South Dakota § 58-4-41 - Director's order to hazardous insurer.
Full text of South Dakota South Dakota Codified Laws § 58-4-41 — Director's order to hazardous insurer., with citation guidance and answers to common questions.
§ 58-4-41. Director's order to hazardous insurer.
If the director determines that the continued operation of an insurer licensed to transact business in this state may be hazardous to the policyholders, the creditors, or the general public, then the director may issue an order stating the reasons for the determination and requiring the insurer to:
(1) Reduce the total amount of present and potential liability for policy benefits by reinsurance;
(2) Reduce, suspend, or limit the volume of business being accepted or renewed;
(3) Reduce general insurance and commission expenses by specified methods;
(4) Increase the insurer's capital and surplus;
(5) Suspend or limit the declaration and payment of dividend by an insurer to its stockholders or to its policyholders;
(6) File reports in a form acceptable to the director concerning the market value of an insurer's assets;
(7) Limit or withdraw from certain investments or discontinue certain investment practices to the extent the director deems necessary;
(8) Document the adequacy of premium rates in relation to the risks insured;
(9) File, in addition to regular annual statements, interim financial reports on the form adopted by the national association of insurance commissioners or in a format as promulgated by the director;
(10) Correct corporate governance practice deficiencies, and adopt and utilize governance practices acceptable to the director;
(11) Provide a business plan to the director in order to continue to transact business in the state; or
(12) Notwithstanding any other provision of law limiting the frequency or amount of premium rate adjustments, adjust rates for any nonlife insurance product written by the insurer that the director determines necessary to improve the financial condition of the insurer.
If the insurer is a foreign insurer, the director's order may be limited to the extent provided by statute.
Source: SL 1992, ch 339, § 3; SL 2013, ch 244, § 1.
Source: official South Dakota text · Last verified 2026-08-27
Frequently Asked Questions About South Dakota § 58-4-41
What does South Dakota Codified Laws § 58-4-41 cover?
Section 58-4-41 ("Director's order to hazardous insurer.") is part of the South Dakota Codified Laws, the codified statutory law of South Dakota. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite South Dakota § 58-4-41?
A common citation format is "South Dakota Codified Laws § 58-4-41" (South Dakota). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of South Dakota law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the South Dakota official source linked on this page or consult a licensed South Dakota attorney.
How does South Dakota § 58-4-41 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in South Dakota can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in South Dakota.