South Dakota insurance laws

Living Organ Donor Insurance Protection

Prohibits insurers from declining or limiting life, disability, or long-term care insurance policies based solely on an individual's status as a living organ donor. Prevents discrimination in pricing and coverage amounts unless there is additional actuarial risk.

Living organ donors are protected from insurance discrimination, expanding access to life, disability, and long-term care coverage for donors.

Public Improvement Contractor Workers Compensation Verification

Authorizes purchasing agencies to verify and monitor workers' compensation insurance coverage obtained by public improvement contractors. Allows agencies to request documentation of premium payments, subcontractor lists, and payroll records to prevent workers' compensation fraud.

Public agencies gain authority to verify contractor workers compensation coverage, reducing fraud and ensuring worker protection on public projects.

Health Insurance Preauthorization and Gold Carding

Establishes a gold carding system exempting high-performing health care providers from preauthorization requirements. Requires insurers to evaluate providers every 12 months and grant exemptions for specific services with 90% approval rates. Mandates peer-to-peer discussions before issuing adverse determinations.

High-performing providers are exempted from preauthorization burdens, reducing administrative costs and accelerating patient access to care.

Effective: 2025-07-01

Health Care Sharing Arrangement Disclosure Requirements

Creates requirements for health care sharing arrangements to submit annual financial and appeals information to the state. Mandates detailed disclosures to participants before enrollment regarding out-of-pocket expenses, lack of guaranteed reimbursement, and appeals procedures. Authorizes civil penalties up to $100 per day per individual for non-compliance.

Consumers receive greater transparency about health care sharing arrangements, with state oversight ensuring financial accountability and disclosure compliance.

Interstate Insurance Product Regulation Compact

Makes South Dakota a member of the Interstate Insurance Product Regulation Compact, creating a central clearinghouse for review and approval of insurance products. Establishes uniform standards for annuities, life, disability income, and long-term care insurance. South Dakota opts out of uniform standards for long-term care and disability income to preserve existing state requirements.

Insurers benefit from streamlined multi-state product approvals while South Dakota retains flexibility to maintain stricter standards for certain products.