§ 58-33A-20.1 — Contract for performance of supervision system functions--Responsibility for corrective action--Supervision of performance.

South Dakota § 58-33A-20.1

• Jurisdiction: South Dakota
• Title 58: INSURANCE
• Ch. 58-32: STANDARDS FOR ADVERTISEMENT, SOLICITATION, AND SALE OF LIFE AND HEALTH INSURANCE

Text

Nothing in § 58-33A-20 or this section restricts an insurer from contracting for performance of a function required under § 58-33A-20 , including maintenance of procedures. An insurer is responsible for taking appropriate corrective action and may be subject to sanctions and penalties pursuant to § 58-33A-26 regardless of whether the insurer contracts for performance of a function and regardless of the insurer's compliance with this section. An insurer's supervision system under § 58-33A-20 and this section shall include supervision of contractual performance under this section. This includes the following: (1) Monitoring and, as appropriate, conducting audits to assure that the contracted function is properly performed; and (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. 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.

Legislative History

SL 2012, ch 250, § 8; SL 2022, ch 186, § 21, eff. Jan. 1, 2023.