South Dakota Codified Laws
Chapter 06A - Risk Retention Groups
Section 58-6A-16.1 - Exemptions for purchasing group and insurer in regard to liability insurance--Subject to other laws.

58-6A-16.1. Exemptions for purchasing group and insurer in regard to liability insurance--Subject to other laws.
A purchasing group and its insurer or insurers are subject to all applicable laws of this state, except that a purchasing group and its insurer or insurers are exempt, in regard to liability insurance for the purchasing group, from any law that would:
(1)Prohibit the establishment of a purchasing group;
(2)Make it unlawful for an insurer to provide or offer to provide insurance on a basis providing advantages to a purchasing group or its members based on their loss and expense experience, which coverage is not afforded to other persons with respect to rates, policy forms, coverages, or other matters;
(3)Prohibit a purchasing group or its members from purchasing insurance on a group basis as described in subdivision (2) of this section;
(4)Prohibit a purchasing group from obtaining insurance on a group basis because the group has not been in existence for a minimum period of time or because any member has not belonged to the group for a minimum period of time;
(5)Require that a purchasing group shall have a minimum number of members, common ownership or affiliation, or certain legal form;
(6)Require that a certain percentage of a purchasing group shall obtain insurance on a group basis;
(7)Otherwise discriminate against a purchasing group or any of its members; or
(8)Require that any insurance policy issued to a purchasing group or any of its members be countersigned by an insurance producer residing in this state.

Source: SL 1988, ch 392, §4; SL 2001, ch 286, §91.

Structure South Dakota Codified Laws

South Dakota Codified Laws

Title 58 - Insurance

Chapter 06A - Risk Retention Groups

Section 58-6A-1 - Definition of terms.

Section 58-6A-2 - Charter and license of risk retention group--Approval of plan of operation or feasibility study--Revision of plan or study--Notice to National Association of Insurance Commissioners.

Section 58-6A-3 - Information submitted to director.

Section 58-6A-3.1 - Majority of risk retention group directors to be independent--Board determinations as to material relationship.

Section 58-6A-3.2 - Criteria of material relationship.

Section 58-6A-3.3 - Material service provider contracts.

Section 58-6A-3.4 - Notice to director of intent to enter into service provider contract meeting criteria of material relationship.

Section 58-6A-3.5 - Written policy in plan of operation.

Section 58-6A-3.6 - Members of audit committee.

Section 58-6A-3.7 - Purpose of audit committee.

Section 58-6A-3.8 - Waiver of audit committee requirement.

Section 58-6A-3.9 - Governance standards.

Section 58-6A-3.10 - Code of business conduct and ethics.

Section 58-6A-3.11 - Notice to director of noncompliance with standards.

Section 58-6A-3.12 - Application of §§ 58-6A-1 to 58-6A-3.11.

Section 58-6A-4 - Financial information submitted to director.

Section 58-6A-5 - Taxation of premiums--Payment by insurance producers or brokers--Payment by risk retention group--Report of premiums.

Section 58-6A-5.1 - Rate of taxation on premiums--Interest, fines and penalties--Payment.

Section 58-6A-6 - Compliance with Unfair Trade Practices Act.

Section 58-6A-7 - Compliance with laws regarding deceptive, false, or fraudulent acts or practices--Injunction.

Section 58-6A-8 - Examination by director.

Section 58-6A-9 - Notice contained on policy--Contents.

Section 58-6A-10 - Prohibited acts by risk retention group.

Section 58-6A-11 - Insurance company as member or owner.

Section 58-6A-12 - Compliance with voluntary dissolution or delinquency order by group not chartered if financially impaired.

Section 58-6A-13 - Financial contribution to or benefit from insurance insolvency guaranty fund prohibited.

Section 58-6A-14 - Countersignature on policy not required.

Section 58-6A-15 - Prohibited insurance coverage.

Section 58-6A-16.1 - Exemptions for purchasing group and insurer in regard to liability insurance--Subject to other laws.

Section 58-6A-17 - Notice to director--Contents.

Section 58-6A-17.1 - Notice to director of changes.

Section 58-6A-17.2 - Information required by director--Time for giving notice and information.

Section 58-6A-18 - Designation of director as agent for purchasing group--Exceptions.

Section 58-6A-19.1 - Purchase from risk retention group not chartered or insurer not admitted in state prohibited--Exception.

Section 58-6A-19.2 - Notice of unprotected risk when liability insurance obtained from insurer not admitted in this state or risk retention group.

Section 58-6A-19.3 - Purchase of insurance providing for deductible or self-induced retention applicable to whole group prohibited--Application to individuals allowed--Aggregate limits standards.

Section 58-6A-19.4 - Insurance producer or broker license required for purchasing liability insurance from risk retention group.

Section 58-6A-19.5 - Insurance producer or broker license required to solicit liability insurance for purchasing group from insurer or risk retention group.

Section 58-6A-19.6 - Insurance producer or broker license required to solicit liability insurance for member of purchasing group.

Section 58-6A-19.7 - Surplus lines producer or excess line producer license required to solicit liability insurance from unauthorized insurer for purchasing group.

Section 58-6A-20 - Director's use of enforcement powers--Injunctive authority.

Section 58-6A-21 - Penalty for violation.

Section 58-6A-22 - Broker license--Waiver of residency requirements.

Section 58-6A-23 - Enforcement of injunction against risk retention group in hazardous financial condition.

Section 58-6A-24 - Promulgation of rules.