CHAPTER 58-2
DIVISION OF INSURANCE
58-2-1.1 Division within Department of Labor and Regulation--Direction and supervision by department--Independent functions retained by division.
58-2-2.1 Appointment of director--Removal.
58-2-3 Qualifications of director.
58-2-4 58-2-4 to 58-2-8. Obsolete.
58-2-9 Legal adviser to division--Employment--Duties.
58-2-10 Actuaries--Employment by department--Duties.
58-2-11 Examiners for examination of insurers and others--Employment by department.
58-2-12 Oath of office and bond of director--Bonds of insurance examiners, actuaries, and attorney for division--Bond premiums paid from state insurance fund.
58-2-13 Chief clerk and employees--Appointment.
58-2-14 Division personnel--Termination of employment by department.
58-2-15 Actuarial, technical, or other professional services--Department authorized to contract for on a fee or part-time basis.
58-2-16 Technical or professional personnel--Bond required, amount, approval and filing, payment of premium.
58-2-17 Compensation of personnel.
58-2-18 Additional compensation for services rendered by personnel prohibited--Misdemeanor.
58-2-19 Interests of personnel in insurance transactions prohibited--Misdemeanor.
58-2-20 Procurement of loan secured by mortgage on real estate permitted to division personnel.
58-2-21 Enforcement of provisions of this title.
58-2-22 Power and authority of director--Examinations and investigations.
58-2-23 Additional powers and duties of director provided by other laws.
58-2-24 Delegation of powers by director.
58-2-25 58-2-25. Repealed by SL 1978, ch 359, § 10.
58-2-26 Records--Keeping by director--Public inspection.
58-2-27 Director's certificate of authority--Evidence.
58-2-28 Certified copies of records in office of director as evidence.
58-2-29 Fees, licenses, and charges--Collection by director in advance.
58-2-30 Disposition of money received by director.
58-2-31 Repealed by SL 2012, ch 252, § 31.
58-2-32 58-2-32 to 58-2-38. Repealed by SL 1996, ch 288, §§ 1 to 7.
58-2-39 Promulgation of rules regarding definitions, enrollment, disclosure, notice, claims, and records.
58-2-40 Promulgation of rules to protect privacy of medical records.
58-2-41 Promulgation of rules to protect privacy of personal nonpublic financial information--Applicability--Construction.
58-2-1.1. Division within Department of Labor and Regulation--Direction and supervision by department--Independent functions retained by division.
The Division of Insurance shall be administered under the direction and supervision of the Department of Labor and Regulation (hereinafter referred to as "department") and the secretary of labor and regulation (hereinafter referred to as "secretary"), but shall retain the quasi-judicial, quasi-legislative, advisory, and other nonadministrative functions (as defined in § 1-32-1) otherwise vested in it and shall exercise those functions independently of the secretary.
Source: SL 1973, ch 2 (Ex. Ord. 73-1), § 48; SL 1974, ch 3, § 12; SL 2003, ch 272 (Ex. Ord. 03-1), § 119, eff. Apr. 17, 2003; SL 2011, ch 1 (Ex. Ord. 11-1), § 162, eff. Apr. 12, 2011.
58-2-2.1. Appointment of director--Removal.
The director of the Division of Insurance shall be appointed by the secretary and may be removed at the pleasure of the secretary.
Source: SL 1973, ch 2, § 49; SL 1980, ch 370, § 21; SL 1995, ch 2, § 6; SL 2003, ch 272, § 120.
58-2-3. Qualifications of director.
The director must have had at least five years of practical experience in one or more of the types of insurance business subject to regulation by the director, or have had other professional and business experience reasonably adequate in character and scope to equip him to discharge the duties and fulfill the responsibilities of the office of director.
Source: SL 1966, ch 111, ch 2, § 3.
58-2-9. Legal adviser to division--Employment--Duties.
The Department of Labor and Regulation shall appoint and employ an attorney to act as legal adviser to the division and to make investigations of violations or claimed violations of this title and to perform such other duties as directed by the department.
Source: SL 1966, ch 111, ch 2, § 4 (5); SL 2003, ch 272 (Ex. Ord. 03-1), § 20; SL 2011, ch 1 (Ex. Ord. 11-1), § 162, eff. Apr. 12, 2011.
58-2-10. Actuaries--Employment by department--Duties.
The Department of Labor and Regulation may employ competent insurance actuaries to perform actuarial duties of the division, to take charge of or assist in the examination of insurers, and to perform other duties assigned to them.
Source: SL 1966, ch 111, ch 2, § 4 (3); SL 2003, ch 272 (Ex. Ord. 03-1), § 20; SL 2011, ch 1 (Ex. Ord. 11-1), § 162, eff. Apr. 12, 2011.
58-2-11. Examiners for examination of insurers and others--Employment by department.
The Department of Labor and Regulation may appoint or employ examiners to conduct or assist in examinations of insurers and others provided for under this title.
Source: SL 1966, ch 111, ch 2, § 4 (4); SL 2003, ch 272 (Ex. Ord. 03-1), § 20; SL 2011, ch 1 (Ex. Ord. 11-1), § 162, eff. Apr. 12, 2011.
58-2-12. Oath of office and bond of director--Bonds of insurance examiners, actuaries, and attorney for division--Bond premiums paid from state insurance fund.
The director shall, before entering upon the duties of his office, take and subscribe the constitutional oath of office and shall give the state a bond in the sum of one hundred thousand dollars, and each insurance examiner, the actuary and the attorney shall each give bond to the state in the sum of fifty thousand dollars, all such bonds to be conditioned for the faithful and impartial discharge of the duties imposed upon such director and employees by this title, and all such bonds to be approved by the attorney general, and recorded and filed as provided by law.
The premium of such bonds shall be paid by the state treasurer out of the insurance fund of this state upon warrants drawn on such fund by the state auditor.
Source: SL 1966, ch 111, ch 2, § 6.
58-2-13. Chief clerk and employees--Appointment.
The Department of Labor and Regulation may appoint a chief clerk and such other employees as may be necessary, subject to the approval of the Bureau of Human Resources and Administration.
Source: SL 1966, ch 111, ch 2, § 4 (6); SL 2003, ch 272 (Ex. Ord.), § 20; SL 2011, ch 1 (Ex. Ord. 11-1), § 162, eff. Apr. 12, 2011; SL 2012, ch 23, § 101; SL 2024, ch 1 (Ex. Ord. 24-1), § 35, eff. Apr. 8, 2024.
58-2-14. Division personnel--Termination of employment by department.
The Department of Labor and Regulation may at any time terminate the employment of any person in the division.
Source: SL 1966, ch 111, ch 2, § 4 (7); SL 2003, ch 272 (Ex. Ord. 03-1), § 20; SL 2011, ch 1 (Ex. Ord. 11-1), § 162, eff. Apr. 12, 2011.
58-2-15. Actuarial, technical, or other professional services--Department authorized to contract for on a fee or part-time basis.
The Department of Labor and Regulation may contract, on a fee or a part-time basis, for such actuarial, technical, or other professional services as the division may require for the discharge of its duties.
Source: SL 1966, ch 111, ch 2, § 4 (8); SL 2003, ch 272 (Ex. Ord. 03-1), § 20; SL 2011, ch 1 (Ex. Ord. 11-1), § 162, eff. Apr. 12, 2011.
58-2-16. Technical or professional personnel--Bond required, amount, approval and filing, payment of premium.
Any technical or professional personnel hired by the Department of Labor and Regulation upon a part-time or fee basis may be required to furnish a bond in such amount as the department may determine, such bond to be approved and filed and the premium therefor paid in the same manner as provided in § 58-2-12.
Source: SL 1966, ch 111, ch 2, § 6; SL 2003, ch 272 (Ex. Ord. 03-1), § 20; SL 2011, ch 1 (Ex. Ord. 11-1), § 162, eff. Apr. 12, 2011.
58-2-17. Compensation of personnel.
The compensation of all such personnel employed or contracted for by the Department of Labor and Regulation shall be fixed by the department subject to the approval of the Bureau of Human Resources and Administration.
Source: SL 1966, ch 111, ch 2, § 4 (9); revised pursuant to SL 1973, ch 23, § 6; SL 2003, ch 272 (Ex. Ord. 03-1), § 20; SL 2011, ch 1 (Ex. Ord. 11-1), § 162, eff. Apr. 12, 2011; SL 2012, ch 23, § 102; SL 2024, ch 1 (Ex. Ord. 24-1), § 35, eff. Apr. 8, 2024.
58-2-18. Additional compensation for services rendered by personnel prohibited--Misdemeanor.
The director or any examiner or employee of the division shall not be given nor receive any fee, compensation, loan, gift, or other thing of value except the compensation and expense allowance provided by law, for any service rendered or to be rendered as such examiner or employee or in connection therewith. Violation of this section is a Class 2 misdemeanor.
Source: SL 1966, ch 111, ch 2, § 8; SL 1978, ch 359, § 2.
58-2-19. Interests of personnel in insurance transactions prohibited--Misdemeanor.
The director or any examiner, assistant, or employee of the division shall not be financially interested, directly or indirectly, in any insurer, insurance agency, or insurance transaction except as a policyholder or claimant under a policy; except, that as to such matters wherein a conflict of interests does not exist on the part of any such individual, the Department of Labor and Regulation may employ or retain from time to time insurance actuaries, attorneys, or other technicians who are independently practicing their professions even though similarly employed or retained by insurers or others. Violation of this section is a Class 2 misdemeanor.
Source: SL 1966, ch 111, ch 2, § 8; SL 1978, ch 359, § 2; SL 2003, ch 272, § 20; SL 2011, ch 1 (Ex. Ord. 11-1), § 162, eff. Apr. 12, 2011.
58-2-20. Procurement of loan secured by mortgage on real estate permitted to division personnel.
Sections 58-2-18 and 58-2-19 shall not be construed to prohibit the director or any employee from procuring a loan secured by a mortgage on real estate which mortgage and loan would be a proper investment under the provisions of this title.
Source: SL 1966, ch 111, ch 2, § 8.
58-2-21. Enforcement of provisions of this title.
The director shall enforce the provisions of this title, under the direction and supervision of the Department of Labor and Regulation, and shall execute the duties imposed upon him by this title.
Source: SL 1966, ch 111, ch 2, § 7; SL 2003, ch 272 (Ex. Ord. 03-1), § 20; SL 2011, ch 1 (Ex. Ord. 11-1), § 162, eff. Apr. 12, 2011.
58-2-22. Power and authority of director--Examinations and investigations.
The director shall have the powers and the authority expressly conferred upon him by or reasonably implied from the provisions of this title. The director may conduct such examinations and investigations of insurance matters, in addition to examinations and investigations expressly authorized by this title, as he may deem proper to determine whether any person has violated any provision of this title or to secure information useful in the lawful administration of any such provision. The cost of such additional examinations and investigations shall be borne by the state.
Source: SL 1966, ch 111, ch 2, § 7.
58-2-23. Additional powers and duties of director provided by other laws.
The director shall have such additional powers and duties as may be provided by other laws of this state.
Source: SL 1966, ch 111, ch 2, § 7.
58-2-24. Delegation of powers by director.
The director may delegate to the actuary, attorney, examiners, or employees of the division, the exercise or discharge in the director's name of any power, duty, or function, whether ministerial, discretionary, or of whatever character, vested in or imposed upon the director under this title.
The official act of any such person so acting in the director's name and by his authority shall be deemed to be an official act of the director.
Source: SL 1966, ch 111, ch 2, § 5.
58-2-26. Records--Keeping by director--Public inspection.
The director shall keep permanent records of his official transactions, examinations, investigations, and proceedings. Such records and insurance filings in his office shall be open to public inspection, except as otherwise provided in this title with respect to particular records or filings.
Source: SL 1966, ch 111, ch 2, § 10.
58-2-27. Director's certificate of authority--Evidence.
The director shall furnish, when requested, his sworn certificate as to the authority of any person to transact insurance business, and such certificate shall be evidence of the facts set forth therein.
Source: SL 1966, ch 111, ch 2, § 11 (2); SL 1978, ch 359, § 11.
58-2-28. Certified copies of records in office of director as evidence.
Copies of records or documents in his office certified to by the director shall be received in evidence in all courts as if they were the originals.
Source: SL 1966, ch 111, ch 2, § 11 (1).
58-2-29. Fees, licenses, and charges--Collection by director in advance.
The director of the Division of Insurance shall collect in advance, and persons so served shall pay to the director in advance, fees, licenses, and miscellaneous charges as follows:
(1) Certificate of authority of insurer:
(a) Application for original certificate of authority:
For filing application for certificate of authority, articles of incorporation, and other charter documents, bylaws, financial statements, examination reports, power of attorney to the director, and all other documents and filings required in connection with such application: ..... $500.00
(b) Issuance of original certificate of authority ..... 25.00
(c) Annual renewal of certificate of authority ..... 25.00
(d) Reinstatement of certificate of authority ..... 25.00
(e) Amendment or reissuance of certificate of authority ..... 25.00
(f) Annual audit ..... 500.00
This fee to be reduced by the total dollar amount of premium taxes remitted in each calendar year. The fee is waived for all licensed insurers remitting five hundred dollars or more in premium taxes in a calendar year.
(2) Filing amendment of articles of incorporation, domestic and foreign insurers, exclusive of fees required to be paid to the secretary of state by a domestic corporation ..... 10.00
(3) Filing bylaws or amendments thereto ..... 5.00
(4) Filing annual statement of insurer, other than as part of application for original certificate of authority ..... 25.00
(5) Insurance producers and solicitors:
(a) Insurance producer's license, including also disability insurance when written by property, casualty, or surety insurer otherwise represented by the insurance producer:
(i) Filing application for original license, and including issuance of license, if issued ..... 25.00
(ii) Original appointment of insurance producer, each insurer ..... 10.00
(iii) Annual renewal of appointment, each insurer:
Domestic insurer ..... 10.00
Foreign insurer ..... 10.00
(iv) Temporary license ..... 10.00
(b) Insurance producer's license, life or health insurance, including both life and disability insurance when so licensed as to the same insurer:
(i) Application for original license, including issuance of license, if issued, each insurer ..... 25.00
(ii) Original appointment of insurance producer, each insurer ..... 10.00
(iii) Annual renewal of appointment, each insurer:
Domestic insurer ..... 10.00
Foreign insurer ..... 10.00
(iv) Temporary license ..... 10.00
(c) Limited license as insurance producer:
(i) Motor vehicle physical damage ... Same as for insurance producer's license
(ii) Accident ticket policies, each insurer each year ..... 10.00
(iii) Baggage ticket policies, each insurer each year ..... 10.00
(iv) Credit insurance ..... Same as for insurance producer license
(d) Examination for license, each examination and each time taken ..... 10.00
(e) Nonresident insurance producer license:
(i) Original license ..... 30.00
(ii) Biennial renewal of license ..... 50.00
(iii) Appointments, each insurer ..... 20.00
(iv) Annual renewal of appointments, each insurer ..... 20.00
(f) Resident insurance producer, original license ..... 25.00
(i) Biennial continuing education fee, license renewal ..... 20.00
(g) Corporation or partnership license:
(i) Original license ..... 25.00
(ii) Appointment, each insurer ..... 10.00
(iii) Annual renewal of appointment, each insurer ..... 10.00
(h) Nonresident corporation or partnership license:
(i) Original license ..... 30.00
(ii) Appointment, each insurer ..... 20.00
(iii) Annual renewal of appointment, each insurer ..... 20.00
(i) Portable electronics license ..... Same as for insurance producer license
(6) Insurance vending machine license, each machine, each year ..... 20.00
(7) Surplus line broker's license, application for original license including issuance of license, if issued ..... 50.00
(a) Biennial renewal of license ..... 100.00
(8) Rating bureau, original license ..... 25.00
(a) Annual renewal of license ..... 35.00
(9) Examination of rating bureau... Same fees as provided in this chapter for examination of foreign insurance companies.
(10) Farm mutuals:
(a) Application for original certificate of authority: For filing application for certificate of authority, articles of incorporation, and all other documents and filings required in connection with such application, and for issuance of an original certificate of authority, if issued ..... 25.00
(b) Annual renewal of certificate of authority ..... 10.00
(c) Filing annual statement ..... 5.00
(11) Broker's license as attorney in fact of a reciprocal or interinsurance exchange ..... 20.00
(12) Miscellaneous services:
(a) For a copy of any paper filed in the insurance division, for which another price is not set by statute, each page ..... 75
(b) Director's sworn certificate, except when on certificates of authority or licenses ..... 10.00
(c) For receiving and forwarding copy of summons or other process served upon the director, as process agent of an insurer or nonresident insurance producer ..... 10.00
(13) Application for continuing education course approval ..... 25.00
(14) Annual renewal of certificate of authority for domestic insurer issuing court appearance bonds .... 6,000
Source: SL 1966, ch 111, ch 2, § 27; SL 1975, ch 305, §§ 1, 2; SL 1978, ch 359, § 12; SL 1978, ch 365, § 1; SL 1980, ch 349; SL 1983, ch 27, § 7; SL 1984, ch 29, § 9; SL 1986, ch 415, § 1; SL 1987, ch 370, §§ 1 to 3; SL 2001, ch 286, § 60; SL 2002, ch 229, § 1; SL 2010, ch 233, § 1; SL 2011, ch 55, § 2; SL 2012, ch 251, § 15.
58-2-30. Disposition of money received by director.
All fees received by the director from any source whatever, except as provided in § 58-3-15 not later than the fifth day of the succeeding month, shall be paid into the state treasury and by the state treasurer deposited in the insurance operating fund according to § 4-4-4.3. All other money received by the director from any source whatever, except as provided in § 58-3-15 not later than the fifth day of the succeeding month, shall be paid into the state treasury and by the state treasurer deposited in the general fund.
Source: SL 1966, ch 111, ch 2, § 28; SL 1989, ch 48, § 4.
58-2-31. Repealed by SL 2012, ch 252, § 31.
58-2-39. Promulgation of rules regarding definitions, enrollment, disclosure, notice, claims, and records.
The Division of Insurance may promulgate rules pursuant to chapter 1-26 in the following areas:
(1) Definition of terms used in §§ 58-17-30.2, 58-17-30.4, 58-18-32, 58-18-34, and 58-33-85 to 58-33-88, inclusive;
(2) Insurer enrollment procedures;
(3) Disclosure and notice requirements;
(4) Claim processing procedures; and
(5) Record-keeping requirements for insurers and producers.
Source: SL 1994, ch 387, § 19; SL 2014, ch 231, § 1; SL 2021, ch 210, § 1.
58-2-40. Promulgation of rules to protect privacy of medical records.
The director of insurance shall promulgate rules pursuant to chapter 1-26, to protect the privacy of personally identifiable health care and medical information, data, and records. The rules shall cover health care and medical information, data, and records collected, used, or disclosed by any person licensed or registered under Title 58 or any person with whom such licensees or registrants contract, and shall include all health care and medical information, data, and records received by or in the possession of the Division of Insurance. The rules may include the following:
(1) Definition of terms;
(2) Standards for the protection of the privacy and confidentiality of personally identifiable health care information and medical records;
(3) Rules for the collection, use, storage, security, disclosure, release, and disposal of health care and medical information, data, and records in all forms, including printed material, plastic media, audio, video, computerized and electronic transmissions;
(4) Rules regarding the sale and exchange of health care and medical information, data, and records;
(5) Rules to define the responsibilities and limitations of those needing or requiring access to health care and medical information, data, and records;
(6) Rules for procedures and documents required for the release or transfer of health care and medical information, data, and records, including the identity of who may release such information and records and under what conditions and provisions of the law, as needed to protect the privacy of personally identifiable health care and medical information, data, and records;
(7) Rules for the collection, use, storage, security, disclosure, distribution, release, and disposal of health care information and medical records obtained, used, or held in connection with the operation, maintenance, or review of insurance certificates, contracts, policies, and plans, and health maintenance organizations, subject to the jurisdiction of the director of insurance.
Source: SL 2000, ch 234, § 1.
58-2-41. Promulgation of rules to protect privacy of personal nonpublic financial information--Applicability--Construction.
The director shall promulgate rules pursuant to chapter 1-26 relating to the privacy of personal nonpublic financial information. The rules must be designed to provide privacy to the public of the personal nonpublic financial information that is shared or obtained in connection with insurance transactions. The director shall design the rules to protect the public's personal nonpublic financial information but also consider the impact of any rules on the cost and availability of insurance in this state. In promulgating the rules required by this section the director shall give substantial consideration to the privacy standards contained in the NAIC Privacy of Consumer Financial and Health Information Regulation as in effect as of January 1, 2001, and otherwise design the rules to achieve uniformity, to the degree reasonably possible, in the standards for personal nonpublic financial information. The rules may include the following as they relate to financial privacy:
(1) Definition of terms;
(2) Permitting the disclosure and use of personal nonpublic financial information between affiliates;
(3) Opt out procedures for the disclosure and use of personal nonpublic financial information with nonaffiliates;
(4) Notice and disclosure requirements and formats;
(5) Limits on disclosure of personal nonpublic financial information;
(6) Limits on redisclosure and reuse of personal nonpublic financial information;
(7) Limits on sharing account number information for marketing purposes;
(8) Exceptions for opt out and notice requirements; and
(9) Nondiscrimination requirements as they relate to persons who opt out or who do not grant an authorization.
Nothing in this section applies to any rules that may be promulgated pursuant to § 58-2-40. Nothing in this section may be construed to impair or conflict with the Fair Credit Reporting Act.
Source: SL 2001, ch 268, § 1.
