South Dakota Codified Laws
Chapter 05 - Organization And General Powers Of Insurers
Section 58-5-45 - Management of domestic mutual insurer.

South Dakota Codified Laws

Title 58 - Insurance

Chapter 05 - Organization And General Powers Of Insurers

Section 58-5-1 - Scope of chapter.

Section 58-5-2 - "Stock" insurer defined.

Section 58-5-3 - "Mutual" insurer defined.

Section 58-5-4 - Applicability of corporation laws.

Section 58-5-5 - Incorporation of stock and mutual insurers.

Section 58-5-6 - Incorporators--Number and qualifications.

Section 58-5-6.1 - Domestication of foreign company--Requirements and procedure.

Section 58-5-7 - Articles of incorporation--Execution and acknowledgment--Contents.

Section 58-5-8 - Articles of incorporation delivered to director with filing fees--Examination and approval by attorney general, return to director.

Section 58-5-9 - Distribution of copies of approved articles.

Section 58-5-10 - Disapproval of articles by attorney general--Statement of reasons--Returned to incorporators.

Section 58-5-11 - Amendment of articles of incorporation--Submission and filing.

Section 58-5-12 - Bond required of mutual insurer before soliciting applications for insurance--Filing by incorporators--Amount, conditions.

Section 58-5-13 - Deposit by incorporators of mutual insurer in lieu of bond--Amount.

Section 58-5-14 - Duration of bond or deposit by mutual insurer.

Section 58-5-15 - Commencement of solicitation by mutual insurer.

Section 58-5-16 - Temporary insurance producer's licenses for solicitation of applications for mutual insurance--Issuance by director.

Section 58-5-17 - Applications for mutual insurance--Signature by applicant, coverage.

Section 58-5-18 - Applications for mutual insurance--Contents.

Section 58-5-19 - Trust deposit of premiums or fees collected by mutual insurer on qualifying applications.

Section 58-5-20 - Transaction of business without certificate of authority as misdemeanor.

Section 58-5-21 - Insurance applications and surplus required for original certificate of authority to domestic mutual insurer.

Section 58-5-22 - Expendable surplus funds required of domestic mutual insurer.

Section 58-5-23 - Determination by director as to weight to be given to insurance plans.

Section 58-5-24 - Cessation of corporate powers upon failure of mutual insurer to secure certificate of authority--Return of trust deposit.

Section 58-5-25 - Issuance of certificate of authority to domestic mutual insurer--Funds in trust deposit become funds of insurer--Delivery of policies--Effective date of policies.

Section 58-5-26 - Authorization of domestic mutual insurer to transact additional kinds of insurance.

Section 58-5-27 - Membership of policyholders in domestic mutual insurer--Reinsurance contract excepted.

Section 58-5-28 - Eligibility to membership in domestic, foreign, or alien mutual insurer.

Section 58-5-29 - Contingent liability of members of mutual insurer--Exception.

Section 58-5-30 - Contingent liability of member of mutual insurer not terminated by termination of policy.

Section 58-5-31 - Unrealized contingent liability of members of mutual not an asset of insurer.

Section 58-5-32 - Levy of assessment by mutual insurer for contingent liability.

Section 58-5-33 - Amount of assessment by mutual insurer.

Section 58-5-34 - Computation of assessment levied by mutual insurer.

Section 58-5-35 - Offsets not allowed against assessment by mutual insurer.

Section 58-5-36 - Lien of mutual insurer for levy of assessment for contingent liability.

Section 58-5-37 - Extinguishment of contingent liability--Issuance of nonassessable policies--Revocation of authority.

Section 58-5-38 - Extinguishment of contingent liability must apply to all members and policies.

Section 58-5-39 - Bylaws of domestic mutual insurer--Adoption, modification, and revocation.

Section 58-5-40 - Meetings of members of domestic mutual insurer--Time, notice, quorum, and conduct.

Section 58-5-41 - Voting rights of members of domestic mutual insurer.

Section 58-5-42 - Directors of domestic mutual insurer--Number, qualifications, election, terms of office, and powers.

Section 58-5-43 - Officers of domestic mutual insurer--Number, designation, election, and terms of office--Powers and duties.

Section 58-5-44 - Funds of domestic mutual insurer--Deposit, custody, disbursement, and accounting.

Section 58-5-45 - Management of domestic mutual insurer.

Section 58-5-46 - Certified copy of bylaws and amendments of domestic mutual insurer filed with director--Disapproval by director, grounds.

Section 58-5-47 - Bylaws of domestic stock insurer--Adoption, modification, and revocation.

Section 58-5-48 - Bylaws of domestic stock insurer subject to approval of director.

Section 58-5-49 - Equity securities of domestic stock insurer--Rules and regulations as to solicitation of proxies, consents, and authorities--Adoption and promulgation.

Section 58-5-50 - Annual meetings of stockholders or members--Election of directors--Reports of officers of insurer as to affairs--Transaction of other business--Notice of meeting.

Section 58-5-51 - Special meetings of stockholders or members--Calling by board of directors--Notice.

Section 58-5-52 - Special meetings of stockholders or members called by secretary on request of directors, stockholders, or members--Failure of secretary to issue call.

Section 58-5-53 - Stockholder or member compelling board of directors to call annual meeting.

Section 58-5-54 - Place for holding meetings of stockholders or members--Waiver.

Section 58-5-55 - Meetings of stockholders or members--Organization for transaction of business, quorum required.

Section 58-5-56 - Amendment of articles of incorporation at meeting of stockholders or members--Notice of meeting.

Section 58-5-57 - Reduction of capital of stock insurer--Disapproval by director, grounds.

Section 58-5-58 - Directors of domestic insurer--Number--Management of affairs of insurer.

Section 58-5-59 - Election of directors of domestic insurer--Qualifications.

Section 58-5-60 - Directors of domestic insurer--Terms of office.

Section 58-5-61 - Pecuniary interest of officer, director, committee member, or employee of domestic insurer in transactions with insurer prohibited--Misdemeanor.

Section 58-5-62 - Guarantee by insurer of any financial obligation of its officers, directors, stockholders, or members prohibited.

Section 58-5-63 - Policy holding not a prohibited pecuniary interest.

Section 58-5-64 - Stock ownership not a prohibited pecuniary interest.

Section 58-5-65 - Other permitted pecuniary interest of director, officer, or employee of insurer.

Section 58-5-66 - Compensation of officers and employees of domestic insurer.

Section 58-5-67 - Pensions to officers and directors of domestic insurers.

Section 58-5-68 - "Equity security" defined.

Section 58-5-69 - Statement of ownership of insurance company filed with director--Change of ownership, time for statement.

Section 58-5-70 - Short sales by insider as misdemeanor--Delivery of securities sold, when required.

Section 58-5-71 - Profits from insider security transactions accruing to company.

Section 58-5-72 - Suit to recover insider profits accruing to company.

Section 58-5-73 - Exemption from insider trading restrictions.

Section 58-5-74 - Registered and closely held securities exempt from insider trading restrictions.

Section 58-5-75 - Brokers and market specialists exempt from insider trading restrictions.

Section 58-5-76 - Arbitrage transactions exempt from insider trading restrictions.

Section 58-5-77 - Rules and regulations on insider trading.

Section 58-5-78 - Nonliability for insider trading acts in good faith in conformity with rule or regulation.

Section 58-5-79 - Management of domestic insurers during national emergency--Continuity, means for facilitating.

Section 58-5-80 - Bylaws to cover management during national emergency.

Section 58-5-81 - Quorum of directors during national emergency--Filling vacancies in board.

Section 58-5-82 - Vice-presidents acting as directors during national emergency--Insufficient number of vice-presidents, appointment of directors by insurance director.

Section 58-5-83 - Succession to office during national emergency.

Section 58-5-84 - Principal place of business during national emergency.

Section 58-5-85 - Domestic insurers--Management and exclusive agency contracts, filing with and approval by director--Violation as misdemeanor.

Section 58-5-86 - Domestic insurer--Management and exclusive agency contracts, disapproval by director, grounds.

Section 58-5-87 - Domestic insurer--Management and exclusive agency contracts, time for disapproval by director--Disapproval in writing, statement of grounds.

Section 58-5-93 - Location of home office and principal place of business of domestic insurers--Records maintained.

Section 58-5-94 - Assets of domestic insurer to be maintained in state--Exceptions.

Section 58-5-95 - Director's consent required for removal of records or assets from state--Unauthorized removal or concealment as felony.

Section 58-5-96 - Delinquency proceedings by director for removal or attempted removal of records or assets of domestic insurer.

Section 58-5-97 - Branch offices established by domestic insurer--Transmission of funds outside state--Deposits under custodial arrangements.

Section 58-5-98 - Prior maintenance by domestic insurer of branch or regional place of business or home office outside state not invalidated.

Section 58-5-99 - "Reciprocating state" defined.

Section 58-5-100 - Solicitation by domestic insurer in reciprocating state in which it has no license prohibited.

Section 58-5-101 - Advertising through publications and broadcasts originating outside reciprocating state not prohibited.

Section 58-5-102 - Insurance in reciprocating state under contracts issued in state in which licensed not prohibited--Policies issued as an unauthorized insurer permitted under laws of reciprocating state not prohibited.

Section 58-5-103 - Suspension or revocation of certificate of authority for violation by domestic insurer.

Section 58-5-104 - Participating policies--Issuance authorized by articles of domestic insurer--Nondiscrimination between policyholders.

Section 58-5-105 - Continued issuance of participating policies without authorization in articles.

Section 58-5-106 - Dividends on participating policies not contingent on renewal premiums.

Section 58-5-107 - Participating policyholder as member.

Section 58-5-108 - Borrowed surplus of domestic stock or mutual insurer--Agreement to repay, interest.

Section 58-5-109 - Approval of loan and agreement by director--Disapproval of proposed loan or agreement, grounds.

Section 58-5-110 - Legal liabilities of insurer on borrowed funds--Disclosure in financial statement.

Section 58-5-111 - Repayment of loan by domestic insurer.

Section 58-5-112 - Provisions as to borrowed surplus inapplicable to loans in ordinary course of business or secured by pledge or mortgage.

Section 58-5-113 - Illegal dividends--Revocation or suspension of certificate of authority.

Section 58-5-114 - Impairment of capital or surplus of domestic stock or mutual insurer--Determination of amount of deficiency by director--Notice to insurer.

Section 58-5-115 - Curing impairment of capital or surplus.

Section 58-5-116 - Assessment of stockholders to cure impairment of capital or surplus--Enforcement.

Section 58-5-117 - Levy of assessment by mutual insurer to cure deficiency.

Section 58-5-118 - Officers and directors permitting new business during impairment of capital or surplus--Liability for losses.

Section 58-5-119 - Failure to cure deficiency, insurer deemed insolvent--Delinquency proceedings.

Section 58-5-120 - Bulk reinsurance by domestic stock insurer--Agreement, filing with and approval by director.

Section 58-5-121 - Approval by director of bulk reinsurance agreement--Disapproval.

Section 58-5-122 - Compensation for promoting bulk reinsurance prohibited.

Section 58-5-123 - Bulk reinsurance by mutual insurer--Agreement, filing with and approval by director.

Section 58-5-124 - Members of domestic mutual insurer voting on bulk insurance, requirement by director--Calling of meeting, notice--Limited rights of members of life insurer to vote.

Section 58-5-125 - Bulk reinsurance by domestic mutual insurer in stock insurer--Payments to members.

Section 58-5-126 - Approval by director of bulk reinsurance by mutual insurer--Disapproval--Notice.

Section 58-5-127 - Compensation for promoting bulk reinsurance by mutual insurer.

Section 58-5-128 - Merger or consolidation of stock insurers.

Section 58-5-129 - Stock acquisition plan deemed merger--Approval required.

Section 58-5-130 - Compensation for promoting merger or consolidation of stock insurers.

Section 58-5-131 - Filing and hearing on consolidation or merger plan--Grounds for disapproval.

Section 58-5-132 - Participation by other states in hearing on merger or consolidation.

Section 58-5-133 - Disapproval of merger or consolidation--Notice to insurer.

Section 58-5-134 - Merger or consolidation of mutual insurers--Procedure.

Section 58-5-135 - Members of mutual insurer voting on merger or consolidation--Procedure--Limited right of members of life insurer.

Section 58-5-136 - Provisions applicable to mutual mergers and consolidations.

Section 58-5-138 - Conversion of mutual to stock insurer restricted.

Section 58-5-138.1 - Compensation of officer, insurance producer, or employee of converting mutual insurer prohibited.

Section 58-5-139 - Liquidation of domestic mutual insurer--Distribution of remaining assets to members.

Section 58-5-140 - Distributive share of each member on liquidation of mutual insurer--Classification of policies.

Section 58-5-143 - Disclosure of certain material transactions required--Filing a report.

Section 58-5-144 - Confidentiality of disclosure report.

Section 58-5-145 - Exception from disclosure requirement--"Material acquisition" defined.

Section 58-5-146 - Types of asset acquisitions subject to chapter.

Section 58-5-147 - Types of asset dispositions subject to chapter.

Section 58-5-148 - Information required in report of material acquisition or disposition of assets.

Section 58-5-149 - Determining whether to report acquisitions on a nonconsolidated or consolidated basis.

Section 58-5-150 - Materiality of nonrenewals, cancellations or revisions.

Section 58-5-151 - Reporting material nonrenewal, cancellation or revision.

Section 58-5-152 - Required information in reporting material nonrenewal, cancellation, or revision.

Section 58-5-153 - Determining whether to report material nonrenewals, cancellations, or revisions on a nonconsolidated or consolidated basis.

Section 58-5-154 - "Qualified education loan insurer" defined.

Section 58-5-155 - Qualified education loan insurer subject to Title 58--Exceptions.

Section 58-5-156 - Investment of funds by qualified education loan insurer--Limitations--Permitted rating categories.

Section 58-5-157 - Investment of funds in securities.

Section 58-5-158 - Subsidiary investment to be counted as admitted asset.

Section 58-5-159 - Applicability of federal Bankruptcy Code.

Section 58-5-160 - Additional exemptions or exemption authority.

Section 58-5-161 - Definitions for §§ 58-5-161 through 58-5-171.

Section 58-5-162 - Corporate governance disclosure--Requirements and limitations.

Section 58-5-163 - Submission of disclosure--Requirement.

Section 58-5-164 - Information provided with disclosure--Appropriate corporate level.

Section 58-5-165 - Duplicate information not required--Documentation.

Section 58-5-166 - Content and maintenance--Promulgation of Rules.

Section 58-5-167 - Disclosure documents and other information--Confidential and privileged--Exempt from public record--Permitted uses.

Section 58-5-168 - Disclosure documents and other materials--Testimony prohibited.

Section 58-5-169 - Disclosure documents and other materials--Information sharing and receiving.

Section 58-5-170 - Disclosure review--Expert assistance.

Section 58-5-171 - Disclosure information--Access by National Association of Insurance Commissioners--Requirements.