South Dakota Division of Insurance Director Merle Scheiber is warning property/casualty insurers that auto policy forms that restrict the types of motor vehicles for which coverage may apply when an insured is struck as a pedestrian are invalid.
Under SDCL 58-23-8, the law explicitly provides coverage “through being struck by a motor vehicle while a pedestrian,” the Department said. The term motor vehicle is broadly defined in 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.” Therefore any restriction relative to the type of motor vehicle other than contained in that definition as it relates to being struck as a pedestrian is impermissible, the Department said.
Claims must be adjudicated in compliance with the statute and must be processed in accordance with the medical payments statute regardless of when the date of loss occurred. However, insurers are not required to review any claims that occurred more than five years prior to March 25, 2010.
Insurers with policy language that does not conform to the law must make a policy form filing that is in compliance, the Department said.
Topics Auto Personal Auto
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