<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 58-33-112 - Documented supervision procedures and controls. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2076747Normal { text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s2076747SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2076747CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2076747Normal-000000 { text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s2076747DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2076747Normal-000001 { margin-left: 0.70in; text-indent: -0.45in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } p.s2076747Normal-000002 { text-indent: 0.25in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s2076747000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2076747SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2076747SCL-000004 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } body { text-decoration-skip-ink: none; } </style></head><body><div><p dir="ltr" class="s2076747Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-33-112"><span class="s2076747SENU">58-33-112</span></a><span xml:space="preserve" class="s2076747SENU">. </span><span class="s2076747CL">Documented supervision procedures and controls.</span></p><p dir="ltr" class="s2076747Normal-000000"><span xml:space="preserve" class="s2076747DefaultParagraphFont">An insurance producer, third party administrator, insurer, preferred provider organization, or an agent of the same shall establish and maintain documented supervision procedures and controls that are reasonably designed to achieve compliance with §§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-33-93"><span class="s2076747DefaultParagraphFont">58-33-93</span></a><span xml:space="preserve" class="s2076747DefaultParagraphFont"> to </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-33-116"><span class="s2076747DefaultParagraphFont">58-33-116</span></a><span class="s2076747DefaultParagraphFont">, inclusive. The supervisory procedures shall include:</span></p><p dir="ltr" class="s2076747Normal-000001"><span class="s2076747DefaultParagraphFont">(1)    Training;</span></p><p dir="ltr" class="s2076747Normal-000001"><span class="s2076747DefaultParagraphFont">(2)    Internal controls;</span></p><p dir="ltr" class="s2076747Normal-000001"><span class="s2076747DefaultParagraphFont">(3)    Periodic audits;</span></p><p dir="ltr" class="s2076747Normal-000001"><span class="s2076747DefaultParagraphFont">(4)    Supervisory review; and</span></p><p dir="ltr" class="s2076747Normal-000001"><span xml:space="preserve" class="s2076747DefaultParagraphFont">(5)    Monitoring and enforcement of contractual provisions established under §§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-33-104"><span class="s2076747DefaultParagraphFont">58-33-104</span></a><span xml:space="preserve" class="s2076747DefaultParagraphFont"> and </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=58-33-108"><span class="s2076747DefaultParagraphFont">58-33-108</span></a><span class="s2076747DefaultParagraphFont">.</span></p><p dir="ltr" class="s2076747Normal-000002"><span class="s2076747DefaultParagraphFont">The extent of the supervisory procedures and controls a producer is required to maintain under this section may appropriately reflect the size and complexity of the producer's operations and the scope and nature of the producer's insurance activities.</span></p><p dir="ltr" class="s2076747Normal"><span xml:space="preserve" class="s2076747000003"> </span></p><p dir="ltr" class="s2076747Normal"><span class="s2076747SCL">Source:</span><span xml:space="preserve" class="s2076747SCL-000004"> SL 2007, ch 292, § 20.</span></p></div></body></html>