CHAPTER 296

(SB 194)

Renter damage guarantee programs exempt from insurance regulation.

         ENTITLED, An Act to  exempt certain renter damage guarantee programs from insurance regulation.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

     Section  1.  That § 58-1-3 be amended to read as follows:

     58-1-3.   No provision of this title applies with respect to:

             (1)      Fraternal benefit societies, except as stated in chapter 58-37A;

             (2)      Bail bondsmen, other than corporate sureties and their agents, except as stated in chapter 58-22;

             (3)      Motor vehicle service contracts which are contracts or agreements to perform or indemnify for a specific duration the repair, replacement, or maintenance of motor vehicles for operational or structural failure due to a defect in materials, workmanship, or normal wear and tear, with or without additional provisions for incidental payment of indemnity under limited circumstances, including towing, rental, and emergency road service. Consideration for a motor vehicle service contract shall be stated separately from the price of the motor vehicle;

             (4)      Service agreements or extended warranty plans for which the primary purpose is to provide service, repair, or replacement on consumer goods or products including appliances, merchandise, or equipment, or mechanical/electrical systems in single or multiple-family dwellings. Incidental indemnity payments under such plans where service, repair, or replacement is not feasible or economical does not void this exemption;

             (5)      Any person, trust, or other entity proven to be under the exclusive regulatory authority of the federal government or another state agency;

             (6)      Any agreement to provide liability protection entered into pursuant to chapter 1-24 is exempt from the regulatory requirements of Title 58, except to forms of insurance coverage provided by an insurer otherwise subject to the insurance laws of this state . ;

             (7)      Any church plan, as defined in section 414(e) of the Internal Revenue Code of 1986, as amended through December 31, 1999, and section (3)(33)(C)(i) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. §  1002(33)(C)(i)); or any church benefits board, as described in section 414(e)(3)(A) of the Internal Revenue Code of 1986, as amended through December 31, 1999, and section (3)(33)(C)(i) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. §  1002(33)(C)(i)) ; and

             (8)    Any damage guarantee program for renters administered by a nonprofit corporation that is recognized as an exempt organization under §  501(c)(3) of the Internal Revenue Code and whose mission is to increase the availability of affordable housing to low and moderate income tenants .

     Signed March 3, 2004. _______________

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