South Dakota Codified Laws 58-15-95. Definition of terms regarding identification and location of beneficiaries
Terms used in §§ 58-15-94 to 58-15-108, inclusive, mean:
(1) “Beneficiary,” any party entitled to receive the proceeds from a policy, an annuity contract, or a retained asset account;
Terms Used In South Dakota Codified Laws 58-15-95
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Contract: A legal written agreement that becomes binding when signed.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Person: includes natural persons, partnerships, associations, cooperative corporations, limited liability companies, and corporations. See South Dakota Codified Laws 2-14-2
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
(2) “Beneficiary search,” reasonable and good faith efforts, that an insurer documents, to identify a beneficiary, determine a current address for the beneficiary, and contact the beneficiary;
(3) “Death Master File” or “DMF,” the United States Social Security Administration’s Death Master File or any other database or service that is at least as comprehensive as the United States Social Security Administration’s Death Master File for determining that an individual has reportedly died;
(4) “Death Master File match,” a search of the DMF that results in a match of the social security number or name and date of birth of an insured;
(5) “Insured,” an individual identified in a policy, retained asset account, or annuity contract whose death obligates the insurer to pay benefits or proceeds;
(6) “Knowledge of death,” knowledge of death of insured by:
(a) Receipt of an original or valid copy of a certified death certificate; or
(b) A DMF match validated in good faith efforts by the insurer;
(7) “Lapse,” the termination of a policy resulting from nonpayment of premiums or, in the case of variable life and universal life insurance policies, the depletion of cash value below the amount needed to keep the policy in force;
(8) “Policy,” any policy or certificate of life insurance that provides a death benefit. The term does not include:
(a) Any policy or certificate of life insurance that provides a death benefit under an employee welfare benefit plan subject to the federal Employee Retirement Income Security Act of 1974 (ERISA) as of January 1, 2018, for which the insurer does not provide record-keeping services or under any federal employee benefit program;
(b) Preneed insurance;
(c) Any policy or certificate of credit life or mortgage life;
(d) Any accidental death or health policies, riders, or certificates, including disability and long-term care policies, riders, or certificates; or
(e) Any policy issued to a group master policyholder for which the insurer does not provide record-keeping services;
(9) “Preneed insurance,” any life insurance policy or certificate that is used in combination with, in support of, with an assignment to, or as a guarantee for a prearrangement agreement for goods and services to be provided at the time of and immediately following the death of the insured. Goods and services includes embalming, cremation, body preparation, viewing or visitation, coffin or urn, memorial stone, and transportation of the deceased. The status of the policy or contract as preneed insurance is determined at the time of issue in accordance with the policy form filing;
(10) “Record-keeping services,” those circumstances under which the insurer has agreed with a group life insurance policy holder or contract owner to be responsible for obtaining, maintaining, and administering the insurer’s system or a system for its agents. The information about each individual insured under an insured’s group insurance contract (or a line of coverage thereunder) in the system shall include at least the following information:
(a) Social security number or name and date of birth;
(b) Beneficiary designation information;
(c) Coverage eligibility;
(d) Benefit amount; and
(e) Premium payment status;
(11) “Records,” information regarding any policy, annuity contract, and retained asset account maintained in the insurer’s administrative system or the administrative system of any third party retained by the insurer. The term does not include the information maintained by a group life insurance policyholder or contract owner;
(12) “Retained asset account,” any mechanism whereby the settlement of proceeds payable under a policy or individual annuity contract, including the payment of cash surrender value, is accomplished by the insurer or an entity acting on behalf of the insurer establishing an account with check or draft-writing privileges, where those proceeds are retained by the insurer, pursuant to a supplementary contract not involving annuity benefits;
(13) “Retained asset account holder,” the owner of a retained asset account or other person to file a claim for, or otherwise receive proceeds in accordance with the terms of the retained asset account.
Source: SL 2018, ch 280, § 2.