prohibit assisting a service member by providing insurer or premium information necessary to complete any allotment form;
(2)Knowingly receiving funds from a service member for the payment of premium from a depository institution with which the service member has no formal banking relationship. For purposes of this section, a formal banking relationship is established when the depository institution:
(a)Provides the service member a deposit agreement and periodic statements and makes the disclosures required by the Truth in Savings Act, 12 U.S. C. §4301 et seq., as of January 1, 2008, and the regulations promulgated thereunder as of January 1, 2008; and
(b)Permits the service member to make deposits and withdrawals unrelated to the payment or processing of insurance premiums;
(3)Employing any device or method or entering into any agreement whereby funds received from a service member by allotment for the payment of insurance premiums are identified on the service member's leave and earnings statement or equivalent or successor form as, savings, or, checking, and where the service member has no formal banking relationship;
(4)Entering into any agreement with a depository institution for the purpose of receiving funds from a service member whereby the depository institution, with or without compensation, agrees to accept direct deposits from a service member with whom it has no formal banking relationship;
(5)Using Department of Defense personnel, directly or indirectly, as a representative or agent in any official or unofficial capacity with or without compensation with respect to the solicitation or sale of life insurance to service members who are junior in rank or grade, or to the family members of such personnel;
(6)Offering or giving anything of value, directly or indirectly, to Department of Defense personnel to procure their assistance in encouraging, assisting or facilitating the solicitation or sale of life insurance to another service member;
(7)Knowingly offering or giving anything of value to a service member with a pay grade of E-4 or below for his or her attendance to any event where an application for life insurance is solicited; or
(8)Advising a service member with a pay grade of E-4 or below to change his or her income tax withholding or state of legal residence for the sole purpose of increasing disposable income to purchase life insurance.
Source: SL 2008, ch 272, §8.
Structure South Dakota Codified Laws
Chapter 33 - Unfair Trade Practices
Section 58-33-1 - Purposes of chapter.
Section 58-33-2 - Unfair method or deceptive act as misdemeanor.
Section 58-33-3 - Acts constituting unfair methods of competition and unfair or deceptive practices.
Section 58-33-4 - Use of misleading name as misdemeanor.
Section 58-33-5 - Misrepresentation or false advertising of policies as misdemeanor.
Section 58-33-6 - False information or advertising as misdemeanor.
Section 58-33-7 - Defamation as misdemeanor.
Section 58-33-8 - Twisting as misdemeanor.
Section 58-33-9 - False entry with intent to deceive--Omission of true entry--Misdemeanor.
Section 58-33-10 - False financial statement as misdemeanor.
Section 58-33-11 - Stock operations and advisory board contracts as inducement--Misdemeanor.
Section 58-33-12 - Unfair discrimination as misdemeanor--Life insurance and annuities.
Section 58-33-13 - Unfair discrimination as misdemeanor--Health insurance.
Section 58-33-13.1 - Sex or marital status discrimination prohibited--Exceptions.
Section 58-33-13.2 - Definition of sex or marital status discrimination terms.
Section 58-33-13.3 - Domestic violence victim discrimination prohibited.
Section 58-33-14 - Rebate as misdemeanor--Life, disability and annuity contracts.
Section 58-33-16 - Credit life insurance permitted as inducement for purchases.
Section 58-33-20 - Reduction of premium rate permitted for large policies.
Section 58-33-22 - Increase in health insurance benefits by maintaining policy in force permitted.
Section 58-33-24 - Rebate, discount, or special advantage as misdemeanor--Exception.
Section 58-33-25 - Acceptance by insured of rebate, discount or special advantage as misdemeanor.
Section 58-33-26 - Unfair discrimination as to terms and conditions of insurance as misdemeanor.
Section 58-33-30 - Provisions not applicable to life or health insurance or annuities.
Section 58-33-31 - Favored insurance producer or insurer as misdemeanor.
Section 58-33-32 - Boycott, coercion, or intimidation as misdemeanor.
Section 58-33-33 - Interlocking ownership or management permitted.
Section 58-33-34 - Directorship in two or more insurers permitted.
Section 58-33-35 - Collection of premium for insurance not provided as misdemeanor.
Section 58-33-36 - Illegal dealing in premiums and improper charges as misdemeanors.
Section 58-33-38 - Undefined unfair or deceptive practice--Findings by director.
Section 58-33-40 - Cease and desist order of director.
Section 58-33-41 - Appeal from director's order.
Section 58-33-42 - Finality of cease and desist order--Appeal by intervener.
Section 58-33-43 - Affirmance of order of director--Order of court for obedience.
Section 58-33-44 - Liabilities and penalties not relieved by director's or court order.
Section 58-33-45 - Violation of desist order as misdemeanor.
Section 58-33-46 - Imposition of penalty not prevented by cease and desist order.
Section 58-33-48 - Definition of terms.
Section 58-33-50 - Action by director on failure of insurer to cease false advertising after notice.
Section 58-33-51 - Acts constituting appointment of director as process agent.
Section 58-33-52 - Service of process on director, copies delivered--Mailing of copy to defendant.
Section 58-33-53 - Service of process on agent of insurer.
Section 58-33-54 - Additional method of service of process and notice.
Section 58-33-55 - Waiting period before entry of default order or judgment.
Section 58-33-56 - Liberal construction of process provisions.
Section 58-33-57 - Severability of provisions.
Section 58-33-59 - Cancellation of insurance--Definitions.
Section 58-33-60 - Notice of cancellation required--Time--Contents.
Section 58-33-61 - Grounds for cancellation.
Section 58-33-62 - Complaint of violation to division--Determination of reasonableness--Hearing.
Section 58-33-63 - Reinstatement and money penalty for violation.
Section 58-33-64 - Immunity from liability for statements concerning cancellation.
Section 58-33-65 - Automobile policies exempt.
Section 58-33-65.1 - Private remedy or right of action prohibited.
Section 58-33-66 - Unfair or deceptive insurance practices.
Section 58-33-67 - Unfair or deceptive practices in dealing with insured.
Section 58-33-69 - No private right of action.
Section 58-33-70 - Definitions--Aftermarket crash parts.
Section 58-33-74 - Gifts for advertising or promotional programs.
Section 58-33-75 - Definitions.
Section 58-33-76 - Notification of suspected fraud.
Section 58-33-77 - Accessibility of information relevant to suspected fraud--Types of information.
Section 58-33-78 - Time limit on information to and from authorized agency.
Section 58-33-79 - Liability of supplier of information.
Section 58-33-80 - Liability of those who supply information or testify as to fraud.
Section 58-33-81 - Notification to policyholder of request for information.
Section 58-33-87 - Payments of health insurance benefits for medical assistance recipients.
Section 58-33-88 - Health insurance for dependent child through noncustodial parent's insurer.
Section 58-33-89 - Reporting regulatory activities and complaint handling.
Section 58-33-90 - Sale of securities by unregistered insurance producer prohibited.
Section 58-33-91 - Sale of unregistered securities by insurance producer prohibited.
Section 58-33-92 - Sale of unregistered business opportunity by insurance producer prohibited.
Section 58-33-93 - Definitions relating to multiple employer welfare arrangements.
Section 58-33-94 - Acts constituting transaction of insurance business in or from state.
Section 58-33-95 - Transacting of insurance defined.
Section 58-33-96 - Unauthorized health insurance defined.
Section 58-33-97 - Exclusions from unauthorized health insurance.
Section 58-33-107 - Written disclosures required before issuing contract for stop loss policy.
Section 58-33-110 - Circumstances mitigating violation of §§ 58-33-102 to 58-33-108.
Section 58-33-112 - Documented supervision procedures and controls.
Section 58-33-113 - Continuing education--Summary of supervision procedures and controls.
Section 58-33-115 - Inapplicability to joint powers agreements.
Section 58-33-117 - Definition of terms.
Section 58-33-118 - Solicitation or sale of life insurance or annuity to active duty service member.
Section 58-33-119 - Certain solicitations and sales excluded.
Section 58-33-121 - Certain advertisements and marketing exempt--Face-to-face meetings not exempt.
Section 58-33-128 - Certain disclosure practices considered false, misleading, deceptive, or unfair.
Section 58-33-130 - Promulgation of rules.
Section 58-33-131 - Employer insurance assistance program defined.
Section 58-33-132 - Construction with statutes regarding rebates, discounts, and special advantages.
Section 58-33-134 - Promulgation of rules for employer insurance assistance programs.
Section 58-33-135 - Unfair or deceptive practices by pharmacy benefits manager.