The following are general requirements for health and life insurance advertisements and solicitations:

1. (1) Each insurer must maintain at its home office or principal office a complete file containing one copy of each form authorized by the insurer for use pursuant to this chapter. Each authorized form must be kept in the file for five years following the date of its last authorized use;

2. (2) In recommending the purchase of a policy to a consumer, an agent must determine at the time of sale that the placement of the policy is not inappropriate for the consumer. The agent shall determine the appropriateness of a recommended purchase of insurance by examination of the totality of the particular consumer's circumstances, including the following:

   1. (a) The consumer's financial condition, i.e., if a person is on a fixed income, premium costs;
   2. (b) The consumer's need for insurance at the time of sale, i.e., existing policies, insured's finances;
   3. (c) The values, benefits, and costs of the consumer's existing insurance program, if any, when compared to the values, benefits, and cost of the recommended policy or policies.

Source: 38 SDR 116, effective January 10, 2012.

General Authority: SDCL 58-17A-2 , 58-33A-7.

Law Implemented: SDCL 58-17A-2 , 58-33-5 , 58-33-6 , 58-33-7 , 58-33-8 , 58-33-10.