The South Dakota Division of Insurance issued a reminder to insurance companies that the effective date for changes to the non-renewal notice requirements for commercial lines of insurance is on the horizon.
July 1 is the date on which the amendment to SDCL 58-1-14 goes into effect. That amendment requires insurers to provide 60 days prior notice when non-renewing commercial lines policies, including workers’ compensation and all other casualty lines, rather than 30 days. Personal lines will remain the same with 30 days prior notice.
SDCL 58-1-14 now reads: 58-1-14. Notice of refusal to renew an insurance policy as defined in §58-9-5 to 58-9-33, inclusive, is not effective unless mailed or delivered by the insurer to the named insured at least sixty days before the effective renewal date. The policy provisions control if the policy provides for a notice of refusal to renew that exceeds sixty days. This section does not apply to the cancellation and nonrenewal of automobile policies or coverages as defined in § 58-11-45 or to a policy of homeowner’s insurance. This section also does not apply to any other personal lines’ policy. A notice of refusal to renew any other personal lines policy is not effective unless mailed or delivered by the insurer to the named insured at least thirty days before the effective renewal date. A notice of nonrenewal is not required 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.
All insurance carriers that have commercial policies, endorsements or amendatory endorsements that contain the 30-day non-renewal requirement shall make an immediate filing with the insurance director showing the appropriate change or changes in such policies, endorsements or amendatory endorsements.
Carriers that have commercial policies, endorsements or amendatory endorsements that contain the 30-day non-renewal requirement shall, at the next renewal date of said policies, provide a properly amended policy or endorsement to its policyholders.