BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That § 58-29A-2 be amended to read as follows:
58-29A-2. This chapter applies to all kinds of direct insurance, except life, annuity, disability, and health insurance; title insurance; surety or fidelity bonds or insurance, or any other bonding obligations; credit insurance, vendors' single interest insurance, or collateral protection insurance or any similar insurance protecting the interests of a creditor arising out of a creditor-debtor transaction; mortgage guaranty and financial guaranty, or other forms of insurance offering protection against investment risks; insurance of warranties or service contracts; ocean marine insurance; transactions which separately or in combination result in no transfer of insurance risk; and any insurance provided by or guaranteed or reinsured by any governmental body.
Section 2. That § 58-29A-16 be amended to read as follows:
58-29A-16. The association is obligated to the extent of the covered claims existing prior to the determination of insolvency and arising within thirty days after the determination of insolvency, or before the policy expiration date if less than thirty days after the determination, or before the insured replaces the policy or causes its cancellation, if the insured does so within thirty days of the determination, but the obligation includes only that amount of each covered claim which is in excess of one hundred dollars and is less than three hundred thousand dollars. However, the association shall pay the full amount of any covered claim arising out of a workers' compensation policy. In no event is the association obligated to a policyholder or claimant in an amount in excess of the obligation of the insolvent insurer under the policy from
which the claim arises nor is the association obligated to pay any unearned premium claims
beyond twenty-five thousand dollars per policy. Notwithstanding any other provisions of this
chapter, a covered claim does not include any claim filed with the association after the final date
set by the court for the filing of claims against the liquidator or receiver of an insolvent insurer.
Section
3.
That
§
58-29A-25
be amended to read as follows:
58-29A-25.
No member insurer may be assessed in any year on any account an amount
greater than two percent of that member insurer's net direct written premiums for the preceding
calendar year on the kinds of insurance in the account.
Section
4.
That chapter 58-29A be amended by adding thereto a NEW SECTION to read
as follows:
Section 5. That § 58-29A-3 be amended by adding thereto a NEW SUBDIVISION to read as follows:
controls, is controlled by, or is under common control with an insolvent insurer on December thirty-first of the year immediately preceding the date the insurer becomes an insolvent insurer.
An Act to revise certain provisions regarding the property and casualty Insurance Guaranty Association.
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I certify that the attached Act originated in the
HOUSE as
Bill
No.
1048
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Chief Clerk
Speaker of the House
Chief Clerk
____________________________
President of the Senate
Secretary of the Senate
File No. ____
Chapter No. ______
Received at this Executive Office this ____ day of _____________ ,
19___ at _____ M.
for the Governor
The attached Act is hereby
approved this ________ day of
______________ , A.D., 19___
Governor
STATE OF SOUTH DAKOTA,
Filed ____________ , 19___
at _________ o'clock __ M.
Secretary of State
By _________________________
Asst. Secretary of State
