S.D. Admin. R. 20:06:08:54

Current through Register Vol. 50, page 159, June 17, 2024

Section 20:06:08:54 - Insurer system of supervision and control

Each insurer shall maintain a system of supervision and control to insure compliance with the requirements of §§ 20:06:08:49 to 20:06:08:65, inclusive, that shall include at least the following:

(1) Inform its producers of the requirements of §§ 20:06:08:49 to 20:06:08:65, inclusive, and incorporate the requirements of §§ 20:06:08:49 to 20:06:08:65, inclusive, into all relevant producer training manuals prepared by the insurer;

(2) Provide each producer with a written statement of the company's position with respect to the acceptability of replacements, providing guidance to its producer as to the appropriateness of these transactions;

(3) A system to review the appropriateness of each replacement transaction that the producer does not indicate is in accord with subdivision 20:06:08:54(2);

(4) Procedures to confirm that the requirements of §§ 20:06:08:49 to 20:06:08:65, inclusive, have been met; and

(5) Procedures to detect transactions that are replacements of existing policies or contracts by the existing insurer, but that have not been reported as such by the applicant or producer.

Compliance with §§ 20:06:08:49 to 20:06:08:65, inclusive, may include, but is not limited to, systematic customer surveys, interviews, confirmation letters, or programs of internal monitoring.

S.D. Admin. R. 20:06:08:54

39 SDR 55, effective 10/4/2012.

General Authority: SDCL 58-33A-7(10).

Law Implemented: SDCL 58-33-5, 58-33-6, 58-33-7, 58-33-8, 58-33A-1, 58-33A-2.