South Dakota Codified Laws 58-5-12. Bond required of mutual insurer before soliciting applications for insurance–Filing by incorporators–Amount, conditions
Before soliciting any applications for insurance as permitted under § 58-5-21, the incorporators of the proposed insurer shall file with the director a continuing corporate surety bond in the penal sum of twenty–five thousand dollars, to be approved by the director, in favor of the state. The bond shall be conditioned as follows:
(1) For payment of costs incurred by the state in event of any legal proceedings for liquidation or dissolution of the corporation in the event the corporation fails to complete its organization and secure a certificate of authority within one year from the date of its certificate of incorporation; and
Terms Used In South Dakota Codified Laws 58-5-12
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- State: when used in context signifying a jurisdiction other than the State of South Dakota, a state, the District of Columbia, a territory, commonwealth, or possession of the United States of America, or a province of the Dominion of Canada. See South Dakota Codified Laws 58-1-2
(2) For the prompt return to applicant members of all premiums collected in advance.
Source: SL 1966, ch 111, ch 16, § 10 (1).