South Dakota Statutes

§ 58-5-116 — Assessment of stockholders to cure impairment of capital or surplus--Enforcement.

South Dakota § 58-5-116
JurisdictionSouth Dakota
Title 58INSURANCE
Ch. 58-4AORGANIZATION AND GENERAL POWERS OF INSURERS

This text of South Dakota § 58-5-116 (Assessment of stockholders to cure impairment of capital or surplus--Enforcement.) 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 § 58-5-116 (2026).

Text

A stock insurer, upon receiving the director's notice of deficiency as set forth in § 58-5-114 , by resolution of its board of directors and subject to any limitations upon assessment contained in its articles of incorporation, may assess its stockholders for amounts necessary to cure the deficiency and provide for a reasonable amount of surplus. If a stockholder fails to pay such assessment after notice, the insurer may require the return of the original certificate of stock, deduct such assessment, and issue a new certificate for such stockholder's remaining interest. The insurer may pay for or reissue fractional shares under this section.

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Legislative History

SL 1966, ch 111, ch 16, § 36 (1).

Nearby Sections

15
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Bluebook (online)
South Dakota § 58-5-116, Counsel Stack Legal Research, https://law.counselstack.com/statute/sd/58-5-116.