For Immediate Release: Thursday, March 13, 2014
Media Contact: Tony Venhuizen or Kelsey Pritchard, 605.773.3212
Governor Signs Insurance Consumer Protection Bills
PIERRE, S.D. -- Gov. Dennis Daugaard today signed House Bill 1054, "An Act to establish consumer protection standards regarding certain insurance claim practices and to provide for certain penalties."
The legislation is part of a four-bill package, proposed by the Governor, to strengthen insurance consumer protection laws.
The earlier bills, which have already been signed into law, were"
These bills define unfair claims practices and provide the Division of Insurance expanded authority to mitigate the effect of these practices on consumers.
For the first time, the Division will have the authority to impose a fine on insurance companies who violated unfair claims standards. Previously, fines could only be imposed with the consent of the insurance company. Another change allows the Division to share more information with the public about the status of unfair claims investigations.
"I appreciate the support from legislators and industry partners in passing this important reform legislation," said Gov. Daugaard. "These steps will allow consumers to have confidence in the value of their insurance plans."
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