The director, after a hearing, shall not grant or continue authority to engage in the insurance business in this state of any insurer when contrary to public interest or when the principal management personnel of such insurer is found by him to be untrustworthy or not of good character, or so lacking in insurance company managerial experience as to make the proposed operation hazardous to the insurance-buying public or to its stockholders; or which he has good reason to believe is affiliated directly or indirectly through ownership, control, management, reinsurance transactions, or other insurance or business relations, with any person or persons whose business operations, to the detriment of insurers, stockholders, or creditors, are or have been marked by manipulation of assets, accounts, or reinsurance, or by bad faith.
S.D. Codified Laws § 58-6-8
Denial of authority to engage in business when contrary to public interest--Denial when managed by unqualified personnel--Affiliates
Applied in 2 court decisions — leading case First American Title Co. v. South Dakota Land Title Ass'n (1983)
Most recently applied in First American Title Co. v. South Dakota Land Title Ass'n (August 1983)
Source: SL 1966, ch 111, ch 3, § 4 (2).
Official source: South Dakota Legislature. Reproduced from public-domain South Dakota statutes; confirm against the official source for the current text. Not legal advice.