South Dakota § 58-19-45 Test of reasonableness of benefits to premium charged--Prima facie evidence--Restriction on commissions.

South Dakota Statutes

§ 58-19-45 — Test of reasonableness of benefits to premium charged--Prima facie evidence--Restriction on commissions.

South Dakota § 58-19-45

Title 58INSURANCE

Ch. 58-19CREDIT LIFE, HEALTH, UNEMPLOYMENT AND GROUP PROPERTY INSURANCE

This text of South Dakota § 58-19-45 (Test of reasonableness of benefits to premium charged--Prima facie evidence--Restriction on commissions.) is published on Counsel Stack Legal Research, covering South Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

S.D. Codified Laws § 58-19-45 (2026).

Text

With regard to credit unemployment insurance, the basic test of the reasonableness of the relation of benefits to the premium charged shall be the development of an anticipated loss ratio of claims incurred to premiums earned of at least fifty percent. If the total current expected expenses, including acquisition expenses, exceed fifty percent of the premium dollar, this shall be considered prima facie evidence that a company intends to write credit business at a loss ratio which is not in compliance with this rule. Commissions, including retrospective premium refunds, bonuses, or acquisition expenses, may not exceed forty percent. If any company is not in compliance with this rule, it shall show just cause why the premium rates as filed should not be disapproved.

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With regard to credit unemployment insurance, the basic test of the reasonableness of the relation of benefits to the premium charged shall be the development of an anticipated loss ratio of claims incurred to premiums earned of at least fifty percent. If the total current expected expenses, including acquisition expenses, exceed fifty percent of the premium dollar, this shall be considered prima facie evidence that a company intends to write credit business at a loss ratio which is not in compliance with this rule. Commissions, including retrospective premium refunds, bonuses, or acquisition expenses, may not exceed forty percent. If any company is not in compliance with this rule, it shall show just cause why the premium rates as filed should not be disapproved.