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Division of Insurance
Company Assessments
(Updated as of Oct. 16, 2024)
Assessment Status by Type |
||
| Type | Status | Assessment in Progress Details or Last Assessment Completed |
| Insurance Fraud Fund Assessment | No assessment currently. | N/A |
| Subsequent Injury Fund (SIF) | No assessment currently. | N/A |
| Company Examination Assessment | No additional assessment currently | N/A |
Codified Laws for Assessments
Insurance Fraud Assessment
The Division of Insurance shall assess each insurer holding a certificate of authority to transact the business of insurance in this state a fee of two hundred fifty dollars to be remitted and payable to the Division of Insurance to be deposited in a separate account, entitled the insurance fraud prevention unit fund. The Division of Insurance may not make an assessment until the fund falls below one hundred thousand dollars. If the fund falls below one hundred thousand dollars, the Division of Insurance shall notify each insurer of its payment obligation. Upon receipt of the notice of assessment from the Division of Insurance each insurer shall immediately make a two hundred fifty dollar payment to the fund. Failure of an insurer to submit full payment of the assessment to the division within twenty days of receipt of the notice of assessment, unless good cause is shown, may be grounds for administrative action to be taken by the division against an insurer.
Subsequent Injury Fund (SIF) Assessment
SDCL § 62-4-34.7 states that the division shall continue to make any necessary assessments pursuant to the requirements set forth in § 62-4-35 in effect prior to July 1, 1999 to replenish SIF.
SDCL § 62-4-35 reads as follows:
62-4-35. Payments into subsequent injury fund. In case of the death of an employee covered by this title, if no person is entitled to compensation, the employer, or if insured, the employer’s insurance carrier shall pay to the Division of Insurance the sum of five hundred dollars to be deposited in the subsequent injury fund. The Division of Insurance shall assess each insurance carrier of every employer, or every employer, if self-insured, an amount equal to four percent of all workers’ compensation, including medical, hospital, and indemnity expenses, paid to or on behalf of an injured employee during the calendar year next preceding the due date of the payments, which shall be deposited in the subsequent injury fund. The assessment shall be made at any time the fund falls below two hundred thousand dollars. The payment shall be made immediately upon notification to the carrier or self-insured by the division. Each insurance carrier of every employer, or every employer, if self-insured, shall be required to participate in the subsequent injury fund and pay assessments except as provided in § 62-4-34.6. Failure of an insurance carrier of an employer, or an employer, if self-insured, to respond within twenty days of receipt to a notice of assessment from the Division of Insurance shall, unless good cause is shown, have the effect of making that insurance carrier of an employer or a self-insured employer ineligible for reimbursement from the subsequent injury fund for any subsequent injury incurred or claim made from the date the assessment is made for a period of one year subsequent to the date the assessment is actually paid. Failure of an insurance carrier of an employer, or an employer, if self-insured, to pay an assessment other than for good cause shown, shall also be grounds for administrative action to be taken by the division or department against an insurance carrier of an employer or an employer, if self-insured, concerning their status and authority to continue being authorized insurance carriers or self-insured employers in the State of South Dakota.
Company Exam Assessment
SDCL § 58-3-3.1. Examination assessment fee.
Insurance examination fund established for proceeds. Any insurer subject to chapter 58-3 shall pay to the Division of Insurance an annual examination assessment fee of three hundred dollars by March first of each year. There is established within the state treasury the insurance examination fund, into which shall be deposited the proceeds from the examination assessment fees. If the director determines that additional fees are needed to meet the anticipated needs of the examination fund, the director may increase the annual examination assessment fee or levy additional examination assessment fees of up to one hundred fifty dollars per insurer whenever the insurance examination fund falls below fifty thousand dollars. However, the director may not increase the annual examination fee to an amount exceeding one thousand dollars.