As just reported by the Insurance Journal, a South Dakota legislative panel has approved a package aimed at giving people better protection against unfair practices by insurance companies.
The proposals were drafted at Gov. Dennis Daugaard’s request after reports that an insurance company had harmed some customers who held policies for long-term care.
Note: A state review found current laws fall short of providing adequate protection against unfair handling of claims by insurance companies.
I have been preaching for awhile that state protection practices for unwarranted claims delay and denial tactics are weak, and have cited it as one of the primary reasons the Legal Funding (aka Lawsuit Lending) industry exists. Yeah for South Dakota for acknowledging the issue.
State Insurance Director Merle Scheiber said, “contrary to the belief of most South Dakota consumers, these laws do not exist today.”
A second bill approved by the committee would allow the insurance division to disclose more information about actions it has taken against insurance companies. Another would allow the division to impose penalties without an insurance company’s agreement.
So the current practice is that any penalties assessed by the State have to be agreed to by the offending insurance company?
The full article can be found here:
http://www.insurancejournal.com/...