South Dakota § 58-5A-32 - Standards for material transactions by registered insurers with affiliates--Nonconformity.
Full text of South Dakota South Dakota Codified Laws § 58-5A-32 — Standards for material transactions by registered insurers with affiliates--Nonconformity., with citation guidance and answers to common questions.
§ 58-5A-32. Standards for material transactions by registered insurers with affiliates--Nonconformity.
Any material transaction by a registered insurer with an affiliate is subject to the following standards:
(1) The terms shall be fair and reasonable;
(2) The books, accounts, and records of each party shall be maintained to clearly and accurately disclose the precise nature and details of the transaction including information necessary to support the reasonableness of the charges or fees to the respective parties;
(3) The insurer's surplus to policyholders following any dividends or distributions to shareholders or affiliates shall be reasonable in relation to the insurer's outstanding liabilities and adequate to its financial needs;
(4) Charges or fees for services performed shall be reasonable;
(5) Expenses incurred and payment received shall be allocated to the insurer in conformity with customary insurance accounting practices consistently applied; and
(6) Any agreement for cost sharing services and management shall include provisions as required by law or rule.
Any transaction which is not in conformity with this section is subject to the provisions of §§ 58-5A-64, 58-5A-65, and 58-5A-67.
Source: SL 1972, ch 267, § 26; SL 1990, ch 158, § 25; SL 1992, ch 341, § 20; SL 2015, ch 246, § 11.
Source: official South Dakota text · Last verified 2026-08-27
Frequently Asked Questions About South Dakota § 58-5A-32
What does South Dakota Codified Laws § 58-5A-32 cover?
Section 58-5A-32 ("Standards for material transactions by registered insurers with affiliates--Nonconformity.") 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 § 58-5A-32?
A common citation format is "South Dakota Codified Laws § 58-5A-32" (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 § 58-5A-32 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.