CHAPTER 281
(HB 1094)
Group personal property insurance, certain provisions revised.
ENTITLED, An Act to
revise certain provisions relating to credit card coverages of group personal
property.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section
1.
That
§
58-19-1
be amended to read as follows:
58-19-1.
The purpose of this chapter is to promote the public welfare by regulating credit life
insurance, credit health insurance,
and
credit unemployment insurance
, and credit property including
group personal property coverages authorized through credit cards
. Nothing in this chapter is
intended to prohibit or discourage reasonable competition. The provisions of this chapter shall be
liberally construed.
Section
2.
That
§
58-19-2
be amended to read as follows:
58-19-2.
Terms used in this chapter mean:
(1)
"Credit health insurance," insurance on a debtor to provide indemnity for payments
becoming due on a specific loan, lease, or other credit transaction while the debtor is
disabled as defined in the policy;
(2)
"Credit life insurance," insurance on the life of a debtor pursuant to or in connection with
a specific loan, lease, or other credit transaction;
(3)
"Creditor," the lender of money or vendor or lessor of goods, services, or property,
rights or privileges, for which payment is arranged through a credit transaction, or any
successor to the right, title, or interest of any such lender, vendor, or lessor, and an
affiliate, associate, or subsidiary of any of them or any director, officer, or employee of
any of them or any other person in any way associated with any of them;
(4)
"Debtor," a borrower of money or a purchaser or lessee of goods, services, property,
rights, or privileges for which payment is arranged through a credit transaction;
(5)
"Indebtedness," the total amount payable by a debtor to a creditor in connection with a
loan, lease, or other credit transaction
;
(6) "Group property insurance authorized by credit card," forms of property insurance
issued on a group basis covering:
(a) Loss of or damage to personal property, other than loss of use or loss resulting
from a defect in materials or workmanship, where such personal property is
purchased using a credit card;
(b) Loss of, damage to or loss of use of personal property resulting from a defect in
materials or workmanship, where the personal property is purchased using a
credit card and is under warranty;
(c) Loss of or damage to a lease or rented motor vehicle, that is intended to be rented
or leased for a period of ninety consecutive days or less, where the lease or rental
fee is paid using a credit card;
(d) Loss of, or damage to or loss of use of baggage and its contents while in transit,
where the cost of travel or accommodations is paid using a credit card;
(e) Loss of damage to or loss of use of personal property occurring in connection
with use of a leased or rented motor vehicle, which motor vehilce is intended to
be rented or leased for a period of ninety consecutive days or less, where the lease
or rental fee is paid using a credit card;
(f) Loss incurred in connection with the unauthorized use of a credit card; or
(g) Such other forms of property insurance that are authorized by the director of the
Division of Insurance by rule promulgated pursuant to chapter 1-26 and
determined to be appropriate for issuance on a group basis
.
Section
3.
That chapter
58-19
be amended by adding thereto a NEW SECTION to read as
follows:
Any group property insurance authorized by credit card is subject to the provisions of this
chapter to the extent such provisions are not inconsistent with the specific provisions of
§
§
58-19-
48 to 58-19-50, inclusive.
Section
4.
That chapter
58-19
be amended by adding thereto a NEW SECTION to read as
follows:
Group property insurance authorized by credit card shall be sold separately and shall be
separately priced from any other insurance offered or sold at the same time unless it is included as
part of an insurance offering provided to the debtor through the use of a credit card purchase of
goods or services. Group property insurance authorized by credit card may not be required as a
condition for the issuance or renewal of a credit card.
Section
5.
That chapter
58-19
be amended by adding thereto a NEW SECTION to read as
follows:
All group property insurance authorized by credit card insurance policies, certificates of
insurance, notices of proposed insurance, applications for insurance, endorsements and riders
delivered or issued for delivery in this state and the schedules of premium rates pertaining thereto
shall be filed with the director.
Section
6.
That chapter
58-19
be amended by adding thereto a NEW SECTION to read as
follows:
Within thirty days after the filing of any group property insurance authorized by credit card
insurance policy, certificate of insurance, notice of proposed insurance, application for insurance,
endorsement or rider, the director shall disapprove any such form if the premium rates charged or
to be charged are excessive in relation to benefits, or if such form contains provisions which are
unjust, unfair, inequitable, misleading, deceptive, or encourage misrepresentation of the insurance,
or are contrary to any provision of this title. If such filing is not disapproved by the director within
this thirty-day period, it shall be deemed approved.
Signed February 28, 2001.