The South Dakota legislature recently passed Senate Bill 44 creating a file-and-use system for insurance rates in that state, according to the American Insurance Association.
“The South Dakota Legislature took a significant step toward fully modernizing insurance regulation with the passage of SB 44,” said Steve Schneider, AIA vice president, Midwest Region. “This should encourage insurers to bring more new products to market faster and improve the competitive environment for consumers.”
Introduced at the request of the Department of Revenue & Regulation, which houses the Division of Insurance and strongly supported by AIA, Senate Bill 44 eliminates the 30-day minimum waiting period for each rate filing by an insurer. The director of insurance maintains the ability to reject rates that do not meet statutory requirements.
“Moving to a file-and-use system of rate regulation puts South Dakota in the mainstream of states and consumers will continue to enjoy the same strong protections they did before,” added Schneider.
The bill now goes to Gov. Mike Rounds for his signature.
According to the South Dakota Bureau of Finance & Management, in fiscal year 2004, insurers paid more than $51 million in premium and other taxes, the second highest level of any industry in the state. Additionally, insurance and financial services are the state’s “leading industry,” accounting for 17 percent of the state’s gross state product.
For a copy of the bill go to http://legis.state.sd.us/sessions/2006/bills/SB44HCO.htm
Topics Legislation
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