SDCL § 58-15-15.13: Private placement policy defined.

A private placement policy is a variable annuity contract or a variable life insurance policy that is:

(1) Issued exclusively to a person who is an accredited investor or a qualified purchaser, as such terms are defined in the federal Securities Act of 1933 or the federal Investment Company Act of 1940, or in regulations promulgated under either such statute; and

(2) Offered for sale and sold in a transaction that is exempt from registration under the federal Securities Act of 1933.