Section 51A-2-40 - Insurance business restricted. - South Dakota Statutes

51A-2-40. Insurance business restricted. If a bank acquired pursuant to § 51A-2-38 engages in the insurance business it shall conduct its insurance business in this state in a manner likely to not attract business from the general public to the substantial detriment of insurance companies, insurance brokers or insurance agents to the extent of their business in the state. No bank, as a prerequisite of making a loan, shall require the borrower to purchase insurance from the bank. Further, such insurance business shall be subject to the same laws and regulations of this state, and the application thereof by the division of insurance, as are applicable to the operations of insurance companies which are unaffiliated with banks.

Source: SL 1980, ch 331, § 1; SL 1983, ch 356, § 3; SL 1988, ch 378, § 4; SDCL, § 51-16-41.