<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><title></title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.sb73c0e17-4bb7-47f0-a93f-2a3efa51e909Normal { text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.sb73c0e17-4bb7-47f0-a93f-2a3efa51e909DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.sb73c0e17-4bb7-47f0-a93f-2a3efa51e909DefaultParagraphFont-000000 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.sb73c0e17-4bb7-47f0-a93f-2a3efa51e909000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.sb73c0e17-4bb7-47f0-a93f-2a3efa51e909DefaultParagraphFont-000002 { color: #0000FF; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="sb73c0e17-4bb7-47f0-a93f-2a3efa51e909Normal"><span xml:space="preserve" class="sb73c0e17-4bb7-47f0-a93f-2a3efa51e909DefaultParagraphFont">    </span><span class="sb73c0e17-4bb7-47f0-a93f-2a3efa51e909DefaultParagraphFont-000000">20:06:21:06.  Cost-of-living adjustments -- Basis.</span><span xml:space="preserve" class="sb73c0e17-4bb7-47f0-a93f-2a3efa51e909DefaultParagraphFont"> The annual cost-of-living adjustment may be based on either the medical care component of the federal consumer price index or may be based on a fixed percentage increase of not less than five percent or more than ten percent. The adjustment period must continue for at least ten years or to age 85, whichever is sooner. The maximum lifetime benefit, if any, must be increased by the same percentage as the daily benefit. Annual adjustments must continue during the entire adjustment period regardless of the claims status of the policy.</span></p><p dir="ltr" class="sb73c0e17-4bb7-47f0-a93f-2a3efa51e909Normal"><span xml:space="preserve" class="sb73c0e17-4bb7-47f0-a93f-2a3efa51e909000001"> </span></p><p dir="ltr" class="sb73c0e17-4bb7-47f0-a93f-2a3efa51e909Normal"><span xml:space="preserve" class="sb73c0e17-4bb7-47f0-a93f-2a3efa51e909DefaultParagraphFont">    An insurer may offer periodic adjustments in lieu of annual adjustments if the adjustments offered are at intervals of no more than three years. If the periodic adjustment is based on a fixed percentage, the adjustment must be at a rate which complies with the annual fixed percentage total over the period used.</span></p><p dir="ltr" class="sb73c0e17-4bb7-47f0-a93f-2a3efa51e909Normal"><span xml:space="preserve" class="sb73c0e17-4bb7-47f0-a93f-2a3efa51e909000001"> </span></p><p dir="ltr" class="sb73c0e17-4bb7-47f0-a93f-2a3efa51e909Normal"><span xml:space="preserve" class="sb73c0e17-4bb7-47f0-a93f-2a3efa51e909DefaultParagraphFont">    If a company already offers a cost-of-living adjustment endorsement that meets the requirements of this section, other adjustment endorsements may be offered if the director determines that the endorsements are in the public interest.</span></p><p dir="ltr" class="sb73c0e17-4bb7-47f0-a93f-2a3efa51e909Normal"><span xml:space="preserve" class="sb73c0e17-4bb7-47f0-a93f-2a3efa51e909000001"> </span></p><p dir="ltr" class="sb73c0e17-4bb7-47f0-a93f-2a3efa51e909Normal"><span xml:space="preserve" class="sb73c0e17-4bb7-47f0-a93f-2a3efa51e909DefaultParagraphFont">    If a policy states the maximum policy limit as a time interval, the maximum policy limit is not required to be adjusted. The daily benefit is required to be adjusted.</span></p><p dir="ltr" class="sb73c0e17-4bb7-47f0-a93f-2a3efa51e909Normal"><span xml:space="preserve" class="sb73c0e17-4bb7-47f0-a93f-2a3efa51e909000001"> </span></p><p dir="ltr" class="sb73c0e17-4bb7-47f0-a93f-2a3efa51e909Normal"><span xml:space="preserve" class="sb73c0e17-4bb7-47f0-a93f-2a3efa51e909DefaultParagraphFont">    Notwithstanding any other provision, an insurer may not be required to increase its maximum lifetime benefit beyond $500,000.</span></p><p dir="ltr" class="sb73c0e17-4bb7-47f0-a93f-2a3efa51e909Normal"><span xml:space="preserve" class="sb73c0e17-4bb7-47f0-a93f-2a3efa51e909000001"> </span></p><p dir="ltr" class="sb73c0e17-4bb7-47f0-a93f-2a3efa51e909Normal"><span xml:space="preserve" class="sb73c0e17-4bb7-47f0-a93f-2a3efa51e909DefaultParagraphFont">    </span><span class="sb73c0e17-4bb7-47f0-a93f-2a3efa51e909DefaultParagraphFont-000000">Source:</span><span xml:space="preserve" class="sb73c0e17-4bb7-47f0-a93f-2a3efa51e909DefaultParagraphFont"> 16 SDR 208, effective </span><span xml:space="preserve" class="sb73c0e17-4bb7-47f0-a93f-2a3efa51e909DefaultParagraphFont">June 3, 1990; 22 SDR 97, effective </span><span class="sb73c0e17-4bb7-47f0-a93f-2a3efa51e909DefaultParagraphFont">December 18, 1995.</span></p><p dir="ltr" class="sb73c0e17-4bb7-47f0-a93f-2a3efa51e909Normal"><span xml:space="preserve" class="sb73c0e17-4bb7-47f0-a93f-2a3efa51e909DefaultParagraphFont">    </span><span class="sb73c0e17-4bb7-47f0-a93f-2a3efa51e909DefaultParagraphFont-000000">General Authority:</span><span xml:space="preserve" class="sb73c0e17-4bb7-47f0-a93f-2a3efa51e909DefaultParagraphFont"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=58-17B-4"><span class="sb73c0e17-4bb7-47f0-a93f-2a3efa51e909DefaultParagraphFont-000002">58-17B-4</span></a><span xml:space="preserve" class="sb73c0e17-4bb7-47f0-a93f-2a3efa51e909DefaultParagraphFont">, </span><a href="https://sdlegislature.gov/Statutes?Statute=58-17B-13.1"><span class="sb73c0e17-4bb7-47f0-a93f-2a3efa51e909DefaultParagraphFont-000002">58-17B-13.1</span></a><span class="sb73c0e17-4bb7-47f0-a93f-2a3efa51e909DefaultParagraphFont">.</span></p><p dir="ltr" class="sb73c0e17-4bb7-47f0-a93f-2a3efa51e909Normal"><span xml:space="preserve" class="sb73c0e17-4bb7-47f0-a93f-2a3efa51e909DefaultParagraphFont">    </span><span class="sb73c0e17-4bb7-47f0-a93f-2a3efa51e909DefaultParagraphFont-000000">Law Implemented:</span><span xml:space="preserve" class="sb73c0e17-4bb7-47f0-a93f-2a3efa51e909DefaultParagraphFont"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=58-17B-13"><span class="sb73c0e17-4bb7-47f0-a93f-2a3efa51e909DefaultParagraphFont-000002">58-17B-13</span></a><span class="sb73c0e17-4bb7-47f0-a93f-2a3efa51e909DefaultParagraphFont">.</span></p><p dir="ltr" class="sb73c0e17-4bb7-47f0-a93f-2a3efa51e909Normal"><span xml:space="preserve" class="sb73c0e17-4bb7-47f0-a93f-2a3efa51e909000001"> </span></p></div></body></html>