58-30-110. Suspension, revocation, or refusal to renew license--Notice by director.

Upon suspension, revocation, or refusal to renew any license, the director shall notify the licensee thereof and give like notice to the insurers represented in case of an insurance producer's license.

Source: SL 1966, ch 111, ch 9, § 34 (1); SL 2001, ch 286, § 183.

58-30-111. Waiting period for new license after revocation.

The director may not again issue a license under this title to any person whose license has been revoked, until after expiration of one year from the date of such revocation or if judicial review of such revocation is sought, then within one year from the date of final court order or decree affirming the revocation. If the former licensee again files application for a license under this title, the director may require the applicant to show good cause why the prior revocation should not be a bar to the issuance of a new license.

Source: SL 1966, ch 111, ch 9, § 34 (4); SL 2002, ch 240, § 4.

58-30-112. Licenses are property of South Dakota--Delivery to director on termination.

All licenses, although issued and delivered as to the licensee insurance producer or surplus lines broker, shall, at all times, be the property of the State of South Dakota. Upon any expiration, termination, suspension, or revocation of the license, the licensee or other person having possession or custody of the license shall forthwith deliver it to the director either by personal delivery or by mail.

Source: SL 1966, ch 111, ch 9, § 35 (1); SL 2001, ch 286, § 184.

58-30-113. Affidavit as to lost, stolen, or destroyed license.

As to any license lost, stolen, or destroyed while in the possession of any such licensee, the director may accept in lieu of return of the license the affidavits of the licensee or other person responsible for or involved in the safekeeping of such license, concerning the facts of such loss, theft, or destruction.

Source: SL 1966, ch 111, ch 9, § 35 (2).

58-30-114. Continuing education requirements--Definitions.

Terms, as used in §§ 58-30-114 to 58-30-121, inclusive, mean:

(1)    "Director," the director of the Division of Insurance;

(2)    "Instructor," any individual who teaches, lectures, or otherwise instructs an insurance education offering;

(3)    "Licensee," any individual who is licensed by the Division of Insurance as a resident insurance producer; and

(4)    "Sponsor," any person, offering or providing insurance education or related activity.

Source: SL 1984, ch 331, § 1; SL 1989, ch 438, § 1; SL 1990, ch 406, § 1; SL 1994, ch 411, (Ex. Ord. 94-3), § 17; SL 1999, ch 258, § 1; SL 2001, ch 286, § 185; SL 2010, ch 233, § 7.

58-30-115. Resident insurance producers--Continuing education requirements--Exceptions.

The provisions of §§ 58-30-114 to 58-30-121, inclusive, do not apply to the following persons:

(1)    Licensees for whom an examination is not required under the laws of this state. However, persons who are excused from the examination under subdivision 58-30-52(1) may not be exempt;

(2)    Licensees over age sixty-five, if they have been licensed with the Division of Insurance for a period of at least ten years, and do not sell, solicit, or negotiate insurance; and

(3)    Licensees holding limited or restricted licenses, as the director of the Division of Insurance may determine except as provided by subdivision 58-30-116(2).

Source: SL 1984, ch 331, § 2; SL 2006, ch 262, § 1; SL 2010, ch 233, § 8; SL 2012, ch 249, § 1.

58-30-115.1. Renewal of license by persons over age sixty-five.

Any licensee meeting the exception under subdivision 58-30-115(2) shall renew his or her license pursuant to § 58-30-121. Nothing in that subdivision requires a licensee who has reached the age of sixty-five prior to July 1, 2006, and, as of July 1, 2006, has been licensed for at least ten years, to meet the continuing education requirements of this chapter.

Source: SL 2006, ch 262, § 2; SL 2015, ch 260, § 8.

58-30-115.2. Renewal of limited or restricted licenses.

Any licensee meeting the exception pursuant to subdivision 58-30-115(3) shall renew the license pursuant to § 58-30-121.

Source: SL 2009, ch 269, § 1; SL 2015, ch 260, § 9.

58-30-116. Minimum continuing education requirements--Furnishing evidence of completion.

Biennially, beginning April 1, 2012, on the last day of the licensee's birth month, the licensee shall furnish evidence to the director of the Division of Insurance that the licensee has satisfactorily completed the following continuing education requirements:

(1)    Any licensee who holds a property casualty life, accident/health, or variable contract qualification shall obtain a minimum of ten continuing education credit hours in courses certified for each such classification. However, no more than twenty hours of continuing education may be required of any licensee holding multiple insurance producer licenses; and

(2)    Any licensee who holds only a crop hail qualification shall obtain a minimum of four credit hours certified for that line.

Source: SL 1984, ch 331, § 3; SL 2001, ch 286, § 186; SL 2002, ch 240, § 5; SL 2010, ch 233, § 9.

58-30-117. Continuing education rules.

The director of the Division of Insurance, may promulgate, pursuant to chapter 1-26, rules as are necessary for effective administration of continuing education for insurance producers. The rules may include provisions concerning continuing education requirements, exemptions, programs, courses, sponsors, definitions, extensions, fees and funding, instructors, applications, advertising, and administration.

Source: SL 1984, ch 331, § 4; SL 1986, ch 22, § 38; SL 1990, ch 406, § 4; SL 1994, ch 411, (Ex. Ord. 94-3), § 17; SL 2001, ch 286, § 187.

58-30-118. Continuing education activities--Approval by director--Hours certified by director.

The director of the Division of Insurance shall certify as approved continuing education activities those courses, lectures, seminars, or other instructional programs, including insurance company education programs, which he determines are beneficial in improving the product knowledge or service capability of licensees. The director may require descriptive information about any continuing education activity and refuse approval of any continuing education activity that does not advance the purposes of §§ 58-30-114 to 58-30-121, inclusive. The director shall certify the number of hours to be awarded for participation in an approved continuing education activity based upon contact or classroom hours. The director shall certify the number of hours to be awarded for successful completion of a correspondence course or program of independent study, based upon the number of hours which would be awarded in an equivalent classroom course or program.

Source: SL 1984, ch 331, § 5.

58-30-119. Extension of time for completing continuing education requirements.

For good cause shown, the director of the Division of Insurance may grant an extension of time during which the requirements imposed by §§ 58-30-114 to 58-30-121, inclusive, may be completed, but such extension of time may not exceed one year.

Source: SL 1984, ch 331, § 6.

58-30-120. Continuing education prerequisite for license issuance or renewal--Exemptions.

The director of the Division of Insurance may not renew a license or issue a new license in those lines for which the licensee has failed to comply with the requirements set forth in §§ 58-30-114 to 58-30-121, inclusive. However, the licensee is exempt from the examination requirement pursuant to subdivision 58-30-52(1). If the licensee is not exempt from the examination requirement pursuant to subdivision 58-30-52(1), the director may renew or issue a new license without the licensee complying with §§ 58-30-114 to 58-30-121, inclusive, if he meets all statutory requirements for licensing, including examination.

Source: SL 1984, ch 331, § 7; SL 1989, ch 438, § 2.

58-30-121. Additional fee for renewal of license.

The Division of Insurance shall charge each licensee an additional fee of twenty dollars upon renewal of the license. Beginning April 1, 2012, the fee as defined in § 58-2-29 is due on the last day of the licensee's birth month and for each succeeding twenty-four month period. The fee shall be deposited in a separate account, entitled the South Dakota insurance producer's continuing education fund, as funding for the administration of the continuing education program. The director may withhold or not renew the license of any licensee who fails to tender timely payment of the fee.

Source: SL 1984, ch 331, § 8; SL 2001, ch 286, § 188; SL 2002, ch 229, § 2; SL 2007, ch 291, § 2; SL 2010, ch 233, § 10.

58-30-122. Conduct of sponsors and instructors--Approval or disapproval by director--Rules.

The director may approve or disapprove sponsors or instructors. Each sponsor is responsible for the actions of the sponsor's instructors. Sponsors and instructors shall conduct themselves in a professional manner and may not offer or teach any course not approved by the director or not complying with any insurance statute or rule, may not deviate from approved course outlines, and may not misrepresent any course material or other information. The director may promulgate rules, pursuant to chapter 1-26, establishing the necessary criteria for disapproval of a sponsor or instructor.

Source: SL 1990, ch 406, § 2.

58-30-123. Director's action upon violation or nonconformity by sponsor or instructor.

If the director determines that a course sponsor or instructor has violated the provisions of § 58-30-117 or 58-30-122, the director may withdraw approval of the course sponsor or instructor or may order a refund of course fees to licensees who attended the course, or both. The director may also refuse to approve courses conducted by specific sponsors or instructors if the director determines that past offerings by those sponsors or instructors have not been in compliance with insurance continuing education laws and rules.

Source: SL 1990, ch 406, § 3.

58-30-124. Definition of terms.

Terms as used in §§ 58-30-124 to 58-30-139, inclusive, mean:

(1)    "Actuary," any person who is a member in good standing of the American Academy of Actuaries;

(2)    "Managing general agent," any person:

(a)    Who manages all or part of the insurance business of an insurer, including the management of a separate division, department, or underwriting office; and

(b)    Acts as an agent for the insurer or who, with or without the authority, either separately or together with affiliates, produces, directly or indirectly, and underwrites an amount of gross written premium of five percent or more of the policyholder surplus as reported in the last annual statement of the insurer in any one quarter or year and either:

(i)    Adjusts or pays claims; or

(ii)    Negotiates reinsurance on behalf of the insurer;

(3)    "Underwrite," the authority to accept or reject risk on behalf of the insurer.

Source: SL 1992, ch 353, § 1.

58-30-125. Persons not managing general agents.

The following persons are not managing general agents for the purposes of §§ 58-30-124 to 58-30-139, inclusive:

(1)    Any employee of the insurer;

(2)    Any United States manager of the United States branch of an alien insurer;

(3)    Any underwriting manager who, pursuant to contract, manages all the insurance operations of the insurer, is under common control with the insurer, subject to the holding company regulatory act, and whose compensation is not based on the volume of premiums written; or

(4)    Any attorney-in-fact authorized by and acting for the subscribers of a reciprocal insurer or interinsurance exchange under powers of attorney.

Source: SL 1992, ch 353, § 2.

58-30-126. License required--Bond or errors and omissions policy.

No person may act in the capacity of a managing general agent with respect to risks located in this state for an insurer licensed in this state unless the person is a licensed insurance producer in this state. No person may act in the capacity of a managing general agent representing an insurer domiciled in this state with respect to risks located outside this state unless the person is licensed as an insurance producer in this state. The license may be a nonresident license.

The director may require the managing general agent to obtain a bond or an errors and omissions policy in an amount acceptable to the director for the protection of the insurer.

Source: SL 1992, ch 353, § 3; SL 2001, ch 286, § 189.

58-30-127. Written contract between managing general agent and insurer.

No managing general agent may place business with an insurer unless there is in force a written contract between the parties which sets forth the responsibilities of each party and specifies the division of common or shared responsibilities. The contract shall contain the following minimum provisions:

(1)    The insurer may terminate the contract for cause upon written notice to the managing general agent. The insurer may suspend the underwriting authority of the managing general agent during the pendency of any dispute regarding the cause for termination;

(2)    The managing general agent shall render accounts to the insurer detailing all transactions and remit all funds due under the contract to the insurer on not less than a monthly basis;

(3)    All funds collected for the account of an insurer shall be held by the managing general agent in an escrow account in a bank which is a qualified United States financial institution as defined in § 58-30-139. This account shall be used for all payments on behalf of the insurer. The managing general agent may retain no more than three months estimated claims payments and allocated loss adjustment expenses;

(4)    Separate records of business written by the managing general agent shall be maintained. The insurer shall have access and right to copy all accounts and records related to its business in a form usable by the insurer and the director shall have access to all books, bank accounts, and records of the managing general agent in a form usable to the director. Records shall be retained for five years;

(5)    The contract may not be assigned in whole or part by the managing general agent;

(6)    Appropriate underwriting guidelines including:

(a)    The maximum annual premium volume;

(b)    The basis of the rates to be charged;

(c)    The types of risks which may be written;

(d)    Maximum limits of liability;

(e)    Applicable exclusions;

(f)    Territorial limitations;

(g)    Policy cancellation provisions; and

(h)    The maximum policy period; and

(7)    Timely transmission of electronic claims files.

The insurer may cancel or nonrenew any policy of insurance subject to the applicable laws and regulations concerning the cancellation and nonrenewal of insurance policies.

Source: SL 1992, ch 353, § 4; SL 2002, ch 241, § 1.

58-30-128. Settling claims--Content of contract.

If the managing general agent may settle claims on behalf of the insurer, the following shall be included in the contract:

(1)    All claims shall be reported to the company in a timely manner;

(2)    A copy of the claim file shall be sent to the insurer at its request or as soon as it becomes known that the claim:

(a)    Involves a coverage dispute;

(b)    May exceed the managing general agent's claims settlement authority;

(c)    Is open for more than six months; or

(d)    Is closed by payment of an amount set by the company;

(3)    All claim files are the joint property of the insurer and managing general agent. Upon an order of liquidation of the insurer, the files shall become the sole property of the insurer or its estate and the managing general agent shall have reasonable access to and the right to copy the files on a timely basis;

(4)    Any settlement authority granted to the managing general agent may be terminated for cause upon the insurer's written notice to the managing general agent or upon the termination of the contract. The insurer may suspend the settlement authority during the pendency of any dispute regarding the cause for termination;

(5)    The claims settlement authority and limitations of the managing general agent.

The director may initially and at least annually review the amount for settling claims or payment of claims and direct the amount be changed.

Source: SL 1992, ch 353, § 5.

58-30-129. Sharing interim profits.

If the contract provides for a sharing of interim profits by the managing general agent, and the managing general agent may determine the amount of the interim profits by establishing loss reserves or controlling claim payments, or in any other manner, interim profits may not be paid to the managing general agent until one year after they are earned on property insurance business and five years after they are earned on casualty business and not until the profits have been verified pursuant to § 58-30-131.

Source: SL 1992, ch 353, § 6.

58-30-130. Restrictions on managing general agents.

A managing general agent may not:

(1)    Bind reinsurance or retrocessions on behalf of the insurer, except that the managing general agent may bind facultative reinsurance contracts pursuant to obligatory facultative agreements if the contract with the insurer contains reinsurance underwriting guidelines including, for both reinsurance assumed and ceded, a list of reinsurers with which automatic agreements are in effect, the coverages and amounts or percentages that may be reinsured and commission schedules;

(2)    Commit the insurer to participate in insurance or reinsurance syndicates;

(3)    Appoint any insurance producer without assuring that the insurance producer is lawfully licensed to transact the type of insurance for which the insurance producer is appointed;

(4)    Without prior approval of the insurer, pay or commit the insurer to pay a claim over a specified amount, net of reinsurance, which may not exceed one percent of the insurer's policyholder's surplus as of December thirty-first of the last completed calendar year;

(5)    Collect any payment from a reinsurer or commit the insurer to any claim settlement with a reinsurer, without prior approval of the insurer. If prior approval is given, a report shall be promptly forwarded to the insurer;

(6)    Permit its subagent to serve on the insurer's board of directors;

(7)    Jointly employ an individual who is employed with the insurer; or

(8)    Appoint a submanaging general agent.

Source: SL 1992, ch 353, § 7; SL 2001, ch 286, § 190.

58-30-131. Duties of insurer working with managing general agent.

The insurer has the following duties:

(1)    The insurer shall review and have on file an annual independent financial examination done by a person acceptable to the director, of each managing general agent with which it has done business;

(2)    If a managing general agent establishes loss reserves, the insurer 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 managing general agent. This is in addition to any other required loss reserve certification;

(3)    The insurer shall at least semiannually conduct an on-site review of the underwriting and claims processing operations of the managing general agent;

(4)    Binding authority for all reinsurance contracts or participation in insurance or reinsurance syndicates shall rest with an officer of the insurer, who may not be affiliated with the managing general agent;

(5)    Within thirty days of entering into or termination of a contract with a managing general agent, the insurer shall provide written notification of the appointment or termination to the director. Notices of appointment of a managing general agent shall include a statement of duties which the applicant is expected to perform on behalf of the insurer, the lines of insurance for which the applicant is to be authorized to act, and any other information the director may request;

(6)    An insurer shall review its books and records each quarter to determine if any insurance producer is a managing general agent as defined in § 58-30-124. If the insurer determines that an insurance producer has become a managing general agent, the insurer shall promptly notify the insurance producer and the director within thirty days of the determination. The insurer and an insurance producer shall fully comply with the provisions of §§ 58-30-124 to 58-30-139, inclusive, within thirty days of notification to the director; and

(7)    An insurer may not appoint to its board of directors an officer, director, employee, insurance producer, or controlling shareholder of its managing general agents. This subdivision does not apply to relationships governed by chapters 58-5A and 58-44.

Source: SL 1992, ch 353, § 8; SL 2001, ch 286, § 191.

58-30-132. Acts of managing general agent--Examination by director--Costs.

The acts of the managing general agent are considered to be the acts of the insurer on whose behalf it is acting. A managing general agent is subject to examination by the director pursuant to chapter 58-3. Unless otherwise set forth in the contract between the insurer and the managing general agent, the insurer shall pay the costs and expenses of the examination pursuant to § 58-3-15.

Source: SL 1992, ch 353, § 9.

58-30-133. Penalties for violation by managing general agent.

If the director finds after hearing that any person has violated any provision of §§ 58-30-124 to 58-30-139, inclusive, the director may order one or all of the following:

(1)    For each separate violation, a penalty in an amount of not more than twenty-five thousand dollars;

(2)    Revocation or suspension of the license or authority; or

(3)    The managing general agent to reimburse the insurer, the rehabilitator or liquidator of the insurer for any losses incurred by the insurer caused by a violation of §§ 58-30-124 to 58-30-139, inclusive, committed by the managing general agent.

Nothing contained in this section affects the right of the director to impose any other penalties provided for in the insurance law.

Source: SL 1992, ch 353, § 10.

58-30-134. Rights of policyholders, claimants, and auditors.

Nothing contained in §§ 58-30-124 to 58-30-139, inclusive, limits or restricts the rights of policyholders, claimants, and auditors.

Source: SL 1992, ch 353, § 11.

58-30-135. Rules for implementation and administration of §§ 58-30-124 to 58-30-139.

The director may adopt rules, pursuant to chapter 1-26, for the implementation and administration of the provisions of §§ 58-30-124 to 58-30-139, inclusive. The rules may include definitions, licensure, contract provisions, accounting, recordkeeping, examinations, claims, procedures and settlement, insurer and managing general agent duties, and the amount and kind of business a managing general agent may perform for an insurer.

Source: SL 1992, ch 353, § 12.

58-30-136. Utilization of managing general agent after July 1, 1992.

No insurer may continue to utilize the services of a managing general agent on and after July 1, 1992, unless the utilization is in compliance with §§ 58-30-124 to 58-30-139, inclusive.

Source: SL 1992, ch 353, § 13.

58-30-137. Filing and approval of contract.

The contract between the insurer and the managing general agent shall be filed and approved by the director and is subject to §§ 58-5-85 to 58-5-87, inclusive.

Source: SL 1992, ch 353, § 14.

58-30-138. Application of §§ 58-30-124 to 58-30-139.

Sections 58-30-124 to 58-30-139, inclusive, apply to all persons doing insurance business notwithstanding any provision exempting them from other insurance laws except any insurer licensed pursuant to chapter 58-35 which does not have more than one million dollars in direct written premiums and more than one thousand policyholders in any calendar year.

Source: SL 1992, ch 353, § 15.

58-30-139. Qualified United States financial institution defined.

The term, a qualified United States financial institution, means an institution that:

(1)    Is organized or, in the case of a United States office of a foreign banking organization, licensed under the laws of the United States or any state thereof;

(2)    Is regulated, supervised, and examined by United States federal or state authorities having regulatory authority over banks and trust companies; and

(3)    Has been determined by either the director, or the Securities Valuation Office of the National Association of Insurance Commissioners, to meet such standards of financial condition and standing as are considered necessary and appropriate to regulate the quality of financial institutions whose letters of credit will be acceptable to the director.

Source: SL 1992, ch 353, § 16.

58-30-140. Agents not to obtain loans from clients--Exceptions.

No insurance producer may obtain a loan from an existing or former client, other than a lending institution authorized by state or federal law, unless there is a written contract establishing the terms for repayment of the loan and the contract is filed with the division within thirty days of its effective date. This section does not apply to any loans transacted between an insurance producer and that insurance producer's spouse, parents, children, aunts, uncles, or grandparents.

Source: SL 1999, ch 257, § 1; SL 2001, ch 286, § 192.

58-30-141. Application of reciprocity provisions to surplus lines brokers.

Except as to the underlying requirements of a surplus lines broker holding an insurance producer license in the applicable lines and except as provided in §§ 58-30-159 to 58-30-162, inclusive, §§ 58-30-142 to 58-30-195, inclusive, do not apply to surplus lines brokers licensed pursuant to chapter 58-32.

Source: SL 2001, ch 286, § 1.

58-30-142. Definitions.

Terms used in §§ 58-30-141 to 58-30-195, inclusive, and in §§ 58-30-209 to 58-30-218, inclusive mean:

(1)    "Agent of the insurer," any insurance producer who is compensated directly or indirectly by an insurer and sells, solicits, or negotiates any product of that insurer;

(2)    "Agent of insured," any insurance producer or person who secures compensation from an insured or insurance customer only and receives no compensation directly or indirectly from an insurer for a transaction with that insured or insurance customer;

(3)    "Business entity," a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity;

(3A)    "Consultant," an agent of the insured who sells, solicits, or negotiates insurance on behalf of an insured or prospective insured or who assists an insured or prospective insured in the procurement of insurance;

(4)    "Credit insurance," insurance that includes credit life, credit disability, credit property, credit unemployment, involuntary unemployment, mortgage life, mortgage guaranty, mortgage disability, guaranteed automobile protection insurance, and any other form of insurance offered in connection with an extension of credit that is limited to partially or wholly extinguishing that credit obligation that the director determines should be designated a form of limited line credit insurance;

(5)    "Crop insurance," insurance providing protection against damage to crops from unfavorable weather conditions, fire or lightening, flood, hail, insect infestation, disease or other yield-reducing conditions or perils provided by the private insurance market, or that is subsidized by the Federal Crop Insurance Corporation, including Multi-Peril Crop Insurance;

(6)    "Home state," the District of Columbia and any state or territory of the United States in which an insurance producer maintains the insurance producer's principal place of residence or principal place of business and is licensed to act as an insurance producer;

(7)    "Limited lines producer," any person authorized by the director to sell, solicit, or negotiate limited lines insurance;

(8)    "Negotiate," the act of conferring directly with or offering advice directly to a purchaser or prospective purchaser of a particular contract of insurance concerning any of the substantive benefits, terms, or conditions of the contract if the person engaged in that act either sells insurance or obtains insurance from insurers for purchasers;

(9)    "Sell," to exchange a contract of insurance by any means, for money or its equivalent, on behalf of an insurance company;

(10)    "Solicit," attempting to sell insurance or asking or urging a person to apply for a particular kind of insurance from a particular company;

(11)    "Terminate," the cancellation of the relationship between an insurance producer and the insurer or the termination of an insurance producer's authority to transact insurance;

(12)    "Travel insurance," a limited line of insurance as defined in §§ 58-30-209 to 58-30-217, inclusive.

Source: SL 2001, ch 286, § 2; SL 2004, ch 295, § 3; SL 2010, ch 233, § 11; SL 2013, ch 255, § 1; SL 2014, ch 241, § 4.

58-30-143. Sale, solicitation or negotiation limited to licensed line of insurance only.

No person may sell, solicit, or negotiate insurance in this state for any line of insurance unless the person is licensed for that line of authority in accordance with §§ 58-30-141 to 58-30-195, inclusive.

Source: SL 2001, ch 286, § 3.

58-30-144. License not required under certain circumstances.

Nothing in §§ 58-30-141 to 58-30-195, inclusive, requires an insurer to obtain an insurance producer license. In this section, the term, insurer, does not include an insurer's officers, directors, employees, subsidiaries, or affiliates.

A license as an insurance producer is not required of the following:

(1)    The officer, director, or employee of an insurer or of an insurance producer, if the officer, director, or employee does not receive any commission on policies written or sold to insure risks residing, located, or to be performed in this state and:

(a)    The officer's, director's, or employee's activities are executive, administrative, managerial, clerical, or a combination of these, and are only indirectly related to the sale, solicitation, or negotiation of insurance;

(b)    The officer's, director's, or employee's function relates to underwriting, loss control, inspection or the processing, adjusting, investigating, or settling of a claim on a contract of insurance; or

(c)    The officer, director, or employee is acting in the capacity of a special agent or agency supervisor assisting insurance producers, if the person's activities are limited to providing technical advice and assistance to licensed insurance producers and do not include the sale, solicitation, or negotiation of insurance;

(2)    Any person who secures and furnishes information for the purpose of group life insurance, group property and casualty insurance, group annuities, group or blanket accident and health insurance; or for the purpose of enrolling individuals under plans, issuing certificates under plans, or otherwise assisting in administering plans; or who performs administrative services related to mass marketed property and casualty insurance, if no commission is paid to the person for the service;

(3)    Any employer or association or its officers, directors, employees, or the trustees of an employee trust plan, to the extent that the employers, officers, employees, director, or trustees are engaged in the administration or operation of a program of employee benefits for the employer's or association's own employees or the employees of its subsidiaries or affiliates, which program involves the use of insurance issued by an insurer, as long as the employers, associations, officers, directors, employees, or trustees are not in any manner compensated, directly or indirectly, by the company issuing the contracts;

(4)    Any employee of an insurer or an organization employed by an insurer who is engaging in the inspection, rating, or classification of risks, or in the supervision of the training of insurance producers and who is not individually engaged in the sale, solicitation, or negotiation of insurance;

(5)    Any person whose activities in this state are limited to advertising without the intent to solicit insurance in this state through communications in printed publications or other forms of electronic mass media whose distribution is not limited to residents of the state, if the person does not sell, solicit, or negotiate insurance that would insure risks residing, located, or to be performed in this state;

(6)    Any person who is not a resident of this state who sells, solicits, or negotiates a contract of insurance for commercial property and casualty risks to an insured with risks located in more than one state insured under that contract, if that person is otherwise licensed as an insurance producer to sell, solicit, or negotiate that insurance in the state where the insured maintains its principal place of business and the contract of insurance insures risks located in that state;

(7)    Any salaried full-time employee who counsels or advises his or her employer relative to the insurance interests of the employer or of the subsidiaries or business affiliates of the employer, if the employee does not sell or solicit insurance or receive a commission;

(8)    Any person engaged in the business of fur storage who delivers to customers certificates or policies providing insurance on specified furs, garments trimmed with fur, or other garments accepted for storage and who collects the premium therefor, if the person receives no commissions for such service; or

(9)    Any person engaged in the sale or issuance by motor vehicle dealers licensed under chapter 32-6B of motor vehicle service contracts, extended service agreements, mechanical breakdown insurance, or insurance of the mechanical condition, or freedom from defective or worn parts or equipment of motor vehicles.

Source: SL 2001, ch 286, § 4; SL 2010, ch 241, § 1.

58-30-144.1. License required for acting as consultant.

Any person acting as a consultant shall be licensed as an agent pursuant to this chapter. A consultant may collect a fee from an insurance customer for services provided as a consultant but may not collect a fee for any insurance placed with that insurance customer if a commission is payable to that consultant. A consultant may act as a consultant and collect a fee from an insurance customer and also receive a commission for insurance sold, solicited, or negotiated with that same insurance customer provided that the fee and commission are for separate and distinct insurance products. The term, fee, as used in this section, does not include a fee that is payable pursuant to the terms or conditions of an insurance policy, contract, or certificate or that are required to be paid for reasons other than the services provided by the consultant.

A separate license for acting as a consultant is not required of a licensed agent. Any consultant collecting a fee from an insurance customer shall set forth the fee to be charged to that insurance customer and the terms and conditions of the services provided to that insurance customer in the form of a written agreement with that insurance customer.

Source: SL 2013, ch 255, § 2.

58-30-145. Written examination required for resident applicants.

A resident individual applying for an insurance producer license shall pass a written examination unless exempt pursuant to § 58-30-52. The examination shall test the knowledge of the individual concerning the lines of authority for which application is made, the duties and responsibilities of an insurance producer, and the insurance laws and rules of this state.

Source: SL 2001, ch 286, § 5.

58-30-146. Arrangements for administration of examinations and collection of fee.

The director may make arrangements, including contracting with an outside testing service, for administering examinations and collecting the fee set forth in § 58-2-29.

Source: SL 2001, ch 286, § 6.

58-30-147. Payment of examination fees required.

Each individual applying for an examination shall remit a fee as prescribed by the director as set forth in § 58-2-29 and pay any fees charged by the outside testing service.

Source: SL 2001, ch 286, § 7.

58-30-148. Resident application for insurance producer license--Requirements for application.

A person applying for a resident insurance producer license shall make application to the director on an application form or format as prescribed by the director and declare under penalty of refusal, suspension, or revocation of the license that the statements made in the application are true, correct, and complete to the best of the individual's knowledge and belief. The director shall consider the use of a uniform application form or format.

Before approving the application, the director shall find that the individual:

(1)    Is at least eighteen years of age;

(2)    Has not committed any act that is a ground for denial, suspension, or revocation set forth in § 58-30-167;

(3)    Has paid the fees set forth in § 58-2-29; and

(4)    Has successfully passed the examinations for the lines of authority for which the person has applied.

Source: SL 2001, ch 286, § 8; SL 2002, ch 240, § 6.

58-30-149. Application by business entity for insurance producer license--Requirements.

A business entity acting as an insurance producer is required to obtain an insurance producer license. Application shall be made using a form or format prescribed by the director. The director shall consider the use of a uniform form or format. Before approving the application, the insurance director shall find that the business entity has paid the fees set forth in § 58-2-29.

Source: SL 2001, ch 286, § 9; SL 2007, ch 291, § 1.

58-30-150. Verification of application information.

The director may require any documents reasonably necessary to verify the information contained in an application.

Source: SL 2001, ch 286, § 10.

58-30-150.1. Incomplete application--Deemed withdrawn--Not a refusal or reportable administrative action.

An application for an insurance producer license must be deemed withdrawn if the director contacts an applicant under this chapter in writing regarding an incomplete application and the director does not receive a response from the applicant within sixty days of the date of the written communication. A withdrawn application under this section is not a refusal to issue a producer license and is not an administrative action reportable to other states.

Source: SL 2022, ch 184, § 1.

58-30-151. Program of instruction required for licensed insurance producers--Approval by director.

Each insurer that sells, solicits, or negotiates any form of limited line credit insurance shall provide a program of instruction to each business entity acting as a licensed insurance producer for the insurer. Using the insurer's program of instruction, the insurer or the business entity shall train any employee of the business entity whose duties include selling, soliciting, or negotiating limited credit line insurance. Upon request by the director, the program of instruction is subject to approval by the director.

Source: SL 2001, ch 286, § 11.

58-30-152. Issuance of insurance producer license--Permitted lines of authority.

Unless denied licensure pursuant to § 58-30-167, any person who has met the requirements of §§ 58-30-145 to 58-30-151, inclusive, shall be issued an insurance producer license. An insurance producer may receive qualification for a license in one or more of the following lines of authority:

(1)    Life--insurance coverage on human lives including benefits of endowment and annuities and may include benefits in the event of death or dismemberment by accident and benefits for disability income;

(2)    Accident and health or sickness--insurance coverage for sickness, bodily injury, or accidental death and may include benefits in the event of death or dismemberment by accident and for disability income;

(3)    Property--insurance coverage for the direct or consequential loss or damage to property of every kind;

(4)    Casualty--insurance coverage against legal liability, including that for death, injury, or disability, damage to real or personal property, or fidelity and surety bonds;

(5)    Variable life and variable annuity products--insurance coverage provided under variable life insurance contracts and variable annuities;

(6)    Personal lines--property and casualty insurance coverage sold to individuals and families for primarily noncommercial purposes;

(7)    Limited lines;

(8)    Any other line of insurance permitted under state laws or rules.

Source: SL 2001, ch 286, § 12; SL 2010, ch 233, § 12.

58-30-153. Term of insurance producer license.

An insurance producer license shall remain in effect unless revoked, suspended, or expired as long as the fee set forth in § 58-2-29 is paid and the education requirements for resident individual insurance producers are met by the due date.

Source: SL 2001, ch 286, § 13.

58-30-154. Reinstatement of lapsed insurance producer license.

An individual insurance producer who allows his or her license to lapse may, within twelve months from the due date of the renewal fee apply to reinstate the same license without the necessity of passing a written examination. A penalty in the amount of double the unpaid renewal fee shall be required for any license reinstatement. This section only applies to renewals if the continuing education due date was missed or timely payment of the fee was not made.

Source: SL 2001, ch 286, § 14.

58-30-155. Waiver of insurance producer license renewal requirements.

A licensed insurance producer who is unable to comply with license renewal procedures due to military service or some other extenuating circumstance, such as a long-term medical disability, may request a waiver of those procedures. The producer may also request a waiver of any examination requirement or any other monetary penalty or sanction imposed for failure to comply with renewal procedures. The director may promulgate rules pursuant to chapter 1-26 for determining what constitutes extenuating circumstances if the director finds that application of this section or the imposition of sanctions would create an unreasonable hardship.

Source: SL 2001, ch 286, § 15.

58-30-156. Information contained on insurance producer license.

The license shall contain the licensee's name, address, personal identification number, the date of issuance, the lines of authority, the expiration date, and any other information the director determines to be necessary.

Source: SL 2001, ch 286, § 16.

58-30-157. Notification of change of address by insurance producer.

A licensee shall inform the director in a form or format prescribed by the director of a change of address within thirty days of the change.

Source: SL 2001, ch 286, § 17.

58-30-158. Authority of director to contract with nongovernmental entities for ministerial functions relating to insurance producer licensing.

In order to assist in the performance of the director's duties, the director may contract with nongovernmental entities, including the National Association of Insurance Commissioners (NAIC) or any affiliates or subsidiaries that the NAIC oversees to perform any ministerial functions, including the collection of fees, related to insurance producer licensing that the director and the nongovernmental entity may deem appropriate.

Source: SL 2001, ch 286, § 18.

58-30-159. Requirements for nonresident insurance producer license.

Unless denied licensure pursuant to § 58-30-167, a nonresident person is entitled to receive a nonresident insurance producer license if:

(1)    The person is currently licensed as a resident insurance producer and in good standing in the person's home state;

(2)    The person has submitted the proper request for licensure and has paid the fees required by § 58-2-29;

(3)    The person has submitted or transmitted to the director the application for licensure that the person submitted to the person's home state or the application required by § 58-30-148; and

(4)    Except for fees, the person's home state issues nonresident insurance producer licenses to residents of this state on the same basis.

Source: SL 2001, ch 286, § 19.

58-30-160. Nonresident insurance producer required to hold equivalent license in home state.

A licensee as nonresident insurance producer shall at all times be qualified for and hold in the licensee's home state of domicile the license of that home state as a resident insurance producer covering all kinds of insurance covered or to be covered under the South Dakota nonresident license. A hearing is not necessary in order to revoke, suspend, terminate, or nonrenew a nonresident insurance producer's license in this state if that insurance producer no longer has a producer license in the insurance producer's home state of domicile.

Source: SL 2001, ch 286, § 20; SL 2002, ch 240, § 7.

58-30-161. Verification of nonresident's licensing status.

The director may verify the insurance producer's licensing status through databases maintained by the National Association of Insurance Commissioners, its affiliates, or subsidiaries.

Source: SL 2001, ch 286, § 21.

58-30-162. Change of address required for interstate move.

A nonresident insurance producer who moves from one state to another state or a resident insurance producer who moves from this state to another state shall file a change of address and provide certification from the new resident state within thirty days of the change of legal residence. No fee or license application is required.

Source: SL 2001, ch 286, § 22.

58-30-163. Nonresident license applicant--Reciprocity--Exception.

The director shall waive any requirements for a nonresident license applicant with a valid license from the applicant's home state, except for the requirements imposed by § 58-30-159, if the applicant's home state awards nonresident licenses to residents of this state on the same basis. The director may issue a resident license for a type of license not specified in this title to a person for insurance activities which do not require licensure in this state provided that another state which that person does insurance business in requires such license.

Source: SL 2001, ch 286, § 23; SL 2010, ch 233, § 13.

58-30-164. Notification of use of assumed name by insurance producer.

An insurance producer doing business under any name other than the insurance producer's legal name is required to notify the director prior to using the assumed name.

Source: SL 2001, ch 286, § 24.

58-30-165. Temporary insurance producer license.

The director may issue a temporary insurance producer license for a period not to exceed one hundred eighty days without requiring an examination if the director determines that the temporary license is necessary for the servicing of an insurance business in the following cases:

(1)    To the surviving spouse or court-appointed personal representative of a licensed insurance producer who dies or becomes mentally or physically disabled to allow adequate time for the sale of the insurance business owned by the insurance producer or for the recovery or return of the insurance producer to the business or to provide for the training and licensing of new personnel to operate the insurance producer's business;

(2)    To a member or employee of a business entity licensed as an insurance producer, upon the death or disability of an individual designated in the business entity application or the license;

(3)    To the designee of a licensed insurance producer entering active service in the armed forces of the United States of America; or

(4)    In any other circumstance where the director determines that the public interest will be best served by the issuance of this license.

Source: SL 2001, ch 286, § 25.

58-30-166. Limits on temporary insurance producer license--Revocation of temporary license.

The director may by order limit the authority of any temporary licensee in any way determined to be necessary to protect insureds and the public. The director may require the temporary licensee to be under the supervision of a licensed insurance producer or insurer who assumes responsibility for all acts of the temporary licensee and may impose other similar requirements designed to protect insureds and the public. The director may by order revoke a temporary license if the interest of insureds or the public are endangered. A temporary license does not continue after the owner or the personal representative disposes of the business.

Source: SL 2001, ch 286, § 26.

58-30-167. Causes for suspension, revocation, refusal to issue or renew license, or monetary penalty--Notice--Hearing--Final determination.

The director may suspend for not more than twelve months, or may revoke or refuse to continue, any license issued under this chapter, or any license of a surplus lines broker after a hearing. Notice of such hearing and of the charges against the licensee shall be given to the licensee and to the insurers represented by such licensee or to the appointing agent of a producer at least twenty days before the hearing. The director may suspend, revoke, or refuse to issue or renew an insurance producer's license or may accept a monetary penalty in accordance with § 58-4-28.1 or any combination thereof, for any one or more of the following causes:

(1)    Providing incorrect, misleading, incomplete, or materially untrue information in the license application;

(2)    Violating any insurance laws or rules, subpoena, or order of the director or of another state's insurance director, commissioner, or superintendent;

(3)    Obtaining or attempting to obtain a license through misrepresentation or fraud;

(4)    Withholding, misappropriating, or converting any monies or properties received in the course of doing insurance business;

(5)    Intentionally misrepresenting the terms of an actual or proposed insurance contract or application for insurance;

(6)    Having been convicted of a felony;

(7)    Having admitted or been found to have committed any insurance unfair trade practice or fraud;

(8)    Using fraudulent, coercive, or dishonest practices, or demonstrating incompetence, untrustworthiness, or financial irresponsibility in the conduct of business in this state or elsewhere;

(9)    Having an insurance producer license, or its equivalent, denied, suspended, or revoked in any other state, province, district, or territory;

(10)    Forging another's name to an application for insurance or to any document related to an insurance transaction;

(11)    Using notes or any other reference material to complete an examination for an insurance license;

(12)    Knowingly accepting insurance business from an individual who sells, solicits, or negotiates insurance and is not licensed; or

(13)    Failing to comply with an administrative or court order imposing a child support obligation.

At the conclusion of the matter, the director shall send a letter to the licensee, the insurers represented by such licensee, and the appointing agent of a producer, stating the final determination of the matter.

Source: SL 2001, ch 286, § 27; SL 2002, ch 240, § 8; SL 2006, ch 263, § 1.

58-30-167.1. Termination of producer for receipt of hearing notice prohibited.

No insurer may terminate the appointment of a producer based solely on the receipt of a notice of hearing pursuant to § 58-30-167 involving that producer.

Source: SL 2006, ch 263, § 2.

58-30-167.2. Revocation of license for failure to respond.

If the director has reasonable evidence that a licensed insurance producer has violated any provision of this title and the licensed producer has also violated subdivision 58-33-66(1) for failing to respond to division inquiries regarding the same, the director may, after sufficient notice, revoke the producer's license by an order of the director without a hearing. An order under this section must include the applicable provisions of § 58-4-16 and chapter 1-26 for final agency decisions and must be accompanied by exhibits demonstrating the alleged violations.

For purposes of this section, the term "sufficient notice" means:

(1)    The producer is provided notice of the alleged violations at the producer's last reported mailing address on file with the director; and

(2)    The producer is provided a second notice at the producer's last reported mailing address on file with the director stating the producer is in violation of § 58-33-66 and must respond to avoid administrative action by the division.

Source: SL 2024, ch 204, § 1.

58-30-167.3. Request for hearing.

An order under § 58-30-167.2 must allow sixty days for the producer to request a hearing in writing. If a timely request for hearing is received, the director shall issue a notice of hearing within thirty days. The office of hearing examiners shall hold the hearing, review the director's order with the evidence presented at hearing, and issue a proposed decision. If a producer does not timely request a hearing, the director's order revoking the license becomes the final agency decision pursuant to § 1-26-25.

Source: SL 2024, ch 204, § 2.

58-30-168. Written reasons for denial or nonrenewal required--Request for hearing--Notice of hearing.

If the director denies an application for a license or does not renew a license, the director shall notify the applicant or licensee and advise, in writing, the applicant or licensee of the reason for the denial or nonrenewal of the applicant's or licensee's license. The applicant or licensee may make a written request to the director within thirty days of the date of the nonrenewal or denial for a hearing to determine the reasonableness of the director's action. A notice of hearing shall be issued within thirty days of receipt of a written request. A hearing shall be held pursuant to chapter 1-26. This section does not apply to emergency suspensions pursuant to § 1-26-29 or cease and desist orders in § 58-4-7.

Source: SL 2001, ch 286, § 28.

58-30-169. Unreported knowledge by partners, officers, or managers of violation as grounds for penalty.

The license of a business entity may be suspended, revoked, refused, or the director may accept a monetary penalty in accordance with § 58-4-28.1, or any combination thereof, if the director finds, after hearing, that an individual licensee's violation was known or should have been known by one or more of the partners, officers, or managers acting on behalf of the partnership or corporation and the violation was neither reported to the director nor corrected.

Source: SL 2001, ch 286, § 29.

58-30-170. Authority of director to impose penalty or remedy.

The director retains the authority to enforce the provisions of and impose any penalty or remedy authorized by §§ 58-30-141 to 58-30-195, inclusive, and Title 58 against any person who is under investigation for or charged with any violation of §§ 58-30-141 to 58-30-195, inclusive, or Title 58 even if the person's license or registration has been surrendered or has lapsed by operation of law.

Source: SL 2001, ch 286, § 30.

58-30-171. Payment to unlicensed insurance producer prohibited.

No insurer or insurance producer may pay a commission, service fee, brokerage, or other valuable consideration to a person for selling, soliciting, or negotiating insurance in this state if that person is required to be licensed under §§ 58-30-141 to 58-30-195, inclusive, and is not so licensed. Nothing in this section allows an insurer to pay commissions to a nonappointed insurance producer if an appointment is otherwise required.

Source: SL 2001, ch 286, § 31.

58-30-171.1. Insurer may prohibit consultant fees.

An insurer may by contract prohibit an insurance producer from collecting a fee from an insurance customer for services provided as a consultant.

Source: SL 2013, ch 255, § 3.

58-30-172. Acceptance of payment by unlicensed insurance producer prohibited.

No person may accept a commission, service fee, brokerage, or other valuable consideration for selling, soliciting, or negotiating insurance in this state if that person is required to be licensed or appointed under §§ 58-30-141 to 58-30-195, inclusive, and is not so licensed or appointed.

Source: SL 2001, ch 286, § 32.

58-30-173. Renewal or deferred commissions approved if license held at time of transaction.

Renewal or other deferred commissions may be paid to a person for selling, soliciting, or negotiating insurance in this state if the person was required to be licensed under §§ 58-30-141 to 58-30-195, inclusive, at the time of the sale, solicitation, or negotiation and was so licensed at that time.

Source: SL 2001, ch 286, § 33.

58-30-174. Payment, assignment, or sharing of commissions and fees--Limitations.

No insurer or insurance producer may pay or assign a commission, service fee, brokerage fee, or any other valuable consideration for a referral to any person not appropriately licensed pursuant to this chapter unless the payment or assignment is a fixed dollar amount that is not related to the amount of commission or premium for an insurance transaction and that is not dependent upon whether the referral results in a transaction. Nothing in this chapter prohibits a licensed and appointed producer upon receiving a commission from sharing this compensation with other insurance producers if those insurance producers are licensed in the line of business for which the original commission was received. However, no insurance producer who is not appointed may act as an agent of an insurer. An insurer who pays a commission to an appointed insurance producer is not responsible for any act, statement, or omission made by an insurance producer who is not appointed, but who receives compensation from an appointed insurance producer.

Source: SL 2001, ch 286, § 34; SL 2004, ch 295, § 2; SL 2005, ch 275, § 1; SL 2015, ch 255, § 1.

58-30-175. Requirements for acting as agent of insurer.

No insurance producer or business entity may act as an agent of an insurer unless the insurance producer becomes an appointed insurance producer of that insurer. An insurance producer who is not acting as an agent of an insurer is not required to become appointed. This section does not apply to property and casualty insurance producers who sell, solicit, or negotiate and place insurance with admitted insurers although the insurance producer is not appointed with the insurer if all insurance business placed by the unappointed insurance producer is through a licensed insurance producer who is appointed by the insurer involved in the transaction and if the coverage is not reasonably available through the insurance producer's existing appointed insurers for placements made as authorized by this section. The unappointed insurance producer may receive compensation from the insurer or a resident appointed insurance producer.

Source: SL 2001, ch 286, § 35; SL 2010, ch 241, § 2.

58-30-176. Appointment of insurance producer or business entity as agent of insurer--Submission of notice of appointment.

To appoint an insurance producer or business entity as its agent, the appointing insurer shall file, in a format approved by the director, a notice of appointment within fifteen days from the date the agency contract is executed or the first insurance application is submitted. An insurer may also elect to appoint an insurance producer to all or some insurers within the insurer's holding company system or group by the filing of a single appointment request. The insurer is responsible for the acts of its representatives and insurance producers, including those acts where the insurance producer has solicited, sold, or negotiated insurance on behalf of that insurer prior to the date of appointment.

Source: SL 2001, ch 286, § 36.

58-30-177. Verification of eligibility of insurance producer for appointment as agent of insurer.

Upon receipt of the notice of appointment, the director shall verify within a reasonable time, not to exceed thirty days, that the insurance producer is eligible for appointment. If the insurance producer is determined to be ineligible for appointment, the director shall notify the insurer within five days of its determination.

Source: SL 2001, ch 286, § 37.

58-30-178. Appointment fee required.

An insurer shall pay an appointment fee in the amount as set forth in § 58-2-29 in a manner prescribed by the director for each insurance producer appointed by the insurer.

Source: SL 2001, ch 286, § 38.

58-30-179. Renewal appointment fee.

An insurer shall remit, in a manner prescribed by the director, a renewal appointment fee in the amount set forth in § 58-2-29.

Source: SL 2001, ch 286, § 39.

58-30-180. Termination of relationship between insurer and insurance producer.

An insurer or authorized representative of the insurer that terminates the appointment, employment, contract, or other insurance business relationship with an insurance producer shall notify the director within thirty days following the effective date of the termination, using a format prescribed by the director. In addition, an insurer or authorized representative of the insurer that terminates the appointment, employment, contract, or other insurance business relationship with a producer shall notify the director within thirty days following the effective date of the termination, using a format prescribed by the director, if a reason for termination is one of the reasons set forth in § 58-30-167 or the insurer has knowledge the producer was found by a court, government body, or self-regulatory organization authorized by law to have engaged in any of the activities in § 58-30-167. Upon the written request of the director, the insurer shall provide additional information, documents, records, or other data pertaining to the termination or activity of the insurance producer. Such information, documents, records, or other data are confidential pursuant to § 58-30-187.

Source: SL 2001, ch 286, § 40; SL 2007, ch 291, § 3; SL 2010, ch 233, § 14.

58-30-181. Prompt notification of additional information regarding termination of insurance producer.

The insurer or authorized representative of the insurer shall promptly notify the director in a written or electronic format if, upon further review or investigation, the insurer discovers additional information that would have been reportable to the director in accordance with § 58-30-180 had the insurer then known of its existence.

Source: SL 2001, ch 286, § 41.

58-30-182. Notification to insurance producer of termination by insurer.

Within fifteen days after making the notification required by §§ 58-30-180 and 58-30-181, the insurer shall mail, or if acceptable, send by electronic means, a copy of the notification to the insurance producer at the insurance producer's last known address. If the insurance producer is terminated for any of the reasons listed in § 58-30-167, the insurer shall provide a copy of the notification to the insurance producer at the insurance producer's last known address by certified mail, return receipt requested and postage prepaid, by overnight delivery using a nationally recognized carrier, or if acceptable, by electronic means.

Source: SL 2001, ch 286, § 42.

58-30-183. Submission of written comments by insurance producer regarding termination.

Within thirty days after the insurance producer has received the original or additional notification, the insurance producer may file written comments concerning the substance of the notification with the director. The insurance producer shall simultaneously send a copy of the comments to the reporting insurer, and the comments shall become a part of the director's file and accompany every copy of a report distributed or disclosed for any reason about the insurance producer as permitted under § 58-30-187.

Source: SL 2001, ch 286, § 43.

58-30-184. Liability for information relating to termination.

In the absence of actual malice, an insurer, the authorized representative of the insurer, an insurance producer, the director, or an organization of which the director is a member that compiles the information and makes it available to other insurance directors, commissioners, or superintendents, or regulatory or law enforcement agencies, is not subject to civil liability, and no civil cause of action of any nature may arise against these entities or their respective agents or employees, as a result of any statement or information required by or provided pursuant to §§ 58-30-180 to 58-30-193, inclusive, or any information relating to any statement that may be requested in writing by the director, from an insurer or insurance producer; or any statement by a terminating insurer or insurance producer to an insurer or insurance producer limited solely and exclusively to whether a termination for cause under § 58-30-180 was reported to the director, if the propriety of any termination for cause under § 58-30-180 is certified in writing by an officer or authorized representative of the insurer or insurance producer terminating the relationship.

Source: SL 2001, ch 286, § 44.

58-30-185. Pleadings in action brought against provider of information regarding termination of insurance producer.

In any action brought against a person that may have immunity under § 58-30-184 for making any statement required by §§ 58-30-180 to 58-30-193, inclusive, providing any information relating to any statement that may be requested by the director, the party bringing the action shall plead specifically in any allegation that § 58-30-184 does not apply because the person making the statement or providing the information did so with actual malice.

Source: SL 2001, ch 286, § 45.

58-30-186. Application of common law to action regarding insurance producer's termination.

The provisions of §§ 58-30-184 and 58-30-185 do not abrogate or modify any existing statutory or common law privileges or immunities.

Source: SL 2001, ch 286, § 46.

58-30-187. Confidentiality of information gathered in termination investigation.

Any documents, materials, or other information in the control or possession of the Division of Insurance that is furnished by the insurer, insurance producer, or an employee or agent thereof acting on behalf of the insurer or insurance producer, or obtained by the director in an investigation pursuant to §§ 58-30-180 to 58-30-193, inclusive, are confidential by law and privileged, are not subject to open records, freedom of information, sunshine, or other related laws, are not subject to subpoena, and are not subject to discovery or admissible in evidence in any private civil action. The director is authorized to use the documents, materials, or other information in the furtherance of any regulatory function or legal action brought as a part of the director's duties.

Source: SL 2001, ch 286, § 47.

58-30-188. Testimony in private civil action prohibited.

Neither the director nor any person who received documents, materials, or other information while acting under the authority of the director may testify in any private civil action concerning any confidential documents, materials, or information subject to § 58-30-187.

Source: SL 2001, ch 286, § 48.

58-30-189. Director's duties in regard to confidential and privileged documents.

In order to assist in the performance of the director's duties under §§ 58-30-141 to 58-30-195, inclusive, the director may:

(1)    Share documents, materials, or other information, including the confidential and privileged documents, materials, or information subject to § 58-30-187, with other state, federal, and international regulatory agencies, with the National Association of Insurance Commissioners, its affiliates, or subsidiaries, and with state, federal, and international law enforcement authorities, if the recipient agrees to maintain the confidentiality and privileged status of the document, material, or other information;

(2)    Receive documents, materials, or information, including otherwise confidential and privileged documents, materials, or information from the National Association of Insurance Commissioners, its affiliates, or subsidiaries and from regulatory and law enforcement officials of other foreign or domestic jurisdictions, and shall maintain as confidential or privileged any document, material, or information received with notice or the understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the document, material, or information; and

(3)    Enter into agreements governing sharing and use of information consistent with this section.

Source: SL 2001, ch 286, § 49.

58-30-190. Waiver of privilege or claim of confidentiality.

No waiver of any applicable privilege or claim of confidentiality in the documents, materials, or information occurs as a result of disclosure to the director under §§ 58-30-180 to 58-30-192, inclusive, or as a result of sharing as authorized in § 58-30-187.

Source: SL 2001, ch 286, § 50; SL 2021, ch 210, § 20.

58-30-191. Release of final orders allowed.

Nothing in §§ 58-30-141 to 58-30-195, inclusive, prohibits the director from releasing final orders, including for cause terminations that are open to public inspection pursuant to Title 58 and chapters 1-26 and 1-27, to a database or other clearinghouse service maintained by the National Association of Insurance Commissioners, its affiliates, or its subsidiaries.

Source: SL 2001, ch 286, § 51.

58-30-192. Penalties for failure to report.

An insurer, the authorized representative of the insurer, or insurance producer that fails to report as required under the provisions of §§ 58-30-141 to 58-30-195, inclusive, or that is found to have reported with actual malice by a court of competent jurisdiction may, after notice and hearing, have its license or certificate of authority suspended or revoked and may be assessed a monetary penalty in accordance with § 58-4-28.1.

Source: SL 2001, ch 286, § 52.

58-30-193. Report by insurance producer of any administrative action taken against insurance producer.

An insurance producer shall report to the director any administrative action taken against the insurance producer in another jurisdiction or by another governmental agency in this state within thirty days of the final disposition of the matter. This report shall include a copy of the order, consent order, or other relevant legal documents.

Source: SL 2001, ch 286, § 53.

58-30-194. Report by insurance producer of any felony criminal prosecution of insurance producer.

Within thirty days of the initial pretrial hearing date, an insurance producer shall report to the director any felony criminal prosecution of the insurance producer taken in any jurisdiction. The report shall include a copy of the initial complaint filed, the order resulting from the hearing, and any other relevant legal documents.

Source: SL 2001, ch 286, § 54.

58-30-195. Promulgation of licensure rules.

The director may promulgate rules pursuant to chapter 1-26 to provide for:

(1)    Qualifications for licensure;

(2)    Exceptions to licensure;

(3)    Application for licensure;

(4)    Rights and obligations of licensure;

(5)    Temporary licenses;

(6)    Nonresident licensing;

(7)    Denial, nonrenewal, or revocation of license;

(8)    Application for examination and examination procedures;

(9)    Exemption from examination;

(10)    Commissions;

(11)    Appointments and termination thereof;

(12)    Reciprocity;

(13)    Reporting of actions;

(14)    Definition of terms; and

(15)    Required forms or procedures.

Source: SL 2001, ch 286, § 55.

58-30-196. Influencing witness testimony in examination or investigation.

No insurance producer may attempt to influence a witness to decline to testify or to testify falsely or withhold any testimony, information, document, or thing in any examination or investigation by the division or hearing pursuant to Title 58 if the insurance producer has prior notice of the examination, investigation, or hearing.

Source: SL 2005, ch 276, § 1.

58-30-197. Rental car insurance--Definition of terms.

Terms used in this section and §§ 58-30-198 to 58-30-208, inclusive, mean:

(1)    "Director," the director of insurance;

(2)    "Endorsee," an unlicensed employee or agent of a rental car agent who offers, sells, or solicits rental car insurance and meets the requirements of §§ 58-30-198 to 58-30-208, inclusive;

(3)    "Rental agreement," any written master, corporate, group, or individual agreement setting forth the terms and conditions governing the use of a rental car rented or leased by a rental car company;

(4)    "Rental car," any motor vehicle that is intended to be rented for a period of twenty-eight consecutive days or less, by a driver who is not required to possess a commercial driver's license to operate the motor vehicle and the motor vehicle is either of the following:

(a)    A private passenger motor vehicle, including a passenger van, minivan, or sports utility vehicle; or

(b)    A cargo vehicle, including a cargo van, pickup truck, or truck with a gross vehicle weight of less than twenty-six thousand pounds;

(5)    "Rental car agent," any company that is licensed to offer, sell, or solicit rental car insurance pursuant to §§ 58-30-198 to 58-30-208, inclusive;

(6)    "Rental car company," any person in the business of providing rental cars to the public, including a franchisee;

(7)    "Renter," any person who executes a rental agreement to obtain the use of a vehicle from a rental car company.

Source: SL 2001, ch 272, § 1; SDCL § 58-9-34; SL 2010, ch 233, § 2.

58-30-198. Rental car insurance defined.

For the purposes of §§ 58-30-197 to 58-30-208, inclusive, rental car insurance is insurance offered, sold, or solicited in connection with and incidental to the rental of rental cars, other than waiver of the rental car company's right of indemnity for damages to the rental car, whether at the rental office or by pre-selection of coverage in master, corporate, group, or individual agreements, that:

(1)    Is nontransferable;

(2)    Applies only to the rental car that is the subject of the rental agreement; and

(3)    Is limited to the following kinds of insurance:

(a)    Personal accident insurance for renters and other rental car occupants, for accidental death or dismemberment, and for medical expenses resulting from an accident that occurs with the rental car during the rental period;

(b)    Liability insurance, which includes uninsured or underinsured motorist coverage, that is not less than the minimum financial responsibility limits required by the law, whether offered separately or in combination with other liability insurance, that provides protection to the renters and to other authorized drivers of a rental car for liability arising from the operation of the rental car during the rental period;

(c)    Personal effects insurance that provides coverage to renters and other occupants of the rental car for loss of, or damage to, personal effects in the rental car during the rental period;

(d)    Roadside assistance and emergency sickness protection insurance; and

(e)    Such other travel or vehicle-related coverage that a rental car company may offer in connection with and incidental to the rental of a rental car as may be approved by the director in rules promulgated pursuant to chapter 1-26.

Source: SL 2001, ch 272, § 2; SDCL § 58-9-35; SL 2010, ch 233, § 2.

58-30-199. License needed for offering, selling, or soliciting purchase of rental car insurance.

No rental car company, and no officer, director, employee, or agent of a rental car company, may offer, sell, or solicit the purchase of rental car insurance unless the person is licensed as an insurance producer or there has been compliance with the requirements of §§ 58-30-197 to 58-30-208, inclusive.

Source: SL 2001, ch 272, § 3; SDCL § 58-9-36; SL 2010, ch 233, § 2.

58-30-200. Licensing of rental car agent for authorized rental car insurer.

The director may issue to a rental car company that has complied with the requirements of §§ 58-30-197 to 58-30-208, inclusive, a license that authorizes the rental car company to act as a rental car agent in accordance with the provisions of §§ 58-30-197 to 58-30-208, inclusive, in connection with and incidental to rental agreements, on behalf of any insurer authorized to write such insurance in this state.

Source: SL 2001, ch 272, § 4; SDCL § 58-9-37; SL 2010, ch 233, § 2.

58-30-201. Rental car company as limited lines insurance producer--License requirements.

A rental car company may apply to be licensed as a limited lines insurance producer under the terms of §§ 58-30-197 to 58-30-208, inclusive, if it satisfies all of the requirements of §§ 58-30-197 to 58-30-208, inclusive, and if it files the following documents with the director:

(1)    A written application for licensure, signed by the applicant or by an officer of the applicant, in the form or format prescribed by the director that includes a listing of all locations at which the rental car company intends to offer, sell, or solicit rental car insurance;

(2)    A certificate, by the insurer that is to be named in the rental car agent license, stating that the insurer has satisfied itself that the named applicant is trustworthy and competent to act as its rental car agent limited to this purpose; that the insurer has reviewed the endorsee training and education program required by § 58-30-203 and believes that it satisfies the statutory requirements; and that the insurer will appoint the applicant to act as its rental car agent to offer, sell, or solicit rental car insurance if the license for which the applicant is applying is issued by the director. The certification shall be subscribed by an officer or managing agent of the insurer on a form or format prescribed by the director.

Source: SL 2001, ch 272, § 5; SDCL § 58-9-38; SL 2010, ch 233, § 2.

58-30-202. Conditions for becoming endorsee authorized to offer, sell, or solicit rental car insurance.

An employee or agent of a rental car agent may be an endorsee authorized to offer, sell, or solicit rental car insurance under the authority of the rental car agent license if all of the following conditions have been satisfied:

(1)    The employee or agent is eighteen years of age or older;

(2)    The employee or agent has not committed any act set forth in this chapter;

(3)    The employee or agent has completed a training and education program;

(4)    The rental car company, at the time it submits its rental car agent license application pursuant to § 58-30-201, also submits a list of the names of all endorsees to its rental car agent license. The list shall be updated and submitted to the director quarterly. However, endorsees may sell, offer, and solicit rental car insurance as soon as they meet the requirements as set forth in this section. Each list shall be retained by the rental car company for a period of five years from submission; and

(5)    The rental car company submits to the director with its initial rental car agent license application and annually thereafter a certification, subscribed by an officer of the rental car company on a form or format prescribed by the director, stating both of the following:

(a)    That no person other than an endorsee offers, sells, or solicits rental car insurance on its behalf or while working as an employee or agent of the rental car agent; and

(b)    That all endorsees have completed the training and education program required by §§ 58-30-197 to 58-30-208, inclusive.

Source: SL 2001, ch 272, § 6; SDCL § 58-9-39; SL 2010, ch 233, § 2.

58-30-203. Training of rental car insurance endorsee.

Each rental car agent shall provide a training and education program for each endorsee prior to allowing an endorsee to offer, sell, or solicit rental car insurance. The training and education program may be conducted at remote locations or through videotape or any means approved by the director in rules promulgated pursuant to chapter 1-26. The training and education program shall meet the following minimum standards:

(1)    Each endorsee shall receive instruction about the kinds of insurance specified in §§ 58-30-197 to 58-30-208, inclusive, that are offered for sale to prospective renters;

(2)    Each endorsee shall receive training about the requirements and limitations imposed on car rental agents and endorsees by §§ 58-30-197 to 58-30-208, inclusive. That training shall include specific instruction that the endorsee is prohibited by law from making any statement or engaging in any conduct, express or implied, that would lead a renter to believe:

(a)    That the purchase of rental car insurance is required in order for the renter to rent a motor vehicle;

(b)    That the renter does not have insurance policies in place that already provide the coverage being offered by the rental car company pursuant to §§ 58-30-197 to 58-30-208, inclusive; and

(c)    That the endorsee is qualified to evaluate the adequacy of the renter's existing insurance coverages.

The director may request to review the training and education program at any time.

Source: SL 2001, ch 272, § 7; SDCL § 58-9-40; SL 2010, ch 233, § 2.

58-30-204. Expiration of rental car insurance endorsee license.

An endorsee's authorization to offer, sell, or solicit rental car insurance expires when the endorsee's employment with the rental car company is terminated.

Source: SL 2001, ch 272, § 8; SDCL § 58-9-41; SL 2010, ch 233, § 2.

58-30-205. Retention of rental car insurance transaction records.

The rental car agent shall retain for a period of five years from the date of each transaction records which enable it to identify the name of the endorsee involved in each rental transaction in which a renter purchased rental car insurance.

Source: SL 2001, ch 272, § 9; SDCL 58-9-42; SL 2010, ch 233, § 2.

58-30-206. Rental car insurance agreement.

No insurance may be offered, sold, or solicited pursuant to §§ 58-30-197 to 58-30-208, inclusive, unless:

(1)    The rental period of the rental car agreement is twenty-eight consecutive days or less;

(2)    At every location where rental agreements are executed, the rental car agent or endorsee prominently displays and makes available brochures or other written materials to each renter who purchases rental car insurance that:

(a)    Summarize the material terms, exclusions, limitations, and conditions of coverage offered to renters, including the identity of the insurer;

(b)    Describe the process for filing a claim if the renter elects to purchase coverage;

(c)    Make information available to the consumer that the rental car insurance offered, sold, or solicited by the rental car agent may provide a duplication of coverage already provided by other sources of the renter's, and that such insurance is not required as a condition of renting the motor vehicle;

(d)    Provide the rental car agent's name, address, telephone number, and license number;

(e)    Makes available information that, if purchased, the insurance offered by the limited lines producer to the renter is primary coverage over any other insurance coverages applicable to the renter;

(3)    Evidence of the rental car insurance coverage is stated in the rental agreement;

(4)    Any cost for the rental car insurance is separately itemized in the rental agreement unless preselection of coverage is made in a master, corporate, or group agreement.

Source: SL 2001, ch 272, § 10; SDCL § 58-9-43; SL 2010, ch 233, § 2.

58-30-207. Rental car insurance advertising and compensation restrictions.

No rental car agent may:

(1)    Advertise, represent, or otherwise portray itself or any of its employees or agents as licensed insurers or insurance producers; or

(2)    Pay any person, including a rental car agent endorsee, any compensation, fee, or commission that is dependent solely on the placement of insurance under the license issued pursuant to §§ 58-30-197 to 58-30-208, inclusive. Nothing in §§ 58-30-197 to 58-30-208, inclusive, prohibits production payments or incentive payments that are not dependent solely upon the sale of rental car insurance.

Source: SL 2001, ch 272, § 11; SDCL § 58-9-44; SL 2010, ch 233, § 2.

58-30-208. Revocation of rental car company license.

If a rental car company violates any provision of §§ 58-30-197 to 58-30-207, inclusive, the director may revoke or suspend the license of a rental car company or take other action as authorized under this title.

Source: SL 2001, ch 272, § 12; SDCL § 58-9-45; SL 2010, ch 233, § 2.

58-30-209. Definitions regarding travel insurance.

Terms used in §§ 58-30-209 to 58-30-217.1, inclusive, mean:

(1)    “Aggregator site,” a website that provides access to information regarding insurance products from more than one insurer, including product and insurer information, for use in comparison shopping;

(2)    “Blanket travel insurance,” a policy of travel insurance issued to any eligible group providing coverage for specific classes of persons defined in the policy, with coverage provided to all members of the eligible group without a separate charge to individual members of the eligible group;

(3)    “Cancellation fee waiver,” a contractual agreement between a supplier of travel services and its customer to waive some or all of the non-refundable cancellation fee provisions of the supplier’s underlying travel contract with or without regard to the reason for the cancellation or form of reimbursement;

(4)    “Eligible group,” for the purposes of §§ 58-30-209 to 58-30-217.1, inclusive, only, two or more persons who are engaged in a common enterprise, or have an economic, educational, or social affinity or relationship, including, but not limited to:

(a)    An entity engaged in the business of providing travel or travel services, including, but not limited to, tour operators, lodging providers, vacation property owners, hotels and resorts, travel clubs, travel agencies, property managers, cultural exchange programs, and common carriers or the operator, owner, or lessor of a means of transportation of passengers, including but not limited to airlines, cruise lines, railroads, steamship companies, and public bus carriers, wherein with regard to any particular travel or type of travel or travelers, all members or customers of the group must have a common exposure to risk in the travel;

(b)    A college, school, or other institution of learning, covering students, teachers, employees, or volunteers;

(c)    An employer covering any group of employees, volunteers, contractors, board of directors, dependents, or guests;

(d)    A sports team, camp, or sponsor thereof, covering participants, members, campers, employees, officials, supervisors, or volunteers;

(e)    A religious, charitable, recreational, educational, or civic organization, or branch thereof, covering any group of members, participants, or volunteers;

(f)    A financial institution or financial institution vendor, or parent holding company, trustee, or agent of or designated by one or more financial institutions or financial institution vendors, including accountholders, credit card holders, debtors, guarantors, or purchasers;

(g)    An incorporated or unincorporated association, including labor unions, having a common interest, constitution and bylaws, and organized and maintained in good faith for purposes other than obtaining insurance for members or participants of such association covering its members;

(h)    A trust or the trustees of a fund established, created or maintained for the benefit of and covering members, employees or customers, subject to the director’s permitting the use of a trust and the state’s premium tax provisions in § 10-44-2, of one or more associations meeting the above requirements of (g) of this section;

(i)    An entertainment production company covering any group of participants, volunteers, audience members, contestants, or workers;

(j)    A volunteer fire department, ambulance, rescue, police, court, or any first aid, civil defense, or other such volunteer group;

(k)    A preschool, daycare institution for children or adults, and senior citizen club;

(l)    An automobile or truck rental or leasing company covering a group of individuals who may become renters, lessees, or passengers defined by their travel status on the rented or leased vehicles. The common carrier, the operator, owner or lessor of a means of transportation, or the automobile or truck rental or leasing company, is the policyholder for group coverage under this subdivision; or

(m)    Another group where the director has determined that the members are engaged in a common enterprise, or have an economic, educational, or social affinity or relationship, and that issuance of the policy would not be contrary to the public interest;

(5)    “Fulfillment materials,” documentation sent to the purchaser of a travel protection plan confirming the purchase and providing the travel protection plan’s coverage and assistance details;

(6)    “Group travel insurance,” travel insurance issued to any eligible group;

(7)    "Limited lines travel insurance producer," a:

(a)    Licensed managing general underwriter;

(b)    Licensed managing general agent or third party administrator;

(c)    Licensed insurance producer, including a limited lines producer; or

(d)    Travel administrator;

(8)    "Offer and disseminate," providing general information, including a description of the coverage and price, as well as processing the application, collecting premiums, and performing other activities permitted by the state;

(9)    “Primary certificate holder,” an individual person who elects and purchases travel insurance under a group travel insurance policy;

(10)    “Primary policyholder,” an individual person who elects and purchases individual travel insurance;

(11)    “Travel administrator,” a person who directly or indirectly underwrites; collects charges, collateral, or premiums from; or adjusts or settles claims on; residents of this state, in connection with travel insurance, except that a person is not a travel administrator if that person’s only actions that would otherwise cause the person to be considered a travel administrator are the following:

(a)    A person working for a travel administrator to the extent that the person’s activities are subject to the supervision and control of the travel administrator;

(b)    An insurance producer selling insurance or engaged in administrative and claims-related activities within the scope of the producer’s license;

(c)    A travel retailer offering and disseminating travel insurance and registered under the license of a limited lines travel insurance producer in accordance with § 58-30-211;

(d)    An individual adjusting or settling claims in the normal course of the individual’s practice or employment as an attorney-at-law and who does not collect charges or premiums in connection with insurance coverage; or

(e)    A business entity that is affiliated with a licensed insurer while acting as a travel administrator for the direct and assumed insurance business of an affiliated insurer;

(12)    “Travel assistance services,” non-insurance services unrelated to insurance for which the consumer is not indemnified based on a fortuitous event, and where providing the service does not result in transfer or shifting of risk that would constitute the business of insurance. Travel assistance services include but are not limited to:

(a)    Security advisories;

(b)    Destination information;

(c)    Vaccination and immunization information services;

(d)    Travel reservation services;

(e)    Entertainment;

(f)    Activity and event planning;

(g)    Translation assistance;

(h)    Emergency messaging;

(i)    International legal and medical referrals;

(j)    Medical case monitoring;

(k)    Coordination of transportation arrangements;

(l)    Emergency cash transfer assistance;

(m)    Medical prescription replacement assistance;

(n)    Passport and travel document replacement assistance;

(o)    Lost luggage assistance;

(p)    Concierge services; and

(q)    Any other service that is furnished in connection with planned travel;

(13)    "Travel insurance," insurance coverage for personal risks incident to planned travel, including:

(a)    Interruption or cancellation of a trip or event;

(b)    Loss of baggage or personal effects;

(c)    Damages to accommodations or rental vehicles;

(d)    Sickness, accident, disability, or death occurring during travel;

(e)    Emergency evacuation;

(f)    Repatriation of remains; or

(g)    Any other contractual obligations to indemnify or pay a specified amount to the traveler upon determinable contingencies related to travel as approved by the director.

    Travel insurance does not include major medical plans providing comprehensive medical protection for persons with trips or overseas residence or deployment lasting six months or longer, or any other product that requires a specific insurance producer license;

(14)    “Travel protection plan,” a plan that provides travel insurance, travel assistance services, or cancellation fee waivers, or any combination thereof;

(15)    "Travel retailer," a business entity that makes, arranges, or offers planned travel and may offer and disseminate travel insurance as a service to its customers on behalf of and under the direction of a limited lines travel insurance producer.

Source: SL 2014, ch 241, § 5; SL 2022, ch 185, § 1.

58-30-209.1. Application of travel insurance laws.

The requirements of §§ 58-30-209 to 58-30-217.1, inclusive, apply to travel insurance that covers any resident of this state, and is sold, solicited, negotiated, or offered in this state, and policies and certificates that are delivered or issued for delivery in this state. The requirements do not apply to cancellation fee waivers or travel assistance services, except as expressly provided in this chapter. All other applicable provisions of this state’s insurance laws shall continue to apply to travel insurance except that the specific provisions of §§ 58-30-209 to 58-30-217.1, inclusive, shall supersede any general provisions of law that would otherwise be applicable to travel insurance.

Source: SL 2022, ch 185, § 2.

58-30-209.2. Licensed producers may sell travel insurance--Appointment not required.

Any person licensed as an insurance producer in a line of authority as specified in subdivisions 58-30-152(1), (2), (3), (4), (5), and (6), is authorized to sell, solicit, and negotiate travel insurance. A property and casualty insurance producer is not required to become appointed by an insurer in order to sell, solicit, or negotiate travel insurance.

Source: SL 2022, ch 185, § 3.

58-30-209.3. Travel administrators.

Notwithstanding any other provisions of chapter 58-30, no person may act or represent oneself as a travel administrator for travel insurance in this state unless that person:

(1)    Is a licensed property and casualty insurance producer in this state for activities permitted under that producer license;

(2)    Holds a valid managing general agent license in this state; or

(3)    Holds a valid third-party administrator license in this state.

An insurer is responsible for the acts of a travel administrator administering travel insurance underwritten by the insurer, and is responsible for ensuring that the travel administrator maintains all books and records relevant to the insurer to be made available by the travel administrator to the director upon request.

Source: SL 2022, ch 185, § 4.

58-30-210. Limited lines travel insurance producer license authorized.

The director may issue to an individual or business entity that has filed with the director an application for such limited license in a form and manner prescribed by the director, a limited lines travel insurance producer license, which authorizes the limited lines travel insurance producer to sell, solicit, or negotiate travel insurance through a licensed insurer.

Source: SL 2014, ch 241, § 6.

58-30-211. Conditions for offering and disseminating travel insurance under business entity license.

A travel retailer may offer and disseminate travel insurance under a limited lines travel insurance producer business entity license only if the entity meets the following conditions:

(1)    The limited lines travel insurance producer or travel retailer provides to purchasers of travel insurance:

(a)    A description of the material terms or the actual material terms of the insurance coverage;

(b)    A description of the process for filing a claim;

(c)    A description of the review or cancellation process for the travel insurance policy; and

(d)    The identity and contact information of the insurer and limited lines producer;

(2)    At the time of licensure, the limited lines travel insurance producer shall establish and maintain a register on a form prescribed by the director of each travel retailer that offers travel insurance on the limited lines producer's behalf. The limited lines travel insurance producer shall maintain and update the register annually and shall include the name, address, and contact information of the travel retailer and an officer or person who directs or controls the travel retailer's operations, and the travel retailer's federal tax identification number. The limited lines travel insurance producer shall submit such register to the division of insurance upon reasonable request. The limited lines producer shall certify that the travel retailer registered complies with 18 U.S.C. 1033;

(3)    The limited lines travel insurance producer shall designate an employee who is a licensed individual producer as a designated responsible producer, or DRP. The DRP is responsible for the limited lines travel insurance producer's compliance with the travel insurance laws and rules of this state;

(4)    The limited lines travel insurance producer pays all applicable insurance producer licensing fees;

(5)    The limited lines travel insurance producer requires each employee and authorized representative of the travel retailer whose duties include offering and disseminating travel insurance to receive a program of instruction or training, which is subject to review by the director. The training material shall, at a minimum, contain instructions on the types of insurance offered, ethical sales practices, and required disclosures to prospective customers; and

(6)    Limited lines travel insurance producers, and those registered under its license, are exempt from any examination and continuing education requirements under this chapter.

Source: SL 2014, ch 241, § 7.

58-30-212. Statements required in travel retailer's written materials.

Any travel retailer offering or disseminating travel insurance shall make available to prospective purchasers, brochures or other written materials that clearly display the following:

(1)    Provide the identity and contact information of the insurer and the limited lines travel insurance producer;

(2)    Explain that the purchase of travel insurance is not required in order to purchase any other product or service from the travel retailer; and

(3)    Explain that an unlicensed travel retailer is permitted to provide general information about the insurance offered by the travel retailer, including a description of the coverage and price, but is not qualified or authorized to answer technical questions about the terms and conditions of the insurance offered by the travel retailer or to evaluate the adequacy of the customer's existing insurance coverage.

Source: SL 2014, ch 241, § 8.

58-30-212.1. Required provisions and disclosures for travel insurance.

The following standards apply to the sale, solicitation, and negotiation of travel insurance:

(1)    All documents provided to consumers prior to the purchase of travel insurance, including but not limited to sales materials, advertising materials, and marketing materials, must be consistent with the travel insurance policy itself, including but not limited to, forms, endorsements, policies, rate filings, and certificates of insurance;

(2)    For travel insurance policies or certificates that contain pre-existing condition exclusions, information and an opportunity to learn more about the pre-existing condition exclusions must be provided any time prior to the time of purchase, and in the coverage’s fulfillment materials;

(3)    The person shall disclose in the policy documentation and fulfillment materials whether the travel insurance is primary or secondary to other applicable coverage;

(4)    No person offering, soliciting, or negotiating travel insurance or travel protection plans on an individual or group basis may do so by using negative option or opt out, which would require a consumer to take an affirmative action to deselect coverage, such as unchecking a box on an electronic form, when the consumer purchases a trip; and

(5)    The fulfillment materials and the information described in subdivision 58-30-211(1) must be provided to a policyholder or certificate holder as soon as practicable, following the purchase of a travel protection plan. Unless the insured has started a covered trip or filed a claim under the travel insurance coverage, a policyholder or certificate holder may cancel a policy or certificate for a full refund of the travel protection plan price from the date of purchase of a travel protection plan until at least:

(a)    Fifteen days following the date of delivery of the travel protection plan’s fulfillment materials by postal mail; or

(b)    Ten days following the date of delivery of the travel protection plan’s fulfillment materials by means other than postal mail.

For the purposes of this section, the term delivery means handing fulfillment materials to the policyholder or certificate holder or sending fulfillment materials by postal mail or electronic means to the policyholder or certificate holder.

Source: SL 2022, ch 185, § 5.

58-30-213. Limitations on travel retailer's unlicensed employee or authorized representative.

A travel retailer's employee or authorized representative who is not licensed as an insurance producer may not:

(1)    Evaluate or interpret the technical terms, benefits, or conditions of the offered travel insurance coverage;

(2)    Evaluate or provide advice concerning a prospective purchaser's existing insurance coverage; or

(3)    Hold oneself out as a licensed insurer, licensed producer, or insurance expert.

Source: SL 2014, ch 241, § 9.

58-30-214. Registered travel retailers authorized to offer and disseminate travel insurance and receive compensation.

Notwithstanding any other provision of law, a travel retailer whose activities related to insurance, and those of its employees and authorized representatives, are limited to offering and disseminating travel insurance on behalf of and under the direction of a limited lines travel insurance producer meeting the conditions stated in §§ 58-30-209 to 58-30-218, inclusive, is authorized to do so and receive related compensation for such services, upon registration by the limited lines travel insurance producer as described in subdivision 58-30-211(2).

Source: SL 2014, ch 241, § 10.

58-30-215. Individual and group travel insurance policies authorized--Services excluded.

Travel insurance may be provided under an individual policy or under a group, blanket, or master policy. Travel assistance services and cancellation fee waivers are not insurance and not related to insurance.

Source: SL 2014, ch 241, § 11; SL 2022, ch 185, § 6.

58-30-215.1. Travel protection plans.

Travel protection plans may be offered for one price for the combined features that the travel protection plan offers in this state if:

(1)    The travel protection plan clearly discloses to the consumer, at or prior to the time of purchase, that it includes travel insurance, travel assistance services, and cancellation fee waivers, as applicable, and provides information and an opportunity, at or prior to the time of purchase, for the consumer to obtain additional information regarding the features and pricing of each; and

(2)    The fulfillment materials:

(a)    Describe and delineate the travel insurance, travel assistance services, and cancellation fee waivers in the travel protection plan; and

(b)    Include the travel insurance disclosures and the contact information for persons providing travel assistance services, and cancellation fee waivers, as applicable.

Source: SL 2022, ch 185, § 7.

58-30-215.2. Travel insurance rates and policy forms--Eligibility, underwriting, distribution, and marketing.

Notwithstanding any other provision of this title, travel insurance must be classified and filed for purposes of rates and forms under an inland marine line of insurance, provided that travel insurance coverages for sickness, accident, disability or death occurring during travel, either exclusively, or in conjunction with related coverages of emergency evacuation or repatriation of remains, or incidental limited property and casualty benefits such as baggage or trip cancellation, may be filed under either an accident and health line of insurance or an inland marine line of insurance.

Eligibility and underwriting standards for travel insurance may be developed and provided based on travel protection plans designed for individual or identified marketing or distribution channels, if those standards also meet the state’s underwriting standards for inland marine.

Source: SL 2022, ch 185, § 8.

58-30-216. Limited lines travel insurance producer responsible for acts of travel retailer.

As the insurer designee, the limited lines travel insurance producer is responsible for the acts of the travel retailer and shall use reasonable means to ensure compliance by the travel retailer with this chapter.

Source: SL 2014, ch 241, § 12.

58-30-217. Compliance with chapters 58-30 and 58-33--Travel insurance sales practices.

The limited lines travel insurance producer and any travel retailer offering and disseminating travel insurance under the limited lines travel insurance producer license shall comply with chapter 58-30 and chapter 58-33. In the event of a conflict between chapters 58-30 and 58-33 and the provisions of §§ 58-30-209 to 58-30-217.1, inclusive, regarding the sale and marketing of travel insurance and travel protection plans, the provisions of §§ 58-30-209 to 58-30-217.1, inclusive, shall control. The following acts constitute unfair trade practices under chapter 58-33:

(1)    Offering or selling illusory travel insurance, meaning a travel insurance policy that could never result in payment of any claims for any insured under the policy; and

(2)    Marketing blanket travel insurance coverage as free.

Source: SL 2014, ch 241, § 13; SL 2022, ch 185, § 9.

58-30-217.1. Certain acts not unfair trade practices.

The following acts are not unfair trade practices under this chapter or chapter 58-33:

(1)    If travel insurance is marketed directly to a consumer through an insurer’s website or by others through an aggregator site, it shall not be an unfair trade practice or other violation of law where an accurate summary of coverage is provided on the web page, so long as the consumer has access to the full provisions of the policy through electronic means; and

(2)    If a consumer’s destination jurisdiction requires insurance coverage, it shall not be an unfair trade practice to require that a consumer choose one of the following options as a condition of purchasing a trip or travel package:

(a)    Purchasing the coverage required by the destination jurisdiction through the travel retailer or limited lines travel insurance producer supplying the trip or travel package; or

(b)    Agreeing to obtain and provide proof of coverage that meets the destination jurisdiction’s requirements prior to departure.

Source: SL 2022, ch 185, § 10.

58-30-218. Promulgation of rules on training for travel retailer employees.

The director may promulgate rules, pursuant to chapter 1-26, relating to the program of instruction or training as set forth in subdivision 58-30-211(5).

Source: SL 2014, ch 241, § 14.