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.
S.D. Codified Laws § 58-5-116
Assessment of stockholders to cure impairment of capital or surplus--Enforcement
Source: SL 1966, ch 111, ch 16, § 36 (1).
Official source: South Dakota Legislature. Reproduced from public-domain South Dakota statutes; confirm against the official source for the current text. Not legal advice.