South Dakota Insurance Division Warns Insurers of Pedestrian Coverage Compliance

Posted & filed under South Dakota Insurance.

Today’s post is probably only of interest to people looking for insurance rates in South Dakota, but for people who live in the state of “great faces and great places,” it’s important information, especially if they ever walk anywhere – even if it’s just across a parking lot.

According to a report in the Insurance Journal, Merle Scheiber, Director of the state’s Division of Insurance, has issued a warning to property & casualty insurance companies that their auto insurance policy forms that “restrict the types of motor vehicles for which coverage may apply when an insured is stuck as a pedestrian are invalid.”

Specifically, the Division said, SDCL 58-213-8 provides explicit coverage, “…through being struck by a motor vehicle while a pedestrian.” As well, the term “motor vehicle” is defined pretty broadly by state law (SDCL 32-35-1) as “every vehicle which is self-propelled and every vehicle which is propelled by electric power obtained from overhead trolley wires, but not operated upon rails.” Because of that, any restriction of the type of vehicle that differs from that definition is impermissible, again, according to the Division of Insurance.

Scheiber’s warning also included the reminder that claims have to be adjudicated in such a fashion as to comply with those statutes, and must comply with a state medical payments statute no matter when the accident happened, but insurance companies are not required to review claims that occurred more than five years before March 25, 2010.

In addition, Scheiber also warned that insurance companies with policy language that is not in compliance with the law must create and file a policy form that is in compliance.