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South Dakota law

Insurance Disputes Laws in South Dakota.

South Dakota insurance law includes the Unfair Claims Settlement Practices provisions (SDCL § 58-33-5 et seq.). South Dakota recognizes common-law first-party bad faith based on the implied covenant of good faith and fair dealing. Punitive damages available for egregious conduct. SD Division of Insurance (within the Department of Labor and Regulation) regulates insurers. South Dakota auto insurance is tort-based with mandatory minimum liability coverage.

Last verified: 2026-04-17

State law

Key South Dakota Statutes

Common-Law First-Party Bad FaithChampion v. United States Fidelity & Guaranty Co., 399 N.W.2d 320 (S.D. 1987)

South Dakota recognizes first-party bad faith based on breach of implied covenant of good faith and fair dealing.

Unfair Claims Settlement PracticesSDCL § 58-33-5 et seq.

Prohibits specific unfair claim settlement practices.

Uninsured / Underinsured MotoristSDCL § 58-11-9

South Dakota requires UM coverage; UIM offered but may be rejected in writing.

State law

Official Sources

Not Legal Advice

This page summarizes publicly available statutes and rules for informational purposes only. It does not constitute legal advice, and no attorney-client relationship is created by viewing this content. Laws change — always verify with the primary source or consult a licensed attorney in South Dakota.

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