<html xmlns="http://www.w3.org/1999/xhtml" lang="en-US"><head><meta charset="UTF-8"><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 58-33A-20 - Insurer's system for supervising recommendations.</title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.sff21e694753d4cc7bad6e18e6849412dNormal { 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.sff21e694753d4cc7bad6e18e6849412dSENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.sff21e694753d4cc7bad6e18e6849412dCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.sff21e694753d4cc7bad6e18e6849412dStatute { 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.sff21e694753d4cc7bad6e18e6849412dDefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.sff21e694753d4cc7bad6e18e6849412dStatuteNumber1 { margin-left: 0.75in; 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; } span.sff21e694753d4cc7bad6e18e6849412d000000 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.sff21e694753d4cc7bad6e18e6849412dNoIndent { text-indent: 0.00in; 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.sff21e694753d4cc7bad6e18e6849412dDefaultParagraphFont-000001 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.sff21e694753d4cc7bad6e18e6849412dSCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style><meta name="viewport" content="width=device-width, initial-scale=1"><meta name="twitter:card" content="summary"><meta property="og:title" content="SD 58-33A-20 - Insurer's system for supervising recommendations."><meta property="og:description" content="SDLRC Codified Law 58-33A-20 - Insurer's system for supervising recommendations."><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes?Statute=58-33A-20"><meta property="og:image" content="https://lawmakerdocuments.blob.core.usgovcloudapi.net/photos/logoshape.webp"><meta property="og:site_name" content="South Dakota Legislature"></head><body><div><p dir="ltr" class="sff21e694753d4cc7bad6e18e6849412dNormal"><a href="https://sdlegislature.gov/Statutes?Statute=58-33A-20" rel="noopener"><span class="sff21e694753d4cc7bad6e18e6849412dSENU">58-33A-20</span></a><span xml:space="preserve" class="sff21e694753d4cc7bad6e18e6849412dSENU">. </span><span class="sff21e694753d4cc7bad6e18e6849412dCL">Insurer's system for supervising recommendations.</span></p><p dir="ltr" class="sff21e694753d4cc7bad6e18e6849412dStatute"><span xml:space="preserve" class="sff21e694753d4cc7bad6e18e6849412dDefaultParagraphFont">An insurer shall establish and maintain a supervision system that is reasonably designed to achieve compliance with §§ </span><a href="https://sdlegislature.gov/Statutes?Statute=58-33A-13" rel="noopener"><span class="sff21e694753d4cc7bad6e18e6849412dDefaultParagraphFont">58-33A-13</span></a><span xml:space="preserve" class="sff21e694753d4cc7bad6e18e6849412dDefaultParagraphFont"> to </span><a href="https://sdlegislature.gov/Statutes?Statute=58-33A-27" rel="noopener"><span class="sff21e694753d4cc7bad6e18e6849412dDefaultParagraphFont">58-33A-27</span></a><span class="sff21e694753d4cc7bad6e18e6849412dDefaultParagraphFont">, inclusive, including:</span></p><p dir="ltr" class="sff21e694753d4cc7bad6e18e6849412dStatuteNumber1"><span xml:space="preserve" class="sff21e694753d4cc7bad6e18e6849412dDefaultParagraphFont">(1)    The insurer shall establish and maintain reasonable procedures to inform its producers of the requirements of §§ </span><a href="https://sdlegislature.gov/Statutes?Statute=58-33A-16" rel="noopener"><span class="sff21e694753d4cc7bad6e18e6849412dDefaultParagraphFont">58-33A-16</span></a><span xml:space="preserve" class="sff21e694753d4cc7bad6e18e6849412dDefaultParagraphFont"> to </span><a href="https://sdlegislature.gov/Statutes?Statute=58-33A-26" rel="noopener"><span class="sff21e694753d4cc7bad6e18e6849412dDefaultParagraphFont">58-33A-26</span></a><span class="sff21e694753d4cc7bad6e18e6849412dDefaultParagraphFont">, inclusive and shall incorporate the requirements of this regulation into relevant producer training manuals;</span></p><p dir="ltr" class="sff21e694753d4cc7bad6e18e6849412dStatuteNumber1"><span xml:space="preserve" class="sff21e694753d4cc7bad6e18e6849412dDefaultParagraphFont">(2)    The insurer shall establish and maintain standards for producer product training and shall establish and maintain reasonable procedures to require its producers to comply with the requirements of §§ </span><a href="https://sdlegislature.gov/Statutes?Statute=58-33A-25.1" rel="noopener"><span class="sff21e694753d4cc7bad6e18e6849412dDefaultParagraphFont">58-33A-25.1</span></a><span xml:space="preserve" class="sff21e694753d4cc7bad6e18e6849412dDefaultParagraphFont"> to </span><a href="https://sdlegislature.gov/Statutes?Statute=58-33A-25.3" rel="noopener"><span class="sff21e694753d4cc7bad6e18e6849412dDefaultParagraphFont">58-33A-25.3</span></a><span class="sff21e694753d4cc7bad6e18e6849412dDefaultParagraphFont">, inclusive;</span></p><p dir="ltr" class="sff21e694753d4cc7bad6e18e6849412dStatuteNumber1"><span class="sff21e694753d4cc7bad6e18e6849412dDefaultParagraphFont">(3)    The insurer shall provide product-specific training and training materials that explain all material features of its annuity products to its producers;</span></p><p dir="ltr" class="sff21e694753d4cc7bad6e18e6849412dStatuteNumber1"><span class="sff21e694753d4cc7bad6e18e6849412dDefaultParagraphFont">(4)    The insurer shall establish and maintain procedures for review of each recommendation prior to issuance of an annuity that are designed to ensure that there is a reasonable basis to determine that the recommended annuity would effectively address the particular consumer's financial situation, insurance needs, and financial objectives. Such review procedures may apply a screening system for the purpose of identifying selected transactions for additional review and may be accomplished electronically or through other means including, physical review. Such an electronic or other system may be designed to require additional review only of those transactions identified for additional review by the selection criteria;</span></p><p dir="ltr" class="sff21e694753d4cc7bad6e18e6849412dStatuteNumber1"><span xml:space="preserve" class="sff21e694753d4cc7bad6e18e6849412dDefaultParagraphFont">(5)    The insurer shall establish and maintain reasonable procedures to detect recommendations that are not in compliance with §§ </span><a href="https://sdlegislature.gov/Statutes?Statute=58-33A-13" rel="noopener"><span class="sff21e694753d4cc7bad6e18e6849412dDefaultParagraphFont">58-33A-13</span></a><span xml:space="preserve" class="sff21e694753d4cc7bad6e18e6849412dDefaultParagraphFont"> to </span><a href="https://sdlegislature.gov/Statutes?Statute=58-33A-27" rel="noopener"><span class="sff21e694753d4cc7bad6e18e6849412dDefaultParagraphFont">58-33A-27</span></a><span class="sff21e694753d4cc7bad6e18e6849412dDefaultParagraphFont">, inclusive. This may include confirmation of consumer profile information, systematic customer surveys, producer and consumer interviews, confirmation letters, producer statements or attestations, and programs of internal monitoring. Nothing in this subdivision prevents an insurer from complying with this subdivision by applying sampling procedures or by confirming consumer profile information or other required information after issuance or delivery of the annuity;</span></p><p dir="ltr" class="sff21e694753d4cc7bad6e18e6849412dStatuteNumber1"><span class="sff21e694753d4cc7bad6e18e6849412dDefaultParagraphFont">(6)    The insurer shall annually provide a written report to senior management, including to the senior manager responsible for audit functions, that details a review, with appropriate testing, reasonably designed to determine the effectiveness of the supervision system, the exceptions found, and corrective action taken or recommended, if any;</span></p><p dir="ltr" class="sff21e694753d4cc7bad6e18e6849412dStatuteNumber1"><span class="sff21e694753d4cc7bad6e18e6849412dDefaultParagraphFont">(7)    The insurer shall establish and maintain reasonable procedures to assess, prior to or upon issuance or delivery of an annuity, whether a producer has provided to the consumer the information required to be provided under this section;</span></p><p dir="ltr" class="sff21e694753d4cc7bad6e18e6849412dStatuteNumber1"><span class="sff21e694753d4cc7bad6e18e6849412dDefaultParagraphFont">(8)    The insurer shall establish and maintain reasonable procedures to identify and address suspicious consumer refusals to provide consumer profile information; and</span></p><p dir="ltr" class="sff21e694753d4cc7bad6e18e6849412dStatuteNumber1"><span class="sff21e694753d4cc7bad6e18e6849412dDefaultParagraphFont">(9)    The insurer shall establish and maintain reasonable procedures to identify and eliminate any sales contests, sales quotas, bonuses, and non-cash compensation that are based on the sales of specific annuities within a limited period of time. The requirements of this subdivision are not intended to prohibit the receipt of health insurance, office rent, office support, retirement benefits, or other employee benefits by employees as long as those benefits are not based upon the volume of sales of a specific annuity within a limited period of time.</span></p><p dir="ltr" class="sff21e694753d4cc7bad6e18e6849412dNormal"><span xml:space="preserve" class="sff21e694753d4cc7bad6e18e6849412d000000"> </span></p><p dir="ltr" class="sff21e694753d4cc7bad6e18e6849412dNoIndent"><span xml:space="preserve" class="sff21e694753d4cc7bad6e18e6849412dDefaultParagraphFont-000001">Source: </span><span class="sff21e694753d4cc7bad6e18e6849412dSCL">SL 2008, ch 273, § 8; SL 2012, ch 250, § 7; SL 2022, ch 186, § 20, eff. Jan. 1, 2023.</span></p></div></body></html><br /><hr><br /><html xmlns="http://www.w3.org/1999/xhtml" lang="en-US"><head><meta charset="UTF-8"><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 58-33A-20 - Insurer's system for supervising recommendations.</title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.s7d5180b8d87c4f2088398d0a36ecff47Normal { 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.s7d5180b8d87c4f2088398d0a36ecff47SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s7d5180b8d87c4f2088398d0a36ecff47CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s7d5180b8d87c4f2088398d0a36ecff47Statute { 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.s7d5180b8d87c4f2088398d0a36ecff47DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s7d5180b8d87c4f2088398d0a36ecff47StatuteNumber1 { margin-left: 0.75in; 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; } span.s7d5180b8d87c4f2088398d0a36ecff47000000 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s7d5180b8d87c4f2088398d0a36ecff47NoIndent { text-indent: 0.00in; 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.s7d5180b8d87c4f2088398d0a36ecff47DefaultParagraphFont-000001 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s7d5180b8d87c4f2088398d0a36ecff47SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style><meta name="viewport" content="width=device-width, initial-scale=1"><meta name="twitter:card" content="summary"><meta property="og:title" content="SD 58-33A-20.1 - Contract for performance of supervision system functions--Responsibility for corrective action--Supervision of performance."><meta property="og:description" content="SDLRC Codified Law 58-33A-20.1 - Contract for performance of supervision system functions--Responsibility for corrective action--Supervision of performance."><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes?Statute=58-33A-20.1"><meta property="og:image" content="https://lawmakerdocuments.blob.core.usgovcloudapi.net/photos/logoshape.webp"><meta property="og:site_name" content="South Dakota Legislature"></head><body><div><p dir="ltr" class="s7d5180b8d87c4f2088398d0a36ecff47Normal"><a href="https://sdlegislature.gov/Statutes?Statute=58-33A-20.1" rel="noopener"><span class="s7d5180b8d87c4f2088398d0a36ecff47SENU">58-33A-20.1</span></a><span xml:space="preserve" class="s7d5180b8d87c4f2088398d0a36ecff47SENU">. </span><span class="s7d5180b8d87c4f2088398d0a36ecff47CL">Contract for performance of supervision system functions--Responsibility for corrective action--Supervision of performance.</span></p><p dir="ltr" class="s7d5180b8d87c4f2088398d0a36ecff47Statute"><span xml:space="preserve" class="s7d5180b8d87c4f2088398d0a36ecff47DefaultParagraphFont">Nothing in § </span><a href="https://sdlegislature.gov/Statutes?Statute=58-33A-20" rel="noopener"><span class="s7d5180b8d87c4f2088398d0a36ecff47DefaultParagraphFont">58-33A-20</span></a><span xml:space="preserve" class="s7d5180b8d87c4f2088398d0a36ecff47DefaultParagraphFont"> or this section restricts an insurer from contracting for performance of a function required under § </span><a href="https://sdlegislature.gov/Statutes?Statute=58-33A-20" rel="noopener"><span class="s7d5180b8d87c4f2088398d0a36ecff47DefaultParagraphFont">58-33A-20</span></a><span xml:space="preserve" class="s7d5180b8d87c4f2088398d0a36ecff47DefaultParagraphFont">, including maintenance of procedures. An insurer is responsible for taking appropriate corrective action and may be subject to sanctions and penalties pursuant to § </span><a href="https://sdlegislature.gov/Statutes?Statute=58-33A-26" rel="noopener"><span class="s7d5180b8d87c4f2088398d0a36ecff47DefaultParagraphFont">58-33A-26</span></a><span xml:space="preserve" class="s7d5180b8d87c4f2088398d0a36ecff47DefaultParagraphFont"> regardless of whether the insurer contracts for performance of a function and regardless of the insurer's compliance with this section.</span></p><p dir="ltr" class="s7d5180b8d87c4f2088398d0a36ecff47Statute"><span xml:space="preserve" class="s7d5180b8d87c4f2088398d0a36ecff47DefaultParagraphFont">An insurer's supervision system under § </span><a href="https://sdlegislature.gov/Statutes?Statute=58-33A-20" rel="noopener"><span class="s7d5180b8d87c4f2088398d0a36ecff47DefaultParagraphFont">58-33A-20</span></a><span xml:space="preserve" class="s7d5180b8d87c4f2088398d0a36ecff47DefaultParagraphFont"> and this section shall include supervision of contractual performance under this section. This includes the following:</span></p><p dir="ltr" class="s7d5180b8d87c4f2088398d0a36ecff47StatuteNumber1"><span class="s7d5180b8d87c4f2088398d0a36ecff47DefaultParagraphFont">(1)    Monitoring and, as appropriate, conducting audits to assure that the contracted function is properly performed; and</span></p><p dir="ltr" class="s7d5180b8d87c4f2088398d0a36ecff47StatuteNumber1"><span class="s7d5180b8d87c4f2088398d0a36ecff47DefaultParagraphFont">(2)    Annually obtaining a certification from a senior manager who has responsibility for the contracted function that the manager has a reasonable basis to represent, and does represent, that the function is properly performed.</span></p><p dir="ltr" class="s7d5180b8d87c4f2088398d0a36ecff47Statute"><span class="s7d5180b8d87c4f2088398d0a36ecff47DefaultParagraphFont">An insurer is not required to include in its system of supervision a producer's recommendations to consumers of products other than the annuities offered by the insurer, consideration of or comparison to options available to the producer, or compensation relating to those options other than annuities or other products offered by the insurer.</span></p><p dir="ltr" class="s7d5180b8d87c4f2088398d0a36ecff47Normal"><span xml:space="preserve" class="s7d5180b8d87c4f2088398d0a36ecff47000000"> </span></p><p dir="ltr" class="s7d5180b8d87c4f2088398d0a36ecff47NoIndent"><span xml:space="preserve" class="s7d5180b8d87c4f2088398d0a36ecff47DefaultParagraphFont-000001">Source: </span><span class="s7d5180b8d87c4f2088398d0a36ecff47SCL">SL 2012, ch 250, § 8; SL 2022, ch 186, § 21, eff. Jan. 1, 2023.</span></p></div></body></html><br /><hr><br /><html xmlns="http://www.w3.org/1999/xhtml" lang="en-US"><head><meta charset="UTF-8"><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 58-33A-20 - Insurer's system for supervising recommendations.</title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.s754640da2db64d70a3f091c9ed498d00Normal { 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.s754640da2db64d70a3f091c9ed498d00SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s754640da2db64d70a3f091c9ed498d00CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s754640da2db64d70a3f091c9ed498d00Statute { 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.s754640da2db64d70a3f091c9ed498d00DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s754640da2db64d70a3f091c9ed498d00StatuteNumber1 { margin-left: 0.75in; 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; } span.s754640da2db64d70a3f091c9ed498d00000000 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s754640da2db64d70a3f091c9ed498d00NoIndent { text-indent: 0.00in; 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.s754640da2db64d70a3f091c9ed498d00DefaultParagraphFont-000001 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s754640da2db64d70a3f091c9ed498d00SCL { 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><meta name="viewport" content="width=device-width, initial-scale=1"><meta name="twitter:card" content="summary"><meta property="og:title" content="SD 58-33A-20.2 - Prohibited conduct by insurance producer."><meta property="og:description" content="SDLRC Codified Law 58-33A-20.2 - Prohibited conduct by insurance producer."><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes?Statute=58-33A-20.2"><meta property="og:image" content="https://lawmakerdocuments.blob.core.usgovcloudapi.net/photos/logoshape.webp"><meta property="og:site_name" content="South Dakota Legislature"></head><body><div><p dir="ltr" class="s754640da2db64d70a3f091c9ed498d00Normal"><a href="https://sdlegislature.gov/Statutes?Statute=58-33A-20.2" rel="noopener"><span class="s754640da2db64d70a3f091c9ed498d00SENU">58-33A-20.2</span></a><span xml:space="preserve" class="s754640da2db64d70a3f091c9ed498d00SENU">. </span><span class="s754640da2db64d70a3f091c9ed498d00CL">Prohibited conduct by insurance producer.</span></p><p dir="ltr" class="s754640da2db64d70a3f091c9ed498d00Statute"><span class="s754640da2db64d70a3f091c9ed498d00DefaultParagraphFont">No producer or insurer may dissuade, or attempt to dissuade, a consumer from:</span></p><p dir="ltr" class="s754640da2db64d70a3f091c9ed498d00StatuteNumber1"><span class="s754640da2db64d70a3f091c9ed498d00DefaultParagraphFont">(1)    Truthfully responding to an insurer's request for confirmation of consumer profile information;</span></p><p dir="ltr" class="s754640da2db64d70a3f091c9ed498d00StatuteNumber1"><span class="s754640da2db64d70a3f091c9ed498d00DefaultParagraphFont">(2)    Filing a complaint; or</span></p><p dir="ltr" class="s754640da2db64d70a3f091c9ed498d00StatuteNumber1"><span class="s754640da2db64d70a3f091c9ed498d00DefaultParagraphFont">(3)    Cooperating with the investigation of a complaint.</span></p><p dir="ltr" class="s754640da2db64d70a3f091c9ed498d00Normal"><span xml:space="preserve" class="s754640da2db64d70a3f091c9ed498d00000000"> </span></p><p dir="ltr" class="s754640da2db64d70a3f091c9ed498d00NoIndent"><span xml:space="preserve" class="s754640da2db64d70a3f091c9ed498d00DefaultParagraphFont-000001">Source: </span><span class="s754640da2db64d70a3f091c9ed498d00SCL">SL 2012, ch 250, § 9; SL 2022, ch 186, § 22, eff. Jan. 1, 2023.</span></p></div></body></html>