The House Judiciary Committee passed a bill that establishes consumer protection standards for insurance claim practices. House Bill 1054 is part of a package of legislation. It’s one result of a review of the Department of Labor and Regulation’s procedures for consumer complaints. Larry Deiter is an Assistant Director with the department’s Division of Insurance. He says the bill creates minimum standards similar to those already in place in most other states.
“We will be able to resolve more consumer issues, close more files, provide additional consumer protection, and hold bad actors more accountable with this legislation,” Deiter says. “House Bill 1054 protects South Dakota consumers. It protects them from companies that knowingly misrepresent information, it protects them from insurers who fail to acknowledge communication with them, it protects and provides for the prompt investigation and settlement of claims, and it provides protection from insurers who do not properly investigate, or who deny claims without a proper investigation.”
Many insurers support the bill. One opponent says the legislation is too broad. Lawmakers voted unanimously to pass the bill, along with two other bills in the package.