South Dakota: premium trust account rules
What South Dakota requires of insurance producers holding premium funds, and what happens when those funds are diverted.
Citation
§§ 58-30-88 to 58-30-89; 58-30-167; 58-4-28.1
Source chart last reviewed this jurisdiction: 2/25
What the jurisdiction requires
All premiums received by a producer shall be trust funds received by the licensee in a fiduciary capacity. Producers shall account for and pay the same to the insurer.
Penalties for diversion
The director may suspend, revoke, or refuse to issue or renew an agent’s license or may accept a penalty not exceeding $5,000 or any combination thereof for withholding, misappropriating, or converting any monies received in the course of doing insurance business. If an agent unlawfully diverts or misappropriates trust funds to his own use, he shall, upon conviction, be guilty of theft and punished accordingly by criminal statutes.
This reference is not legal advice. Citations and summaries are transcribed from the NAIC's Fiduciary Responsibilities—Premiums chart (Spring 2025) and reflect that chart's own review dates, which vary by jurisdiction. Statutes change, and the chart may lag the current code. Confirm the current text of any provision with the jurisdiction's insurance department or your own counsel before relying on it.
Tie out a South Dakota trust account
Tie your premium trust account out three ways — bank, ledger and what you owe — with South Dakota's cited rule beside the worksheet. Runs in your browser; nothing is uploaded.
Trust account reconciliation worksheetKeep your trust account provably in balance
Policy Balance Hub tracks premium held in trust against what you owe each carrier, so the reconciliation an examiner asks for already exists.