58-11-1      Premium defined.
58-11-2      Contents of policy.
58-11-3      Statement of basis and rates for determination of premium included in policy.
58-11-4      Contents of policy--Exemption of surety contracts or group insurance policies.
58-11-5      Standard or uniform provisions of insurance contracts--Waiver of required use by director.
58-11-6      Policy not to contain provisions inconsistent with standard or uniform provisions--Substitute provision, approval by director.
58-11-7      Substitute provisions required by law of domicile of foreign or alien insurer, approval by director.
58-11-8      Assessable policies--Special contents.
58-11-9      Motor vehicle insurance--Uninsured motorist and hit-and-run coverage--Amount of coverage--Uninsured motorist coverage not required for government owned vehicles.
58-11-9.1      Motor vehicle insured by insolvent liability insurer defined as uninsured--Rights of insurer making payment under uninsured motorist coverage.
58-11-9.2      Notice required when automobile policy does not include liability insurance.
58-11-9.3      Exclusion of named person or reduction of coverage in motor vehicle policy--Minimum liability coverage.
58-11-9.4      Underinsured motorist coverage to be available with liability policies--Limitation of coverage--Exception.
58-11-9.5      Payment to insured for portion of judgment not collected from underinsured motorist--Coverage limits.
58-11-9.6      Subrogation of insurer--Assignment of judgment--Liability issuer allowed to pay limits under policy.
58-11-9.7      Adding of insured's uninsured and underinsured motorist coverage limits prohibited--Exception.
58-11-9.8      Adding of uninsured motorist coverage limits for multiple vehicles prohibited.
58-11-9.9      Adding of underinsured motorist coverage limits for multiple vehicles prohibited.
58-11-9.10      Increase in automobile insurance premiums due to drug-related offenses prohibited.
58-11-9.11      Increase in automobile insurance premiums due to certain alcohol-related offenses by a minor prohibited.
58-11-10      Additional policy provisions--Approval of director.
58-11-11      Charter and bylaws, inclusion as part of contract of insurance--Subscriber's agreement or power of attorney of a reciprocal insurer as part of contract.
58-11-12      Policy forms--Filing with and approval by director--Group policy certificates filed for informational purposes.
58-11-13      Policies exempt from form provisions.
58-11-14      Continuation of use of prior filings until otherwise prescribed.
58-11-15      Order of director exempting insurance documents from requirements as to form.
58-11-16      Property, marine and transportation, casualty and surety insurance coverages--Filing of forms by rating organizations.
58-11-17      Time for filing of forms--Approval or disapproval by director.
58-11-18      Extension of time for approval or disapproval of filing by director--Notice to insurer--Approval at expiration of extended period.
58-11-19      Withdrawal of approval of form by director--Notice.
58-11-20      Order of director disapproving form or withdrawing previous approval--Detailed statement of grounds.

58-11-1. Premium defined.

Premium is the consideration for insurance by whatever name called. Any assessment, or any membership, policy, survey, inspection, service, or similar fee or other charge in consideration for an insurance contract is deemed part of the premium. However, the premium for title insurance shall be the rates filed and approved in § 58-25-7.

Source: SL 1966, ch 111, ch 22, § 3; SL 1995, ch 66, § 2; SL 2009, ch 259, § 1; SL 2014, ch 229, § 1.

58-11-2. Contents of policy.

Every policy as defined by § 58-10-2 shall specify:

(1)    The names of the parties to the contract;

(2)    The subject of the insurance;

(3)    The risks insured against;

(4)    The time when the insurance takes effect and the duration thereof;

(5)    The premium; and

(6)    The conditions pertaining to the insurance.

Source: SL 1966, ch 111, ch 22, § 16 (1).

58-11-3. Statement of basis and rates for determination of premium included in policy.

If under the policy, the exact amount of premium is determinable only at stated intervals or at termination of the contract, a statement of the basis and rates upon which the premium is to be determined and paid shall be included.

Source: SL 1966, ch 111, ch 22, § 16 (2).

58-11-4. Contents of policy--Exemption of surety contracts or group insurance policies.

Sections 58-11-2 and 58-11-3 shall not apply to surety contracts or to group insurance policies.

Source: SL 1966, ch 111, ch 22, § 16 (3).

58-11-5. Standard or uniform provisions of insurance contracts--Waiver of required use by director.

Insurance contracts shall contain such standard or uniform provisions as are required by the applicable provisions of this title pertaining to contracts of particular kinds of insurance. The director may waive the required use of a particular provision in a particular insurance policy form if he finds such provision unnecessary for the protection of the insured and inconsistent with the purposes of the policy.

Source: SL 1966, ch 111, ch 22, § 15 (1).

58-11-6. Policy not to contain provisions inconsistent with standard or uniform provisions--Substitute provision, approval by director.

No policy shall contain any provision inconsistent with or contradictory to any standard or uniform provision used or required to be used, but the director may approve any substitute provision which is, in his opinion, not less favorable in any particular to the insured or beneficiary than the provisions otherwise required.

Source: SL 1966, ch 111, ch 22, § 15 (2).

58-11-7. Substitute provisions required by law of domicile of foreign or alien insurer, approval by director.

In lieu of the provisions required by this title for contracts for particular kinds of insurance, substantially similar provisions required by the law of the domicile of a foreign or alien insurer may be used when approved by the director.

Source: SL 1966, ch 111, ch 22, § 15 (3).

58-11-8. Assessable policies--Special contents.

Every assessable policy delivered or issued for delivery in this state by an insurer, together with any application therefor shall have conspicuously printed near the top of the face of such policy and application thereof in bold-face type of a size not less than the largest type used for any heading or caption in the policy or application, the words "Important: this is an assessable policy," or "Important: this is an application for an assessable policy."

Source: SL 1966, ch 111, ch 22, § 17.

58-11-9. Motor vehicle insurance--Uninsured motorist and hit-and-run coverage--Amount of coverage--Uninsured motorist coverage not required for government owned vehicles.

No policy insuring against loss resulting from liability imposed by law for bodily injury or death suffered by any person arising out of the ownership, maintenance, or use of a motor vehicle may be delivered or issued for delivery in this state with respect to any motor vehicle registered or principally garaged in this state, except for snowmobiles, unless coverage is provided therein or supplemental thereto in limits for bodily injury or death equal to the coverage provided by such policy for bodily injury and death, for the protection of persons insured thereunder who are legally entitled to recover damages from owners or operators of uninsured motor vehicles and hit-and-run motor vehicles because of bodily injury, sickness, or disease, including death, resulting therefrom. However, the coverage required by this section may not exceed the limits of one hundred thousand dollars because of bodily injury to or death of one person in any one accident and, subject to the limit for one person, three hundred thousand dollars because of bodily injury to or death of two or more persons in any one accident, unless additional coverage is requested by the insured. Any policy insuring government owned vehicles may not be required to provide uninsured motorist coverage.

Source: SL 1966, ch 111, ch 22, § 16 (5); SL 1972, ch 261; SL 1975, ch 307; SL 1981, ch 359, § 3; SL 1982, ch 356; SL 1997, ch 286, § 1.

58-11-9.1. Motor vehicle insured by insolvent liability insurer defined as uninsured--Rights of insurer making payment under uninsured motorist coverage.

For the purpose of uninsured motorist coverage the term "uninsured motor vehicle" shall be deemed to include an insured motor vehicle where the liability insurer thereof is unable to make payment with respect to the legal liability of its insured within the limits specified therein because of insolvency. In the event of payment by an insurer to any person under the uninsured motorist coverage, the insurer making such payment shall, to the extent thereof, be entitled to the proceeds of any settlement or judgment resulting from the exercise of any rights of recovery of such person against any person or organization legally responsible for the damage for which such payment is made, including the proceeds recoverable from the assets of the insolvent insurer.

Source: SL 1966, ch 111, ch 22, § 16 (5) as added by SL 1968, ch 136.

58-11-9.2. Notice required when automobile policy does not include liability insurance.

Any automobile policy and certificate of insurance which is issued on any automobile registered or principally garaged in this state and which does not provide bodily injury and property damage liability insurance, shall contain the following notice in ten point, or larger, bold print on the face of the policy and certificate: "This policy does not provide bodily injury and property damage liability insurance or any other coverage for which a specific premium charge is not made, and does not comply with any Financial Responsibility Law."

Source: SL 1971, ch 268; SL 1990, ch 393.

58-11-9.3. Exclusion of named person or reduction of coverage in motor vehicle policy--Minimum liability coverage.

An insurance policy covering a private passenger automobile or other motor vehicle registered or principally garaged in this state may by written agreement with the named insured exclude a named individual from coverage. The policy may also contain a restrictive endorsement reducing the limits of liability or collision coverage when the vehicle is operated by a named person or class of persons. However, if the policy does provide liability coverage to a person or persons named in a restrictive endorsement, the liability coverage may not be less than the minimum prescribed by chapter 32-35.

Source: SL 1971, ch 269; SL 1994, ch 376.

58-11-9.4. Underinsured motorist coverage to be available with liability policies--Limitation of coverage--Exception.

No motor vehicle liability policy of insurance may be issued or delivered in this state with respect to any motor vehicle registered or principally garaged in this state, except for snowmobiles, unless underinsured motorist coverage is provided therein at a face amount equal to the bodily injury limits of the policy. However, the coverage required by this section may not exceed the limits of one hundred thousand dollars because of bodily injury to or death of one person in any one accident and, subject to the limit for one person, three hundred thousand dollars because of bodily injury to or death of two or more persons in any one accident, unless additional coverage is requested by the insured. Any policy insuring government owned vehicles may not be required to provide underinsured motorist coverage.

Source: SL 1975, ch 315, § 1; SL 1981, ch 359, § 1; SL 1986, ch 418, § 1; SL 1988, ch 394, § 1; SL 1989, ch 424; SL 1997, ch 286, § 2.

58-11-9.5. Payment to insured for portion of judgment not collected from underinsured motorist--Coverage limits.

Subject to the terms and conditions of such underinsured motorist coverage, the insurance company agrees to pay its own insured for uncompensated damages as its insured may recover on account of bodily injury or death arising out of an automobile accident because the judgment recovered against the owner of the other vehicle exceeds the policy limits thereon. Coverage shall be limited to the underinsured motorist coverage limits on the vehicle of the party recovering less the amount paid by the liability insurer of the party recovered against.

Source: SL 1975, ch 315, § 2; SL 1981, ch 359, § 2; SL 1986, ch 418, § 2; SL 1988, ch 394, § 2.

58-11-9.6. Subrogation of insurer--Assignment of judgment--Liability issuer allowed to pay limits under policy.

The issuer of the underinsured motorist coverage is subrogated to any amounts the insurer so pays and, upon payment, has an assignment of the judgment against the other party to the extent of the money paid. Refusal of the issuer of the underinsured motorist coverage to waive its statutory right of subrogation does not constitute bad faith. A liability insurer may pay the limits of the liability policy it issued without obtaining a complete release on behalf of its insured. Such payment does not abrogate any continuing duty to defend and does not constitute bad faith.

Source: SL 1975, ch 315, § 3; SL 1988, ch 395; SL 1989, ch 425.

58-11-9.7. Adding of insured's uninsured and underinsured motorist coverage limits prohibited--Exception.

In no case may an insured's uninsured motorist coverage limits and underinsured motorist coverage limits be added together to determine the limit of insurance coverage available to an injured person for any one accident. However, this provision does not preclude recovery under both an insured's underinsured and uninsured coverages where two or more separate motor vehicle operators, one uninsured and the other underinsured, are determined to be liable.

Source: SL 1986, ch 417, § 2.

58-11-9.8. Adding of uninsured motorist coverage limits for multiple vehicles prohibited.

Regardless of the number of policies involved, vehicles involved, persons covered, claims made, vehicles or premiums shown on the insured's policy, or premiums paid, in no event may the limit of liability for uninsured motorist coverage for two or more of the insured's motor vehicles be added together to determine the limit of insurance coverage available to an injured person for any one accident.

Source: SL 1986, ch 417, § 3.

58-11-9.9. Adding of underinsured motorist coverage limits for multiple vehicles prohibited.

Regardless of the number of policies involved, vehicles involved, persons covered, claims made, vehicles or premiums shown on the insured's policy, or premiums paid, in no event may the limit of liability for underinsured motorist coverage for two or more of the insured's motor vehicles be added together to determine the limit of insurance coverage available to an injured person for any one accident.

Source: SL 1986, ch 417, § 4.

58-11-9.10. Increase in automobile insurance premiums due to drug-related offenses prohibited.

No automobile insurer may increase the premium rate as a result of a conviction, adjudication of delinquency or revocation under § 32-12-52.3.

Source: SL 1990, ch 249, § 2.

58-11-9.11. Increase in automobile insurance premiums due to certain alcohol-related offenses by a minor prohibited.

No automobile insurer may increase the premium rate as a result of a conviction, adjudication of delinquency or revocation under § 32-12-52.4.

Source: SL 1990, ch 250, § 2.

58-11-10. Additional policy provisions--Approval of director.

A policy may contain additional lawful provisions, including reasonable policy exclusions, not inconsistent with this title, subject to the director's approval.

Source: SL 1966, ch 111, ch 22, § 18; SL 2010, ch 235, § 1.

58-11-11. Charter and bylaws, inclusion as part of contract of insurance--Subscriber's agreement or power of attorney of a reciprocal insurer as part of contract.

No policy shall contain any provision purporting to make any portion of the charter, bylaws or other constituent document of the insurer, other than the subscriber's agreement or power of attorney of a reciprocal insurer, a part of the contract unless such portion is set forth in full in the policy. Any policy provision in violation of this section shall be invalid.

Source: SL 1966, ch 111, ch 22, § 19.

58-11-12. Policy forms--Filing with and approval by director--Group policy certificates filed for informational purposes.

No basic insurance policy or annuity contract form, or group certificate form, or application form where written application is required and is to be made a part of the policy or contract, or printed rider or endorsement form or form of renewal certificate, shall be delivered or issued for delivery in this state, unless the form has been filed with and approved by the director, except that certificates delivered, but not solicited in this state, pursuant to a group policy issued or delivered outside the State of South Dakota shall be filed with the director for informational purposes. A form filed with the director for informational purposes does not exempt that group policy or certificate from complying with any other applicable provisions of Title 58 or state law.

Source: SL 1966, ch 111, ch 22, § 13 (1); SL 1975, ch 308; SL 1996, ch 291.

58-11-13. Policies exempt from form provisions.

Section 58-11-12 shall not apply to surety bonds, or to specially rated inland marine risks, nor to policies, riders, endorsements, or forms of unique character designed for and used with relation to insurance upon a particular subject, or which relate to the manner of distribution of benefits or to the reservation of rights and benefits under life or health insurance policies and are used at the request of the individual policyholder, contract holder, or certificate holder.

Source: SL 1966, ch 111, ch 22, § 13 (1).

58-11-14. Continuation of use of prior filings until otherwise prescribed.

Every form of insurance document and every rate or other filing lawfully in use immediately prior to July 1, 1966, may continue to be so used until the director otherwise prescribes pursuant to this title.

Source: SL 1966, ch 111, ch 22, § 13 (5).

58-11-15. Order of director exempting insurance documents from requirements as to form.

The director may, by order, exempt from the requirements of § 58-11-12 for so long as he deems proper, any insurance document or form or type thereof as specified in such order, to which, in his opinion, said section may not practically be applied, or the filing and approval of which are, in his opinion, not desirable or necessary for the protection of the public.

Source: SL 1966, ch 111, ch 22, § 13 (4).

58-11-16. Property, marine and transportation, casualty and surety insurance coverages--Filing of forms by rating organizations.

As to forms for use in property, marine and transportation, casualty and surety insurance coverages, the filing required by § 58-11-12 may be made by rating organizations on behalf of its members and subscribers; but this provision shall not be deemed to prohibit any such member or subscriber from filing any such forms on its own behalf.

Source: SL 1966, ch 111, ch 22, § 13 (1).

58-11-17. Time for filing of forms--Approval or disapproval by director.

Every filing pursuant to § 58-11-12 shall be made not less than thirty days in advance of any such delivery. At the expiration of such thirty days, the form so filed shall be deemed approved unless prior thereto it has been approved or disapproved by order of the director. Approval of any such form by the director shall constitute a waiver of any unexpired portion of such waiting period.

Source: SL 1966, ch 111, ch 22, § 13 (2).

58-11-18. Extension of time for approval or disapproval of filing by director--Notice to insurer--Approval at expiration of extended period.

The director may extend by not more than thirty days the period within which he may so approve or disapprove any such form, by giving notice to the insurer of such extension before expiration of the initial thirty-day period. At the expiration of any such period as so extended, and in the absence of such prior affirmative approval or disapproval, any such form shall be deemed approved.

Source: SL 1966, ch 111, ch 22, § 13 (2).

58-11-19. Withdrawal of approval of form by director--Notice.

The director may at any time, after notice and for cause shown, withdraw any such approval.

Source: SL 1966, ch 111, ch 22, § 13 (2).

58-11-20. Order of director disapproving form or withdrawing previous approval--Detailed statement of grounds.

Any order of the director disapproving any such form or withdrawing a previous approval shall state the grounds therefor and the particulars thereof in such detail as reasonably to inform the insurer thereof.

Source: SL 1966, ch 111, ch 22, § 13 (3).

58-11-21. Grounds for disapproval of form or withdrawal of previous approval.

The director shall disapprove any form filed under § 58-11-12, or withdraw any previous approval thereof, only if the form:

(1)    Is in any respect in violation of or does not comply with this title;

(2)    Contains or incorporates by reference, where such incorporation is otherwise permissible, any inconsistent, ambiguous, or misleading clauses, or exceptions and conditions which deceptively affect the risk purported to be assumed in the general coverage of the contract;

(3)    Has any title, heading, or provision which is misleading;

(4)    Is printed or otherwise reproduced illegibly.

Source: SL 1966, ch 111, ch 22, § 14.

58-11-22. Identification of contracts issued and forms filed with director--Change in form.

All policies and annuity contracts issued, and the forms thereof filed with the director, shall have printed thereon an appropriate designating letter or figure, or combination thereof identifying the respective forms of policies or contracts. Whenever any change is made in any such form, the designating letters, figures, or terms thereon shall be correspondingly changed.

Source: SL 1966, ch 111, ch 22, § 16 (4).

58-11-23. Execution of policy by authorized representative of insurer.

Every insurance policy shall be executed in the name of and on behalf of the insurer by its officer, attorney in fact, employee, or representative duly authorized by the insurer.

Source: SL 1966, ch 111, ch 22, § 20 (1).

58-11-24. Facsimile signature used on policy.

A facsimile signature of any such executing individual may be used in lieu of an original signature.

Source: SL 1966, ch 111, ch 22, § 20 (2).

58-11-25. Unauthorized facsimile signature does not invalidate policy--Estoppel by issuance of surety bond with facsimile signature.

No insurance contract heretofore or hereafter issued and which is otherwise valid shall be rendered invalid by reason of the apparent execution thereof on behalf of the insurer by the imprinted facsimile signature of an individual not authorized so to execute as of the date of the policy.

Any company which issues a bond as surety with facsimile signature under the law of this state shall, in any proceeding to enforce the liability which it has assumed to incur, be estopped to deny its corporate power to execute such instrument or assume such liability.

Source: SL 1966, ch 111, ch 22, § 20 (3); SL 1980, ch 170, § 2.

58-11-26. Underwriters' policy--Joint and several liability--True name of insurer.

Two or more authorized insurers may, with the director's approval, jointly issue, and shall be jointly and severally liable on, an underwriters' policy bearing their names. Any one insurer may issue policies in the name of an underwriter's department and such policy shall plainly show the true name of the insurer.

Source: SL 1966, ch 111, ch 22, § 21 (1).

58-11-27. Combination policy--Contents.

Two or more insurers may, with the approval of the director, issue a combination policy which shall contain provisions substantially as follows:

(1)    That the insurers executing the policy shall be severally liable for the full amount of any loss or damage, according to the terms of the policy, or for specified percentages or amounts thereof, aggregating the full amount of insurance under the policy; and

(2)    That service of process, or of any notice or proof of loss required by such policy, upon any of the insurers executing the policy, shall constitute service upon all such insurers.

Source: SL 1966, ch 111, ch 22, § 21 (2).

58-11-28. Underwriters' and combination policies provisions do not apply to cosurety obligations.

Sections 58-11-26 and 58-11-27 shall not apply to cosurety obligations.

Source: SL 1966, ch 111, ch 22, § 21 (3).

58-11-29. Binders or other contracts for temporary insurance--Terms--Fraudulent statement as misdemeanor.

Binders or other contracts for temporary insurance may be made orally or in writing, and shall be deemed to include all the usual terms of the policy as to which the binder was given together with such applicable endorsements as are designated in the binder, except as superseded by the clear and express terms of the binder. Any insurance producer or surplus lines broker who knowingly makes any false or fraudulent material statement on a binder, certificate of insurance, or other document offered as proof of insurance is guilty of a Class 1 misdemeanor for each offense.

Source: SL 1966, ch 111, ch 22, § 24 (1); SL 1990, ch 394; SL 2001, ch 286, § 102.

58-11-30. Duration of binder.

No binder shall be valid beyond the issuance of the policy with respect to which it was given, or beyond ninety days from its effective date, whichever period is the shorter.

Source: SL 1966, ch 111, ch 22, § 24 (2).

58-11-31. Extension or renewal of binder--Approval of director.

If the policy has not been issued a binder may be extended or renewed beyond such ninety days with the written approval of the director, or in accordance with such rules and regulations relative thereto as the director may promulgate.

Source: SL 1966, ch 111, ch 22, § 24 (3).

58-11-32. Binder provisions do not apply to life or health insurance.

Sections 58-11-29 to 58-11-31, inclusive, shall not apply to life or health insurances.

Source: SL 1966, ch 111, ch 22, § 24 (4).

58-11-33. Delivery of policy--Payment of premium--Insured not meeting condition required by insurer.

Subject to the insurer's requirements as to payment of premium, every policy shall be mailed or delivered to the insured or to the person entitled thereto within a reasonable period of time after its issuance except where a condition required by the insurer has not been met by the insured.

Source: SL 1966, ch 111, ch 22, § 25 (1).

58-11-34. Insurance of motor vehicle sales contracts, copy of policy delivered to vendee, mortgagor, or pledgor, contents--Inapplicable to inland marine floater policies.

In event the original policy is delivered or is so required to be delivered to or for deposit with any vendor, mortgagee, or pledgee of any motor vehicle, and in which policy any interest of the vendee, mortgagor, or pledgor in or with reference to such vehicle is insured, a duplicate of such policy setting forth the name and address of the insurer, insurance classification of vehicle, type of coverage, limits of liability, premiums for the respective coverages, and duration of the policy, or memorandum thereof containing the same such information, shall be delivered by the vendor, mortgagee, or pledgee to each such vendee, mortgagor, or pledgor named in the policy or coming within the group of persons designated in the policy to be so included. If the policy does not provide coverage of legal liability for injury to persons or damage to the property of third parties, a statement of such fact shall be printed, written, or stamped conspicuously on the face of such duplicate policy or memorandum. This section does not apply to inland marine floater policies.

Source: SL 1966, ch 111, ch 22, § 25 (2).

58-11-35. Renewal or extension of policy at option of insurer.

Any insurance policy terminating by its terms at a specified expiration date and not otherwise renewable, may be renewed or extended at the option of the insurer and upon a currently authorized policy form and at the premium rate then required therefor, for additional periods by certificate or by endorsement of the policy, and without requiring the issuance of a new policy.

Source: SL 1966, ch 111, ch 22, § 26.

58-11-36. Assignment of policies.

A policy may be assignable or not assignable, as provided by its terms. Subject to its terms relating to assignability, any life or health policy, whether heretofore or hereafter issued, under the terms of which the beneficiary may be changed upon the sole request of the insured or owner, may be assigned either by pledge or transfer of title, by an assignment executed by the insured or owner alone and delivered to the insurer, whether or not the pledgee or assignee is the insurer. Any such assignment shall entitle the insurer to deal with the assignee as the owner or pledgee of the policy in accordance with the terms of the assignment, until the insurer has received at its home office written notice of termination of the assignment or pledge, or written notice by or on behalf of some other person claiming some interest in the policy in conflict with the assignment.

Source: SL 1966, ch 111, ch 22, § 27.

58-11-37. Policy not complying with statutory form--Validity--Construction.

A policy delivered or issued after June 30, 1966, for delivery to any person in this state in violation of this title, but otherwise binding on the insurer, shall be held valid, but shall be construed as provided in this title.

Source: SL 1966, ch 111, ch 22, § 22 (1).

58-11-38. Policy, rider, or endorsement containing condition, omission or provision not in compliance with requirements--Validity--Construction.

Any insurance policy, rider, or endorsement issued after June 30, 1966, and otherwise valid which contains any condition, omission or provision not in compliance with the requirements of this title, shall not be thereby rendered invalid but shall be construed and applied in accordance with such conditions and provisions as would have applied had such policy, rider, or endorsement been in full compliance with this title.

Source: SL 1966, ch 111, ch 22, § 22 (2).

58-11-39. Construction of insurance contract--Terms and conditions--Modification by rider, endorsement, or application made part of policy.

Every insurance contract shall be construed according to the entirety of its terms and conditions as set forth in the policy and as amplified, extended, or modified by any rider, endorsement, or application lawfully made a part of the policy.

Source: SL 1966, ch 111, ch 22, § 23.

58-11-40. Application for life or health insurance as evidence--Annuity contract--Copy made a part of policy--Inapplicable to industrial life policy.

No application for the issuance of any life or health insurance policy or annuity contract shall be admissible in evidence in any action relative to such policy or contract, unless a true copy of the application was attached to or otherwise made a part of the policy or contract when issued. This provision shall not apply to industrial life insurance policies.

Source: SL 1966, ch 111, ch 22, § 11 (1).

58-11-41. Application for reinstatement or renewal of life or health insurance--Copy requested by insured--Effect of noncompliance by insurer.

If any policy of life or health insurance delivered in this state is reinstated or renewed, and the insured or the beneficiary or assignee of the policy makes written request to the insurer for a copy of the application, if any, for such reinstatement or renewal, the insurer shall, within thirty days after receipt of such request at its home office, deliver or mail to the person making such request a copy of such application reproduced by any legible means. If such copy is not so delivered or mailed after having been so requested, the insurer shall be precluded from introducing the application in evidence in any action or proceeding based upon or involving the policy or its reinstatement or renewal. In the case of such a request from a beneficiary, the time within which the insurer is required to furnish a copy of such application shall not begin to run until after receipt of evidence satisfactory to the insurer of the beneficiary's vested interest in the policy or contract.

Source: SL 1966, ch 111, ch 22, § 11 (2).

58-11-42. Alteration of application for life or health insurance--Written consent of applicant--Insertions by insurer.

No alteration of an application for any life or health insurance policy shall be made by any person other than the applicant without the applicant's written consent. However, insertions may be made by the insurer, for administrative purposes only, in such manner as to indicate that such insertions are not to be ascribed to the applicant. Any change to an application for administrative purposes is an addition to an application made in conjunction with the processing of the application and does not include the altering of coverage amounts, types, options selected by the applicant, or the altering of any other information provided by the applicant.

Source: SL 1966, ch 111, ch 22, § 10; SL 2012, ch 243, § 1.

58-11-43. Application for insurance other than life or health--Use as evidence--Failure to furnish copy to insured.

As to kinds of insurance other than life or health insurance, no application for insurance signed by or on behalf of the insured shall be admissible in evidence in any action between the insured and the insurer arising out of the policy so applied for, if the insurer has failed, at expiration of thirty days after receipt by the insurer of written demand therefor by or on behalf of the insured, to furnish to the insured a copy of such application reproduced by any legible means.

Source: SL 1966, ch 111, ch 22, § 11 (3).

58-11-44. Application for insurance or annuity--Statements by insured deemed representations--Omissions, concealment, and incorrect statements preventing recovery.

All statements and descriptions in any application for an insurance policy, certificate, or annuity contract, by or on behalf of the insured or annuitant, shall be deemed to be representations and not warranties. No misrepresentation, omission, concealment of fact, or incorrect statement prevents a recovery under the policy or contract unless:

(1)    Fraudulent or an intentional misrepresentation of a material fact; or

(2)    Material either to the acceptance of the risk, or to the hazard assumed by the insurer; or

(3)    The insurer in good faith would either not have issued the policy or contract, or would not have issued it at the same premium rate, or would not have issued a policy or contract in as large an amount, or would not have provided coverage with respect to the hazard resulting in the loss, if the true facts had been made known to the insurer as required either by the application for the policy or contract or otherwise.

With respect to any health insurance policy or certificate, subdivisions (2) and (3) of this section only apply to excepted benefits.

No applicant, insured, or annuitant may be asked to warranty or certify whether or not the applicant, insured, or annuitant is insurable.

Source: SL 1966, ch 111, ch 22, § 12; SL 2011, ch 214, § 1.

58-11-44.1. Unanswered questions no basis for denial of recovery unless insurer demanded answers.

Questions on an application for a life or health insurance policy or annuity contract which are not answered shall not serve as a basis for denying recovery pursuant to subdivisions 58-11-44(1) to (3), inclusive, unless the insurer challenges the same and demands an answer within ninety days from receipt of the application.

Source: SL 1974, ch 310.

58-11-44.2. Requests for information and actions based on applicant's failure to meet insurer's underwriting requirements permissible.

Nothing in § 58-11-44 prohibits an insurer or an insurer's representative from:

(1)    Requesting information from an applicant for the purpose of determining that applicant's insurability; or

(2)    Underwriting an application or declining coverage based upon that applicant's failure to meet the insurer's underwriting requirements.

Source: SL 2011, ch 214, § 2.

58-11-45. Cancellation and nonrenewal of automobile policy or coverage--Definition of terms.

Terms used in §§ 58-11-46 to 58-11-54, inclusive, mean:

(1)    "Automobile collision coverage," includes all coverage of loss or damage to an automobile insured under the policy resulting from collision or upset;

(2)    "Automobile liability coverage," includes only coverage of bodily injury and property damage liability, medical payments, and uninsured motorists' coverage;

(3)    "Automobile physical damage coverage," includes all coverage of loss or damage to an automobile insured under the policy except loss or damage resulting from collision or upset;

(4)    "Nonpayment of premium," failure of the named insured to discharge when due any of the insured's obligations in connection with the payment of premiums on a policy, or any installment of the premium, whether the premium is payable directly to the insurer or its insurance producer or indirectly under any premium finance plan or extension of credit;

(5)    "Policy," an automobile liability, automobile physical damage, or automobile collision policy, or any combination thereof, delivered or issued for delivery in this state, insuring a single individual or husband and wife resident of the same household, as named insured, and under which the insured vehicles therein designated are of the following types only:

(a)    A motor vehicle of the private passenger or station wagon type that is not used as a public or livery conveyance for passengers, nor rented to others; or

(b)    Any other four-wheel motor vehicle with a load capacity of fifteen hundred pounds or less which is not used in the occupation, profession, or business of the insured;

However, §§ 58-11-46 to 58-11-54, inclusive, do not apply (i) to any policy issued under an automobile assigned risk plan, or (ii) to any policy insuring more than four automobiles, or (iii) to any policy covering garage, automobile sales agency, repair shop, service station, or public parking place operation hazards;

(6)    "Renewal" or "to renew," the issuance and delivery by an insurer of a policy replacing at the end of the policy period a policy previously issued and delivered by the same insurer, or the issuance and delivery of a certificate or notice extending the term of a policy beyond its policy period or term. However, any policy with a policy period or term of less than six months shall for the purpose of §§ 58-11-46 to 58-11-54, inclusive, be considered as if written for a policy period or term of six months. Moreover, any policy written for a term longer than one year or any policy with no fixed expiration date, shall for the purpose of §§ 58-11-46 to 58-11-54, inclusive, be considered as if written for successive policy periods or terms of one year, and such policy may be terminated at the expiration of any annual period upon giving sixty days' notice of cancellation prior to such anniversary date, and the cancellation is not subject to any other provisions of §§ 58-11-46 to 58-11-54, inclusive.

Source: SL 1968, ch 138, § 1; SL 1974, ch 311, § 1; SL 2001, ch 286, § 103.

58-11-45.1. Reporting agencies and persons listed with director.

The director of the Division of Insurance may require companies issuing policies to which §§ 58-11-45 to 58-11-54, inclusive, are applicable to file with him the names and addresses of reporting agencies or persons of the nature described in § 58-11-45.3 and the geographical areas for which these reporting agencies or persons provide such service.

Source: SL 1970, ch 270, § 1.

58-11-45.2. Applicant for liability insurance not to be prejudiced by false reports.

No applicant for insurance seeking a policy for coverage of a motor vehicle as that term is defined in subdivision 58-11-45(5) shall be disadvantaged in his attempt to secure proof of financial responsibility required by chapter 32-35 by reason of any false, mistaken, or malicious report given to an insurer and by it considered in connection with his application.

Source: SL 1970, ch 270, § 1.

58-11-45.3. Informant to be identified if insurance refused--Violation as misdemeanor.

If an applicant for such insurance has made a full disclosure to the insurance producer of the insurer in response to the insurance producer's inquiry and the application is tendered with premium, the insurer, if it fails or refuses to issue the policy based upon information other than the insurance producer's recommendation, shall notify the insurance producer and the applicant of the name and location of the person or agency upon which such insurer relied as a basis for its failure or refusal to insure. Any violation of this section is a Class 2 misdemeanor.

Source: SL 1970, ch 270, § 1; SL 1978, ch 359, § 2; SL 2001, ch 286, § 104.

58-11-46. Notice of cancellation of automobile policy--Reasons for cancellation.

A notice of cancellation of a policy shall be effective only if it is based on one or more of the following reasons:

(1)    Nonpayment of premium;

(2)    The driver's license or motor vehicle registration of the named insured or of any other operator who either resides in the same household or customarily operates an automobile insured under the policy has been under suspension or revocation during the policy period or, if the policy is a renewal, during its policy period or the one hundred eighty days immediately preceding its effective date; or

(3)    For any person who is insured based upon participation in the 24/7 sobriety program and who is no longer a participant in the 24/7 sobriety program due to noncompliance with the 24/7 sobriety program.

This section shall not apply to nonrenewal.

Source: SL 1968, ch 138, § 2 (A), (D); SL 2009, ch 260, § 1.

58-11-47. Reasons for cancellation not applicable to automobile policy in effect less than sixty days--Application of notice provisions to policies.

The provisions of § 58-11-46 do not apply to any policy or coverage that has been in effect less than sixty days at the time notice of cancellation is mailed or delivered by the insurer unless it is a renewal policy. The notice provisions of § 58-11-49 apply to any policy for which notice to cancel is given prior to sixty days from the policy effective date. A policy that has been in effect for less than sixty days may be cancelled for any reason if the notice is given prior to the expiration of sixty days from the policy effective date.

Source: SL 1968, ch 138, § 2 (B); SL 2004, ch 298, § 1.

58-11-48. Modification of automobile physical damage coverage not deemed cancellation.

Modification of automobile physical damage coverage by the inclusion of a deductible not exceeding one hundred dollars shall not be deemed a cancellation of the coverage or of the policy.

Source: SL 1968, ch 138, § 2 (C).

58-11-49. Time for mailing or delivery of notice of cancellation of automobile policy--Provision for statement of reason for cancellation.

No notice of cancellation of an insurance policy specified in § 58-11-46 is effective unless mailed or delivered by the insurer to the named insured at least twenty days before the effective cancellation date. However, if cancellation is for nonpayment of premium the insurer shall mail or deliver notice of cancellation with the reason for cancelling at least twenty days before the effective cancellation date. Unless the reason for cancelling accompanies or is stated in the notice of cancellation, the notice of cancellation shall state or be accompanied by a statement that the insured may receive the reason for cancellation if he mails or delivers a written request to the insurer.

This section does not apply to nonrenewal.

Source: SL 1968, ch 138, § 3; SL 1983, ch 372, § 2.

58-11-50. Request of insured for reason for cancellation.

Where the reason for cancellation does not accompany or is not included in the notice of cancellation, the insurer shall upon written request of the named insured, mailed or delivered to the insurer not less than fifteen days prior to the effective date of cancellation, specify in writing the reason for such cancellation. Such reason shall be mailed or delivered to the named insured within five days after receipt of such request.

Source: SL 1968, ch 138, § 7.

58-11-51. Notice of nonrenewal of automobile policy--Time for notice--Exceptions to requirement for notice--Renewal not waiver of grounds for cancellation.

No insurer may fail to renew a policy unless the insurer mails or delivers to the named insured, at the address shown in the policy, at least sixty days' advance notice of the intention not to renew. This section does not apply:

(1)    If the insurer has manifested its willingness to renew;

(2)    If the policyholder is transferred to an insurer that is a member of the same insurance group as the previous insurer and notice of such transfer is given in the form adopted by rule by the Division of Insurance pursuant to chapter 1-26; nor

(3)    In case of nonpayment of premium. However, notwithstanding the failure of an insurer to comply with this section, the policy shall terminate on the effective date of any other insurance policy with respect to any automobile designated in both policies.

Renewal of a policy does not constitute a waiver or estoppel with respect to grounds for cancellation which existed before the effective date of such renewal.

Source: SL 1968, ch 138, § 4; SL 1974, ch 311, § 2; SL 2000, ch 238, § 1.

58-11-52. Proof of notice of cancellation or nonrenewal of automobile policy or coverage.

Proof of mailing of notice of cancellation, or of intention not to renew or of reasons for cancellation, to the named insured at the address shown in the policy, shall be sufficient proof of notice.

Source: SL 1968, ch 138, § 5.

58-11-53. Notice of eligibility for assigned risk plan on cancellation or nonrenewal of automobile liability insurance.

When a policy of automobile liability insurance is canceled, other than for nonpayment of premium, or in the event of failure to renew a policy of automobile liability insurance to which § 58-11-51 applies, the insurer shall notify the named insured of his possible eligibility for automobile liability insurance through the automobile liability assigned risk plan. Such notice shall accompany or be included in the notice of cancellation or the notice of intent not to renew.

Source: SL 1968, ch 138, § 6.

58-11-54. Director or insurer not liable for statements as to reasons for cancellation or refusal of automobile coverage.

No liability on the part of and no cause of action of any nature may arise against the director of the Division of Insurance or against any insurer, its authorized representative, its insurance producers, its employees, or any firm, person, or corporation furnishing to the insurer information as to reasons for cancellation, for any statement made by any of them in any written notice of cancellation, notice of nonrenewal, or statement in their notice of refusal to insure, or in any other communication, oral or written specifying the reasons for cancellation, nonrenewal, or refusal to insure, or the providing of information pertaining thereto, or for statements made or evidence submitted at any hearings conducted in connection therewith.

Source: SL 1968, ch 138, § 8; SL 1970, ch 270, § 2; SL 2001, ch 286, § 105.

58-11-55. Discrimination in issuance or renewal of automobile insurance policy as misdemeanor--Exceptions.

Except as provided in §§ 58-11-55.1 and 58-11-55.2, no insurer may refuse to issue or to renew a policy or certificate solely because of the age, residence, race, color, creed, national origin, ancestry, occupation, or marital status of the applicant or the insured. Violation of this section is a Class 2 misdemeanor. Nothing in this section requires an insurer to issue or renew a policy or certificate to a person who is not a resident of this state.

Source: SL 1968, ch 138, § 9 as added by SL 1969, ch 139; SL 1978, ch 359, § 2; SL 1997, ch 287, § 1; SL 2002, ch 235, § 2.

58-11-55.1. Use of age or occupation in determining issuance or renewal of policies.

An insurer may use age in determining whether to issue or renew life, health, or annuity policies. An insurer may use occupation in determining whether to issue or renew a life or disability policy.

Source: SL 1997, ch 287, § 2.

58-11-55.2. Applicability of § 58-11-55.

Except as provided by §§ 58-15-45 and 58-11-55.1, § 58-11-55 applies to all types of insurance issued by all insurers under Title 58. However, nothing in § 58-11-55 may be construed as applying to or affecting the right of any fraternal benefit society subject to chapter 58-37A to determine its eligibility requirements for membership or be construed as applying to or affecting the offering of benefits exclusively to members or persons eligible for membership in the society by a subsidiary corporation or an affiliated organization of the society.

Source: SL 1997, ch 287, § 3.

58-11-55.3. Promulgation of rules to prevent unfair discrimination.

The director may promulgate rules for the purpose of preventing unfair discrimination pursuant to § 58-11-55. The rules may include definition of terms, identification of general practices or nonrenewal guidelines used by insurers which would violate or be in compliance with § 58-11-55, and application practices which violate § 58-11-55. In considering the adoption of any rule pursuant to this section, the director shall consider how the rule may serve to implement the purpose of preventing unfair discrimination as prohibited by § 58-11-55 and how the rule may impact the availability and price of insurance in this state.

Source: SL 1997, ch 287, § 4.