South Dakota Overview
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Mark A. from Miami, FL
April 8, 2011
South Dakota is located in the Midwestern part of the US. It was earlier a part of the Dakota Territory and was considered a separate state on November 2, 1889. The capital city of South Dakota is Pierre, whereas the largest city is Sioux Falls. Over the past few decades, South Dakota has transformed itself from being an agro-based economy to a more diversified economy.
When planning to purchase a life insurance policy, it is better to make yourself familiar with the basic rules and regulations about South Dakota life insurance policy.
South Dakota Life Insurance Laws and Regulations:
The life insurance industry in South Dakota is regulated as per the Title 58 of the South Dakota Codified Laws. These laws mention and describe the policy requirements and claims procedure for the protection and benefit of the consumer (insured people).
One of the consumer protection measures is the existence of the 10-day â€˜free-lookâ€™ provision that is mandatory for all the South Dakota insurance providers to carry. During this 10-day period, if the new life insurance policy holder opts to decline the policy coverage, the insurance provider will have to provide the full premium refund. However, some insurance providers offer a 30-day period. Hence, itâ€™s necessary for you to check the terms and conditions of your policy before purchasing it.
The insurance laws of South Dakota also make it obligatory for the life insurance companies to settle the life insurance claims within a couple of months of receiving the policy holderâ€™s proof of death.
Also, the South Dakota life insurance law makes it necessary for the insurance providers to safeguard the personal information of the policy holders. Thus, your South Dakota life insurance provider is prohibited from disclosing your medical information to other insurers and is obligated to honor your requests for medical information.
South Dakota life insurance law also offers some benefits to the insurance providers. If an insurance provider discovers that you have misrepresented your age or any other personal information, it can terminate your policy without even honoring your claims.
South Dakota Life Insurance Guarantee:
Licensed insurance providers in South Dakota are required to pay a certain amount of annual fees to the South Dakota Life and Health Insurance Guarantee Association- formed to safeguard the insurance consumers by assisting them in covering lost policies through insurance company insolvency. In South Dakota, the compensation that beneficiaries of the policy holder can get after his/ her death is limited to $300,000. This rule applies even if the policy holder has obtained multiple policies having a higher total coverage.